Building the future

Seven key trends shaping the construction industry

The construction industry is going through a major transformation. Marked by rapid technological advancements, a strong commitment to sustainability, and shifting workforce dynamics, theses change are redefining the future of the industry. In this article, we explore seven key trends in construction.

1. Digitalization and technological innovations

The construction industry's digital transformation is spearheaded by a process known as Building Information Modeling, or BIM for short. This process leverages 3D models and enhances them with the dimensions of time (4D), cost (5D), and energy efficiency (6D), providing a complete view of projects from start to finish. Integrating artificial intelligence (AI) with BIM takes this a step further, offering predictive insights for design, construction, and maintenance. combination boosts efficiency, sustainability, and smart decision-making. Construction Management Software (CMS) is becoming essential for improving project efficiency and teamwork. Meanwhile, there's a growing emphasis on sustainable construction practices. Zero Net Energy Buildings (NZEBs) are becoming more popular, driven by their ability to cut energy costs and enhance sustainability.

Digitalization in Construction*

Global BIM market growth

The Building Information Modeling market, pivotal in construction's digital transformation, is on a significant rise. Valued at USD 5.20 billion in 2019, it's projected to grow from USD 5.71 billion in 2020 to USD 11.96 billion in 2027 at a CAGR of 11.1%.

North America's leading role

Dominating the global BIM market, North America, particularly the U.S. and Canada, is expected to contribute significantly to this growth. This is spurred by urbanization, government initiatives, and a shift towards digital tools.

European and Asia–Pacific markets

Europe, with a high rate of BIM adoption, especially in Scandinavia, and Asia-Pacific, the largest construction market globally, are also seeing rapid technological adoption driven by urbanization and infrastructure development.

BIM adoption rate

​​​The adoption of Building Information Modeling (BIM) in the United States is widespread and growing. While the exact adoption rate is not specified, it is evident that BIM plays a significant role in the U.S. construction industry. A complete transition to BIM, complemented by the widespread use of digital twins, is expected to take another decade, as firms are currently blending traditional and new methods like 2D drawings and 3D models.

*Fortune Business Insights: Building Information Modeling (BIM) Market Size

2. Robotics and augmented reality in construction

Construction Robotics are enhancing productivity and safety. Robots now perform tasks like drilling, bricklaying and welding, marking a significant shift toward automation. This trend involves not only on-site physical tasks but also extends to modular construction and digitized planning. While automation raises concerns about job displacement, the construction industry's unique and unpredictable environment limits the extent of automation, maintaining the need for skilled labor. Moreover, the integration of robotics is expected to create new job opportunities, particularly in global infrastructure and housing projects, necessitating a workforce skilled in both traditional construction and new technologies​.

3. Data-driven decision-making and predictive analytics

Construction's reliance on data-driven decision-making and predictive analytics is paramount. Big data analytics transforms project management by predicting risks and optimizing resources. Machine learning, surpassing traditional methods, adeptly handles complex data, improving efficiency and safety. This evolution towards data-rich strategies in construction fosters competitive advantage and innovation. Predictive modeling techniques now forecast risks, delays, and overruns, leading to more informed, proactive decisions. These technological advancements in data analysis are revolutionizing the industry, making operations more efficient, cost-effective, and safer, driving the construction sector towards a more informed and predictive future​.

4. Labor challenges and skills shortage

Labor shortages and rising labor costs continue to be significant challenges in the construction industry. The integration of AI, automation, and robotics offers innovative solutions to this problem. ​Robotic innovations are not just filling workforce gaps, but also promoting sustainable building practices by minimizing waste and environmental impacts(1). Their precision in tasks such as material handling, bricklaying, and even complex drilling operations can enhance efficiency and safety, accelerating construction processes with precision and minimal supervision. 

Additionally, AI and robotics are revolutionizing project management, with applications including in-site surveying, material delivery, and safety enhancement.

Addressing the skills shortage is crucial, with apprenticeships and training programs being key in building a workforce skilled in green building methods, including innovative solutions like mass timber construction and the use of green concrete. These sustainable building materials not only reduce environmental impact but also represent the industry's commitment to eco-friendly practices. Additionally, mental health and wellbeing are increasingly acknowledged as essential for a productive and resilient workforce. The construction sector, often associated with high-stress environments, is actively working to destigmatize mental health issues and provide support systems. This comprehensive approach to worker welfare is vital for maintaining the industry's growth and its dedication to sustainability.

5. ​Advanced safety measures and automation

Safety in the construction industry is being revolutionized through advanced technologies. ​​Wearable devices like smart helmets and sensors are becoming increasingly commonplace, enhancing worker safety by monitoring conditions and quickly responding to incidents(2). These devices can detect falls or impacts, alerting supervisors for rapid intervention. Drones, increasingly used for site surveys and inspections, minimize the need for risky manual checks, especially in hard-to-reach areas. Additionally, automation in construction is reducing the need for human exposure to dangerous tasks. Robotics and AI-driven systems, such as automated guided vehicles (AGVs) for material transport and AI-based monitoring systems that analyze site conditions and predict potential hazards, are taking on roles that traditionally posed safety risks. This technological integration into safety protocols is helping to transform construction sites into safer, more efficient work environments.

6. Sustainability and disaster-resistant construction

NZEBs, also known as Zero Net Energy (ZNE) buildings, are rapidly growing in importance in the global construction market. These buildings, designed to produce as much energy as they consume over a year, are driven by government initiatives and increasing demand for sustainable buildings. The global NZE building market, encompassing these energy-efficient projects, is expected to expand from $42.9 billion in 2022 to $109.3 billion by ​2027(3). This growth is propelled by efforts to reduce reliance on nonrenewable energy sources and increasing government targets for NZEBs.

In addition to sustainability, the construction industry is increasingly focusing on disaster-resistant construction. This involves designing and building structures that can withstand natural disasters such as earthquakes, floods, hurricanes, and extreme heat events. Key strategies include using materials that are more resilient to environmental stress, incorporating seismic retrofitting techniques, and designing buildings with higher thermal resistance to cope with extreme temperatures. For example, earthquake-resistant construction often involves flexible building designs that can absorb seismic waves, while flood-resistant buildings may be elevated or use waterproof materials.

​​​California's mandate for all new residential buildings by 2020 and commercial buildings by 2030 to be ZNE buildings is an example of integrating sustainability with disaster resilience(4). These buildings not only contribute to energy efficiency but are also increasingly being designed with resilience in mind, ensuring they remain safe and functional in the face of natural disasters.

The integration of sustainability with disaster-resistant construction represents a holistic approach to building design, ensuring that structures are not only environmentally friendly but also safe and durable in the long term. This trend is becoming an increasingly attractive option in the construction sector, combining cost-effectiveness with resilience.

7. Megaprojects and complex construction ventures

Megaprojects, characterized by their large scale, complexity, and significant impact, are not only reshaping the landscape of the construction industry but also redefining the benchmarks for engineering and design. These construction projects often involve massive infrastructure developments like bridges, tunnels, and skyscrapers, requiring extensive coordination, financing, and time management. According to ​Statista, megaprojects have been growing larger globally, with many centered in the Arab Gulf Region. Construction software company 1Build estimates that before the end of the decade, the world will see the first construction megaproject with a cost estimation exceeding $1 trillion(5). Currently, several projects underway exceed $100 billion in cost.

Key trends in megaprojects include the use of integrated project delivery (IPD) for better collaboration, the application of advanced materials for durability and sustainability, and the adoption of smart city concepts for urban development. Notable examples include Neom City in Northwestern Saudi Arabia, the EU's Trans-European Transport Network, Dubailand, King Abdullah Economic City in Saudi Arabia, and Silk City in Northern Kuwait, which will feature the world's future tallest building. These projects present unique challenges beyond their immense scale and material costs.

The integration of advanced technologies like​​ 3D printing is transforming the approach to these projects(6). 3D printing is pivotal in creating complex structures and components for these large-scale projects, enhancing design flexibility, and reducing material waste. Furthermore, the incorporation of renewable energy solutions, such as solar, wind, and geothermal energy, is critical in reducing the environmental impact of construction. These technological advancements are reshaping the way megaprojects are executed, balancing the challenges of scale, cost, and environmental sustainability.

Meeting the challenge

Digitalization, sustainability and flexibility drive construction success

The construction industry is a blend of innovation, sustainability, and adaptability. Embracing these trends is not just essential for staying competitive; it's fundamental for shaping a sustainable, efficient, and technologically advanced future in construction. This era is marked by the rapid integration of digital technologies, a heightened focus on eco-friendly practices, and an agile approach to market and environmental challenges. As the industry continues to evolve, those who leverage these transformative trends will lead in building the resilient, smart, and sustainable infrastructures of tomorrow.

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Insights: Eco-friendly construction materials

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Key Terms

BIM (Building Information Modeling)
A digital representation of a building's physical and functional characteristics. BIM facilitates a collaborative environment for all stakeholders in a construction project, enabling more efficient planning, design, construction, and management.

NZEBs (Net Zero Energy Buildings)
Buildings that produce as much energy as they consume over a year. NZEBs use a combination of energy efficiency and renewable energy generation (like solar panels) to achieve a net-zero energy balance.

AI (Artificial Intelligence)
The simulation of human intelligence processes by machines, especially computer systems. In construction, AI is used for tasks such as predictive analytics, project management, and design optimization.

SVM (Support Vector Machine)
A supervised machine learning model used for classification and regression analysis. In construction analytics, SVM can predict outcomes like project costs or schedule overruns.

RF (Random Forest)
A machine learning method that involves constructing multiple decision trees for classification or regression. It's used in construction for predicting various project outcomes, enhancing decision-making.

KNN (K-Nearest Neighbours)
A simple, versatile machine learning algorithm used for classification and regression. In construction, it helps in analyzing project data and predicting outcomes like construction delays.

DfMA (Design for Manufacture and Assembly)
A design approach that focuses on ease of manufacturing and efficiency of assembly. It's increasingly used in construction for prefabricated components, reducing waste and construction time.

EPDs (Environmental Product Declarations)
Standardized documents providing detailed information about the environmental impact of products over their lifecycle. In construction, they are used for sustainable material selection.

EC3 (Embodied Carbon in Construction Calculator)
A tool used for calculating and comparing the embodied carbon footprint of building materials, aiding in the selection of low-carbon options.

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