The construction industry, now contributing less than 13% of the world’s GDP, is set to undergo dramatic reforms. Technology is changing quickly, which will help improve efficiency, sustainability, and productivity. Here are some trends to keep in mind if you are a player in the field.
1. Optimizing Projects Through VDC Technologies
Some building projects are simple and use regular building methods. But at the moment, more people are beginning to apply new Virtual Design and Construction (VDC) technology to these projects. In this section, you will learn about two tools: Building Information Modeling (BIM) and Construction Management Software (CMS), which assists in making building better and easier.
Building Information Modeling (BIM) is a technique that relies on computer design to show what a building looks like and how each part will work. It covers everything from the design stage to the demolition stage. Its market size in 2023 was $8.06 billion, and it is predicted to be $9.43 billion in 2024.
McKinsey found that about 60-70% of construction firms now use BIM technology. But it has taken this sector about 35 years to reach this level. In 2020, 73% of organizations in the NBS’s Building Information Modelling (BIM) report were using BIM. This shows a significant increase from 2011, when 46% of respondents didn’t know what BIM was. The growth over the last decade has been impressive.
Construction Management Software compiles all project information, enhancing communication between project team members. From 2022 to 2031, the global market is projected to grow from 9.3 billion to 23.9 billion, with a compound annual growth rate of 10.2%.
Out of all the companies, Autodesk dominates this market. The total revenue of the company for the financial year 2020 was slightly above 3.2 billion USD. Their most prized products include virtual modeling software such as AutoCAD, BIM 360, and REVIT. AutoCAD is used by as many as 85% of all companies within the general production sector.
2. The Advantages of Modular and Prefabricated Construction
Modular construction means building 60-90% of a structure off-site before bringing it to the construction location.
Prefabrication is part of this method. It means building separate parts of a structure away from the project site. These parts can be easily connected on-site, which speeds up construction and improves quality.
The following segment discusses how these new methods can positively change the construction industry and their potential benefits.
Market Growth: The global modular construction market was valued at $91 billion in 2022 and is likely to reach $120.4 billion in 2027. Regarding ACC’s permanent modular construction solution, North America’s acceptance level rose by 51% between 2015 and 2018.
Benefits: Modular construction eliminates costs, shortens duration, and minimizes waste. A survey shows that more than 90% of industry specialists think that these techniques are more helpful than conventional construction practices.
3. Smart Cities, Smart Building
Smart technologies, such as the integration of IoT technology in urban development, are poised to revolutionize building practices. Advancements in technology and the emergence of complex structures in urban centers indicate that traditional methods are gradually evolving. This section examines the funding allocated to smart city initiatives and their impact on firms in the building sector.
Investment Growth: Smart city investment was $124 billion in 2020 with expected to reach $203 billion by 2024 and more than $676 billion by 2028.
Impact on Construction: Construction firms will need to create IoT-based building materials and incorporate IoT in construction designs. About 60% of building managers in the United States have existing knowledge of IoT; 43% believe that its impact will be felt in their companies shortly.
4. Eco-Conscious Construction
Due to the growing awareness of environmental issues, green building practices are slowly becoming the norm. So, let’s discuss some of the contemporary issues in green building as a way of dealing with climate change challenges.
Market Trends: Almost half of construction and design companies expect more than 50 percent of their projects to be green by the end of 2023. McKinsey’s specialized report reveals that products with ESG (Environmental, Social, and Governance) claims have experienced faster growth compared to those without:
Products without ESG claims: 4.7%
Products with ESG claims: 6.4%
This reflects a +1.7 percentage point growth advantage for products making ESG-related claims.
Therefore, energy efficiency is a primary focus in the US, with 96% of green home builders prioritizing it in the last few years. This emphasis makes sense, given that the built environment accounts for a substantial portion of greenhouse gas emissions in the construction and real estate sectors. Over 90% of single-family residential builders implement energy-efficient practices in at least some of their buildings, and 69% apply these measures in most of their projects.
5. Living Building Materials
The adoption of living building materials is a significant shift in construction innovation. Here, we discuss the rising interest in these sustainable options and their potential to transform the industry by minimizing environmental impact.
Market Interest: Searches for “living building material” have grown by 4,900% in the past 5 years, due to their ability to capture CO2 and reduce pollution. This is especially important for the cement industry, which accounts for 8% of global CO2 emissions.
Innovations: BioMason Inc. is using biocement that is distinctive in its ability to dissolve CO2 during production rather than using traditional customary products.
6. Drones as Essential Tools
Drones for aerial photography on construction sites are one of the most obvious benefits, as they are used for mapping and surveying, which used to be time-consuming and costly. Additionally, there are lesser-known uses for drones in construction that highlight their value. This section discusses the use of these devices and the real benefits in terms of cost and safety that can be derived from them.
Cost Savings: Drones have reduced the $160 billion annual waste in construction by 61%. Their use has improved measurement accuracy by 61% for stockpiles and enhanced safety standards by 55%.
Worker Safety: Drones enable surveying and assessment tasks that are otherwise risky to human life, which is critical in an industry with a rate of 20% of total workplace fatalities.
7. Technology is Transforming Worker Protection
Construction sites increasingly prioritize security, and new technologies are being developed to enhance worker well-being. The following segment explores recent advancements in safety equipment and their potential to improve overall site conditions.
Safety Equipment: A notable innovation is the development of safety helmets designed to stay securely in place during falls and distribute impact effectively. Additionally, continuous health monitoring technologies are being implemented to track workers’ health statuses, further improving site safety.
Increasing Standards: Building sites are becoming safer places as a result of the integration of precautionary automation, which is assisting in the decline of frequent injuries related to the profession.
8. Bridging the Labor Gap
The industry is facing a significant labor shortage, which is causing challenges for companies across the country. This section looks at the main reasons for the labor gap, its impacts, and the strategies that businesses are using to tackle this problem.
Job Openings: The US needs about 400,000 new engineers every year. However, many of the skills they need are not being taught. As a result, nearly one in three engineering jobs may go unfilled each year until at least 2030.
Impact on Projects: Numerous obstacles companies face while recruiting cause projects to be stalled. The shortage is most severe in residential construction and contributes to housing stock deficits.
Recruitment Strategies: To counter the problem of labor shortages, organizations are starting reach-out programs, diversifying recruitment methods and remunerations, and offering signing-on bonuses.
9. The High Price of Shortages
Over 90% of home builders report material shortages, particularly with appliances, OSB, and plywood. Construction costs are very high and have increased significantly in recent years. In 2024, average diesel prices ($3.702) have moderated from the highs of 2022 ($4.989) but remain elevated compared to 2021 ($3.287). Steel prices are currently 123% higher than last year.
Economic Pressure: Input costs are rising much faster than project bid prices, which raises worries about profits. A Deloitte survey found that 20% of people in engineering and construction expect their operating margins to decrease.
10. The 3D Printing Boom
The construction 3D printing market is growing quickly, with an expected annual growth rate of 100.7% until 2030. It is transforming the construction industry in its ability to deliver more value and efficiency. Here, read about the rapidly increasing popularity of the 3D printing market together with its various fields of application in the industry.
Material Versatility: 3D printing is flexible in construction because it can use materials like concrete and other biodegradable options.
Efficiency Gains: Mighty Buildings shows that 3D printing can be used to build homes. This method can cut construction time by 75% because it needs less labor. ICON has built houses in just one day at very low costs.
Social Impact: Social causes, such as building homes for the disadvantaged through organizations like Habitat for Humanity, use 3D printing for construction. This demonstrates the technology’s potential in enabling society to solve some of its main challenges.
Conclusion
From the rapid adoption of virtual construction tools and modular building techniques to the integration of smart technologies in urban environments, the industry is embracing a future defined by efficiency and environmental responsibility.
The focus on green building practices and using living materials shows a commitment to reducing the construction industry’s carbon footprint. New safety technology and drones are helping to protect workers and improve efficiency. However, the industry faces some obstacles, like labor shortages and rising material costs, highlighting the necessity of innovation on the path to progress.
Everyone involved must keep adapting to stay competitive and meet market needs. The next decade will only bring on more challenges and opportunities for those in the construction field.
