Exploring Future Trends in Global Construction (2025 and Beyond)

Gone are the days when the construction industry was a technological laggard. Various players are embracing innovations left and right, shedding their history of stagnation. Discover what the future of the construction industry will look like as stakeholders like you keep up with the times.

What Drives Construction Industry Trends in 2025 and Beyond?

Sustainability is the single-most crucial driver of innovation in construction. The writing is on the wall for energy-inefficient and climate-vulnerable properties. If these pieces of real estate stay the way they are — regardless of how profitable they may be — they will become stranded assets due to stringent regulations.

Another factor is the growing influence of ESG investing and leasing on the decision-making of commercial real estate players. Less socially conscious building owners stand to lose out to competitors with greener credentials.

Technological availability is also worth mentioning. Many solutions have advanced and matured enough to become feasible and commercially viable.

Supply chain disruptions have been the bane of the industry since the pandemic, inflating material and equipment prices by eye-watering levels.

Lastly, the chronic skilled labor shortage will remain an albatross hanging around the necks of many contractors in the foreseeable future. In the United States alone, more than one-fifth of employed individuals in construction are 55 or older.

Construction Industry Overview — Top 4 Trending Innovations to Watch Out For

No single solution can permanently alleviate the woes of developers, architects, engineers, builders and subcontractors. However, these four technologies will be instrumental in helping you innovate and streamline your business.

1. 9D-BIM Software

9D-BIM blends 3D models with six more dimensions — time, cost, environmental impact, facility management, health and safety, and lean construction.

Most BIM software programs include the first three additional dimensions. They allow decision-makers to foresee schedule issues, explore model-based cost scenarios and double down on sustainability by calculating potential carbon emissions, sourcing green materials, optimizing the supply chain and minimizing waste.

Eventually, BIM developers will incorporate the last three dimensions into software design more frequently to boost sustainability in the construction industry. More stakeholders are beginning to see the importance of facility management from design to demolition, which simplifies maintenance and repairs. For deconstruction-friendly structures, this dimension ensures easy material recovery at the end of a building’s life cycle for sale and reuse.

The renewed interest in health and safety stems from the potential savings linked to fewer on-site accidents — especially now that risk identification from the early stages of construction is more feasible than ever because of big data and advanced analytics.

Lean construction will gain steam as more industry players recognize that traditional building processes are fatty and need refining. Decision-makers are already implementing lean practices in quantity surveying production. They should expand into other core processes and discourage construction professionals from reverting to their old ways when they witness and feel more confident in their practicality firsthand.

2. Workforce Automation

Although bots don’t render human workers irrelevant, they steal the show. Autonomous earthmovers, 3D construction printers, surveying and surveillance drones, semiautomated masonry systems and demolition robots are stepping up to the plate as the global labor force ages.

When soft exosuits become mainstream, these wearable robots will be bulky and be more effective in lightening the backbreaking work of construction laborers and helpers. They can help older workers put off retirement because they render manual tasks less strenuous.

Robotic equipment can cost a fortune and require upskilling. Still, you can recoup your investment by eliminating productivity loss, averting delays and minimizing material waste.

3. Circular Territorial Clusters

Circularity is a nonnegotiable requirement for the construction industry to become green. However, even the most ardent buyers of renewable, reusable, used, refurbished, remanufactured and recycled products struggle to reconcile environmental responsibility with cost.

The European Union intends to show the way with the Circular Cities and Regions Initiative (CCRI). Through these territorial clusters, the EU supports the growth of circular ecosystems within its jurisdiction by bridging gaps in awareness, knowledge, information and skills. The CCRI builds on preexisting funding instruments and policy tools to meaningfully promote circularity at local and regional levels.

Only time will tell how this initiative will define the future of the global construction industry. What’s certain is that it sends a strong message to other nations to take bold steps to curb the unbridled consumption of virgin resources.

Moreover, the CCRI may spawn more exciting trends in building and construction surrounding renewable materials, regenerative architectural designs and environmental product declarations. It can compel architects and engineers to create structures outside the box. Green-minded professionals can give birth to ingenious sustainable construction examples that can inspire the rest of the world.

4. Extended Reality

Immersive technologies — virtual reality, augmented reality or a combination of the two — are slowly becoming staples in construction. Simulating construction processes is vital in reducing costly design errors, exploring material options, identifying on-site hazards before construction and conducting safety training. Forward-thinking teams are experimenting with novel ways to harness the power of extended reality.

The adoption of immersive technologies isn’t without obstacles. High cost, nonexistent industry standards, limited interoperability and skills shortage persist. Still, pundits expect the industry to resolve these challenges in the coming years. Researchers project the construction extended reality market size to grow at a compound annual growth rate of 25% from 2023 to 2032, ballooning from $5.2 million to $38.8 million.

The Future of the Construction Industry Is Unfolding

Construction’s technological disruption is long overdue. Late is better than never — assess your ESG strategy, determine the appropriate innovations to address your business’s unique needs and reap the evergreen benefits of sustainability.