Indian Construction Industry Leads Asia-Pacific in Digital Transformation: Autodesk Report
The Indian construction industry is spearheading the digital revolution in the Asia-Pacific region, according to the latest findings from Autodesk’s State of Digital Adoption in the Construction Industry 2024 report, developed in collaboration with Deloitte. The comprehensive survey, which included insights from 933 construction firms across six major markets—Singapore, Australia, Japan, India, Malaysia, and Hong Kong—revealed a significant uptick in the adoption of advanced technologies by Indian companies.
The report highlights that Indian construction firms are increasingly leveraging digital tools to enhance project delivery, optimize internal processes, and mitigate challenges like rising raw material costs, stiffening competition, and increasing labor expenses. Notably, 66% of the surveyed companies have integrated Data Analytics into their operations, while 61% utilize Construction Wearables. Prefabrication and Modular Construction, cloud software, and mobile applications have also seen substantial uptake, with 57% and 55% adoption rates respectively.
Indian companies are outpacing their counterparts in other markets such as Australia, Japan, and Singapore in terms of investments in newer technologies. On average, 28% of business expenditure in India is allocated towards technological integration. Robotics and Automated Systems emerged as the top technology priority, with 50% of the surveyed firms planning their implementation, followed by Augmented & Virtual Reality (40%), and Artificial Intelligence (AI) & Machine Learning (ML) (39%).
Sumit Oberoi, Senior Industry Strategist, Asia Pacific at Autodesk, emphasized the favorable economic conditions in India, stating, “While challenges like the increasing prices of raw materials and growing competition persist in the Indian market, its current strong economic state and steady outlook for the forthcoming years, as reported by the IMF, have provided a congenial atmosphere for businesses to evaluate and adopt newer technologies. Indian businesses have aptly recognized this phase as the ideal time to leverage digital technologies to identify newer growth pockets, usher in efficiencies throughout project lifecycles and give them a competitive edge.”
The report also sheds light on the anticipated benefits of AI & ML integration. Indian construction firms expect significant profitability and efficiency gains, with 68% of respondents anticipating improved project efficiencies, 63% foreseeing cost reductions, and 60% predicting enhanced client relationships. AI use cases with the highest priority include identifying profitable projects (42%), assisting workflows (41%), and providing predictive insights (38%).
David Rumbens, Partner at Deloitte Access Economics, noted the broader economic implications, “The Indian construction sector, fueled by a surge in demand for affordable housing as well as supportive government policies to boost urban infrastructure, is poised to make a strong contribution as India’s economy grows by 6.9% over the next year, making it well equipped to seize the opportunity presented by new-age construction technologies.”
However, the report also identified significant challenges to technology integration, with 48% of Indian firms citing a lack of digital skills among the workforce as a major barrier. To address this, 90% of companies are investing in upskilling their existing workforce, while 86% are recruiting new talent.
The successful integration of these technologies is projected to add an average of $200,000 in profit and $1.4 million in revenue for businesses with $100 million in revenue and $20 million in profit. As Indian construction companies continue to embrace digital transformation, they are set to play a pivotal role in shaping the future of the industry across the Asia-Pacific region.
