Construction industry needs bolder investment in AI

The global construction robotics market is poised for rapid expansion, reflecting rising demand for automation across the industry. A March report by The Business Research Company projects the market will grow from $6.55 billion last year to $15.4 billion by 2030, with an average annual growth rate exceeding 18 percent.

South Korean construction firms are accelerating efforts to bring physical artificial intelligence, including robotics, to job sites. Technologies such as autonomous heavy equipment, welding robots and painting robots designed for specific tasks have reached the stage of field testing and early deployment. Companies see physical AI as a practical tool to address structural challenges facing the sector.

The industry is grappling with an aging workforce and chronic labor shortages. According to the Construction Workers Mutual Aid Association, workers in their 50s accounted for 33.7 percent of skilled labor last year, while those aged 60 and older made up 28.1 percent. The average age has risen steadily to 51.7. Industry officials warn that without intervention, decades of field expertise could be lost. As labor shortages drive up costs and productivity remains sluggish, companies view physical AI as a potential solution.

Heightened awareness of workplace safety is also fueling adoption. Robots can be deployed in high-risk environments such as high-rise or underground sites, reducing the likelihood of accidents. Artificial intelligence can further enhance safety by identifying hazards in advance and strengthening on-site monitoring.

Despite growing interest, construction remains a difficult field for the application of physical AI. Reliable field data are essential for commercialization, yet the sector has been slow to adopt digital systems. Projects often involve hundreds or thousands of processes, and site conditions vary widely, limiting the scalability of standardized robotic solutions. Builders, which operate on a contract basis, also face challenges in justifying the high upfront costs of deploying such technologies. Uncertainties over how to price projects involving robotics and how to establish clear safety standards highlight the need for regulatory refinement.

The government has introduced support measures, including a smart construction technology roadmap and the creation of a smart construction alliance. A national research and development program conducted between 2020 and 2025 allocated about 200 billion won to smart construction technologies. While substantial, the funding spans a wide range of areas beyond physical AI, raising questions about its sufficiency.

Construction is widely regarded as a foundational industry that underpins essential infrastructure. Sustained growth and technological advancement in the sector are key to improving public safety and quality of life. With the industry facing a prolonged downturn, analysts say more proactive and targeted support is needed to help physical AI emerge as a viable path forward.