Introduction

The construction industry is well known for being slow to innovate, however, the spread of the concept of Construction 4.0 in recent years has led to a revolution in the way buildings are designed, constructed, and used. The definition is still evolving, but this can be framed in both narrow and broad terms. In narrow terms, this refers to the integration of digital technologies, data analytics, and automation of the construction process to improve efficiency and productivity. The main technologies are Building Information Modelling (BIM), Internet of Things (IoT), robotics and automation, prefabrication and off-site construction, Virtual Reality (VR), and Augmented Reality (AR). In broader terms, the concept encompasses social, economic, and environmental aspects and the implications on them from Construction 4.0 [1]. 

There are several benefits that Construction 4.0 technologies and processes can generate in the building sector. These include: 

• Cost and time savings: Using BIM and 3D modelling allows for projects to be planned in detail during the design phase, improving collaboration and decision making, and avoiding delays and waste. Automation also allows for a reduced number of errors and speeds up the outputs of the projects.

• Increased standards and productivity: The early and continuous monitoring of processes allows for more consistent and efficient productivity, including improvement of energy performance.

• Improved sustainability: Digital processes can help reduce waste, decreasing energy costs and thus cutting carbon emissions.

• Industry modernisation: With the increased use of digital technologies, the industry has improved its image, attracting more skilled professionals.

• Site safety improvement: Automation can reduce risks for workers, while VR and AR can reduce the dangers of site visits.

Although it has a long list of benefits, Construction 4.0 also brings some challenges to the industry, such as initial start-up costs which can affect (mainly) smaller businesses, training professionals the new skills needed with new technologies and processes, and workers´ resistance to changes of their roles and tasks.

BIM stands out as a key technology applicable across all stages of construction and asset existence. The adoption of BIM processes in buildings allows for simulating the impact of each decision in the built environment. The integration of BIM is viewed as the primary solution for managing information, especially during key phases of the asset lifecycle: procurement, design, construction (including assembly), operation, and maintenance. The rapid advancement of BIM necessitates the application of common standards to ensure interoperability and compatibility. In 2016, the European BIM market was valued at EUR 1.8 billion, with a projected growth of 13%, reaching EUR 2.1 billion in 2023.

The implementation of standardised practices and methodologies using BIM would yield several benefits, including:

• Decreases in both capital and operating costs associated with construction assets,

• Mitigation of wasted time due to inefficient breaks between productive construction processes,

• Enhancement of the reliability of construction output, resulting in better quality and fewer defects,

• Improvement of resource efficiency in construction products and materials, thereby enhancing both operational and embodied carbon performance,

• Support for advancements in team collaboration and working dynamics.

• Enhancement of operational processes related to construction assets.

Complementary technologies, such as robotics, drones, 3D printing, automated robots, sensors, and IoT, are emerging and promising to revolutionise various parts of the value chain. The market analysis conducted by the European Construction Sector Observatory indicates that sensors have a high level of market maturity and technological readiness among data acquisition technologies, but there is room for improvement in their integration into existing buildings. 3D scanning is on the rise, while IoT is still emerging. In terms of automating processes in the construction sector, drones are increasingly used due to sensor advancements, while robots and 3D printing are in the development phase and utilised for specific tasks. The low market readiness of automating technologies is attributed to limited traction in the construction and maintenance phases. The future of the construction sector's digitalisation lies in the effective use of digital data, requiring data analysis for tangible improvements. Hence, although BIM is widely used in the design phase, technologies like VR and AR, Artificial Intelligence (AI), and Digital Twins are still in development, with high potential for the future according to stakeholders.

Policy context

The digitalisation of the construction sector is increasingly acknowledged as a potential transformative force, capable of making significant contributions to sustainable development in alignment with the European Green Deal and priorities for a ’Europe fit for the digital age’. Projections suggest that achieving full-scale digitalisation in non-residential construction within a decade could result in annual global cost savings ranging from EUR 0.6 trillion to EUR 1.0 trillion (13% to 21%) during the engineering and construction phases and EUR 0.3 trillion to EUR 0.4 trillion (10% to 17%) in the operations phase [2].

With regard to the management of asset portfolios throughout their lifecycle, digital solutions play a crucial role in ensuring that all stakeholders, including clients and users, are well-informed about the various stages in the lifecycle. This enables them to make informed decisions, even during transitions of asset ownership. Notably, there is a pronounced rise in the adoption of Digital Building Logbooks, and work at the EU level is underway to consolidate these efforts, as evident in the EU Framework for Buildings Digital Logbook. The revised Energy Performance of Building´s Directive (EPBD) also emphasises the importance of Digital Building Logbooks as common repositories for all relevant data of a building. The improved transparency and easier access to information will allow to increase the renovation rate and reduce risks for investors [3]. 

Policymakers across the European Union (EU) are expressing strong interest in promoting the digitalisation of the construction sector. In fact, 16 of 27 EU Member States have implemented policies specifically addressing or covering digitalisation in construction, often accompanied by financial support and technical assistance. Digital construction platforms, which bring together private and public stakeholders, exemplify successful public policy initiatives by fostering collaboration, synergies, and knowledge sharing. 

Many national governments incorporate BIM requirements in public procurement processes, a practice considered beneficial for advancing digitalisation. The national plans mandate the use of BIM for public projects, and the requirements are phased based on project size and type, starting with major projects and progressively includes smaller ones. However, public sector actors need to enhance BIM-related capacities, balance priorities between low price and high quality, and ensure inclusivity for both small and large companies in leveraging digital opportunities. Governments also facilitate the adoption of digital technologies in construction through e-services, such as digital building permits and repositories of building data. The EU's recent developments in policies, support measures, and funding are expected to further encourage national governments to enhance their support for the digitalisation of the construction sector, crucial for transformation, growth, and achieving climate and sustainability objectives.

However, the adoption of BIM by governments is not without its set of challenges. Governments, often tasked with overseeing diverse projects, face hurdles such as the standardisation of BIM practices across agencies, ensuring interoperability with existing systems, and addressing concerns related to data security and privacy. Furthermore, the comprehensive training of personnel at various bureaucratic levels becomes paramount for successful implementation. Navigating these challenges is essential for governments to fully leverage the benefits of BIM, streamlining public projects and enhancing overall infrastructure management [4].

Other EU initiatives include: 

• EU BIM Task Group, which brings together national perspectives to reach an aligned European BIM approach for a digital construction sector. 

• EU Digital Construction platform named DigiPLACE, which represents a framework to develop future digital platforms as an ecosystem of digital services. 

• EU directive on Public Procurement (Directive 2014/24/EU), which advocates for the utilisation of BIM in construction projects.

• High Level Construction Forum, whose aim is to co-create and monitor green, digital, and resilient transition pathways for the EU construction industry. In particular, the Forum will involve discussion on digital topics to enable digitised design, planning, and management in the built environment.

• In the Italian context, changes were made to the text of EU Directive 24/2014, introduced through the Italian Law no. 50/2016, known as the Nuovo Codice degli Appalti (New Procurement Code). Starting from January 1, 2025, BIM becomes mandatory for public works projects exceeding one million euros. The decree provides bonus scores for the use of BIM in public contracts financed by the National Recovery and Resilience Plan (PNRR) and the National Resilience and Recovery Plan (PNC). For PNRR projects, bids incorporating BIM use may receive additional bonuses. The decree came into effect on August 3, 2021, and its provisions apply to contracts whose announcements or notices are published after this date.

Financial instruments for the digitalisation of buildings

There are several funding instruments which support the digitalisation of the construction and building industry, such as: 

• Digital Europe programme is an EU funding programme focused on bringing digital technologies to businesses, citizens, and public administration. In particular, it provides specific funding on AI, cybersecurity, advanced digital skills, and ensuring a wide use of digital technologies.

• Horizon Europe programme for research and innovation and LIFE programme. 

• Recovery and Resilience Facility and Structural funds is a temporary instrument within the NextGenerationEU aiming to raise funds to implement reforms and investments to prepare economies and societies for the green and digital transition.

• European Regional Development Fund (ERDF) with 2021-2027 funding supports investments of small and medium-sized enterprises to become more digital.

Organisations promoting digital processes and technologies 

• EU BIM Task Group which brings together national perspectives to reach an aligned European BIM approach for a digital construction sector.

• European Construction and sustainable built environment Technology Platform (ECTP) is a leading membership organisation promoting and influencing the future of the built environment. It is one of the European Technology and Innovation Platforms recognised by the European Commission as a key actor in driving innovation and knowledge transfer.

EU-funded projects in digitalisation

Following is a non-exhaustive list and description of EU-funded projects promoting the digitalisation of the construction and building sector.

Horizon Europe programme

• HumanTech project proposes the use of human-centred technologies to improve the safety and wellbeing of the construction workforce, while also increasing productivity and efficiency. The project calls for automation to increase precision and avoid human errors to optimise the use of building materials.

• DigiChecks project proposes a digital framework that implements different steps to manage the process of permits and compliance checks in the construction industry. 

• DigiBUILD project aims to transform buildings into smart buildings by making use of high-quality data and next generation building services, supporting the EU framework of Digital Building Logbook. The project will provide an open, interoperable and cloud-based toolbox to transform buildings into digital and smarter buildings, while supporting informed decision-making.

• SMARTeeSTORY project proposes a multi-domain methodology to monitor and optimise non-residential historic buildings´ energy performance. This approach will integrate smart readiness indicator domains, such as heating, ventilation and air conditioning, dynamic façade, and lighting.

H2020 programme

• ARtwin project aimed at developing Augmented Reality (AR) cloud platform for improving productivity and product quality of the European Construction 4.0. AR operated on a large scale by using 3D mapping and vision-based location services. A remote rendering service allowed the representation of 3D content. The developed platform maintained in-real time Digital Twin of the factory or BIM of the building.

• DigiPLACE project targeted the digital transformation of the construction industry. In particular, it aimed at developing a framework for future digital platforms as common ecosystems for digital services to support innovation. It eventually defined a Reference Architecture Framework for digital construction platform involving a large community of stakeholders.

• BIMERR project designed and developed a Renovation 4.0 toolkit which comprise tools to support renovation stakeholders throughout the renovation process of existing buildings. The tools support the creation of enhanced building information models, renovation support system giving an accurate estimation of the renovation impact on building performance and a process management tool.

• BIM-SPEED project aimed to develop a combination of methodologies and tools with one central information source, that is Building Information Modelling which would make deep renovation of residential buildings smarter and more efficient.

• BIM4EEB project aimed to foster the renovation of buildings through a powerful BIM-based toolset able to support designers, construction companies and service companies. Moreover, thanks to the exploitation of augmented reality and the use of digital building logbooks public and private owners were able to use a tool to ease decision making and asset management.

• BIMprove project main goal was to move beyond Building Information Modelling and improve efficiency and outcomes in building and construction planning and operation with digital twin technologies.

• BIM4REN project defined digital ready renovation workflows for the construction sector needs and elaborated an open BIM environment for data collection, data management and data driven design. An Open Stop Access Platform was then developed to integrate all technologies as a single-entry point for all users.

• EERAdata project aimed to accelerate the implementation of the Energy Efficiency First principle by developing a decision-support tool to help local administrations in their collection and assessment of building and demographic data for a prioritisation of energy efficiency measures in renovation of buildings. The tool is able to model and assess the impact of energy efficiency investment in buildings.

LIFE programme (LIFE21-CET-BUILDRENO)

• BuildUPspeed project aims to accelerate and support deep renovation of the EU building stock by introducing a Market Activation Platform for the promotion and implementation of industrialised renovation solutions. In particular, the project will capitalise on results of other projects on BIM for renovation and Industry 4.0.

Conclusion

With the advent of new digital technologies, such as Building Information Modelling, digital twins, automation, and augmented reality, a new paradigm has arisen. This digital revolution of the building and construction industry leads to data-driven decision-making, thus changing the way we conceive, construction and inhabit our built environment. Moreover, the integration of these technologies has empowered architects, engineers, and construction professionals to envision and realise buildings that are intelligent, sustainable, and more energy efficient.

References

[1] Jeroen van der Heijden, Construction 4.0 in a narrow and broad sense: A systematic and comprehensive literature review, Building and Environment, Volume 244, 2023, 110788 (https://doi.org/10.1016/j.buildenv.2023.110788)

[2] Digital in Engineering and Construction, Transformative power of Building Information Modelling, 2016 by Boston Consulting Group (see here)

[3] Gómez-Gil, Marta & Espinosa-Fernández, Almudena & López-Mesa, Belinda. (2023). A new functionality for the digital building logbook: Assessing the progress of decarbonisation of national building sectors. Environmental Impact Assessment Review. 105. 107393. 10.1016/j.eiar.2023.107393.

[4] Thuy Duong Oesterreich, Frank Teuteberg, Behind the scenes: Understanding the socio-technical barriers to BIM adoption through the theoretical lens of information systems research, Technological Forecasting and Social Change, Volume 146, 2019, Pages 413-431.