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Digitalization in the construction industry IS A SOCIO-ECONOMIC OPPORTUNITY
b y K U M A R S U B R A M A N I A , S E N I O R V P AT M A S T C O N S U LT I N G , O F F E R I N G C O N S U LT I N G , A D V I S O R Y A N D T E C H S O L U T I O N S F O R T H E CONSTRUCTION INDUSTRY
T
he construction industry enjoys a unique prominence in today’s world, stemming from the primal need for secure environments to live our lives. And it’s no wonder that an industry addressing such a basic need, currently accounts for 6% of the global GDP(1); and is poised to stake an even greater share, in the near future. Despite this, the construction industry has been somewhat averse to digital transformation, compared to other sectors. However, since the pandemic-
induced accelerated digitalization, a universal consensus around tech adoption is emerging, across the construction value chain. Proptech companies and SaaS providers are increasingly leveraging IoT sensors, cutting-edge BIM, AI, ML, drones, and AR & VR; to optimize construction activities, and unlock multi-fold positive value. Such market-driven developments are leading to accessible and affordable Proptech solutions. According to a study(2), over the next decade, digitalization in non-residential
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construction could save $0.7-1.2 trillion yearly in the early design phase, and $0.3-0.5 trillion in life-cycle operations; globally. But given construction’s huge socio-economic impact, the potential outcomes are beyond merely monetary. Enhancing operational efficiencies across the value chain Across the construction industry’s long value chain; digitalization is anything but uniform; with each vertical at a different stage of tech adoption. For instance, supply chains often lack digital tools to WWW.CBNME.COM
