Australian construction businesses are demonstrating strong confidence in the economic outlook for 2025, with a significant increase in investment in new technology driving growth in the sector.
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 report, which surveyed 894 construction businesses across Australia and Asia-Pacific, reveals 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.
The construction industry has seen a substantial rise in the adoption of digital technologies over the past year. Businesses now use an average of 6.9 technologies, up from 5.0 in 2024.
This increased investment is yielding significant benefits, including improved efficiency, increased revenue, and enhanced innovation capabilities.
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.”
The report also identified challenges facing the industry, including rising costs of raw materials and labour, economic uncertainty, increased competition, and a shortage of skilled workers.
Despite these obstacles, the sector’s investment in technology has nearly doubled in just two years, from 19 per cent of total expenditure in 2023 to 25 per cent in 2025.
David Rumbens, Partner at Deloitte Access Economics, commented on the industry’s resilience, stating: “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.”
The benefits of technology adoption are significant.
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.
Furthermore, businesses with above-average digital maturity were 50 per cent more likely to experience a reduction in safety incidents.
However, the industry still faces challenges in digital adoption, particularly in addressing the growing skills gap.
The report identified that 81 per cent of businesses find it difficult to fill open roles with suitably qualified workers, up from 76 per cent last year.
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 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.
