The construction industry has traditionally been slow to adopt new technology, but that era is ending. Across Australia, construction businesses are demonstrating strong confidence in the economic outlook and investing heavily in digital transformation to address persistent challenges around productivity, safety, and project delivery.

According to the State of Digital Adoption in the Construction Industry 2025 report released by Autodesk, 25 cents of every dollar invested in the industry is now directed towards new technology—marking a one-third increase since 2023. The sector's investment in technology has nearly doubled in just two years, rising from 19 per cent of total expenditure in 2023 to 25 per cent in 2025.

The business case is compelling. The report found that 74 per cent of construction businesses are optimistic about the year ahead, up from 65 per cent in the previous year. This positive outlook comes despite challenging economic conditions, with modest growth of 1.2 per cent expected for the Australian economy in FY25, rising to 1.9 per cent in FY26. For Australian businesses navigating tight margins, skills shortages, and increasing compliance requirements, digital technologies offer practical solutions to everyday problems.

Key Benefits for Australian Builders

Accelerating Digital Adoption is evident across the sector. Businesses now use an average of 6.9 technologies, up from 5.0 in 2024. Sumit Oberoi, Senior Manager of Construction Strategy & Partnerships for Asia Pacific at Autodesk, highlighted the industry's progress: "Our industry here in Australia has one of the highest digital maturity levels across the whole Asia-Pacific region. Forward-thinking construction businesses are benefitting from the many transformative advantages technology brings, not only to their bottom lines but to the quality of construction outcomes around the country."

Significant Revenue Returns result from technology investment. The report found that for an average construction business in APAC with US$100 million in revenue, adopting an additional technology is associated with a US$1.14 million increase in revenue and improved project delivery. This increased investment is yielding benefits including improved efficiency, increased revenue, and enhanced innovation capabilities.

Improved Safety Outcomes come with digital maturity. Businesses with above-average digital maturity were 50 per cent more likely to experience a reduction in safety incidents. AI-powered surveillance identifies hazards before incidents occur, while IoT monitoring tracks equipment health and environmental conditions in real time.

Industry Resilience is strengthening through technology. David Rumbens, Partner at Deloitte Access Economics, commented: "The last few years have delivered many substantial challenges to the construction industry in Australia. With that in mind, it's encouraging to see businesses in the sector are investing in technology for growth, mindful of the opportunities and profitability that these can bring, especially in times of economic uncertainty."

Challenges to Address

Rising Costs and Economic Pressures continue to affect the industry. The report identified challenges including rising costs of raw materials and labour, economic uncertainty, and increased competition. Despite these obstacles, the sector continues to prioritise technology investment as a pathway to improved efficiency and profitability.

The Skills Gap Remains Critical. 81 per cent of businesses find it difficult to fill open roles with suitably qualified workers, up from 76 per cent last year. This shortage of skilled workers is compounding the challenges facing the industry.

Digital Training Needs Attention. Only one in four construction companies provides their staff with digital skills training multiple times a year, highlighting the need for more focused efforts in upskilling the workforce. As technology adoption accelerates, ensuring workers have the skills to use these tools effectively becomes increasingly important.

Looking Ahead

As the Australian construction industry continues to embrace digital transformation, the sector is poised for growth and innovation. The increased investment in technology, coupled with a positive economic outlook, suggests a promising future for the industry despite ongoing challenges in skills development and economic uncertainties.

For Australian construction businesses, digital transformation is no longer optional—it is becoming essential for competitiveness, compliance, and sustainable growth.

Key Takeaways

• Technology investment is surging. 25 cents of every dollar invested in Australian construction now goes towards new technology, nearly doubling from 19 per cent in 2023 to 25 per cent in 2025.
• Industry optimism is rising. 74 per cent of construction businesses are optimistic about the year ahead, up from 65 per cent the previous year.
• Digital adoption is accelerating. Businesses now use an average of 6.9 technologies, up from 5.0 in 2024, with Australia having one of the highest digital maturity levels in the Asia-Pacific region.
• Financial returns are real. Adopting an additional technology is associated with a US$1.14 million revenue increase for an average US$100 million construction business.
• Safety improves with digital maturity. Businesses with above-average digital maturity are 50 per cent more likely to experience a reduction in safety incidents.
• The skills gap remains a challenge. 81 per cent of businesses struggle to fill roles with qualified workers, and only one in four companies provides digital skills training multiple times a year.

Read full article: Australian construction industry invests heavily in new technology amid economic optimism