Investment into technology in the built world – which covers buildings, roads, bridges, energy and infrastructure – could reach US$24 billion globally in 2024, according to the latest State of Built World Tech report, published by noa.
According to the report, electrification, robotics, grid technology, and clean energy saw surges in investment.
In the midst of a global funding downturn, built world tech saw a smaller fall in venture capital investment of 7%, outperforming sectors like fintech (-18%) and broader climate tech (-23%).
Total electrification investment was up 10%, driven by a 40% increase in venture funding for grid technologies. Grid congestion has become a bigger issue against a backdrop of soaring global electricity demand, which is set to double by 2050.
Meanwhile, building electrification hardware and installation has seen a 30% drop in funding, due to tailwinds created by the European energy crisis and regional electricity market reforms in 2023 not being carried out as expected.
Overall, investment in industrial automation grew 61%, driven by a 895% jump in building operations robotics. AI advances across the economy have drastically reduced the cost and time to market of robotics manufacturing and the built world is now seeing positive economics for robotics in building operations and renewable energy construction.
“Built world tech is at the forefront of our fight against climate change, and the sector has continued to attract investment, even in a challenging funding environment,” said Gregory Dewerpe, founder at noa, one of Europe’s largest built world venture capital investors.
“Technologies like grid electrification, labour upskilling, and robotics are essential to reshape industries and to achieve our decarbonisation goals.”
