The emergence of new technologies such as Artificial Intelligence (AI), 3D Printing, and Robotics, would transform the construction industry, one of the oldest and largest industries in the world and help it address its multiple challenges effectively, according to a White Paper on ‘Artificial Intelligence: The Future of Smart Construction.’

As per this White Paper, released at the World of Concrete India 2023 exhibition in Mumbai, the construction industry contributing 13% to the global GDP, is poised for significant growth in the coming years, with an estimated CAGR of 11% from $8.2 trillion to $17 trillion by 2029. But it has to address many challenges.

This growth is driven by certain factors such as government initiatives, lower interest rates in a few developed economies, demand for renewable energy, public private partnerships, new age technology and higher disposable income.Pradeep Mukherji, Managing Partner, Tauran Advisors, the Thailand-based firm which has prepared the White Paper said, “In the rapidly evolving landscape of the construction industry, the adoption of digital technologies, including Artificial Intelligence (AI), Machine Learning, and Robotics & Automation, is heralding a new era of transformation.”

“AI is poised to play a pivotal role in reshaping the sector by addressing a range of challenges and delivering significant advantages. To meet industry needs, AI has the potential to accelerate growth and add value at all project stages, from design and financing to construction, operations, and business model changes,” he said.

“AI is estimated to boost industry productivity by increasing it from 1% to 1.5% annually,” Dr. Mukherji emphasized.

Speaking at the World of Concrete India 2023, Gaurav Karnik, Real Estate National Leader, and Tax Partnership at EY India said, “The construction sector, contributing 9% to GDP and employing almost 50 million, is instrumental in India’s remarkable growth. Government support for capital projects has fueled this growth over the last five years. Key initiatives include smart cities, data centers, and reducing logistics costs to 8% of GDP by 2030.”

“Challenges like low productivity and safety persist, but digital innovations like modular manufacturing and drones offer solutions,” he said.

With rapid urbanization and investments, the Indian construction industry is expected to be among the three largest construction markets in the world by 2025. At present, only 20% of the infrastructure that will be needed by 2050 exists. This presents a significant opportunity for the construction industry to play a leading role in filling this gap in the coming decades, he added.Yogesh Mudras, Managing Director, Informa Markets, the organizers of World of Concrete India 2023, said in India the construction sector employs an estimated 71 million workers as of 2023 and aims to reach 100 million by 2030 to support national economic growth.

“Government initiatives like Housing for All and Smart City Projects are propelling urban infrastructure and construction development. The surge in demand for residential housing, driven by increased urbanization and rising household incomes, further underscores the industry’s potential,” he added.

The construction industry faces persistent labor shortage, ageing workforce, fewer skilled labor, cost overruns and project delays, poor project management, inaccurate cost estimates, design changes, unforeseen site conditions, and lack of workers’ safety to name a few. Use of technology can mitigate a large part of these issues.

Underscoring the significance of the U.S.-India commercial connection, John McCadams, Commercial Officer, U.S. Consulate Mumbai said, “The World of Concrete India event is an excellent illustration of how the United States and India are working together to expand infrastructure globally while also creating jobs in both nations.”

“With 3.3% of GDP allocated to infrastructure in India’s budget for 2023–2024, there are many prospects for creative solutions. The U.S. Mission in India is dedicated to encouraging sustainable and economical practices and supporting this progress,” he added.

According to experts, AI has the potential to transform the industry and revolutionize various processes in the construction project lifecycle. AI facets such as Machine Learning, Deep Learning, Natural Language Processing, Computer Vision, and Robotic Process Automation offer diverse capabilities for the industry to harness, they emphasized.