2024/03/22 11:36:14

Digitalization of Construction Market Map

The TAdviser analytical center has released a new map "Digitalization of Construction," on which IT companies developing products for the digitalization of construction processes noted .

The map shows about 150 domestic companies - product developers for the construction industry. During the preparation of the map, their solutions were segmented into 11 categories. In particular, the map reflects sections with vendors of software for design and preparation of design documentation, estimate and as-built documentation, developers of solutions for construction project management and construction control, developers of common data environments, products and services for automation of supply, and others.

For the first time, we have collected into a single map the entire range of domestic software developers for the construction industry and hope that this project will be useful to developers and other industry participants who are faced with the need to select alternatives to foreign vendors who have left Russia, "said TAdviser editor-in-chief Alexander Levashov

The project partner was Group "Airplane" ─ one of the largest federal corporations in the field proptech of and development. It is actively engaged in the development of its own IT products, in particular, the company has created and brought to the market a digital ecosystem of 10D, which consists of 38 related modules and covers any needs for. construction

Construction digitalization map. Click to enlarge

When preparing the map, analysts relied on:

TAdviser Knowledge Base,
Register of Russian Software,
List of Russian software for subjects of urban planning activities of the Ministry of Construction of Russia
Register of Russian software for construction industry from Дом.РФ

At the request of TAdviser, Director of Information Technology of the Samolet Group Ksenia Pozdnyakova shared her opinion on the current situation and prospects in the field of digitalization of the construction industry in Russia.

On the current situation in the field of digitalization of the construction industry in Russia

Before we talk about the current situation in the field of digitalization of the construction industry, let's look back. According to the HSE assessment, at the end of 2021, development in the ranking of digitalization of sectors of the economy in Russia was in the penultimate place. Now, at the end of 2023, we are talking about the introduction of AI, predictive analytics, robotization, Big data. In a short time, a long way has been passed.

Assessing the total volume of the construction digitalization market is not easy, because today many leading developers are developing their IT development, and do not use ready-made vendor solutions. IT budgets are not always announced, and the total revenue of vendors does not provide a complete understanding of the numbers. In addition, do not forget that the process of digitalization of the industry has recently started and is unfolding unevenly. Large federal developers have been developing the direction for a long time and intensively, investing serious funds, and other market participants are still eyeing digitalization. At the same time, there is confidence that the market volume will seriously increase in the coming years.

Research by Strategy Partners shows that while most developers (96%) share the view that digital transformation is highly relevant to businesses, more than half of them (58%) have yet to undertake organizational transformations or actively engage with the issue. Despite the dynamic development of the construction sector, it will take several years to achieve the level of digitalization of business, which is demonstrated today by leading industries (banks, retail).

The Samolet group began to seriously engage in digitalization in 2019, primarily focusing on the transformation of the company's commercial block and construction processes. And already at the start I had to make a strategic choice: go into my own development or implement software from third-party vendors. After studying the offers on the market, it became clear that there is no all-inclusive solution that would cover the entire construction process from beginning to end. Consequently, there were issues of integrating various software into a single system and IT architecture of the company, support, development. And at the same time, it was not possible to get a fully functional solution anyway. We considered this inappropriate in the long term and opened our own development centers to create a solution that would meet all our tasks. If something isn't there, do it yourself. Today, the digital platform of the Airplane group 10D consists of 38 connected modules and covers the full development cycle: from design to the work of the management company. We already have a confirmed effect from its use: productivity increased by 57%, construction time decreased by 30%. Our platform has become a serious competitive advantage and a successful product.

About prospects

Digitalization increases business value, competitiveness, creates new opportunities, acts as a development driver for the company and the entire industry as a whole. Digitalization of construction can become one of the fastest growing sectors of the IT market. Most experts and companies note that in 2022 and 2023, the pace of digital transformation of development accelerated. But you need to understand that the process will develop unevenly, because digitalization involves serious investments. In the model of financing the industry through project financing, it is difficult to find free funds for investment in numbers. Only large federal companies can afford it. The rest of the market often have to turn to borrowed funds for this purpose, which slows down the process of introducing technological solutions.

Also, any company faces the question of the expediency of such investments: why invest big funds, if the product is in demand, sells well, the profit is at the planned level. In digitalization, it is important to see the prospects for changing the business model, the economic component, the added value. For example, the question of digitalizing sales today is not worth it: everyone understands that it is convenient for a client who prefers to save time and spends the deal almost completely online. Many have such solutions. The Aircraft Plus platform is developing on the side of the group. It works for the client in the "one window" mode - a service within which he can choose an apartment, financial programs and the necessary "improvements" - from repair to design and furnishing of the apartment. On the other hand, it provides the convenience of digital seamless interaction between the agent and partners in the implementation of additional services.

Observing market leaders who demonstrate how much process efficiency can be increased, other participants see and understand the applied effect of digitalization.

In addition, with the development of the market, more and more good specialized solutions for the industry appear, and developers who created software for themselves are gradually bringing it to the market. "Airplane," for example, is already ready to scale and offers its solutions both on the domestic market and abroad.

On the features of import substitution in development

Our industry fell into a unique situation and stands somewhat apart from the rest of the market: products for the digitalization of the construction process were mainly created in Russia by domestic vendors and leading players, so the departure of foreign vendors had a slight impact on the industry.

The exception is BIM modeling. All used Autodesk Revit and it is difficult to replace. Most market participants still use previously purchased licenses or purchase them through partners, but everyone understands that these are temporary solutions, but strategic ones are needed. There is no full-fledged replacement at the moment, but the industry is on the way to solving the issue - Russian vendors are actively developing products, working closely with developers and design companies, receiving feedback.

Speaking about digitalization in development, it is necessary to clearly separate two areas - digitalization of development, sales, client services, and digitalization of the company's business process management. The issue of import substitution of solutions for digitalization of the company's process management is very relevant for many companies in our country, regardless of the industry. When you meet at conferences with specialists, you see that the problems are common: the care of SAP, IBM, Oracle and other vendors who have become de facto market practices have created a number of problems with infrastructure and application solutions, for example, ERP, HR platforms. "Airplane" on the way to solve these problems created its technological platform on open source solutions, developed its own platform of HR services to replace SAP SuccessFactors, chose an alternative to ERP using domestic IT systems. But questions still remain.

It is important that, having survived such a shock - the curtailment of critical services in just one day, many companies in the industry are unlikely to return to foreign vendors. Predictability in critical things is important for any business, and control over data, the performance of IT services and infrastructure, of course, belong to them. Last year, all Chief information officer urgently patched holes and tried to solve problems in the short term. Since this year, everyone has been looking for long-term alternatives, I want to return to reliability and stability, without which development is difficult. I would like domestic vendors to share this understanding with us and be ready for serious, possibly long-term projects aimed at creating mature solutions.

You can download the map in high resolution using the link.

Applications for the printed version of the card can be sent to the editor@tadviser.ru address. Free delivery is carried out in Moscow to IT managers in construction companies and state organizations. It is also possible to purchase a card.

The new construction digitalization map is already the 12th TAdviser product in this series. Previously prepared:

Digitalization of Construction Market Map

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