Digital construction is the new normal for the AEC industry wherein new technology models and outlooks are created while the old isn’t wholly shunned. In today’s times, the AEC industry is witnessing a radical technology disruption, technology mainstreaming and convergence of digital technologies across the construction lifecycle, driven by 4IR technologies (Big Data, AI, IoT and Cloud), immersive solutions (AR/VR), to create a seamless synchronization between geospatial and BIM technologies for hassle free-decision making and higher productivity levels. It is noteworthy, integrated geospatial and BIM solutions – termed as #GEOBIM solutions are at the forefront of this digital transformation and thus, it is important to know the geospatial market in the AEC industry.
A recent report by Geospatial Media, GEOBIM Market in AEC Industry, delves deeper into the harmonized and comprehensive market of the global AEC industry, global and regional market of the geospatial industry and geospatial technologies, and the market for BIM and Digital Twins in the AEC industry for the 2020-2023 timeline. The report also presents the Geospatial+BIM (GEOBIM) Maturity Model – on the basis of which a GEOBIM Readiness Index for 25 countries.
GLOBAL AEC MARKET
The cumulative global AEC industry witnessed the slowest growth in 2019, owing to the many geopolitical risks across regions stemming from the trade war between the United States & China to repeated Brexit negotiations – to reduced investor confidence resulting in disrupted cash flows. Despite these risks, and the current COVID-19 situation, authorities worldwide have stepped up investment in infrastructure spending to prevent continued slowdown.
In the present circumstances, the global AEC market is US$ 11.13 trillion in 2019, estimated to reach US$ 12.26 trillion in 2023. In 2019, Asia-Pacific and North America continued to be the dominant markets with 66.97% and 11.9% of the global AEC market. The Asia-Pacific market is going to be primarily driven by building – residential and commercial construction, whereas, in North America, it is the industrial sectors (oil and gas, telecom, power), respectively. While economic uncertainties and Covid-19 are going to impact the construction market output in the coming years, the rising infrastructure spending to support new infrastructure construction (esp – resilient and sustainable infrastructure) will aid the growth of the industry. China, India, Indonesia, Vietnam and the Philippines are, thus, going to the major growth centres for the AEC industry in times to come.
GLOBAL GEOSPATIAL MARKET IN AEC INDUSTRY
The cumulative geospatial industry’s value for the AEC industry in 2019 is estimated to be US$ 71.28 billion, expected to reach US$ 117.59 billion in 2023. The demand for geospatial technologies in AEC industry is estimated to grow at an accelerating rate owing to the efficient processes developed as part of construction workflows encompassing utilization of integrated geospatial and BIM technology solutions along with 4IR advancements.
REGIONAL GEOSPATIAL MARKET IN AEC INDUSTRY AND ITS SUB-SECTORS
In the AEC industry, geospatial technology adoption in many of the Asia-Pacific countries such as Australia, China, India, Indonesia, Japan, New Zealand, and Singapore has significantly increased over time owing to be the ‘hub for new construction’. The increasing awareness aids the implementation of geospatial data, solutions and services at a stakeholder and sectoral level on the value-proposition of using integrated geospatial and BIM solutions in the construction workflow; and increasing policy initiatives and recommendations by the national government to implement these technologies.
The cumulative market for geospatial technologies in Asia-Pacific region for the AEC industry in 2019 is estimated to be US$ 41.01 trillion – with approximately 58% share in the building sector and 32% share in the transport sector. Best case examples is that of India, wherein the use of LiDAR and RADAR is mandated in the construction of highway projects and, China where the use of geospatial technologies is now mandated across all public-funded infrastructure projects by formal policy documents.
The geospatial technologies market in AEC industry in North America is estimated to be US$ 12.93 trillion in 2019 while the sub-sectoral share reverses as compared to Asia-Pacific with the industrial sector having the largest market share, i.e. 37%, followed by transport (32%) and the least in the building construction sector. The power, utilities and telecommunications sectors in the region are on a transformative journey of experimenting with newer technologies for plant construction and management, network maintenance, outage management and other relative functions.
It is thus, noteworthy that the infrastructure sector in North America is conscious of the value proposition of using geospatial technologies in the construction workflows. In the United States, and Canada mainly, the use of advanced geospatial technologies such as Ground Penetration Radar (GPR), Drones, and GNSS-based Machine Control is common in construction sites and the region ranks higher on the GEOBIM Maturity Curve as a whole.
The third region to have the biggest geospatial market in the AEC industry in Europe with a market size of US$ 8.54 billion in 2019. Housing construction / residential construction is found to be the biggest market driver for the growth of geospatial technologies in the region; followed by the industrial sector and the least of all the transport sector. It is important to note, that Europe is ahead in terms of geospatial and BIM adoption, on the whole, owing to the sophisticated level of GEOBIM maturity and also increasing geospatial and BIM technology (inclusive of geospatial) mandates. The United Kingdom, Nordics, the Netherlands, Germany, and France are leading countries in geospatial adoption and market specifically for the AEC industry.
It is noteworthy, in the present Covid-19 scenario of physical distancing and the need for remote monitoring, the role of geospatial technologies is going to be a cohesive force and not an add on. The construction market output has indefinitely fallen in 2020 due to labour shortages, material shortages, supply chain ineffectiveness – simultaneously affecting the market for geospatial technologies in 2020. The demand for the same may see a significant rise than estimated for 2023 at present as the industry becomes aware of the role of #GEOBIM technologies in the AEC ecosystem in unprecedented situations like COVID-19.