Construction tech (2021)
Waking the sleeping giant
Last updated: 30 Sep 2021
Market 101
Construction is a giant — but it is sleeping on its full potential. The sector accounts for a whopping 10% of European GDP. It’s also the least digitised industry in Europe and has seen productivity grow at only 2% over the past decade. Reworks, delays and unforeseen costs are commonplace as architects, contractors and developers struggle to coordinate. This fragmentation has acted as both a starting point and a barrier to uptake for construction tech.
Covid-19 might just be the wake-up call that stops the sector from simply chugging along. According to a Procore survey, 66% of construction companies adopted a new technology during lockdown, with 94% reporting operational improvements as a consequence. With the path to recovery looking uncertain, improving productivity will no longer just be ‘nice to have’, but key to companies’ resilience. Startups are ready and waiting in the wings to coax this giant out of its slumber.
Early stage market map
Key facts
€1.7tn
Market size of Europe’s construction sector1
39%
Proportion of global carbon emissions attributed to building and construction2
20%
Potential cost saving opportunity created by modular construction3
Trends to watch
1. Going green
→ EU legislation requires all new buildings to be nearly zero-energy by the end of 2020. The construction sector needs to adapt to the tightened rules around buildings’ energy performance.
→ Startups are stepping in to provide solutions, for example by developing materials that are both sustainable and energy efficient.
2. Modular construction: finally here to stay?
→ Modular construction has been in and out of favor, not quite being able to shake its reputation as a flexible and cheap, but low-quality option.
→ Startups are now using new materials and digital tools to improve manufacturing, aesthetics and logistics in the hope of winning over higher end customers.
3. The next stage of building information modelling (BIM)
→ BIM solves the construction sector’s coordination problem through its digital 3D models, which can be accessed and monitored by all actors involved in a project.
→ Startups are now trying to take BIM to the next level by pairing the technology with data analytics, machine learning or augmented reality.
4. Catering to consolidation
→ Point solutions are likely to persist for distinct use cases in construction tech, but a shift towards integrated, interconnected platforms is already under way.
→ The pandemic will likely increase consolidation in the sector and accelerate the development of solutions that cater specifically to such an environment.
Startups tracked by Sifted
Sifted take
For construction tech startups, Covid-19 might just be a blessing in disguise. Their services offer a way for companies to increase productivity amid growing economic pressures. As first movers demonstrate the advantages of tech uptake, others will likely follow.
Rising stars
Total funding
Undisclosed
Offers a platform that uses 3D machine learning to analyse progress from construction site images and scans. This generates insights about KPIs and risks that can feed into scheduling and BMI programs.
Round
Seed
Valuation
Undisclosed
Date
Size
€420k
Has developed a technology for storing CO2 in recycled concrete, resulting in improvements in the material’s carbon footprint by 10%. By 2025, the startup is aiming to produce ‘climate-neutral’ concrete that binds at least the amount of CO2 released during its production.
Round
Seed
Valuation
Undisclosed
Date
Size
€17k
Develops a modular construction product focused on both quality and affordability. Using a platform powered by artificial intelligence, the company hopes to accelerate and partially automate design, approval and procurement processes.
Round
Seed
Valuation
€14m
Date
Size
€6m
Early stage startups to watch
Bimspot
BIM
-
€1m
-
CemVision
Sustainable materials
€300k
€90k
€1.8m
Construyo
Marketplace
Construction hire
€2m
€2m
-
Contilio
Project management
Reporting and monitoring
-
€420k
-
EdilGo
Marketplace
Building materials
€710k
€300k
-
Fieldly
Project management
Reporting and monitoring
€7.2m
€1m
-
Finch Buildings
Modular construction
-
€1m
-
Juunoo
Real Estate
€8.6m
€6.6m
-
kodehyve
Reporting and monitoring
€3.6m
€2.6m
€13.1m
Modulous
Modular construction
€10m
€6m
-
MyAedes
Project management
Reporting and monitoring
€400k
€250k
-
Omnidots
Sensors & robotics
€1m
€1m
-
Orange Banana Software
Marketplace
Building supplies
€450k
€450k
-
Qualis Flow
Project management
Sustainability performance
€3m
€2m
-
QuickBlock
Modular construction
€300k
€300k
-
Remato
Real Estate,Enterprise Software
Reporting and monitoring
€2.1m
€1.5m
-
Ricehouse
Sustainable materials
€600k
€600k
-
Scaled Robotics
Sensors & robotics
€2m
€2m
-
SGPR.TECH
Sensors & robotics
€2.8m
€450k
-
Skrap
Marketplace
Construction hire
€2m
€1.2m
-
System 3E
Sustainable materials
€1.1m
€1.1m
€6m
TechnoCarbon
Sustainable materials
€420k
€10k
-
Vizcab
Project management
Sustainability performance
€2.8m
€1.2m
-
Warmango
Marketplace
Building supplies
€3.6m
€2m
-
Yardlink
Marketplace
Construction tool hiring
€2.1m
€2m
-
Sources
Articles
1 Construction Tech: The Digital Future of a Stubbornly Analog Industry | August 2020 | Speedinvest
Research reports
2 New report: the building and construction sector can reach net zero carbon emissions by 2050 | September 2019 | World Green Building Council
3 Modular construction: From projects to products | June 2019 | McKinsey
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