Can Construction Embrace Digital Technologies?

This article is part of a blog series on BIM and construction 4.0 exploring their relevance for the construction industry.

The construction industry is traditionally not an early adopter of technology. It is encouraging to see the industry moving in the right direction. Examples are:

  • site managers use drones to monitor safety risks or to check measurements.
  • analysts moving toward connected construction to open the door to new capabilities.

Construction 4.0 market

In 2023 the global construction 4.0 market generated US$ 16.2 Billion in 2023 to reach US$ 56.6 Billion by 2032 a growth rate of 14.58% during 2024-2032.

The construction 4.0 term means digitization. It is all about connectivity to improve the way the Architects, Engineers, Construction, and Operations (AECO) industry do business. It involves the application of building information modeling (BIM), the Internet of Things (IoT), automation, robotics, artificial intelligence (AI), and data analytics to uplift efficiency, collaboration, and productivity throughout the construction lifecycle

The construction 4.0 market slowed down, during the COVID-19 lockdown, as demands for industrial robots, asset monitoring, and other applications decreased due to the interruption in building, construction, and infrastructure developments. However, the market recovered by the end of 2021.

What is construction 4.0?

The construction industry is shifting towards greater digitization. We still must agree on the definition of the construction 4.0 concept. Here are some of the definitions we think are the most relevant:

The use of connectivity technologies everywhere to help real-time decision-making.

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Finding consistent and interdependent processes using innovative technologies in the construction industry.

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Meeting the industry’s current challenges to mitigate risks and reduce costs.

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Bringing connectivity between the physical space and the digital world through Building Information Modelling (BIM).

What technologies does construction 4.0 use?

When you talk about the digitization of the AECO industry the associated technologies are:

Unfortunately, we cannot replicate other sectors' experiences when using these recent technologies as the industry is made of bespoke projects with one-off designs for unique buildings.

The technologies will gradually change the way we work, reducing waste by mixing the physical environment with its digital representation, to anticipate at the design stage, errors that would be costly to discover at the construction stage.

Construction 4.0 concept

The concept of construction 4.0 is evolving and innovative. Below are some examples of how it works:

Prefabrication

To save time and money, more projects prefabricate sections of a building in warehouses before delivering them to a construction site.

For instance, 3D printing allows you to digitally design bespoke parts and print them on a specific part of your construction.

Computing

BIM, laser scanning, cloud computing, artificial intelligence (AI), and immersive technologies can change how you plan and design new structures.

3D simulations in virtual reality (VR) allow you to visualize, feel the space, and evaluate a building before construction work begins. The information produced before the construction starts will allow you to speed up processes and improve the performance of the structures by easily capturing data, analyzing them, and storing them.

Internet of Things (IoT)

Construction uses sensors, robots, and drones to automate repetitive and hazardous tasks, for higher safety on construction sites. The sensors can lead to faster and more reliable processes, than in traditional methods.

The adoption of the Internet of Things (IoT), data exchange via software, sensors, and other technologies accelerates projects' completion.

Construction 4.0 revolution

BIM models are used as digital twins to replicate the physical product, determine constructability and profitability options (BIM 4D and 5D), ensure the sustainability of the construction using analysis software, and interact with other technologies automating construction site processes.

At the design and construction phases, the interconnectivity of technologies is made of physical processes that manage a virtual counterpart of the physical world. It helps to make decentralized decisions using the cloud and the IoT, whilst your machines and your staff communicate and collaborate in real-time.

At the operational phase, BIM, IoT, and sensors help you monitor the project's performance and implement an effective system for preventive maintenance management.

At the in-use stage, BIM and IoT help you to design slick and efficient systems.

Construction 4.0 and its consequences

Digitization implies that a paradigm shift takes place in your organization:

By integrating information, processes, and people knowledge and introducing modern technologies, policies, and training you streamline your processes.

By considering multidisciplinary prefabrication and Design for Manufacture and Assembly (DFMA) techniques, involving manufacturers at the beginning of the supply chain (no longer at the end) you meet increasingly complex design demands

By opening interconnection you enable decentralized decision-making in a context of greater integration.

Importance of data

Data production and management a crucial part of construction 4.0 success requires new business models.

You cannot only rely on data and information traditionally generated during the design and execution of construction projects. You need to include the data required at the operation stage.

The data speed and amount of information from sensors and other systems require you to use new platforms to analyze, interpret, and connect them to the existing business platforms.

The above allows you to provide new services and innovative products that connect your construction site with smart factories, and smart designs to build smart constructions and cities.

Embracing digitization

Depending on the digitalization maturity of your organization you may decide which tools you need to implement to complete your transformation.

Innovation comes so rapidly that you need to monitor their evolution closely. Before starting the implementation, you should ensure that you use the right tools and methodologies and be ready to utilize them.

You should ask yourself the following questions:

  • Will the technology we want to introduce help us reduce wastage and duplication?
  • Will automating processes help us to control quality, time, and budget on our projects?
  • Will the new management system help us improve our bottom line as well as our reputation?
  • Will we gain in competitivity in such a narrow margins market?
  • What security do we need to protect ourselves from cyber-attacks?

BIM, AI, and other technologies are used in the construction industry to avoid human errors, reduce repetitive work, and improve the productivity of construction projects.

What are the benefits of construction 4.0?

The improvements you can expect from implementing construction 4.0 are increased synergies due to new competitive advantage and knowledge. Higher profitability leads you to shorter life cycles to complete your projects and more recurring revenue from non-construction activities.

Construction 4.0 adopts technologies, to improve the decision-making process of construction activities, and to connect the usage of various technologies through sensors and networking as follows:

Saving time and money

Combining construction 4.0 and BIM allows projects to be planned adequately, and scoped appropriately, avoid inefficiencies and delays, and improve decision-making.

Save money by cutting down on waste, reducing time and errors, and improving and speeding outputs.

Improving standards and productivity

Thanks to digital technologies, process automation brings higher quality results in production, and is more consistent and efficient.

Improving sustainability

Constructing sustainable smart assets requires technology to create comfortable, safe, and sustainable spaces that allow better and more efficient use of resources. For example:

  • analyzing weather conditions, by collecting real-time data, minimizing energy consumption, and optimizing lighting and air conditioning systems
  • avoiding water waste by installing sensors helps manage the piping system
  • linking decentralized devices and energy sources, such as solar panels and microgrids reduces power sources
  • reducing waste enhances energy delivery and efficiency.

Improve site safety

Construction 4.0 can help improve health and safety on work sites through automation, reducing the number of accidents for workers.

For instance, augmented and virtual reality (VR) can reduce the dangers of hazardous site inspections. Better training using technology enhances collaboration and communication to prevent casualties.

Mitigate risks

Building a digital twin and reviewing the design progress using VR, before construction, makes the decision process easier and reduces the risk of costly reworks, decreasing financial and reputational risks to clients and contractors.

Involving facility managers during the design stage will improve the efficiency of your construction and help predict future maintenance programs, reducing unforeseen malfunctions when the building is in use.

What are the challenges facing construction 4.0?

Some barriers should be removed before construction 4.0 is embraced more widely.

A survey conducted by TLF Research in the UK found that system integration issues, out-of-date devices, misaligned platforms, and services across a company, and outdated software, explain most of the everyday challenges of the construction industry. This is prejudicial and causes a potential loss of income.

According to the survey, the challenges are:

  • understanding new capabilities of systems (27%)
  • out-of-date software (26%)
  • workload management issues (22%)
  • manual updates (20%)
  • technology skills gap (20%)
  • limited functionality of tools (19%)
  • software updates (18%)
  • data accuracy manual entry (18%)
  • processing speed (17%)
  • integration issues (16%)

Employment Opportunity

Construction 4.0 will help reduce the repetitive and hazardous tasks found in the construction industry, replacing many traditional skilled jobs.

Trade staff must be re-trained to concentrate their effort on more rewarding and less dangerous jobs.

The roles of the architects and engineers will be enhanced by focusing on more advantageous offsite technologies rather than onsite construction.

Investment

Construction 4.0 requires investing upfront in new digital technologies. This could be a barrier to construction companies, especially for the small ones, as it could impair their ability to compete with the larger players.

New companies offering “technologies as a service” to smaller companies will appear on the market and allow small businesses to avoid spending a huge amount of money upfront.

Coaching and training

Every recent technology implementation requires that your staff learn new skills. You will have to train your workforce before introducing digital modernization in your company.

When the technology is in place you will have to coach them on properly using the new software and machines. You may also have to recruit new people.

Universities and training providers will have to design recent programs to respond to these new requirements.

Resistance to change

Change resistance in the construction industry is a big barrier to implementing a construction 4.0 strategy, so you may distinctly spell out the benefits of the new processes you want to implement. You also should describe what is in it for your employees if you want them to adapt to the new improvements as a team.

In conclusion

2025 is shaping up to be a wonderful year for construction. Be ready to embrace the change and get more opportunities.

Re-inventing your portfolio offering will help you to respond to the new requirements in construction 4.0:

  • improving infrastructure
  • reducing the housing shortages
  • creating sustainable buildings and smart cities.

Construction is an industry in constant evolution

Investment requirements can involve the risk of high debts, so be careful in your venture. We recommend that you continue to invest in technology, explore new ways to grow, and make strategic decisions in strategic diversification.

Driving Vision can help you decide if you need to invest in technology. Our technology diagnostic looks at the best way to incorporate modern technology into your workflows and how to move your organization to cloud computing so you can open new possibilities for your daily planning tasks and make sure your data never leaves the optimally secured data center.

The technology appraisal report explores the required investment needed to improve your projects’ productivity and collaboration and the ROI you can expect.

A Driving Vision expert conducts interviews online, issues a report, and discusses the findings with you. Together we decide the best way to implement the solutions at your pace and according to your budget.

Implementing BIM can be daunting, but Driving Vision is here to help you at the pace you are comfortable with. Get started by getting in touch now

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