Autodesk Report Reveals Indian Construction Companies Embrace Digital Technologies for Growth
Autodesk, in collaboration with Deloitte, has launched the second edition of its State of Digital Adoption in the Construction Industry 2024 report. The report highlights the increasing adoption of digital technologies by Indian construction companies to tackle challenges and enhance project delivery and internal processes. The survey, which includes responses from 933 construction firms across six markets, reveals the trends and investments in newer technologies.
Key Findings
Indian Construction Firms Eagerly Embrace Digital Transformation
– Indian construction companies are leading the adoption of digital technologies, surpassing their counterparts in markets like Australia, Japan, and Singapore.
– Investments in newer technologies among Indian firms account for an average of 28% of business expenditure, positioning them as the forerunners in the Asia Pacific market.
– Robotics and Automated Systems are the technology most planned for, followed by Augmented & Virtual Reality and AI & ML.
Digital Technologies Enabling Efficiency and Growth
– Indian companies are leveraging a range of new technologies, including Data Analytics, Construction Wearables, Prefabrication and Modular Construction, cloud software integration, and mobile applications, to streamline project management and improve efficiency.
Strong Favorability Towards AI & ML
– Indian businesses consider AI & ML to be crucial for boosting profitability, enhancing efficiencies, and building client relationships.
– The most anticipated benefits of AI include improved project efficiencies, reduced costs, and enhanced client relationships.
– AI use cases prioritized for delivery are profitable project identification, workflow assistance, and providing predictive insights.
Maturing Construction Sector Ready for Transformation
– The Indian construction sector’s favorable economic state and steady future outlook create a conducive environment for digital technology adoption.
– Indian companies are urged to start small, select a digital champion, track success measures, and evaluate readiness for AI integration.
Future Development Initiatives on the Horizon
– Indian construction companies are planning to introduce drones and integrate 3-D printing in their operations as part of their commitment to embracing new-age technologies.
Upskilling Workforce to Overcome Challenges
– The lack of digital skills among the workforce is a top challenge for Indian construction businesses.
– Addressing this challenge, 90% of businesses are committed to upskilling their existing workforce while 86% plan to hire new workers to fill skill gaps.
– Uncertainty about required technical skills and the expensive costs associated with technology integration are among the other concerns raised by stakeholders.
Unlocking New Opportunities
India’s construction sector is primed to play a significant role in the country’s economic growth, particularly as demand for affordable housing rises and government policies support urban infrastructure development. New technologies, including digital advancements, offer ample opportunities for construction companies in India to tap into and bolster their position within the industry.
According to David Rumbens, Partner at Deloitte Access Economics, the successful integration of technologies like AI could result in an additional profit growth of $200,000 and revenue growth of $1.4 million on average for businesses with revenues of $100 million and profits of $20 million.
Though challenges persist, including skill gaps and costs, Indian construction companies are taking proactive steps to address these obstacles. By focusing on upskilling existing workers and recruiting new staff, they are paving the way for a digitally empowered workforce that can embrace the benefits of technology.
Conclusion
The State of Digital Adoption in the Construction Industry 2024 report highlights the growing interest and adoption of digital technologies by Indian construction firms. These technologies have empowered companies to enhance project delivery, navigate industry challenges, and improve internal processes. Looking ahead, as the construction sector in India continues to mature and benefit from India’s economic growth, the integration of technology will play a consequential role in accelerating progress, driving efficiencies, and boosting profitability for businesses in the industry.
