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Modular and Automated Construction – It’s Not Just About BAS Software Anymore


Ever the market leader, did you know that last year Amazon started selling prefabricated hospital rooms that include a bathroom and a bed. They’re out of stock right now, but if you’re a premium member they come with free shipping.

According to global management consulting firm Oliver Wyman, “enhanced building technology” is currently in an explosive growth mode, with the market projected to reach US$600 billion in 2025.

Global enterprise management firm IFS estimates that 15 to 20 percent of new building construction will be modular in the United States and Europe by 2030. Other primary objectives for construction automation include.

  • Modular component production, including 3-D printing of building faç
  • Replacing traditional on-site physical tasks, such as robots laying bricks and machines paving roads.
  • Digitization and automation of design, planning, and management procedures.
  • Construction uses more drones than any other sector, increasing 239 percent year over year.

Source: DroneDeploy.com

Offsite construction increases productivity because things can happen simultaneously instead of in sequence. McKinsey’s 2019 report, “Modular construction: From projects to products” states that modular construction in Europe and the U.S. could deliver annual savings over traditional on-site construction of $22 billion.

McKinsey asked over 300 senior construction leaders where they felt their new/next competition was coming from, and 90 percent of respondents felt they would be encountering new competition at different levels of the value chain:

  • 46%: from tech and software giants
  • 37%: from start-ups
  • 23%: from China and other emerging market players
  • 19%: from other current incumbents

It’s likely that the newest competitors will be familiar with and/or using modular and automated technologies to achieve a fast-growing market edge.

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