India’s construction sector is undergoing a rapid transformation, driven not only by capital expenditure and infrastructure demand but also by the growing integration of digital technologies. From cloud-based platforms and real-time monitoring to drones, robotics and AI-led analytics, digital tools are now central to how construction projects are conceptualised, managed and delivered. This shift marks a significant evolution in the way India builds, reflecting a broader global trend towards smarter, data-driven construction practices.

      The momentum behind this digital transition is evident in the growth of India’s PropTech sector, which is currently valued at around USD6 billion.1 With increasing demand for digitisation across real estate and infrastructure, this sector is projected to grow at a CAGR of 15 per cent, reaching USD16 billion by 2030.2 This growth is not just a reflection of market potential but also of the expanding role that emerging technologies are playing in reshaping construction workflows and outcomes.

      Smart tools powering the future of construction 

      Today, digital tools are finding widespread application across the construction value chain. AI, for instance, is helping reduce project planning time by up to 20 per cent, enabling faster decision-making and more accurate forecasting.3 Predictive analytics is being used to optimise equipment usage, inventory management and labour allocation, ensuring that resources are deployed efficiently and cost-effectively. These technologies are helping address long-standing challenges in the sector, such as delays and budget overruns, which still affect nearly 60 per cent of large infrastructure projects.4

      New-age digital solutions are beginning to close this gap. Real-world use cases of 3D printing, for example, signal a growing shift towards faster and more efficient delivery models. Structures that once took weeks to build can now be completed in days, with reduced material waste and improved design precision. Similarly, drones are being used for site surveys and progress tracking, while robotics are enhancing safety and productivity in high-risk environments.

      The way forward

      As India gears up to spend USD1.4 trillion on infrastructure by 2030, digital technologies are fast becoming indispensable.5 However, while the progress toward digitisation is strong, several challenges remain. Financial constraints continue to limit the adoption of advanced technologies, especially among smaller firms. Data fragmentation across platforms and systems hampers integration and insights, while a widening skill gap poses a barrier to effective implementation. To overcome these hurdles, focused efforts are needed to make the digital transition inclusive, scalable and secure.

      Investments in digital infrastructure, training programs and regulatory support will be key to unlocking the full potential of technology in construction. By fostering collaboration between government, industry and academia, India can build a robust ecosystem that supports innovation and drives long-term growth. The future of construction lies in embracing digital transformation – not just as a tool for efficiency but as a strategic imperative for sustainable development.

      As the sector continues to evolve, the integration of digital technologies will redefine what is possible in construction. From smarter planning and faster execution to better resource management and enhanced safety, the benefits are clear. With the right vision and commitment, India’s construction industry can lead the way in building not just infrastructure, but a digitally empowered future.

      [1] PropTech investment to soar 15 per cent CAGR, reaching USD16 Billion by 2030 in India, Geosquare, 3 December 2024, accessed on 22 September 2025 
      [2] PropTech investment to soar 15 per cent CAGR, reaching USD16 Billion by 2030 in India, Geosquare, 3 December 2024, accessed on 22 September 2025
      [3] AI in real estate: Use cases, benefits and future trends (2025), RTS Labs, 20 August 2025, accessed on 22 September 2025
      [4] Nearly 60% large infra projects facing cost overruns, says Ministry of Statistics, Economic Times, 23 February 2023, accessed on 22 September 2025
      [5] National Infrastructure Pipeline- Building India, Make in India, accessed on 22 September 2025

      Author

      Neeraj Bansal

      Partner and Head India Global

      KPMG in India

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