Valued at $12 trillion, architecture, engineering, and construction (AEC) is one of the biggest industries globally. However, recently it has witnessed slow growth and remains to be one the few remaining sectors to digitise and innovate. It has become important now, more than ever, to fast-track the consolidation of value chains, and embrace the power of the ongoing digital transformations.
At its core, the cost-sensitive AEC industry is built on effective collaboration, management, and innovation. However, the traditional processes and programmes have hindered the industry’s progress and its potential. Private equity and venture capital investment are also at an all-time high, as investors see the opportunity and potential.
By leveraging cutting-edge digital tools, processes, and methodologies, the industry is working towards unlocking a new era of technology-driven efficiency, sustainability, and cost-effectiveness. The use of digital technologies such as 3D modeling, virtual reality, and AI algorithms have enabled construction projects to be streamlined and improved in a variety of ways. Embracing a digital transformation, AEC companies can modernize processes and operations to improve productivity and performance. Companies can reduce manual labour while streamlining project management, reducing costs, and improving their customer experiences .
Enhancing collaboration and optimising project lifecycles
Advanced technological solutions have revolutionized the way those in the sector project management and collaboration. One notable aspect is the concept of Building Information Modeling (BIM), which has emerged as a game-changer in the industry. According to a McGraw Hill report, two-thirds of the users of Architectural BIM Modeling have received a positive return on investment. 87% of the advanced BIM users received a positive ROI return on investment, and 93% of the users believed in the potential of gaining long-term value.
The implementation or integration of BIM has proven to foster transparency and paves the way for superior project outcomes. It is changing the Indian AEC industry overall as it enforces more collaborative and seamless processes. Fostering a more integrated approach to project development enables better decision-making, improves communication, and reduces conflicts during the project lifecycle.
Indian impact
The AEC sector is not only a key driver of economic growth but also contributes to the development of vital infrastructure, urbanisation, and job creation. Historically, jobs in this industry have grown by 3.2%, and as we walk towards the growth trajectory, the industry is anticipated to increase that share to 5% by this year. by some estimates. Leveraging the potential of the AEC industry, India can unlock numerous opportunities while achieving its ambitious goal of becoming a $5 trillion economy by 2025.
Embracing the ongoing digital transformation can drive efficiency, productivity, and cost-effectiveness in the sector. Integrating tools and technologies like Building Information Modeling (BIM), Computational Design, 3D printing, robotics, Internet of Things (IoT) etc. can help India’s AEC industry. From streamlining processes to improving project delivery, companies now have the potential to establish industry-grade supply chains and enhance the customer experience.
Looking ahead, technology is set to redefine how we design, construct, and manage buildings. Advancements in materials, building processes, surveying technologies, and sustainability will be at the forefront of this tech-powered phase. The future of the AEC industry lies in the seamless integration of technologies with efficient processes. High-quality, precision-driven construction will become the norm, ensuring structures that stand the test of time.
Moreover, the next phase of the AEC industry will be characterized by unprecedented levels of data utilization. IoT will connect various components of the built environment, generating vast amounts of data for analysis. The AEC industry will harness the power of data analytics, machine learning, and predictive/ generative modeling. By embracing technological advancements, the industry will transcend its current limitations and enter a new phase of innovation and excellence.
Harkunwar Singh is the CEO and Co-founder of Novatr.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
