Investment in Construction Tech Hit US$5.38 Billion in 2022

Investment in the construction technology (ConTech) industry hit US$5.38 billion in 2022, a 1% drop from the US$5.4 billion seen in 2021, reports CEMEX. The industry showed a resilient performance in comparison to other sectors and venture capital in general. 

CEMEX reports that ConTech investment has risen sharply in recent years, reaching an unprecedented demand because of industry momentum. The industry is pouring efforts to innovate, streamline and digitalize, as it increases its sustainability. Investment by region soared in North America and the EU, representing the largest proportion globally. However, the Asia-Pacific and Middle East regions grew exponentially. The enhanced productivity focus area represented 53.1% of the total investment in the four market-driven opportunity areas. 

“Commitment to investing in construction technology has been a long-term strategy for decades, which is illustrated by the diverse range of deals that were forged in 2022. What's interesting to note is that despite a global economic slowdown in the later part of last year, there remained a high number of Seed and Series A deals, as well as acquisitions. Although 2022 revealed many high value deals, valuations of Contech startups appear to be adjusting more to reality after years of especially high valuations,” explains CEMEX. 

Volatile macroeconomic and non-market forces are expected to alter forecasts, says CEMEX. The company’s top 50 Contech startups include enterprises focusing on green construction, construction supply chain, enhanced productivity and the future of construction. CEMEX included companies from its portfolio and startups that have worked with the company on different activities. The top 50 list provides connectivity to multiple startups in the ConTech world as well as best VCs in the industry. 

CEMEX recently acquired 51% of an Israeli construction material recycling company as part of its focus on developed markets and on developing greener solutions for the construction industry, as reported by MBN.