2.1 Marketplace

ConstructionMarket

Althoughtheconstruction industryonly contributes agood5%tooverall economic value added, construction investments account for around 15% of Swiss gross domestic product. Around 330,000 full-time positions are located incivilengineering. That correspondstoathirdofallemployeesintheindustrialsector.In2020,therevenueinthe constructionsectorwere5.8percentlowerthaninthepreviousyearto19.5billionfrancs. The construction sectorisperceived as not veryinnovative in terms of materialsand construction methods. The pandemic has directly affected the construction sector less than othersectors. The Construction sites only had to be closed for a limited time in individual cases, but ongoing constructionprojects could be continued almost without delay.Becauseofthepandemic,thereisuncertaintyinthesector.Andtheinvestorswant topostponenewprojects.Thedemandforofficeandcommercialpropertyinparticularis falling significantly. The residential property construction remains stable, but significantly less more dynamic than before Covid-19. Under the Bottom line, Covid-19 coulddecreasefavourconstructionactivity.

The Construction sector involves the entire development of a building from project to demolition. This sector supports all others PropTech areas. The digitalizationis not processing in every area ofconstruction sector. By ‘digitalization’, we meanthe transformation of processes, organizational settings, and project delivery methods that need to be coupled with the adoption of digital technologiesin order to gainthe full benefits of the digitalization of the architecture,engineering, and construction industry. “TheFuture for Industrial services is DIGITAL TWIN”, asthe mentioned quote says, the nextbigrevolutionintheIndustrialsectorisgoingtobetheImplementationoftheDigital Twin Technology, which wouldmakemany processessimpler when itcomes to the Industrial services,ifit successfully achieved. The integration of sustainability building designwithBIMtechnologyhelpsthedesignerstofullygraspthewholebuildingdataand information. The distributed ledger technology can, in fact,guide a lean construction process, by reducing the industry fragmentationand complexity, making it a single trustedentity. Distributedledger technology ishereandalthoughitis at an early stage of development with manychallenges itpresents a relevant opportunity for all companies in the construction industry to emerge as more effective, transparent, andsustainable entities.

Due to the increasing number of vacant apartments, a declineinconstructionactivityis to be expected in the medium term, especially in regions with poor transport connections. Thereis great potential in the energy-efficient renovation of building parks. Thedemand for smaller residentialunits is increasing, as is the pressure for better utilization of the settlement areas incities andagglomerations. This makes replacement new buildings more important. Digital developments will change construction methods and lead to further increasesin productivity. The uncertainty andthe fearedrecession will lead in the short tomedium termto higher vacanciesin office and commercial space as well as in residential buildings. This should influence the order situation in the constructionindustryinthemediumterm.