The emergence of recent applied sciences similar to Artificial Intelligence (AI), 3D Printing, and Robotics, would rework the construction industry, one of many oldest and largest industries on the earth and help it deal with its a number of challenges successfully, in accordance to a White Paper on ‘Artificial Intelligence: The Future of Smart Construction’.
As per this White Paper, launched on the World of Concrete India 2023 exhibition in Mumbai, the construction industry contributing 13% to the worldwide GDP, is poised for vital progress within the coming years, with an estimated CAGR of 11% from $8.2 trillion to $17 trillion by 2029. But it has to deal with many challenges.
This progress is pushed by sure elements similar to authorities initiatives, decrease rates of interest in a number of developed economies, demand for renewable power, public non-public partnerships, new age know-how and better disposable earnings.
Pradeep Mukherji, Managing Partner, Tauran Advisors, the Thailand-based agency which has ready the White Paper mentioned, “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 mentioned.
“AI is estimated to boost industry productivity by increasing it from 1% to 1.5% annually,” Dr. Mukherji emphasised.
Speaking on the World of Concrete India 2023, Gaurav Karnik, Real Estate National Leader, and Tax Partnership at EY India mentioned, “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 fuelled this growth over the last five years. Key initiatives include smart cities, data centres, 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 mentioned.
With fast urbanisation and investments, the Indian construction industry is anticipated to be among the many three largest construction markets on the earth by 2025. At current, solely 20% of the infrastructure that might be wanted by 2050 exists. This presents a major alternative for the construction industry to play a number one position in filling this hole within the coming many years, he added.
Yogesh Mudras, Managing Director, Informa Markets, the organisers of World of Concrete India 2023, mentioned in India the construction sector employs an estimated 71 million employees as of 2023 and goals to attain 100 million by 2030 to help nationwide financial progress.
“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 labour scarcity, ageing workforce, fewer expert labour, value overruns and venture delays, poor venture administration, inaccurate value estimates, design modifications, unexpected web site situations, and lack of employees’ security to title a number of. Use of know-how can mitigate a big a part of these points.
Underscoring the importance of the U.S.-India industrial connection, John McCadams, Commercial Officer, U.S. Consulate Mumbai mentioned, “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 specialists, AI has the potential to rework the industry and revolutionize varied processes within the construction venture lifecycle. AI sides similar to Machine Learning, Deep Learning, Natural Language Processing, Computer Vision, and Robotic Process Automation provide various capabilities for the industry to harness, they emphasised.
