The construction industry is increasingly developing its blockchain capabilities, according to a recent report by GlobalData.

The global blockchain software and services market is growing quickly. GlobalData forecasts it to grow from $12bn in 2023 to $291bn in 2030, expanding at a compound annual growth rate (CAGR) of 55%. 

Despite the growth, construction companies are not significantly investing in developing in-house blockchain expertise. Instead, they rely on external IT and professional services for blockchain expertise or employing ready-made blockchain applications.

Adopting Building Information Modelling (BIM) software could serve as the foundation for any use of blockchain in construction. In a 2023 BIM usage survey, 54% of the 150 organisations surveyed stated they had invested in BIM and intended to invest further in the coming two years.

The number of active blockchain jobs in construction peaked in the third quarter of 2021, following a 1,700% growth in a year. This trend mirrors the total market capitalisation of cryptocurrencies, which grew by 450% over the same period.

The report also reveals that blockchain mentions in construction company filings peaked in 2022, with ESG and AI being the most talked-about themes alongside blockchain. Despite the growing interest, the adoption of blockchain in construction faces challenges such as the lack of strong data connections at construction sites and variable on-site environments.

The construction industry is complex and dynamic, often requiring multiple stakeholders, suppliers, and subcontractors to be involved in each project. This can make coordinating and managing the supply chain difficult, leading to delays, errors, and increased costs. Blockchain technology could potentially address these challenges by providing a secure and transparent way to track and manage transactions.