By 2030, the Construction Technology (ConTech) market is set to double in size.

This monumental growth will inevitably bring about a new era of digital solutions, which aim to solve pressing global housing, infrastructure and, crucially, low carbon requirements in construction.

The construction industry is one of the last untapped industries that is yet to undergo widespread digitisation and it appears that now could be a pivotal juncture in time. Written by Allister Lewis, the following article explores this growth, the impact of this on construction professionals, and some solutions to the challenges this growth presents. 

Time for a ConTech marketplace (image credit: Pexel)

The term ConTech refers to Construction Technology, which encompasses companies that provide technology solutions specifically for the construction industry. By 2030, the ConTech market is set to double in size to an astounding £12.5 billion industry.

This monumental growth will inevitably bring about a new era of digital solutions. However, the construction industry as a whole is deeply fragmented in how it works. Some innovators are seemingly ahead – utilising BIM, bespoke coding, developing their own applications, and leveraging Artificial Intelligence.

Conversely, the rest of the industry is still working with a patchwork of manual tools such as 2D drawing, time consuming processes, and lack time, skill or cash flow, to take advantage of these bespoke tools.  

Within the construction industry there is an understanding that things should be, and can be, better. There have been numerous reports written over the last thirty years challenging the sector to improve in the UK – the Latham Report and Egan Report are examples.

I believe that it may be that the advent of new technologies focussed on construction could start to enable this change. In addition to this, I think that ConTech startups can democratise access to the high performance tools to help the industry to be better and meet its future challenges. 

Image: ConTech growth over time (Image credit: author) 

ConTech will shape the future of the construction industry 

The construction industry has had, and will continue to have, a loss of experienced labour, increases in the cost of materials, and unfortunately, global instability. This means that new ways of working are required to meet modern construction challenges.

The construction industry is also one of the last untapped industries, with a worldwide value in excess of £5 trillion per year in 2020, that is to undergo widespread digitisation. It is also clear that a new generation of digital natives are coming into the industry and they can see the inefficiencies that exist and will very likely press for innovative change. ConTech companies are looking forward to this, and are positioning themselves to be there for these new users. 

The emergence of ConTech companies over the last five to ten years has been swift and this is accelerating. I hold a database of over 780 individually categorised solutions, and this grows on a daily basis, across many types of Architects, Engineers and Construction (AEC) software solutions.

The collation of this has been a labour of love, as it is an area that I think is valuable and fascinating – and the way forward is truly exciting. I have observed emerging ConTech companies whose mission is to transform construction by meeting the needs of a new generation.

These could challenge the larger companies with their new web based, nimble, well designed tools that a new generation of AEC professionals will adopt eagerly. I hope that one way that this grows is with new pricing models that challenge existing hegemonies that employ yearly, and fairly blunt, pricing models that constrain adoption, flexibility, and limit innovation. 

However, for adoption my view is that there will need to be a new space to find these solutions. It appears that the current informal system of sharing lists on LinkedIn and web directories has limited long term use – it may be great for ‘likes’ but not for true engagement that leads to industry changing adoption.

I believe that a ConTech marketplace could simplify the discovery and implementation of new ConTech technologies, which is where I am focussing my energy. I also am interested in how AEC professionals search for, test and use quickly and flexibly. I am developing a solution for this that will support construction to move to a new innovative and sustainable future.  

It is clear that the future of construction is not just for the future — it’s here now, with new ConTech startups transforming the industry in new ways. The construction industry is ready for disruption and I believe that ConTech solutions are required to meet our future challenges to be more productive, efficient, sustainable and, plainly, profitable.

A new period of innovation is upon us that will test existing ways of working; one which is manual, traditional, and slow. Offsite construction, digitisation, and new software tools that leverage AI will inevitably change how AEC professionals work. 

With this change the question for those working in construction is how do they find, test, implement and use these new technologies? I think that a ConTech marketplace will be key to navigating the industry’s future successfully. 

Background on Author and ADDD 

Allister Lewis is an experienced Architect, BIM Manager, and passionate advocate for Construction Technology (ConTech).

He has over twenty years of experience working in the construction industry, working with technology and software, and has founded Automated Data Driven Design to help construction companies and professionals to understand, search, test, implement and benefit from new Construction Technology solutions. He has also created the first ConTech marketplace for startups and innovative software solutions.