|Business Model Innovations in the Building Construction Industry, 2020|
|Technological Advancement and a Vision for Sustainability will Drive Change in Building Construction Business Models|
Asia-Pacific is expected to record substantial building construction development in the next five years despite some impact from the COVID-19 pandemic in 2020. This is mainly impacted by the rapid urbanization and heavy investment in the region.
The building construction industry is facing several challenges such as declined project productivity, workforce scarcity, rising cost of building materials, site safety issues, and an overwhelming number of technological solutions, which complicates decision making in construction processes.
Notable building construction technologies include augmented and virtual reality, 3D printing, building information modelling (BIM), automation and robotics, and wearables and innovative materials. In addition to advances in technology, sustainability trends such as prefabrication construction, sustainable construction, and green building are likely to revolutionize the conventional building construction sector, and consequently disrupt the way business is done. Several innovative business models have emerged. Most innovative business models belong to the Business-to-Business (B2B), Business-to-Consumer (B2C), and Consumer-to-Consumer (C2C) categories. Amongst them, the vertically integrated, servitization (or XaaS) and off-site construction business models are likely to be developed in the next five years.