Construction Dive recently published an article on how ConTech solutions will grow by 2025. Leading the pack with the largest forecasted growth percentage increase are 3D Printing, Blockchain and Robotics. Even though the growth rates are pretty substantial, 3D Printing and Robotics will only generate $0.5 billion and $0.2 billion in revenue by 2025. They will still have tiny market shares with lots of potential for additional growth.
The bottom three ConTech's as far as lowest growth percentage increase, BIM, Modular and Prefab were the worst. While Modular and Prefab are only forecast to grow revenue by 7% and 6%. Even with this small growth rate, their individual market shares are large than all other combined (excluding each other). Modular is forecasted to have 2025 revenue of $181 billion and Prefab is forecasted at $164 billion. I think both current forecasted revenues might actually be underestimated. It's hard to tell for sure because the data in the actual report is from a pay site per the Ernst & Young references but I know quite a few GC's and subs that have been doing modular and prefab for years without the press that companies focused on those aspects of our industry are getting now. As each method grows in popularity, some firms could internalize Prefab and Modular growth and additions which, which if this happens, wouldn't show the full scope and impact of these construction methods.
I also don't think all techs included in this report are created equal. For example, some are tools that help build a better world while others like Prefab and Modular all but deliver the final product under their classification. Impact to the construction process and final product is different with each method. Because Prefab and Modular deliver all but final products the total dollar amount associated with them will likely be higher. BIM might help deliver billions of dollars of work but because the revenue associated with it is essentially manpower and some tech tools, the total cost will be relatively small when compared to a tech that includes manpower by multiple individuals, as well as, final materials and equipment and all the means and methods to get there.
My sleeper tech is Robotics. Maybe not for 2025 but by the time I hang up my boots. Its current and forecasted revenues are tiny. Robotics has the potential to turn into a market like heavy equipment or, at the least, powered hand tools. Not since the invention and use of heavy equipment and powered hand tools has our industry drastically changed our means and methods for the better. Robotics has the potential to do this. It's already doing this in Modular, Prefab and an onsite trade or two. It's only going to grow.
Depending on your definition or grouping of technology, another tech that will start changing things in the next five years and drastically over our life times is advanced and/or smart materials. This includes materials that are extra strong, perform more than one function, self heal, insulating, conductive, CO2 emission reducing and more. These will be interesting because, next to or maybe in front of stereotypical techs, many materials have the ability to be patented. It is difficult to patent many pure tech tools but being able to patent a robot or material gives the inventor an obvious competitive advantage. Materials were not included in the tech report but savvy construction pros should be on the lookout for advances in this domain.
So there's my reporting of the reporting of a report. If you don't like it or don't believe it, check our the report on the report. Check out the original report too and dig into the references and sources if you have time, as well.
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