Seven digital construction targets for venture capital
A recent report by McKinsey outlines which parts of construction technology remain ready for further investment.
The COVID-19 pandemic has not knocked investor confidence as they continue to fuel a rapid expansion of the construction technology industry. In a way, the pandemic has fast-forwarded the need for investment as problems like pre-existing productivity and data-visibility issues face construction companies.
1. BIM and electronic document management
The report reveals that BIM and electronic document management are very much at the forefront of major firms’ operations, in addition to this, vast opportunities lie ahead for tailored solutions and the ability to build scale with smaller subcontractors.
2. Robotics and other disrupters
Innovative robotic apps provide an opportunity for the tech sector, repetitive tasks such as bricklaying, road paving and 3D printing of building materials are all covered by this emerging technology.
3. Underlying tech infrastructure
Solutions will be needed for the increase in hardware and software volumes on job sites. Investments in IT infrastructure such as construction drones, electric-vehicle docking, wireless-internet backbone connectivity to support IoT-enabled devices, information security and data-quality management are examples of opportunities from these technologies.
4. Digitise payments
The full digitisation of the construction industry value chain hinges on the offerings that increase technology penetration within payments, especially when considering SMEs.
5. Platforms with a specific angle
Generalist technology platforms tend to be well established; this gives other companies the opportunity to build a platform that specifically caters for an industry sub-segment.
6. Solutions that enable broader connection in the built environment
Integrative technologies will be vital in achieving better tech solutions. Real-time collection of data, as well as the integration of design and project management, will enable companies to attain digital projects that are truly end-to-end.
7. A data-analytics engine
Predictive analytics solutions are scarce within the construction industry. Significant value can be created by investors and the industry as a whole by developing platforms that will leverage the expanding pool of inter and intra company data. This would lead to proactive, data-driven management of individual projects and companies overall.
