Australian construction companies are accelerating their shift into digital tools, with new technology now accounting for 25 cents in every investment dollar across the sector.
The finding comes from Autodesk and Deloitte’s State of Digital Adoption in the Construction Industry 2025 report, which shows technology investment in Australian construction has risen from 19% of total expenditure in 2023 to 25% in 2025.
The lift points to a sector using technology not as a nice-to-have, but as a response to industry pressures: rising material costs, labour shortages, tighter margins and the need to deliver projects more efficiently.
Digitally mature construction market
Australian construction businesses are now using an average of 6.9 digital technologies, up from 5.0 in 2024, putting the country among the more digitally mature construction markets in Asia-Pacific.
The tools being adopted include artificial intelligence, construction cloud management, Building Information Modelling, digital twins and data analytics.
Importantly, these technologies are increasingly being used to improve planning, collaboration, safety and project delivery.
Report highlights
The report, based on a survey of 894 construction businesses across Australia and Asia-Pacific, also found Australian firms are more upbeat than a year ago. Some 74% of Australian construction businesses said they were optimistic about the year ahead, up from 65% previously.
That confidence comes despite a subdued economic backdrop, with Australian economic growth forecast at 1.2% in FY25, rising to 1.9% in FY26.
Autodesk said Australia has one of the highest levels of digital maturity in the region, with technology increasingly tied to financial performance and construction quality.
Harder to ignore
The business case is becoming harder to ignore. Across Asia-Pacific, the report found each additional technology adopted was associated with a 1.14% increase in expected revenue — equal to a US$1.14 million uplift for a business generating US$100 million in revenue.
For Australian builders, the takeaway is clear: the digital construction shift is no longer theoretical. Firms are spending more, adopting more tools and looking to technology to offset cost, labour and productivity challenges.
The next test will be whether the industry can match that investment with the skills needed to use these systems effectively.