Singapore – Autodesk, Inc. (NASDAQ: ADSK) and Deloitte have released the State of Digital Adoption in the Construction Industry 2024 report, revealing key insights into digital trends within the construction sector. The survey, conducted with 933 firms across Singapore, Australia, Japan, India, Malaysia, and Hong Kong, underscores significant advancements and future plans in digitalisation.
Singapore’s construction companies are at the forefront of this digital transformation, dedicating over 20% of their expenditure to digital technologies. Currently, local firms use an average of five technologies and plan to expand this to seven, leading the region in tech adoption. This growth is driven by government policies like Singapore’s Built Environment Industry Transformation Map, emphasizing common data standards and Building Information Modelling (BIM).
Sumit Oberoi, Senior Industry Strategist, Asia Pacific at Autodesk, highlighted the role of AI in this shift. “With the challenges facing Singapore’s construction industry, AI and technology adoption have become integral for businesses to succeed and reduce construction costs,” Oberoi stated. Notably, 98% of Singaporean firms consider AI crucial for growth, with 30% already trialing AI or machine learning (ML) software.
AI adoption is linked to improved efficiencies (61%), better margins (59%), and competitive advantages (57%). The potential of AI to reduce costs is particularly significant as construction costs in Singapore continue to rise. According to the Building Construction Authority (BCA), tender prices increased by over 4% year-on-year in 2023, and this trend is expected to continue in 2024.
David Rumbens, Partner at Deloitte Access Economics, emphasized the transformative potential of AI, stating, “If all companies with plans to adopt AI do so, it will become as prevalent in the construction industry as data analytics or mobile apps.”
However, the report identifies a lack of digital skills as a significant barrier, with over a third of Singaporean firms citing it as a challenge. Despite efforts to hire new workers, many companies found these actions ineffective in bridging the skills gap. To address this, Oberoi recommends starting small with pilot projects, appointing digital champions, and leveraging government initiatives like SkillsFuture for workforce development.
Key findings across Asia Pacific include:
- 30% of regional firms are using or trialing AI, with 39% planning future adoption.
- Over 80% reported positive returns from implementing technologies such as data analytics, mobile apps, and construction management software.
- Foundational technologies like data analytics (47%) and mobile apps (40%) are most commonly used, forming the backbone of operations.
- Generative AI is poised to become as prevalent as foundational technologies, with 94% of companies planning to integrate AI and ML.
