Construction spending expected to top $17.5 trillion globally by 2030
Asia to offer the highest growth opportunities and generate almost two-thirds of the global investments
The construction industry is in the middle of a transition toward new business models that are technology- and data-driven, better collaboration between stakeholders, and higher productivity, a new report states.
The increasingly aging workforce and digitization are prompting greater investments in workforce management and digital solutions. By 2030, global spending in construction is expected to touch $17.5 trillion, with China, the US, and India leading the way and accounting for 57% of all global growth. More than 60% of the global infrastructure investment will be in emerging economies, particularly Asia, while the US and Canada will contribute almost 20%.
"Technological advancements in Artificial Intelligence (AI), cloud software, drones, and pre-fab construction will be leveraged to reduce cost and improve quality and speed of construction," said Chaitanya Habib, Visionary Innovation Research Consultant at Frost & Sullivan. "Smart infrastructure technologies embedded with telematics, too, will influence the future of the industry by creating an intelligent and on-demand system that reduces operational costs and augments productivity."
Frost & Sullivan's recent analysis, Future of Construction, Global, 2030, focuses on the key trends that are likely to disrupt the construction industry in the next five to 10 years. It covers the industry trends of digitization, autonomy, new business models, sustainability, as well as economic and social trends across the sectors of residential, non-residential, and infrastructure.
"Buildings and civil infrastructure will be the fastest-growing segments in emerging economies from 2018 to 2030," noted Vinay Venkatesh, Visionary Innovation Research Analyst. "Meanwhile, infrastructure investments in electricity and roads are forecast to be the highest among all sectors due to market need. By 2030, the construction industry will account for 14.7% of all global economic output, with China, India, and the US being the biggest investors."
With greater adoption of technologies, industry participants are expected to find growth opportunities in:
- Developing building information modeling (BIM) systems.
- Employing low-cost, sustainable building materials and autonomous construction equipment.
- Using drones and wearables at construction sites.
- Applying Augmented/Virtual/Mixed Reality (AR/VR/MR) in design and development.
- Leveraging smart signaling systems and predictive monitoring.
- Productizing blockchain.
- Using nanotechnology to develop smart materials for water treatment.
"Safety, which currently is a major concern in the industry, will also push the use case for automation in the industry. Autonomous machines, VR assistance and wearable safety are key technologies that are expected to see increasing adoption in the industry," concluded Habib.
Future of Construction, Global, 2030 is part of Frost & Sullivan's globalGrowth Partnership Service program.