CEO / Chairman of the Executive Board, Nemetschek SE
Digital Transformation in Construction: Yves Padrines’ Keynote at Nemetschek India Launch
Yves Padrines, CEO of Nemetschek Group, delivers an inspiring keynote at the Nemetschek India launch event, introducing how digitalisation is revolutionising the construction industry. He discusses Nemetschek’s innovative solutions that enhance project efficiency, sustainability, and collaboration in India’s rapidly growing infrastructure sector.
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About Yves Padrines
Yves Padrines, CEO of Nemetschek Group, spoke at the company's India launch event in October 2024 and at the GNI Symposium in September 2024. At the India launch, Padrines announced the opening of Nemetschek's first go-to-market office in Mumbai and discussed the company's plans to offer cost-effective product packages for the Indian market. He stated that the construction industry is the least digitalized industry globally and described digitalization as a way to improve efficiency and sustainability. Padrines also introduced the company's dTwin solution, which he described as an open-data digital twin for buildings that can aggregate historical data with live IoT data for use cases such as predictive maintenance and energy efficiency. At the GNI Symposium, Padrines noted that 90% of construction projects are late or over budget, 40% of global CO2 emissions come from the construction industry, and 20% of material used in construction projects is wasted. He described AI as "the biggest revolution in the industry" and stated that Nemetschek aims to be an "ethical and trustworthy AI first company." Padrines also congratulated Professor Georg Nemetschek on receiving an honorary senator title, crediting him with shaping the company and the AEC/O industry.
Transcript (15 segments)
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Yves Padrines0:14
It's great to be here. We are very excited with my colleagues from the Nemetschek Group, coming from a little bit everywhere in the world but especially from Europe. We are a German-based, headquartered company in Munich. Welcome again. We are very pleased to open our first Nemetschek Go-to-Market office here in India, in Mumbai, and we will talk about it later.
As you know, the construction industry is facing a lot of challenges, especially the last few years with inflation and interest rates increasing. The residential market in Europe has suffered a lot, but overall digitalization in the AECO sector is still growing. There is clearly an understanding from all players that digitalization helps the construction industry be more efficient and more sustainable.
The construction market in India is massive—it will soon be one of the top three largest construction markets in the world. India is already one of the top five economies, and it will soon be the top three. The residential and commercial real estate market is projected to reach $800 billion by 2029. The architecture design software market is growing at around 12% between 2024 and 2032.
The construction industry globally faces major challenges: 90% of projects are over budget; 40% of global CO2 emissions come from construction, mostly from the operate-and-manage phase; 20% of materials are wasted; and there is a huge skilled labor shortage. Margins are in the low single digits, so business as usual is no longer an option.
In India, workplace safety is also an issue, and digitalization adoption remains low. The construction industry is the least digitalized in the world. We see four key trends that address these challenges: interoperability with open BIM, artificial intelligence and digital intelligence, digital twins, and sustainability.
First, interoperability. The industry is fragmented with multiple software providers. We push open standards like open BIM and IFC to reduce data loss between workflows. Nemetschek becomes the bridge instead of having a siloed approach.
Second, artificial intelligence. We see AI as a co-pilot to help architects and engineers become augmented. It must be ethical and trustworthy. Examples include AI visualizers in Graphisoft Archicad and Vectorworks, and Bluebeam's new AI features that can turn 2D PDFs into 3D views.
Third, digital twins. We just launched an open data digital twin solution called dTwin. It collects historical data from any source and layers it with live IoT data for predictive maintenance and energy efficiency, especially for complex assets like airports, data centers, and hospitals.
Fourth, sustainability. Our solutions across the lifecycle—from planning and design to build, construct, operate, and manage—help improve energy efficiency and sustainability. These four trends are central to Nemetschek's mission.
The Nemetschek Group operates in two main industries: AECO (planning, architecture, engineering, construction, and operate/manage) and media/entertainment through our brand Maxon. In AECO, we have three divisions: Planning & Design, Build & Construct, and Operate & Manage.
Planning & Design represents 50% of revenue. Key brands include Archicad, Vectorworks, Allplan, SDS2, and Risa. Build & Construct includes Bluebeam (25% of revenue, over 3 million users), Go Canvas (field management), and NARIS (ERP). Operate & Manage includes Spacewell for space and energy management, Creme for property management, and dRofus for data management.
Nemetschek is the second largest listed software company in Germany, one of the top five in Europe, and a top global BIM and construction software provider. We have over 7 million users. 50% of revenue is in Europe, 40% in North America, and only 10% in Asia Pacific, mainly Australia and New Zealand. India is a small market for us today, but it's the third largest construction market in the world, so we are dedicating resources here.
We've had an engineering and product development office in Hyderabad for 10 years, and this week we opened a sales and marketing office in Mumbai. We want to help the Indian construction industry be more efficient and sustainable, and to support education. I was meeting with the Deputy Prime Minister and other ministers to build a strong partnership with the Indian government.
Nemetschek was founded by Professor G. Nemetschek in 1963 as a small engineering firm in Munich. Now it has a market capitalization of over €10.5 billion. We have a short video celebrating 60 years. [Video plays: narration about Nemetschek's history and mission.]
We help people shape the world in all dimensions, and that's what we want to do in India. We aim to push digitalization, educate young talent, collaborate with the local government, and offer cost-effective packages and suites dedicated to the Indian market. Enjoy the event, and I hope to talk to most of you later. Thank you.