The Autodesk-Deloitte State of Digital Adoption in Construction 2025 report provides an in-depth analysis of the diverse construction landscape across the Asia-Pacific region. By examining key factors such as economic outlook, technology adoption, and barriers to digital transformation, the report sheds light on the unique challenges and opportunities faced by countries including Australia, Hong Kong, India, Japan, Malaysia, and Singapore. This comprehensive study offers valuable insights into the evolving dynamics of the construction industry in these varied markets.
Let’s take a closer look on some of the findings of the report below.
We’re seeing stark contrasts in economic and construction forecasts across the region. For example, India is projected to reach 6.6% GDP growth in 2025, with construction employing 12% of the nation's workforce. The industry’s output is expected to reach 36.58 trillion rupees by 2028, driven by high levels of private consumption and investment. However, geopolitical tensions and high borrowing costs pose potential risks.
In contrast, Japan's growth is more modest at 1.1%, with construction contributing 6% to total employment. The industry faces challenges like an aging workforce and a lack of digital skills that are holding it back from adopting new technologies more rapidly.
These divergent outlooks have profound implications across APAC. Businesses in high-growth markets like India and Malaysia can capitalise on burgeoning demand, while those in markets like Japan and Australia may need to adapt by focusing on areas like renovation and renewal. Understanding these nuances helps construction industry leaders make strategic decisions for the long-term benefits of their businesses.
As with the economic outlook, the report also highlights a digital divide in APAC’s construction industry. India and Singapore lead the charge, with businesses embracing a wider range of technologies, including Business Information Modelling (BIM), Artificial Intelligence (AI), and cloud-based construction management. This proactive approach is fuelled by government initiatives and a strategic focus on digital transformation.
Other markets like Japan have room to grow when it comes to their use of technology, with construction businesses averaging just 2.7 technologies in use. This highlights the challenges posed by an aging workforce and a lack of digital skills. Australia, Malaysia, and Hong Kong fall somewhere in between, with moderate adoption rates.
These numbers make it clear that there’s a big digital opportunity across the region. Businesses in tech-forward markets can leverage digital tools to optimise processes, improve project outcomes, and boost revenue. Collaboration across APAC may help us bridge the digital divide and help to lift business and industry outcomes for societies across the continent.
The report also helps our industry understand the most common barriers hindering greater tech adoption around the region. Cost remains a major concern, particularly for SMEs, but the digital skills gap is the real blocker to greater uptake of new technology. In Australia, for example, 85% of businesses reported difficulty finding qualified workers, with 51% citing uncertainty about required tech skills as a major issue.
Even in tech savvy markets, the skills gap is proving challenging. For example, in India, 35% of businesses cite this as a key hurdle, although proactive measures, like upskilling programs and partnerships with educational institutions, are being implemented to address this.
Digital adoption in the construction industry across APAC remains strong as new technologies become more and more business critical. However, there’s also an imperative to tackle the issues that are holding us back from more meaningful digital transformation across the region. Investing in training and fostering collaboration between construction businesses are pivotal places to start, and important steps in creating a more digitally advanced construction sector across APAC.
To find out more about the state of the construction industry in your country and across APAC, click here to download the full report.
