DIGITAL TRANSFORMATION IN CONSTRUCTION: A SWOT AND PESTLE ANALYSIS OF INDUSTRY REVOLUTION 4.0 IN MALAYSIA
Keywords:
digital transformation, industry revolution 4.0, construction industry, SWOT, PESTLEAbstract
The construction industry plays a pivotal role in shaping economic growth, environmental sustainability, and societal well-being. It traditionally revolves around three critical dimensions: quality, timeliness, and cost. In the wake of the Fourth Industrial Revolution (IR4.0), the sector is undergoing rapid transformation driven by digital technologies such as robotics, artificial intelligence, and automation. However, the industry's readiness to adopt these innovations remains uneven. This study investigates the current state and future potential of IR4.0 adoption in the construction industry through a structured Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, complemented by a PESTLE framework to assess the external Opportunities and Threats. The findings are based on a scoping review of 144 peer-reviewed publications from the past five years, ensuring up-to-date insights. Results reveal that IR4.0 technologies have contributed to measurable productivity and efficiency gains globally, with countries such as Germany and China leading implementation efforts. The study emphasises that the effective integration of IR4.0 in the Malaysian construction sector requires coordinated efforts across government, academia, and industry to address systemic challenges and skill gaps. Ultimately, the paper highlights both the transformative potential and the strategic imperatives required to future-proof Malaysia's construction ecosystem in the digital age.
References
Yousif, O. S., Zakaria, R., Wahi, N., Aminudin, E., Tharim, A. H., Jawa Gara, A., Ismail, N. (2022). Monitoring the construction industry towards a construction revolution 4.0. International Journal of Sustainable Development and Planning, 17(2), 633–641. https://doi.org/10.18280/ijsdp.170228
Bielenberg, A. (2009). Ireland and the industrial revolution: The impact of the industrial revolution on Irish industry, 1801–1922. Routledge. https://doi.org/10.4324/9780203879337
He, Q., & Han, L. (2021). Research on adaptive repair technology of 3D printing based on convolutional neural networks. In Proceedings of the IEEE 21st International Conference on Communication Technology (ICCT) (pp 1198-1201). Tianjin, China. https://doi.org/10.1109/ICCT52962.2021.9657912.
Javaid, M., Haleem, A., Singh, R. P., & Suman, R. (2023). An integrated outlook of cyber–physical systems for Industry 4.0: Topical practices, architecture, and applications. Green Technologies and Sustainability, 1(1), Article 100001. https://doi.org/10.1016/j.grets.2022.100001
Bilal, M., Oyedele, L. O., Akinade, O. O., Ajayi, S. O., Alaka, H. A., Owolabi, H. A., Qadir, J., Pasha, M., & Bello, S. A. (2016). Big data architecture for construction waste analytics (CWA): A conceptual framework. Journal of Building Engineering, 6, 144–156. https://doi.org/10.1016/j.jobe.2016.03.002
Medeiros, J. S., & Melo, R. S. (2022). Lessons learned from adopting modular construction in Brazil: A startup journey. In Proceedings of the 2022 Modular and Offsite Construction Summit. Edmonton, AB, Canada. https://doi.org/10.29173/mocs265
Generalova, E. M., Generalov, V. P., & Kuznetsova, A. A. (2016). Modular buildings in modern construction. Procedia Engineering, 153, 167–172. https://doi.org/10.1016/j.proeng.2016.08.098
Amin, M. N., Ahmad, W., Khan, K., & Ahmad, A. (2022). A comprehensive review of types, properties, treatment methods and application of plant fibers in construction and building materials. Materials, 15(12), Article 4362. https://doi.org/10.3390/ma15124362
Sharma, R., Jang, J. G., & Hu, J. W. (2022). Phase-change materials in concrete: Opportunities and challenges for sustainable construction. Materials, 15(1), Article 335. https://doi.org/10.3390/ma15010335
Cui, K., Chang, J., Feo, L., Chow, C. L., & Lau, D. (2022). Developments and applications of carbon nanotube reinforced cement-based composites as functional building materials. Frontiers in Materials, 9, Article 861646. https://doi.org/10.3389/fmats.2022.861646
Li, W., Zhang, Z., & Zhou, J. (2022). Preparation of building materials from Bayer red mud with magnesium cement. Construction and Building Materials, 323, Article 126507. https://doi.org/10.1016/j.conbuildmat.2022.126507
Khajavi, S. H., Tetik, M., Mohite, A. M., Peltokorpi, A., Li, M., Weng, Y., & Holmström, J. (2021). Additive manufacturing in the construction industry: The comparative competitiveness of 3D concrete printing. Applied Sciences, 11(9), Article 3865. https://doi.org/10.3390/app11093865
Shakor, P., Chu, S. H., Puzatova, A. V., & Dini, E. (2022). Review of binder jetting 3D printing in the construction industry. Progress in Additive Manufacturing, 7(3), 643–669. https://doi.org/10.1007/s40964-021-00252-9
Parisi, F., Sangiorgio, V., Parisi, N., Mangini, A. M., Fanti, M. P., & Adam, J. M. (2023). A new concept for large additive manufacturing in construction: Tower crane‑based 3D printing controlled by deep reinforcement learning. Construction Innovation, 24(1), 8–32. https://doi.org/10.1108/CI-10-2022-0278
Valencia, N. (2017, February 6). World’s first 3D printed bridge opens in Spain. ArchDaily. https://www.archdaily.com/804596/worlds-first-3d-printed-bridge-opens-in-spain
Feng, C., Fredricks, N., & Kamat, V. R. (2013). Human–robot integration for pose estimation and semi‑autonomous navigation on unstructured construction sites. In Proceedings of the 30th International Symposium on Automation and Robotics in Construction (ISARC) (pp. 1317-1325). Montreal, Canada. https://doi.org/10.22260/ISARC2013/0148
Haschke, T., Hüsing, M., & Corves, B. (2022). Bots2ReC – Analysis of key findings for the application development of semi-autonomous asbestos removal. International Journal of Automation & Digital Transformation, 1(1), 4–12. https://doi.org/10.54878/IJADT.166
Lee, D., & Spong, M. W. (2006). Semi‑autonomous teleoperation of multiple cooperative robots for human–robot lunar exploration. In To Boldly Go Where No Human‑Robot Team Has Gone Before: Papers from the 2006 AAAI Spring Symposium (Technical Report SS‑06‑07). Stanford, CA, USA.
Rankohi, S., & Waugh, L. (2013). Review and analysis of augmented reality literature for the construction industry. Visualization in Engineering, 1(1), Article 9. https://doi.org/10.1186/2213-7459-1-9
Monla, Z., Assila, A., Beladjine, D., & Zghal, M. (2023). Maturity evaluation methods for BIM‑based AR/VR in the construction industry: A literature review. IEEE Access, 11, 101134–101154. https://doi.org/10.1109/ACCESS.2023.3281265
Piroozfar, A., Farr, E. R. P., Essa, A., Boseley, S., & Jin, R. (2018). Augmented reality (AR) and virtual reality (VR) in the construction industry: An experiential development workflow. In Proceedings of the Tenth International Conference on Construction in the 21st Century (CITC‑10). Colombo, Sri Lanka.
Tan, Y., Xu, W., Li, S., & Chen, K. (2022). Augmented and virtual reality (AR/VR) for education and training in the AEC industry: A systematic review of research and applications. Buildings, 12(10), Article 1529. https://doi.org/10.3390/buildings12101529
Guray, T. S., & Kismet, B. (2022). VR and AR in construction management research: Bibliometric and descriptive analyses. Smart and Sustainable Built Environment, 12(3), 635–659. https://doi.org/10.1108/SASBE-01-2022-0015
Kim, Y., Lee, J., Lee, E., & Lee, J. (2020). Application of natural language processing (NLP) and text‑mining of big data to EPC bid and contract documents. In Proceedings of the 2020 6th Conference on Data Science and Machine Learning Applications (CDMA) (pp. 123-128), Riyadh, Saudi Arabia. https://doi.org/10.1109/CDMA47397.2020.00027
Yuan, X., Chen, Y., Fan, H., He, W., & Ming, X. G. (2019). Collaborative construction industry integrated management service system framework based on big data. In Proceedings of the 2019 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1521-1525). Macao, China. https://doi.org/10.1109/IEEM44572.2019.8978624
Choi, S., Lee, E., & Kim, J. (2021). The Engineering Machine‑Learning Automation Platform (EMAP): A big-data-driven AI tool for contractors’ sustainable management solutions for plant projects. Sustainability, 13(18), Article 10384. https://doi.org/10.3390/su131810384
Nagy, J., Oláh, J., Erdei, E., Máté, D., & Popp, J. (2018). The role and impact of Industry 4.0 and the Internet of Things on the business strategy of the value chain: The case of Hungary. Sustainability, 10(10), Article 3491. https://doi.org/10.3390/su10103491
Zhang, M., Cao, T., & Zhao, X. (2017). Applying sensor‑based technology to improve construction safety management. Sensors, 17(8), Article 1841. https://doi.org/10.3390/s17081841
Hustad, E., & Olsen, D. H. (2021). Creating a sustainable digital infrastructure: The role of service-oriented architecture. Procedia Computer Science, 181, 597–604. https://doi.org/10.1016/j.procs.2021.01.210
Rashid, A., & Chaturvedi, A. (2019). Cloud computing characteristics and services: A brief review. International Journal of Computer Sciences and Engineering, 7(2), 421–426. https://doi.org/10.26438/ijcse/v7i2.421426
Kiriiak, N. (2021). Development and implementation of technical decision for digital support of construction using photogrammetry methods. Nuclear Engineering and Design, 381, Article 111366. https://doi.org/10.1016/j.nucengdes.2021.111366
Safa, M., Nahangi, M., Shahi, A., & Haas, C. T. (2013). An integrated quality management system for piping fabrication using 3D laser scanning and photogrammetry. In Proceedings of the 30th ISARC. Montréal, Canada. https://doi.org/10.22260/ISARC2013/0073
Kudela, P., Palčák, M., Zábovská, K., & Bučko, B. (2020). Integration of photogrammetry within laser scanning approach. In 43rd International Convention on Information, Communication and Electronic Technology (MIPRO) (pp. 1691-1694). Opatija, Croatia. https://doi.org/10.23919/MIPRO48935.2020.9245297
Dikbas, A., & Scherer, R. (2004). Virtual building environments (VBE): Applying information modeling to buildings. CRC Press. https://doi.org/10.1201/9780203023426-16
McAuley, B., Hore, A., & West, R. (2017). BICP Irish BIM study. Irish Building Magazine, 1, 77–79. https://doi.org/10.21427/sfxa-rs67
Wu, K., Soto, B. G., Adey, B. T., & Zhang, F. (2020). BIM‑based estimation of vertical transportation demands during the construction of high‑rise buildings. Automation in Construction, 110, Article 102985. https://doi.org/10.1016/j.autcon.2019.102985
Vignali, V., Acerra, E. M., Lantieri, C., Vincenzo, D. F., Piacentini, G., & Pancaldi, S. (2021). Building Information Modelling (BIM) application for an existing road infrastructure. Automation in Construction, 128, Article 103752. https://doi.org/10.1016/j.autcon.2021.103752
Li, J., Afsari, K., Li, N., Peng, J., Wu, Z., & Cui, H. (2020). A review presenting building information modeling education and research in China. Journal of Cleaner Production, 259, Article 120885. https://doi.org/10.1016/j.jclepro.2020.120885
Taher, G. (2021). Industrial Revolution 4.0 in the construction industry: Challenges and opportunities. Management Studies and Economic Systems, 6(3–4), 109–127. https://doi.org/10.12816/0060000
Jones, N. (2016). A century of prototypes: A capsule history of modular architecture. The Possible. Retrieved February 6, 2024, from https://www.the-possible.com/six-examples-of-modular-construction/
BBC. (2014). How Dutch team is 3D‑printing a full‑sized house. BBC News. Retrieved February 6, 2024, from https://www.bbc.com/news/av/technology‑27221199
Smisek, P. (2018). This rover carries materials on site. The B1M. Retrieved February 6, 2024, from https://www.theb1m.com/video/this-rover-carries-materials-on-site
Zhang, Z., & Pan, W. (2021). Virtual reality supported interactive tower crane layout planning for high‑rise modular integrated construction. Automation in Construction, 130, Article 103854. https://doi.org/10.1016/j.autcon.2021.103854
Young, N. W., Jr., Jones, S., & Bernstein, H. M. (2008). Building information modeling: Transforming design and construction to achieve greater industry productivity. McGraw‑Hill.
Azhar, S. (2011). Building information modeling (BIM): Trends, benefits, risks, and challenges for the AEC industry.Leadership and Management in Engineering, 11(3), 241–252. https://doi.org/10.1061/(ASCE)LM.1943‑5630.0000127
Neugebauer, R., Hippmann, S., Leis, M., & Landherr, M. (2016). Industrie 4.0—from the perspective of applied research. Procedia CIRP, 57, 2–7. https://doi.org/10.1016/j.procir.2016.11.002
Adeleke, A. Q. (2020). Industrial Revolution 4.0 can help boost the construction industry. New Straits Times. Retrieved February 6, 2024, from https://www.nst.com.my/opinion/letters/2020/10/631031/industrial-revolution-40-can-help-boost-construction-industry
Bieck, C., & Marshall, A. (2022). How to invest now to expedite COVID‑19 recovery: Redirecting resources for enterprise transformation. IBM Institute for Business Value. Retrieved February 6, 2024, from https://www.ibm.com/downloads/cas/5PDGBXOQ
Khudzari, F., Radzi, A. R., & Rahman, R. A. (2024). Emerging technologies adoption in the Malaysian construction industry: A systematic review. Malaysian Construction Research Journal, 42(1), 57–75.
Shafei, H., Rahman, R. A., Lee, Y. S., & Che, C. (2024). Implications of Construction 4.0 technologies to enhancing well‑being: A fuzzy TOPSIS evaluation. Construction Innovation. Advance online publication. https://doi.org/10.1108/CI‑08‑2023‑0213
Abdul‑Samad, Z., Lim, L. X., Alaloul, W. S., & Salleh, H. (2024). Towards Industrial Revolution (IR) 4.0 in the construction industry: Readiness of contractors. Results in Engineering, 22, 102321. https://doi.org/10.1016/j.rineng.2024.102321
Chan, S., Chai, C., Lim, C. B., Ekambaram, P., Ghani, M. K. B., & Lee, C. (2023). Navigating the path to Construction 4.0: Policies, challenges, and strategies in Malaysian construction industry. GATR Journal of Business and Economics Review, 8(3), 89–103. https://doi.org/10.35609/jber.2023.8.3(3)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 UNIMAS Publisher

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Upon acceptance of an article, the corresponding author on behalf of all authors will be asked to complete and upload the Copyright Transfer Form (refer to Copyright Issues for more information on this) alongside the electronic proof file.
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and refer the publication in the Journal.
2) For open-access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds the copyright or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subjected to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) are responsible to ensure their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. The corresponding author has obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If the submitted manuscript includes materials from others, the authors have obtained permission from the copyright owners.
5) In signing this statement, the author(s) declare that the researches which they have conducted comply with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving humans or the use of animal samples must obtain approval from the Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that they have no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor(s) or UNIMAS Publisher.