The innovation race in the construction sector isn’t slowing down soon! Proof of this is that the global construction technology market, valued at US$5.28 billion in 2023, is set to grow to US$22.78 billion by 2030 — more than 3x in size.
The building industry is undergoing an ever-evolving evolution fueled by innovation, driving a new era of enhanced efficiency, sustainability, and safety. And who better to unlock its impact, the challenges it presents, and the top technologies making waves in the sector than our Investment & Open Innovation Advisor, Ibon Iribar!
Discover Ibon’s insights in his podcast interview with William Rundle, Co-Founder of Soil Link.
Table of contents
Construction industry challenges: The role of innovation
Snippet: The challenges can vary depending on the region — whether it’s Europe, Asia-Pacific, North America, or LATAM. However, I would highlight sustainability as a key challenge, specifically making the industry more [environmentally friendly] & achieving decarbonization targets.
A major focus is reducing CO2 emissions across different stages of the construction value chain. This is especially relevant for us at Cemex, as a materials manufacturing company, since we have a big say in this as one of the industry’s biggest CO2 emitters.
Snippet: Introducing the factor of innovation into this equation could be one of the solutions and key supports to overcoming the sustainability challenges. For example, there are significant opportunities to enhance material recycling, shifting from the current linear model to a more circular flow.
Another area is making the construction fleet, specifically within the supply chain, more sustainable. This could involve using alternative fuels or transitioning to electric vehicles.
Cemex Ventures: Innovating for sustainable construction
Snippet: In our case, we’re focusing on our internal value chain but also looking at the entire construction value chain from an innovation perspective. We’re addressing the sustainability issue not only for our internal needs but also by providing solutions that benefit the entire industry.
Top trends & technologies: Shaping the construction industry
As key trends & technologies, we’re seeing a significant focus on artificial intelligence (AI), and Carbon Capture, Utilization, and Storage technologies (CCUS). These are crucial not only for our industry — the materials manufacturing sector — but also for other kinds of materials like steel, chemicals, additives, and so on.
Advancements in waste management solutions and digital platforms for sourcing new materials, components, and products are turning heads in the industry. We are also seeing some interesting developments in the pre-construction phase, such as the increasing use of sustainable materials during the design and planning stages.
What’s more, alternative fuels such as electrification and the use of hydrogen for various operations could be pivotal technologies that may disrupt this industry.
Navigating challenges in construction tech innovation
Concerning this matter, I think we have the technology available, but in most cases, we don’t know how to fully utilize it. We understand that these technologies could save a lot of time, money, and resources, but we lack the flexibility — or productivity — to identify and say, “Let’s give it a try”.
As an industry, we are often quite focused on daily tasks, and opening our mindset to new technologies, approaches, or even new practices can be challenging. I would say that this is one of the main hurdles we face from an innovation adoption perspective.
Pro tips for adopting construction tech innovations
Regarding the development of certain technologies, in some cases, such as in earlier development stages, we do have MVPS — Minimum Viable Products — or initial products that could be tested. The feedback might be to decline these products, as they are not sufficiently developed and do not address the whole problem we’ve over the table.
From our perspective, the advice would be to maintain an open mindset and be willing to test new technologies because, as mentioned earlier, technology is already available on the market. Unlike 7,8,9 or 10 years ago, when solutions were limited and very specific, we now have a wide range of options.
Another tip is not to try testing everything at once. A more effective approach would be to identify and prioritize the top 4 or 5 out of the 20 challenges you face and begin with those. This facilitates the process of embracing and implementing innovation, particularly within big corporations.
Revolutionizing construction with the Soil Link digital platform
It’s clear that a platform like Soil Link, along with similar digital solutions, has a significant digital component. In our case, we aim to partner with companies like Soil Link to validate not only the digital value of these solutions but also their potential to address specific challenges faced by Cemex and other large corporations.
We then explore how these partnerships can lead to investment opportunities. The goal is to create mutually beneficial collaborations that support the growth of these companies while also addressing our internal needs.
Soil Link’s platform facilitates the sourcing of new aggregates and recycled materials, which traditionally takes a considerable amount of time in the industry. This process is further complicated by regulatory pressures.
Such a digital solution is valuable not only for materials manufacturers but also for contractors and others involved in construction projects who must comply with regulations requiring the use of a certain percentage of recycled components.
In summary, digitizing the sourcing process can save significant time and money and drive innovation within the construction industry.
Quick note: Soil Link is the UK’s first AI-based platform for exchanging heavy construction materials. It connects suppliers, enabling the cost-effective and sustainable reuse and distribution of materials.
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