Invest in Russia — invest in Russian regions!
All analytics

Areas of competition and investment in technology in the context of current trends in the construction and development industry

2 March 2020

Technological trends

Having analyzed the current market situation in the global construction and development sector, the authors of the report identified three main trends which are shaping the industry:
  • accumulating set of technologies to transform the industry;
  • increasing investment in construction technologies;
  • growing understanding about practical application of the technologies.
The Russian construction and development market is lagging behind other economy sectors in terms of technological modernization and is one of the last ones to embrace digitalization. This is of particular importance for industry players as technological transformation is a necessary condition for their survival.

Internet of Things

According to the authors of the report, the main driver of digitalization is the Internet of Things. The notion of IoT encompasses three related segments — energy efficiency, automation, and connected homes. IoT is a basis for building positive customer experience, digital client services, and active engagement with end customers of housing property.

Shift of focus of customer and developer attention

The authors of the report note that the focus of competition is shifting: rather than ensuring the highest product quality, businesses are now trying to provide positive customer experience. Thus, developers must consider the needs of all their customers — those who invest in housing property with the aim of selling it or letting it out, and those who prefer renting a home to free money for getting new experiences.

Housing as a product

The needs of millennials coupled with cross-cutting industrial and user technologies lead the housing sector to the concept of housing as a product. On a subscription basis, a tenant may receive access to controlling smart devices in the home through a mobile application. Management companies and homeowners may use a unified control system to monitor risks of emergencies and remotely take readings from energy meters.

Application of technologies

According to the authors of the report, the segment of development proper remains the most heavily invested in and the most technologically rich group of processes. Thus, the first steps for construction and development companies to take in the near future might be the following:
  • integration into the ConTech community (for example, by forging partnerships with startup accelerators or creating a joint accelerator for generation of concepts and prototyping);
  • prioritizing two to three projects (such as digital customer experience, digital product, or digital construction site) to be implemented in the company.

Anlytics on the topic

All analytics
Expert opinion
3 June 2019
Alexander Machkevitch: Setting new standards for the industry

Dr Alexander Machkevitch, Chairman of the Board of Directors of Eurasian Resources Group (ERG), talks about smart mines, digital and entrepreneurial ecosystems and the elimination of child labour from the metals & mining industry.

30 December 2019
Smart cities: Digital solutions for a more livable future

The report from the McKinsey Global Institute analyzes how digital services solve various practical problems in the areas of security, transport, medicine, and environment.

26 March 2018
Accelerating the car data monetisation

Capturing value from vehicle data will require players in the automotive ecosystem to approach the issue strategically and to overcome the three main challenges that executives identified in McKinsey proprietary survey and industry roundtables.

21 December 2020
World Trade Report 2020

The 2020 World Trade Report looks at the role of innovation and technology policies in an increasingly digitalized world economy and explains the role of the WTO in this changing context.