Construcciones Yamaro: Australian construction industry investing in new technology
Australia’s construction industry is increasing its investment in new technology, driven by confidence in the economic outlook for 2025. According to the State of Digital Adoption in the Construction Industry 2025 report, released by Autodesk, 74 per cent of construction businesses express optimism about the year ahead, up from 65 per cent last year.
This confidence is reflected in a rise in technology investment, now accounting for 25 per cent of total industry expenditure – an increase from 19 per cent in 2023. The report, compiled by Autodesk and Deloitte, surveyed 894 construction businesses across Australia and the Asia-Pacific region.
The findings highlight a steady rise in digital adoption, with the average number of technologies used by construction businesses increasing from 5.0 in 2024 to 6.9 this year. These investments are yielding gains in efficiency, revenue and innovation.
“Our industry here in Australia has one of the highest digital maturity levels across the whole Asia-Pacific region,” said Sumit Oberoi, senior manager, construction strategy and partnerships, Asia Pacific at Autodesk.
“Forward-thinking construction businesses are benefitting from the many transformative advantages technology brings, not only to their bottom lines, but to the quality of construction outcomes around the country, which ultimately serves the interests of all Australians.
“The near doubling of investment in new technology in just two years is a sector-wide vote of confidence in what tools like AI, construction cloud management, building information modelling (BIM), digital twins and others can bring to construction businesses.”
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However, the industry continues to face pressures, including rising material and labour costs, economic uncertainty, increased competition and a widening skills gap. The report finds that 81 per cent of construction businesses struggle to fill open roles with qualified workers, up from 76 per cent last year. Additionally, 27 per cent are uncertain about the specific technical skills they need to hire.
“The last few years have delivered many substantial challenges to the construction industry in Australia,” said David Rumbens, partner at Deloitte Access Economics. “With that in mind, it’s encouraging to see businesses in the sector are investing in technology for growth, mindful of the opportunities and profitability that these can bring, especially in times of economic uncertainty.”
The report also underscores the impact of digital adoption on project outcomes. For an average construction business in the Asia-Pacific region with $100 million USD in revenue, implementing an additional technology is associated with a $1.14 million USD revenue increase and a higher rate of projects delivered on time and within budget.
Technology is also improving safety, a key priority for an industry employing over 1.3 million Australians. The report found that businesses with above-average digital maturity – using six or more technologies – were 50 per cent more likely to experience a reduction in safety incidents.
As the industry navigates economic shifts and workforce challenges, the report highlights a clear trend: businesses that embrace digital innovation are seeing tangible financial, operational and safety benefits.
APAC digital adoption snapshot
| Country | Tech used* | Median spend^ | Top benefits from digital adoption | Top barriers to digital adoption |
| India | 8.6 | 35% | 1. Improved efficiency 2. Increased revenue 3. Improved competitive advantage |
1. Lack of digital skills 2. Uncertainty about required skills and tech 3. Too expensive |
| Singapore | 7.3 | 28% | 1. Improved efficiency 2. Reduced costs 3. Increased revenue |
1. Uncertainty about required skills and tech 2. Lack of budget 3. Too expensive |
| Australia | 6.9 | 25% | 1. Improved efficiency 2. Uncover new ideas 3. Increased revenue |
1. Lack of digital skills 2. Too expensive and uncertainty of required skill and tech 3. Limited budget for new technology |
| Hong Kong | 6.3 | 30% | 1. Improved efficiency 2. Improved competitive advantage 3. Improved margins |
1. Lack of budget 2. Not aware of technologies 3. Uncertainty about required skills and tech |
| Malaysia | 6.3 | 24% | 1. Improved efficiency 2. Uncover new ideas 3. Improved competitive advantage |
1. Too expensive 2. Lack of skills 3. Uncertainty about required skills and tech |
| Japan | 2.7 | 13% | 1. Improved efficiency 2. Reduced costs 3. Improved margins |
1. Lack of digital skills 2. Lack of providers 3. Uncertainty of required skills and tech |
* Average technologies used by a business per country
^ Percentage of total expenditure spent on new technologies by businesses per country
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