Enhancing Digital Transformation in Architecture and Construction Industry: Challenges, Opportunities, Risks, and Strategies

Abstract

The construction industry, a vital pillar of global economic development, has been notably slower than other sectors in adopting digital technologies. Despite the existence of tools like Building Information Modeling (BIM), augmented and virtual reality (AR/VR), and the Internet of Things (IoT) that aid in project management, their application has not reached its full potential. This shortfall is attributed to a variety of factors, including differences in technological advancement across regions and the unique, complex challenges specific to construction. Such complexities often surpass the comprehension capacities of stakeholders, limiting effective digital adoption and, consequently, hindering productivity in the industry. This study aims to investigate the primary challenges impeding digital adoption in the architecture and construction industry, to identify the key drivers of digital transformation, and to examine the critical risks associated with this shift. The research also seeks to develop effective strategies to address these challenges. To achieve these goals, the study employs a comprehensive methodology involving literature reviews, case studies, and surveys. These approaches provide a well-rounded understanding of the factors at play, revealing not only the barriers to digitalization but also practical, actionable strategies to enhance adoption. Overall, the findings offer a roadmap for digital transformation in construction, with recommendations to foster productivity and growth across the sector.