The construction industry of India is moving out of the comfort zone and is adapting to smart technology. Especially, the three segments of the industry namely energy efficiency, building automation and connected homes have been disrupted by the technology advancements. Experts forecast that India is emerging to become the 3rd largest construction market by 2025.
The Indian economy is betting on the infrastructure sector to ensure to increase the revenue and the GDP of the country. Currently, approx. 9% of GDP is accounted for and contributed by the Construction industry. In order to achieve this government and private real estate players have collaborated to re-generate many urban areas and equip them with smart real estate and infrastructure. With this aim, RERA was introduced to the realty market and the benefits can be witnessed in the construction of recent RERA approved projects in Mohali.
There are several business models in the construction industry and each of it has its principal dimensions. These dimensions in which technology can bring evolution are –
- Building materials, heating, ventilation, domains, lighting and air conditioning (HVAC)
- Specifically on the verticals of small commercial and industrial real estate
- Operations, Value Chain, Process Management and System Integration.
The business frameworks are as follows –
Original Equipment Manufacturer (OEM) are the companies which focus on making pieces of equipment for single or multiple domains. Typically, they design for a single domain; however the technology can help in multi-domain integration
Operations and Maintenance (O&M) Specialist companies provide management facilities and services. This can include services in operation, repair or maintenance.
Platform Specialists are the organizations which function in the building automation and connected homes segments. They offer hardware and software in buildings to interact.
System Integration Specialists are those companies which deal with integration services like engineering, project management, installation and sometimes financing.
These business models have been successful in the past but with the future technologies, the models will have to transform and adapt. Following are few advancements expected in the construction market.
- The efficiency and data security will improve with the integration of technology in data storage, machine to machine connectivity, sensors etc.
- The communication is bound to improve through higher-bandwidth, lower-cost connectivity and lower energy consumption.
- The integration of big data, analytics, machine learning, AR/VR technology, Artificial intelligence etc will get integrated into all the segments.
- The equipment market is increasingly becoming commoditized and the feature of plug and play further helps to make the installation process much simpler.
- The dynamic demands of the customers and investors can only be met if the technology is used at the right time and in the right direction.