State of Digital Adoption in the Construction Industry 2026
Autodesk
This is the fourth annual edition of the State of Digital Adoption in the Construction Industry commissioned by Autodesk, which examines digital adoption and digital capability across construction and engineering businesses in six Asia Pacific markets.
State of Digital Adoption in the Construction Industry 2026
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Digital capability is becoming a strategic priority for construction businesses across Asia Pacific as the industry faces rising costs, supply chain disruption, skills shortages and weak productivity growth. In this environment, digital tools can help businesses improve productivity, strengthen resilience and deliver projects more reliably.
Based on a survey of 954 construction and engineering businesses across Australia, Hong Kong, India, Japan, Singapore and Vietnam, the report finds that digital adoption is continuing to accelerate. Data analytics is now used by 56% of businesses, construction management cloud software by 50%, and mobile apps by 47%. AI or machine learning tools are used 46% of businesses, up from around one-quarter in the first edition of the report in 2023.
However, greater technology use does not automatically translate into stronger performance. Many businesses still lack the data systems, interoperability and workforce capability needed to embed digital tools effectively. Less than half of businesses say on-site teams mostly have access to real-time project data, and one-quarter still rely mainly on paper-based systems. Fragmented data environments also remain a challenge, although the median number of systems and point solutions has fallen from 11 last year to six this year.
To better assess this gap, the report introduces a Digital Capability Index, which measures businesses across strategy and organisation, tools and solutions, data and infrastructure, and workforce and skills. Only 16% of businesses have reached advanced digital capability, while most remain intermediate or developing. Workforce and skills is the weakest area, highlighting the need to build employees’ ability to use digital tools confidently and consistently.
The potential payoff is significant. Advanced businesses deliver more projects on time and on budget, win a higher share of proposals, and generate more revenue and profit per employee. For a business generating USD $100 million in revenue, moving from developing to advanced capability is associated with USD $111 million in additional revenue and USD $24 million in additional profit each year.
The report identifies five focus areas for businesses: target technology at key pain points, improve data interoperability, build workforce capability, scale AI where it has proven value, and use structured capability assessments to prioritise investment.
