Construction Technology Hot List for 2020

The number of new technologies for construction exploded over the past few years and investment in U.S.-based construction technology startups reached an all-time high of $3.1 billion in 2018, compared with $731 million in 2017, according to Crunchbase data. This year, adoption of disrupting technologies is expected to accelerate as start-ups transition from testing to full commercialization of their products. Driven by cost-overruns, schedule delays and labor shortages, the construction industry is overdue for investment in technologies that can create competitive advantage.

The number of new technologies for construction exploded over the past few years and investment in U.S.-based construction technology startups reached an all-time high of $3.1 billion in 2018, compared with $731 million in 2017, according to Crunchbase data. This year, adoption of disrupting technologies is expected to accelerate as start-ups transition from testing to full commercialization of their products. Driven by cost-overruns, schedule delays and labor shortages, the construction industry is overdue for investment in technologies that can create competitive advantage.

Jay Snyder, Technology and Innovation Practice Leader for construction consulting firm FMI, believes that contractors have begun to recognize that they need help developing a tech road map and that they need to be more deliberate in how they are spending tech dollars. “The conversation around leveraging data for insights across the industry is really catching on. The challenge is that many people don’t have an integrated technology stack, a data strategy, or data stores,” says Snyder.

Three technologies that are promising for 2020 are artificial intelligence, robotics and virtual/augmented reality. For each technology, we’ve highlighted solutions that are commercially available and identified construction firms that are already employing those solutions.
ARTIFICIAL INTELLIGENCE

Artificial intelligence (AI) promises to create new efficiencies a wide range of applications such as project management, fleet management, documentation and estimating. According to a 2019 KPMG Global Construction Survey, more than 52 percent of the industry’s innovators (those who scored within the top 20 percent on a future-ready index) believe that within five years, machine learning, cognitive machine learning and AI will be commonplace. Twenty-four percent of these innovators have already adopted AI.

Companies to watch include:

Alice Technologies
Briq
Disperse
InEight
OpenSpace
Togal
Uptake

“Any solution that is going to create capacity is a win,” says Snyder. “AI doesn’t need a lot of assessing. Contractors don’t need to understanding the back end of AI platforms. Instead they should appreciate enhanced awareness that drives practical use cases.” According to Snyder, AI solutions don’t cost any more than legacy solutions, but they have an intelligent back end that can alleviate much of the manual burden for superintendents and estimators, for example. The challenge will be creating the huge data sets needed to leverage the technology.

The global market for artificial intelligence (AI) in construction was valued at USD $398.6 million in 2018 and is anticipated to exhibit a compound annual growth rate (CAGR) of 34.0 percent from 2019 to 2025, according to GrandView Research.
VIRTUAL REALITY AND AUGMENTED REALITY

Virtual reality makes it easier for project owners, contractors and designers to visualize the built environment before construction begins, and for equipment operators to learn skills in a no-risk environment.

Augmented reality provides a digital overlay to a construction site, offering data or information to help improve quality and productivity. Collaboration is easier and less time consuming.

Safety training is yet another important application that becomes more interactive and effective with VR and AR. In the 2019 KPMG Global Construction Survey, 59 percent of innovation leaders in construction reported implementing virtual reality while 45 percent have implemented augmented reality.

According to a study by Kenneth Research, AR and VR are expected to grow into a $409.99 billion market by 2020– with a CAGR of 54.91 percent. While the strongest demand for the technologies currently comes from gaming, live events, video entertainment and retail—adoption is expected to spread to a diverse mix of industries including construction, real estate, healthcare, education.

Solutions to watch in construction include:

Dalux Field
IrisVR
Serious Labs
Trimble
vGIS
Visual Vocal

ROBOTICS

While just 10 percent of construction industry innovators are currently using robotics, 2020 is likely to be a pivotal year. “According to Research and Markets, the construction robotics market will be valued at $190 million by 2025, with an annual growth rate of more than 20 percent.

Tight labor markets, an aging workforce and low margins are driving contractors to look for more efficient ways to automate many aspects of the construction process, from excavation and building layouts, to rebar tying and brick-laying.

The companies to watch in construction robotics are:

Built Robotics
Construction Robotics (SAM and MULE)
Dusty Robotics
Holobuilder
Scaled Robotics
Tybot

“I think 2020 is the year for robotics,” says Snyder. “Instead of people looking at robotics as an R&D effort, construction companies are beginning to realize the technology is mature and safe enough to deploy on real projects among workers. With the advent of 5G technology, latency, and to a degree poor connectivity, will be completely eliminated.” According to Snyder, the industry has reached its maximum capacity and efficiency using traditional tools. Process optimization and new technologies will be needed to meet increased demand in a market with a flat or declining workforce.