Autodesk Collaborates with Deloitte to Release State of Digital Adoption in the Construction Industry Report
Autodesk, in collaboration with Deloitte, has announced the launch of the second edition of its “State of Digital Adoption in the Construction Industry 2024” report. This comprehensive survey examines digital adoption trends in the construction sector across six markets, including Singapore, Australia, Japan, India, Malaysia, and Hong Kong. The report highlights the increasing adoption of digital technologies by Indian construction companies and their efforts to overcome industry challenges.
Digital Technologies Transforming the Indian Construction Industry
The report reveals that Indian construction firms are embracing a wide range of digital technologies to optimize project delivery and streamline internal processes. Notably, companies in India surpass their counterparts in Australia, Japan, and Singapore in terms of investment in newer technologies. Around 28% of their business spending is directed toward integrating these technologies, providing them with a competitive edge.
Technologies Driving Growth in the Indian Construction Sector
The survey highlights the popularity of various technologies among Indian businesses. Data Analytics, Construction Wearables, Prefabrication and Modular Construction, cloud software integration, and mobile applications are being employed to improve operational efficiencies. Indian companies are particularly looking to invest in Robotics and Automated Systems, Augmented & Virtual Reality, and AI & ML to enhance their project management capabilities.
Opportunities Presented by India’s Strong Economic Outlook
India’s current economic strength and stable growth projections, as reported by the IMF, have created a favorable environment for businesses to invest in digital transformation. Indian construction companies recognize this phase as an ideal opportunity to leverage newer technologies to identify growth pockets, improve project lifecycles, and maintain their leadership in the Asia Pacific market.
Sumit Oberoi, Senior Industry Strategist, Asia Pacific at Autodesk, stated, “While challenges such as rising raw material prices and growing competition persist, India’s economic state provides a congenial atmosphere for businesses to evaluate and adopt newer technologies.” He emphasizes the need for businesses to start small, choose a digital champion, track performance metrics, and assess readiness for AI integration.
Benefits and Prioritization of AI and ML Usage
Indian businesses expect AI and ML technologies to bring significant profitability and efficiency benefits. Project efficiency improvement, reduction of project costs, and enhanced client relationships were cited as the most anticipated benefits. Companies prioritize AI use cases that help identify profitable projects, assist workflows, and provide predictive insights.
In addition to AI and ML, the report also highlights the intentions of Indian construction businesses to introduce drones and 3D printing into their operations. These emerging technologies have the potential to further improve productivity and create newer avenues for growth.
The Construction Sector’s Contribution to India’s Economy
David Rumbens, Partner at Deloitte Access Economics, notes that the Indian construction industry is set to make a significant contribution as India’s economy grows by 6.9% in the coming year. Increased demands for affordable housing and supportive government policies to boost urban infrastructure have positioned the construction sector to seize the opportunities provided by new-age construction technologies.
Profit and Revenue Growth Potential in the Integration of Digital Technologies
According to the report, successful integration of digital technologies in construction operations can lead to an additional average profit growth of $200,000 and revenue growth of $1.4 million for businesses with $100 million in revenue and $20 million in profit.
Challenges and Addressing Skill Gaps
However, integrating these technologies comes with its own set of challenges. The top challenge reported by surveyed construction businesses is a lack of digital skills among their workforce, followed by uncertainty about the required technical skills and the high costs associated with these technologies.
Indian businesses are leading the Asia Pacific region in addressing these skill gaps. 90% of respondents are upskilling existing employees, and 86% are hiring new workers.
In conclusion, the second edition of the “State of Digital Adoption in the Construction Industry” report showcases how Indian construction companies are embracing digital technologies to overcome challenges and enhance their competitiveness. By investing in upskilling and new talent acquisition, Indian businesses are positioning themselves for success in the evolving construction landscape.
