Digital Modernization in Construction: The Jobsite Advantage

By NATHANIEL BORSH

For years, construction has been called one of the least digitized industries, and the data backs that up.

Productivity in construction has grown by only around 0.4 percent per year over the past two decades, far behind sectors like manufacturing.

That story is starting to change.

Analysts estimate the global construction software market was about $9.87 billion in 2024 and is on track to reach more than $21 billion by 2032, a 10-plus percent annual growth rate.

The Building Information Modeling (BIM) market is expected to more than double from $9.7 billion in 2024 to $22.7 billion by 2030. Meanwhile, the IoT in construction market is projected to grow from $19.3 billion in 2025 to $72.1 billion by 2035.

Digital modernization in construction is no longer a “nice to have.” It is quickly becoming a competitive requirement.

The modernization wave is already here

Recent studies show that adoption is accelerating, not just talked about:

• Deloitte’s 2025 State of Digital Adoption in the Construction Industry found that the average construction business now uses 6.2 different technologies, up 20 percent from the previous year, with 37 percent already using AI or machine
• A 2024 digital adoption snapshot reported that roughly half of firms use data analytics (47 percent), cloud management tools (43 percent) and mobile applications (40 percent) to organize workflows and track project progress, according to Visibuild studies.
• McKinsey’s research indicates that well-executed digital transformation in engineering and construction can deliver productivity gains of 14 percent to 15 percent and cost reductions of 4 percent to 6 percent.

Those numbers are not theoretical. They show up in real projects when companies take a structured approach rather than just buying standalone tools.

What a structured Digital Modernization Strategy really looks like

Digital modernization in construction is more than adding a new app on a tablet. A coherent strategy usually rests on three pillars:

1. Legacy system modernization
2. Mobile-first field operations
3. IoT and real-time telemetry

When these pillars connect to each other – rather than live as separate initiatives – you get a genuine modernization strategy instead of a pile of disconnected tools.

Real-world impact: examples from the field

1. Mobile apps that shrink paperwork and rework

Rework typically consumes 4 percent to 6 percent of total project cost, and poor communication is a major driver. Mobile apps that standardize and digitize field workflows are starting to attack that waste directly.

• One paper from Arrivy showed a contractor using integrated mobile apps for field operations reported that connecting mobile tools with project systems saved hours of manual data entry every day and increased crew productivity without adding labor.
• A-Lert Construction Services implemented digital forms tied into SQL Server, OneDrive and SharePoint to streamline quality control documentation and data collection. The company reports that a job which once required a full team now only requires a fraction of one person’s time to manage the same amount of data.

These are good examples of structured modernization. They did not just “add an app.” They redesigned the process, integrated it with legacy systems and eliminated duplicate effort between the field and office.

2. Legacy modernization plus cloud collaboration

Gartner forecasts that more than 70 percent of construction firms will adopt industry-specific cloud platforms by 2027, primarily to centralize project data and coordinate in real time.

When legacy systems are modernized and connected to cloud collaboration platforms, several things tend to improve:

• Fewer RFIs and fewer surprises because everyone is working from the same drawings, models and schedules.
• Faster approvals because workflows are digital instead of paper based or email based.
• Better portfolio visibility across multiple jobs, allowing leadership to see risk, margin and capacity in one place.

This type of modernization is not glamorous but often delivers some of the fastest ROI because it aligns how people already work with better tooling and cleaner data.

3. IoT and predictive maintenance across the built environment

The IoT in construction market is forecast to grow at more than 14 percent annually through 2035, driven by safety, cost and sustainability pressures, according to Future Market Insights.

Real-world case studies illustrate the upside of combining IoT with analytics and AI:

• In an Industry case study, one high-rise commercial tower, integrating IoT sensors into HVAC systems and applying predictive maintenance, reduced unplanned failures by 45 percent and cut energy costs by 15 percent.
• Across multiple heavy-equipment fleets, predictive maintenance based on sensor data has delivered 25 percent to 30 percent fewer equipment breakdowns and materially improved safety records, according to recent IoT case study data.

Construction companies that own or operate equipment, or that manage long-term facilities, are starting to treat this type of capability as a strategic advantage, not just a maintenance line item.

Why a structured approach wins

When organizations approach digital modernization as a coordinated strategy, they tend to see three compounding effects:

1. Data stops getting trapped. Mobile apps push field data into core systems in near real time. Legacy platforms are modernized or integrated, eliminating re-keying and spreadsheet silos.
2. Decisions speed up and improve. Leadership can see schedule risk, cost trends, productivity metrics, and equipment health from a single pane of glass. That allows action days earlier rather than weeks later.
3. People actually use the tools. When processes and systems are designed together, crews, supers, project managers and finance see that digital tools make their jobs easier instead of harder. Adoption moves from resistance to pull.

Given how tight margins are in construction, even a 2 percent to 3 percent improvement in productivity or reduction in rework can translate into millions of dollars across a portfolio of projects. The research suggesting 14 percent to 15 percent productivity gains and 4 percent to 6 percent cost reductions when digital transformation is done well should catch every leader’s attention.

A practical starting point: discovery plus a proof of concept

If you are in the construction space and feel overwhelmed by where to begin, a practical roadmap usually looks like this:

1. Discovery and current-state assessment
2. Prioritize high-impact use cases
3. Design a focused proof of concept
4. Create a scale-out plan

How To Get Started

If you are leading a construction or built-environment organization and want to move from isolated tools to a structured Digital Modernization Strategy, let’s talk.

Let’s schedule time to explore what digital modernization could look like for your organization.

Nathaniel Borsh is director of North America for InApp.