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How Technology is Disrupting the Construction Industry

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Construction Disruption

How Technology is Disrupting the Construction Industry

See the full resolution version of this infographic.

The rate of digital disruption is escalating in almost every industry. However, despite being one of the fastest-growing industries globally—construction has been one of the last to get hit.

Today’s infographic from Raconteur ranks the adoption of emerging technologies that will have a major impact on the industry’s processes and bottom line. The technologies help solve four major challenge areas that the construction industry struggles with: productivity, safety and training, labor shortages, and collaboration.

Which technologies could improve the lives of industry workers, and which technologies may pose a threat to their jobs?

Towards a New Dimension

Output from the global construction industry is expected to rise to $12.7 trillion in 2022, up from $10.6 trillion in 2017. Despite this promising outlook, the industry has gained only 1% of productivity in the last 20 years due to lack of digitization. This creates an opportunity for an added $1.6 trillion by innovating in this area.

According to the infographic, the industry is divided when it comes to the current state of digital transformation. Almost half (46%) of construction companies self-identify as having been on a path towards digital transformation for some time, while 41% see their company as only in the very early stages of digital transformation.

The Spectrum of Tech Adoption

The technology adoption spectrum ranks construction companies by their stages of innovation and rate of technological adoption, using data from the KPMG Future-Ready Index.

Technologies that have the highest adoption rates in the top 20% of companies (considered innovative leaders), are as follows:

  1. Building Information Modeling (BIM): 86%
  2. Basic data analytics: 83%
  3. Project management and information systems: 79%
  4. Drones: 72%
  5. Mobile platforms: 69%

BIM is a 3D modeling system that creates depictions of manufacturing facilities, buildings, and highways. While 3D modeling is widely used in construction today, next-generation 5D BIM represents both the physical and functional aspects of a project, and considers a project’s cost and schedule in addition to the standard parameters of 3D BIM.

Meanwhile, for the bottom 20% of companies (considered behind the curve), the rate of adoption can be low or even non-existent for many key technologies. Here are the ones with the lowest adoption rates within this group:

  1. Cognitive machine learning: 0%
  2. Robotics: 0%
  3. Artificial intelligence: 0%
  4. Machine engineering and design: 3%
  5. 3D printing: 7%

Both employers and employees are hesitant about adopting new technologies, due in part to the lack of knowledge surrounding them. More specifically, 29% of companies agree that lack of knowledge is a barrier for adoption, while 38% believe that it is due to lack of budget. A further 38% believe it is the lack of support from employees that inhibits mass adoption.

Despite these barriers, 52% of innovation leaders claim that technologies like artificial intelligence and cognitive machine learning will become commonplace within the industry over the next five years.

The Long-term Impact

Construction companies are now in a race to go digital, with the hope that technology will enhance profitability while also fending off competitors.

In total, 70% of construction companies believe that those who do not adopt digital tools will go out of business. Further, most believe digitization will improve productivity, speed of delivery, and help meet sustainability challenges.

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Technology

How Big Tech Makes Their Billions

The big five tech companies generate almost $900 billion in revenues combined, more than the GDP of four of the G20 nations. Here’s how they earn it all.

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How Big Tech Makes Their Billions

The world’s largest companies are all in technology, and four out of five of those “Big Tech” companies have grown to trillion-dollar market capitalizations.

Despite their similarities, each of the five technology companies (Amazon, Apple, Facebook, Microsoft, and Alphabet) have very different cashflow breakdowns and growth trajectories. Some have a diversified mix of applications and cloud services, products, and data accumulation, while others have a more singular focus.

But through growth in almost all segments, Big Tech has eclipsed Big Oil and other major industry groups to comprise the most valuable publicly-traded companies in the world. By continuing to grow, these companies have strengthened the financial position of their billionaire founders and led the tech-heavy NASDAQ to new record highs.

Unfortunately, with growth comes difficulty. Data-use, diversity, and treatment of workers have all become hot-button issues on a global scale, putting Big Tech on the defensive with advertisers and governments alike.

Still, even this hasn’t stopped the tech giants from (almost) all posting massive revenue growth.

Revenues for Big Tech Keep Increasing

Across the board, greater technological adoption is the biggest driver of increased revenues.

Amazon earned the most in total revenue compared with last year’s figures, with leaps in almost all of the company’s operations. Revenue from online sales and third-party seller services increased by almost $30 billion, while Amazon Web Services and Amazon Prime saw increased revenues of $15 billion combined.

The only chunk of the Amazon pie that didn’t increase were physical store sales, which have stagnated after previously being the fastest growing segment.

Big Tech Revenues (2019 vs. 2018)

CompanyRevenue (2018)Revenue (2019)Growth (YoY)
Apple$265.6 billion$260.2 billion-2.03%
Amazon$232.9 billion$280.5 billion20.44%
Alphabet$136.8 billion$161.9 billion18.35%
Microsoft$110.4 billion$125.8 billion13.95%
Facebook$55.8 billion$70.8 billion26.88%
Combined$801.5 billion$899.2 billion12.19%

Services and ads drove increased revenues for the rest of Big Tech as well. Alphabet’s ad revenue from Google properties and networks increased by $20 billion. Meanwhile, Google Cloud has seen continued adoption and grown into its own $8.9 billion segment.

For Microsoft, growth in cloud computing and services led to stronger revenue in almost all segments. Most interestingly, growth for Azure services outpaced that of Office and Windows to become the company’s largest share of revenue.

And greater adoption of services and ad integration were a big boost for ad-driven Facebook. Largely due to continued increases in average revenue per user, Facebook generated an additional $20 billion in revenue.

Comparing the Tech Giants

The one company that didn’t post massive revenue increases was Apple, though it did see gains in some revenue segments.

iPhone revenue, still the cornerstone of the business, dropped by almost $25 billion. That offset an almost $10 billion increase in revenue from services and about $3 billion from iPad sales.

However, with net income of $55.2 billion, Apple leads Big Tech in both net income and market capitalization.

Big Tech: The Full Picture

CompanyRevenue (2019)Net Income (2019)Market Cap (July 2020)
Apple$260.2 billion$55.2 billion$1.58 trillion
Amazon$280.5 billion$11.6 billion$1.44 trillion
Alphabet$161.9 billion$34.3 billion$1.02 trillion
Microsoft$125.8 billion$39.2 billion$1.56 trillion
Facebook$70.8 billion$18.5 billion$665.04 billion
Combined$899.2 billion$158.8 billion$6.24 trillion

Bigger Than Countries

They might have different revenue streams and margins, but together the tech giants have grown from Silicon Valley upstarts to global forces.

The tech giants combined for almost $900 billion in revenues in 2019, greater than the GDP of four of the G20 nations. By comparison, Big Tech’s earnings would make it the #18 largest country by GDP, ahead of Saudi Arabia and just behind the Netherlands.

Big Tech earns billions by capitalizing on their platforms and growing user databases. Through increased growth and adoption of software, cloud computing, and ad proliferation, those billions should continue to increase.

As technology use has increased in 2020, and is only forecast to continue growing, how much more will Big Tech be able to earn in the future?

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Technology

What Does 1GB of Mobile Data Cost in Every Country?

Globally, the cost of mobile data ranges between $0.09 per GB up to $27 per GB. Here’s how it breaks down in 150+ countries.

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What Does 1GB of Mobile Data Cost in Every Country?

Billions of people around the world rely on their mobile phones every day.

Even in a saturated market, mobile networks have continued to expand their reach. In the last five years alone, almost one billion additional people have gained access to mobile data services.

Despite the growing prevalence of these networks worldwide, the cost of gaining access can vary greatly from country to country—particularly when it comes to the price of mobile data.

Today’s chart uses figures from Cable.co.uk to showcase the average cost of one gigabyte (GB) of mobile data in 155 different countries and jurisdictions. Despite the vast global reach of the mobile economy, it’s clear it still has a long way to go to reach true accessibility.

Discrepancies in Mobile Data Costs

Researchers have identified several key elements that help explain the cost variation for mobile data between countries:

  1. Existing infrastructure (or lack thereof): This might seem counterintuitive, but most mobile networks rely on a fixed-line connection. As a result, countries with existing infrastructure are able to offer mobile plans with more data, at a cheaper price. This is the case for India and Italy. Countries with minimal or no infrastructure rely on more costly connection alternatives like satellites, and the cost typically gets passed down to the consumer.
  2. Reliance on mobile data: When mobile data is the primary source of internet in a particular region, adoption can become nearly universal. This high demand typically leads to an increase in competing providers, which in turn lowers the cost. Kyrgyzstan is a good example of this.
  3. Low data consumption: Countries with poor infrastructure tend to use less data. With mobile plans that offer smaller data limits, the overall average cost per GB tends to skew higher. Countries like Malawi and Benin are examples of this phenomenon.
  4. Average income of consumer: Relatively wealthy nations tend to charge more for mobile services since the population can generally afford to pay more, and the cost of operating a network is higher. This is apparent in countries like Canada or Germany.

The Cheapest Countries for 1 GB of Data

Even among the cheapest countries for mobile data, the cost variation is significant. Here’s a look at the top five cheapest countries for 1 GB of data:

Overall RankCountryAverage price of 1GB (USD)
1🇮🇳 India
2🇮🇱 Israel11¢
3🇰🇬 Kyrgyzstan 21¢
4🇮🇹 Italy 43¢
5 🇺🇦 Ukraine46¢

India ranks the cheapest at $0.09 per GB, a 65% decrease in price compared to the country’s average cost in 2019.

Why is data so cheap in India? A significant factor is the country’s intense market competition, driven by Reliance Jio—a telecom company owned by Reliance Industries, one of the largest conglomerates in India. Reliance Jio launched in 2016, offering customers free trial periods and plans for less than a $1 a month. This forced other providers to drop their pricing, driving down the overall cost of data in the region.

Because these prices are likely unsustainable for the long term, India’s cheaper-than-usual prices may soon come to an end.

Another country worth highlighting is Kyrgyzstan, which ranks as the third cheapest at $0.21 per GB, ahead of Italy and Ukraine. This ranking is surprising, given the country’s minimal fixed-line infrastructure and large rural population. Researchers suspect the low cost is a result of Kyrgyzstan’s heavy reliance on mobile data as the population’s primary source of internet.

The Most Expensive Countries for 1 GB of Data

On the other end of the spectrum, here are the top five most expensive countries for one gigabyte of mobile data:

Overall RankCountryAverage price of 1GB (USD)
155🇲🇼 Malawi$27.41
154🇧🇯 Benin$27.22
153🇹🇩 Chad$23.33
152🇾🇪 Yemen$15.98
151🇧🇼 Botswana$13.87

A striking trend worth noting is that four out of five of the most expensive countries for mobile data are in Sub-Saharan Africa (SSA).

A significant factor behind the high cost of data in SSA is its lack of infrastructure. With overburdened networks, the data bundles offered in the region are generally smaller. This drives up the average cost per GB when compared to countries with unlimited packages.

Another element that contributes to SSA’s high costs is its lack of market competition. In countries with multiple competing networks, such as Nigeria, the cost of data skews lower.

The Full Breakdown

The below table has a full list of all 155 countries and jurisdictions included in the data set. It helps demonstrate the stark contrast in the cost of mobile data between the most expensive and cheapest countries globally.

RankCountryAverage price of 1GB (USD)
1India
2Israel11¢
3Kyrgyzstan21¢
4Italy43¢
5Ukraine46¢
6Kazakhstan46¢
7Somalia50¢
8Sri Lanka51¢
9Russian Federation52¢
10Vietnam57¢
11China61¢
12Sudan63¢
13Indonesia64¢
14Algeria65¢
15Australia68¢
16Pakistan69¢
17Poland70¢
18Bangladesh70¢
19Chile71¢
20Turkey72¢
21Tanzania73¢
22Dominican Republic74¢
23Mongolia74¢
24Iran75¢
25Kuwait77¢
26Myanmar78¢
27Denmark80¢
28France81¢
29Nepal86¢
30Belarus89¢
31Georgia93¢
32Ghana94¢
33Monaco98¢
34Western Sahara99¢
35Morocco99¢
36Brazil$1.01
37Romania$1.03
38Jordan$1.03
39Kenya$1.05
40Armenia$1.05
41Austria$1.08
42Egypt$1.09
43Moldova$1.12
44Malaysia$1.12
45Thailand$1.23
46Estonia$1.27
47Uzbekistan$1.34
48Ireland$1.36
49Zambia$1.36
50Tunisia$1.37
51Nigeria$1.39
52United Kingdom$1.39
53Philippines$1.42
54El Salvador$1.45
55Argentina$1.45
56Rwanda$1.48
57Slovenia$1.48
58Cambodia$1.50
59Afghanistan$1.55
60Uruguay$1.58
61Serbia$1.60
62Uganda$1.62
63Nicaragua$1.71
64Macedonia$1.75
65Spain$1.81
66Lithuania$1.85
67Azerbaijan$1.86
68Congo$1.94
69Sweden$2.07
70Guinea$2.08
71Timor-Leste$2.08
72Saudi Arabia$2.12
73Burundi$2.12
74Peru$2.13
75Lesotho$2.13
76Finland$2.14
77Guatemala$2.17
78Bulgaria$2.22
79Bahrain$2.27
80Paraguay$2.30
81Ethiopia$2.44
82Singapore$2.47
83Burkina Faso$2.47
84Croatia$2.48
85Mauritius$2.48
86Hong Kong$2.55
87Haiti$2.74
88Costa Rica$2.74
89Cameroon$2.75
90Albania$2.83
91Netherlands$2.98
92Bosnia and Herzegovina$3.04
93Honduras$3.12
94Côte d'Ivoire$3.20
95Ecuador$3.24
96Liberia$3.25
97Palestine$3.26
98Niger$3.30
99Senegal$3.30
100Mozambique$3.33
101Colombia$3.46
102Sierra Leone$3.69
103United Arab Emirates$3.78
104Latvia$3.79
105Lebanon$3.82
106Slovakia$3.84
107Jamaica$3.88
108Japan$3.91
109Germany$4.06
110Qatar$4.12
111Guinea-Bissau$4.12
112Mali$4.12
113Lao PDR$4.16
114Iraq$4.20
115South Africa$4.30
116Togo$4.50
117Oman$4.58
118Mauritania$4.63
119Tajikistan$4.65
120Libya$4.73
121Mexico$4.77
122Namibia$4.78
123Belgium$4.88
124Gabon$4.89
125Portugal$4.97
126Bolivia$5.09
127Gambia$5.10
128Norway$5.28
129Angola$5.29
130Hungary$5.32
131Papua New Guinea$5.40
132Taiwan$5.91
133Trinidad and Tobago$5.92
134New Zealand$6.06
135Syria$6.55
136Panama$6.69
137Czech Republic$7.95
138United States$8.00
139Central African Republic$8.25
140Switzerland$8.38
141Madagascar$8.81
142Puerto Rico$9.17
143South Korea$10.94
144Turkmenistan$11.44
145Greece$12.06
146Canada$12.55
147Equatorial Guinea$12.78
148Eswatini$13.31
149Cuba$13.33
150Cyprus$13.56
151Botswana$13.87
152Yemen$15.98
153Chad$23.33
154Benin$27.22
155Malawi$27.41

Interestingly, the highest average cost is 30,000% more than the cheapest average price.

The Technology Gap

Will we reach a point of equal accessibility across the globe, or will the technology gap between countries continue to widen?

With 5G networks on the rise, just seven countries are expected to make up the majority of 5G related investments. Time will tell what this means for adoption worldwide.

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