Dedale Intelligence's take on Construction

Construction: Digital Transformation in AECO

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The AECO space covers a wide range of software. How do you structure the market?

Elie Abdallah: At Dedale Intelligence, we break down the AECO software landscape into three main categories.

• Design and Engineering - This includes drafting and modeling solutions such as Autodesk, Nemetschek, Trimble, and Bentley Systems, alongside specialized simulation and analysis tools. Examples range from CSI for structural analysis, to MagiCAD for MEP (Mechanical, Electrical, and Plumbing) design, and sustainability-focused solutions like OneClick LCA and IES.

• Construction Execution - Here we look at construction management platforms that cover project management, field work, and common data environments, such as Procore and Thinkproject. General contractors often rely on ERP providers like Access Group and 4PS, while subcontractors use end-to-end platforms such as Aceve, OneQrew, and Craftview.

• Post-Construction - Finally, there is a wide array of solutions supporting operations and asset management: real estate platforms like Yardi, Appfolio, Aareon, and Zig; facility management tools such as Eptura and Planon; and building and energy management systems provided by Honeywell, Schneider Electric, Siemens, and Johnson Controls.

The AECO software stack spans the full lifecycle of the built environment, from digital design to on-site execution, to long-term asset operations.

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How mature is the AECO market today in terms of digitalization?

Elie Abdallah: Despite progress, the construction industry remains highly inefficient, plagued by delays, cost overruns, high carbon emissions, and waste. That inefficiency creates a huge opportunity for software to generate value.

• In design and engineering, core tools like CAD and BIM are saturated, though some specialized automation and analysis tools still have room for growth.

• In construction execution, adoption of field solutions and workforce management remains low, while document management, project financials and Enterprise Resource Planning (ERP) are more mature. Subcontractors remain heavily underpenetrated with end-to-end platforms.  

• In management and operations, adoption varies by building type and scale. Mega-assets are well equipped, but most small and medium buildings are still managed manually.

Construction and real estate are one of the least digitalized industries, and that gap is precisely where the opportunity lies.

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Where do you see the strongest growth potential across the value chain?

Elie Abdallah: Growth dynamics differ by segment:

• Design and Engineering is relatively stable, with pockets of growth in areas like sustainability software or rendering for non-professional users. By better harnessing the potential of BIM, we will see emerging point solutions as well across design and construction.

• Execution has accelerated thanks to on-site connectivity, BIM mandates, cost pressure, and a new generation of leadership more open to technology. COVID-19 also played a role, exposing the need for remote access to project and company data.

• Management and Operations show intermediate growth, large-scale assets already use sophisticated systems, but SMB adoption requires strong ROI justification, which is harder to demonstrate.

Execution and maintenance are where the growth is happening, digital tools are reshaping workflows, costs, and collaboration on-site.

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What are the major technology trends reshaping AECO today?

Elie Abdallah: Several trends are worth highlighting:

• Digital twins for real-time monitoring, predictive maintenance, and space optimization.

• IoT and smart building for safety oversight and enhanced building management.

• AI in generative design, simulation and scenario analysis, productivity optimization, and risk assessment.

• Robotics for inspection and quality control, as well as automating repetitive or precision tasks, though still early-stage.

• Drones and point cloud mapping for construction progress and existing building scans.

• VR/AR for virtual property visualization and on-site inspections.

Technologies like digital twins and IoT are turning buildings into living, data-driven systems, while AI is growing in design iteration and optimization, increasing productivity and access to information, along with automating redundant tasks.

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Looking forward, how do you see AECO evolving in the next decade?

Elie Abdallah: The industry is still at the start of its digital journey. Adoption will be uneven, but the long-term direction is clear: greater connectivity, more data-driven decision-making, and smarter assets.

Ultimately, the winners will be the solutions that not only improve efficiency but also help the sector address its biggest challenges: sustainability, cost control, and resilience.

The next decade in AECO will be defined by technology’s ability to make construction more efficient, sustainable, and intelligent.

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This interview is part of Dedale Intelligence’s ongoing series of expert insights, bringing research-driven perspectives on the most dynamic segments in software and technology. For more in-depth analysis, explore our latest articles, or contact us.