Industrialized Construction – The Next Trillion Dollar Opportunity?

Article details

Author: Salla Palos
Date: Mar 3, 2021
Read time: 3 min read

Main idea

The article argues that industrialized construction is becoming a major opportunity as digital tools, automation, and data-driven workflows reshape the AECO industry.

Key facts

The construction industry is expected to spend $14 trillion US in 2025.
About 85% of total cost of ownership accumulates as operational expenditure after construction.
In 2020, Asia was expected to hold almost half of global construction spending.
The Asia Pacific market is growing due to rapid urbanization of China.
The construction industry accounts for 6% of global GDP.
It employs more than 100 million people worldwide.
Full adoption of digital construction is estimated to save 12% to 20% in construction spending over the next decade.
That equals about $1 trillion to $1.7 trillion USD annually.

Industry context

The article says the AECO industry has evolved from hand drawing to CAD and then BIM. BIM became commercially feasible about two decades ago. The author says the industry has resisted technological change longer than many others.

Why the industry is different

Construction is described as a project-based industry with long lead times and long lifecycles. The article contrasts this with faster process-based industries. It says old processes, heavy labor reliance, and legacy business models have kept productivity and profitability stagnated.

Digital construction tools

Building information models are central to data management.
Drawings and documents are described as less necessary when generative design tools are used.
Prefabrication, pre-manufacturing, and pre-assembly are driven by data.
Wireless sensors, robotic equipment, and additive-manufacturing machines feed those processes.
Human work shifts toward creative thinking, defining parameters, and fine-tuning settings.

Regional outlook

The article says the United States remains one of the largest construction markets in the world. It also says Asia is expected to become the largest regional force, with strong growth in off-shore fabrication of building components and manufacturing of pre-assemblies.

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