Global Digital Construction Outlook 2024
Executive summary
The construction industry is complex and diverse. As investment in infrastructure projects grows worldwide to address the impacts of climate change, support the transition to net zero and meet the needs of a growing population, some of the issues it currently faces will deepen, such as labour and skills shortages. To overcome these barriers to delivery, digital tools and artificial intelligence (AI) are increasingly adopted to improve efficiency, productivity and safety.
In 2023, the global construction software market was valued at USD 19.4 billion, with projections showing it will reach USD 44.34 billion by 2029, growing at a compound annual growth rate (CAGR) of 14.6%. Companies like Gleeds leverage digital tools and AI worldwide to enhance project delivery and drive economic, environmental, social and governance (ESG) benefits.
Digital transformation in construction fosters better collaboration, value chain control and data-driven decision-making, improving project design, construction and operation. Technologies like digital twins, cloud-based platforms and machine learning offer cost, time and safety improvements. Even traditional technologies widely used in construction, like Excel, CAD and BIM, continue to evolve, offering improved data integration, scenario testing and collaboration.
All of Gleeds’ leaders said that digital tools and AI are effective in improving project outcomes, with benefits such as more efficient reporting and the testing of different scenarios using digital twins. These technologies streamline operations, reduce errors and optimise resources. AI improves decision-making with data-driven insights and accelerates project delivery with analysis of historical data, preventing delays and cost overruns. Digital tools can also improve quality and safety on site while also reducing labour requirements.
Whilst there is accelerating digital adoption by the global construction industry, the pace has slowed slightly. Only 12% of respondents in the 2023 RICS Digitalisation in Construction report used digital tools for all projects, the same as in 2022. The slow pace is attributed to the risk-averse and fragmented nature of the industry as well as a lack of specialist-trained personnel, demonstrating a need for greater investment in education and training.
That said, 90% of Gleeds' office leads anticipate increased investment in digital technologies and AI in their local market over the next two years. Most respondents (78%) thought augmented and virtual reality (AR/VR) would have the most significant impact on the construction industry in the next five years, for instance, by facilitating walkthroughs of projects before construction. Nearly seven in 10 of our leads saw AI (including machine learning) as transformative for the construction industry, enabling the better use of resources and data-driven insights to optimise projects.
The growing use of digital tools and AI will reshape roles within the construction industry, allowing the workforce to focus on skilled/creative tasks and collaboration. Designs will be optimised and constructed more efficiently and safely with fewer defects. These technologies offer hope to overcome long-standing industry challenges — such as low margins, high risk and negative public perceptions — ultimately showcasing the value construction brings to society.
This report explores the current landscape of digital tools and AI adoption in construction, highlighting the benefits, challenges and future developments. We also showcase our Gleeds’ solutions, which augment our services and improve project outcomes worldwide.
These technologies offer hope to overcome long-standing industry challenges — such as low margins, high risk and negative public perceptions — ultimately showcasing the value construction brings to society.
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