Valued at $12 trillion, the architecture, engineering, and construction (AEC) industry is one of the largest in the world, yet it has historically been among the slowest to digitise and innovate. Digital twins are advanced virtual replicas of physical assets, such as buildings and machinery, that dynamically mirror real-world conditions in real time.

“As the Australian construction sector faces ongoing challenges such as labour shortages and rising costs, digital twins are becoming a vital tool in improving productivity and maintaining competitiveness in an evolving market,” says Leon Ward, Regional Lead for PlanRadar Australia + New Zealand.

Unlike static models, these continuously updated representations integrate data from various sources, primarily IoT sensors, which monitor factors like temperature, humidity, structural integrity, and energy usage. This capability allows digital twins to simulate and predict performance, optimising systems such as heating and cooling based on real-time insights.

By identifying potential issues before they arise, digital twins enable proactive maintenance and enhance operational efficiency.

In Australia, their importance in the construction industry is growing, as they provide real-time monitoring and predictive maintenance, helping to streamline complex projects and improve decision-making throughout the project lifecycle. McKinsey research indicates that 70% of C-suite technology executives in Tier 1 construction firms are already exploring and investing in digital twins.

An estimated $50 billion was invested in AEC tech between 2020 to 2022, 85% higher than the previous three years.

Digital twins enhance construction project management by offering a dynamic, data-driven approach that enables real-time data collection and analysis.

This functionality facilitates live updates on progress, resources, and conditions, streamlining workflows and improving collaboration among stakeholders.

As a result, teams can make faster, more informed decisions, minimising miscommunication and costly delays, particularly in projects involving multiple teams across different locations.

This technology enables stakeholders to visualise, analyse, and optimise each phase of construction:

Design: During the design phase, digital twins facilitate improved accuracy and efficiency through enhanced design accuracy, early identification of potential issues and optimisation of layouts.
Construction: As construction progresses, digital twins play a crucial role in monitoring and managing the project's performance with real-time performance monitoring, data collection for informed decision-making and improved site collaboration and communication.
Post-construction: After construction is complete, digital twins continue to provide value by supporting ongoing facility management and predictive maintenance, improved building operations management, and extension of equipment and asset life.

“The integration of digital twins throughout the construction lifecycle—from the design phase to post-construction maintenance—offers significant benefits. By enhancing design accuracy, enabling real-time monitoring, and supporting predictive maintenance, digital twins can empower stakeholders to streamline their projects, reduce costs, and improve overall performance,” Ward says.

Implementing digital twin technology in the construction industry presents several challenges that can hinder its adoption, despite the clear benefits.

The initial costs for hardware and software, including IoT sensors and cloud storage, can be prohibitive for smaller firms or projects with tight budgets. Additionally, integrating real-time data from various sources can be complex, particularly when existing systems are incompatible. A shortage of technical expertise in data analytics, machine learning, and Building Information Modeling (BIM) further complicates the implementation process.

To overcome these challenges, companies can invest in staff training to bridge the skills gap and partner with third-party technology providers for expert support.

Upgrading legacy systems to ensure compatibility with digital twin technology is crucial; although this requires a significant initial investment, it can improve project efficiency in the long run. Government incentives and industry grants can help offset potential upfront costs for smaller firms.

As the construction industry continues to evolve, future trends suggest a growing reliance on innovations like artificial intelligence and machine learning, which is set to enhance the capabilities of digital twins even further.

The integration of these technologies with other digital tools and platforms is expected to streamline workflows and improve collaboration among various stakeholders, ensuring seamless information flow between design, construction, and facility management.

According to a KPMG survey, 95% of construction companies believe that emerging technologies, including IoT and digital twins, will fundamentally change the industry. In the coming years, digital twins are likely to play an even more critical role at different stages of construction.

Detailed simulations could help teams anticipate challenges and refine designs before physical work begins.

As construction progresses, the use of IoT sensors will allow for real-time updates on site conditions and resource allocation, providing project managers with invaluable insights that can lead to quicker decision-making and more efficient operations.

Once the project is complete, digital twins can continue to deliver value through lifecycle management, offering data that helps owners transform maintenance schedules and improve asset performance over time.

“Embracing digital twins, therefore, is not just a technological upgrade; it is a fundamental shift in how the Australian construction industry can approach projects, paving the way for increased efficiency, market resilience, and smarter ways of working,” says Ward.

Image: Leon Ward/supplied

Clémence Carayol

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