Singapore’s construction industry is significantly increasing its investment in digital tools, with 28% of overall expenditure now channelled into technology. According to Autodesk’s latest State of Digital Adoption in the Construction Industry report, conducted in partnership with Deloitte, the country’s firms are among the most digitally mature in the Asia Pacific (APAC) region. The findings show that digital adoption is linked to improved project delivery, stronger financial returns, and fewer safety incidents.
The report draws insights from 894 construction businesses across six APAC markets, including Singapore, Australia, Japan, India, Malaysia, and Hong Kong.
Singapore pushes ahead on digital transformation
Singapore construction firms are currently using an average of 7.3 technologies, a 46% increase from last year’s average of 5.0. This places Singapore second in the region, just behind India (8.6), and well above the regional average of 6.2.
Investments in new technologies now account for 28 cents of every dollar spent by construction companies in Singapore, up from 21% the year before. This rise has been supported by government-led initiatives such as the Building and Construction Authority’s (BCA) Built Environment Industry Transformation Map. These programmes have encouraged the adoption of Building Information Modelling (BIM), Integrated Digital Delivery (IDD), and other digital tools, now standard for many public sector projects.
According to the BCA, construction demand in Singapore is expected to hit between S$47 billion and S$53 billion in 2025. Industry revenue could also increase from S$31 billion to S$38 billion over the next three years, creating strong incentives for further digital investment.
Jeff Larrick, Senior Director of APJ Construction Cloud at Autodesk, said, “It is highly encouraging to see construction businesses in Singapore continue accelerating their investment into technology over the last few years, positioning them well to capitalise on opportunities arising from the slew of major local infrastructure projects on the horizon.”
Technology is improving performance and safety
The report found that companies with higher digital maturity were more likely to complete projects under budget and on schedule. These firms also saw stronger revenue performance. For instance, a company with US$100 million in revenue could potentially gain an additional US$1.14 million in growth while reducing safety incident risks by 50%.
Digital tools are also helping to improve site safety, a critical issue in the industry. Construction remains one of the most hazardous sectors in Singapore. A Ministry of Manpower (MOM) inspection earlier this year uncovered over 800 safety violations across 300 sites. The sector accounted for 20 of Singapore’s 36 workplace fatalities.
Companies using at least six technologies were more likely to see fewer incidents. In Singapore, 79% of firms reported either a decrease or no change in safety incidents, compared with 82% across the wider APAC region. Although slightly below the regional average, this suggests continued progress and potential for further improvement.
Overcoming adoption barriers and upskilling the workforce
Despite the clear benefits, Singapore firms still face challenges in scaling up their digital adoption. A lack of technical skills (35%), limited budgets (32%), and high costs of technology (29%) were cited as the main barriers. However, skills-related challenges have declined significantly—from 55% in 2023 to 25% in 2025—as firms increase their focus on training.
Eighty-four percent of businesses are now actively investing in upskilling their workforce, with more than three-quarters collaborating with educational institutions. Government support is also helping to offset adoption costs, including schemes like the Productivity Solutions Grant and the recently announced US$110 million Enterprise Compute Initiative, aimed at encouraging AI adoption.
Larrick added, “Unlocking the full potential of digital transformation requires a strategic focus on effective change management. Key activities, such as clearly communicating the benefits of new technologies, piloting solutions prior to widespread deployment, and securing active endorsement from business leaders, are crucial.”
The report also highlighted positive trends across the region. Key technologies such as BIM, data analytics, and construction management software were rated as highly effective, with over 80% of firms reporting strong returns on investment. In addition, the increased use of technology has contributed to better gender diversity, with businesses that embrace digital tools 22% more likely to see a rise in female participation in the past five years. This is especially evident in Singapore, Malaysia, Australia, and India.
As digital maturity continues to deepen across Singapore’s construction industry, the sector is poised to become safer, more efficient, and better equipped to take on the city’s future infrastructure challenges.
