The construction industry has rapidly evolved in recent years, thanks in no small part to a digital transformation that has triggered on-site analytics, automated project management software, AI-powered equipment monitoring, and more. Where once the sector was held up with paper, pen, and fax, now, construction has become a digitally interconnected operation. Today, the construction lifecycle goes hand-in-hand with a digital toolkit that guides projects from start to finish.
While the sector has modernised greatly, it’s not over yet.
In fact, 77% of respondents predict an investment surge in construction in the near future.
In this article, we tackle emerging trends within construction, from the use of AI to the widespread implementation of business intelligence.
We'll cover:
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Artificial intelligence in construction
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Robotics and automation in construction
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Cybersecurity in construction
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Labour technology in construction
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The rise of sustainability in construction
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The impact of modular and prefabricated construction
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Business intelligence for construction companies
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Preparing for the future: What construction leaders need to know
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Keeping your construction company competitive: support available
But, before we kick into the emerging trends of the construction industry, which technologies can we credit as sparking the construction industry's tech transformation?
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Cloud-based platforms: Like almost every other industry, the advent of the cloud was revolutionary for the construction sector. It allowed (and still does!) teams to share, store, and secure data - fostering company-wide collaboration that previously had been clunky, at best. And the result? Real-time updates that could keep disparate construction teams all on the same page.
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The increased popularity (and functionality) of mobile phones: As smartphones and tablets evolved, so too did their impact on the construction sector. Easily accessible on-site, and (when designed for construction) suitably robust to survive the elements, mobiles can now provide on-site reports, like progress tracking and inventory management. This allows construction companies to collect live information, and send it back to HQ at the touch of a button.
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The rise of drones: It's hardly a surprise that drone technology has made a massive impact on the construction sector, dramatically improving on-site surveys and inspections. These drones can also be equipped with AI models that autonomously scan, decipher, and store project-relevant data - in addition to surveying places deemed otherwise unsafe for humans.
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The evolution of Building Information Modeling (BIM): First rearing its head way back in the 1970s, Business Information Modeling technology has come a long way. Today, it is a mandated component of publicly tendered projects in the UK, and a comprehensive technology that provides construction teams with a detailed overview of a project's lifecycle. By delivering a digital representation of a project's physical and functional characteristics, BIM makes construction development more efficient, more safe, and considerably more data-driven.
While there are countless other technologies responsible for construction's evolution, the above three are arguably some of the most impactful. So, with that in mind, what's next for the sector? And can we expect shifts as seismic as the advent of the cloud, mobile, and modelling?
Artificial intelligence in construction
Artificial intelligence (AI) has had a phenomenal few years, thanks to the increased popularity of generative AI platforms (like ChatGPT and Midjourney), AI hardware improvements (thanks to the likes of NVIDIA), and the increased ability of companies to create their own AI models (thanks to training data platforms).
In the construction industry, AI is leading to a number of seismic shifts, from AI-powered on-site automation to AI algorithms designed to predict and prevent project issues. Developed from a vast collection of construction data, these AI-powered mechanisms are already drastically reshaping the sector, by streamlining project management, bolstering safety mechanisms, and removing operational inefficiencies.
Wondering how you can improve operational efficiency within your construction company? Take a look at our article on leveraging business intelligence in construction.
And yet, there's resistance to AI technology. According to a survey from global talent consultancy, Randstand, just over a quarter (27%) of construction workers would prefer to change jobs or careers, than learn how to use AI.
Despite this, AI persists, with much of it being used to automate repetitive, routine, or unsafe tasks - leaving construction teams to focus on work that more closely impacts the bottom line.
In terms of how this technology unfolds within construction, there remains much to be seen. For now, its use is predominantly focused on streamlining supply chain management, stock management, optimising project timelines, and enabling safer on-site experiences for workers.
Robotics and automation in construction
Similar to the impact of AI, robotics and automation have become a key trend within construction - and they continue to shape what's possible within the sector. While this technology comes at a premium (thanks to a litany of software, hardware and firmware costs), you can now access brick-laying robotics, welding mechanisms, and concrete-pouring solutions. Trained on vast amounts of data, and continuously updated for improvements, these robots can reduce human error, while addressing ongoing labour shortages within the construction sector.
This is particularly advantageous for construction companies, with the Construction Skills Network report indicating that around 225,000 new construction workers will be needed by 2027 to fill demand.
For tasks where human labour is in ample supply, these robotics are being used as detailed sensors, providing a suite of data to be analysed by construction teams. Armed with these insights, businesses are now able to create greater project predictions, fuelled by on-site information.
Cybersecurity in construction
With great technological evolution, comes great risk. Cybersecurity has become an increasing concern in construction, with the industry witnessing a 40% increase in cyber threats and attacks between 2022 and 2023. Worse yet, these threats are costly. According to IBM's Cost of a Data Breach Report 2024, the global average cost of a data breach in 2024 was $4.8m.
For a sector suffering from shrinking profit margins and slipping project deadlines, breaches of this scale can be truly devastating.
As a result, cybersecurity in construction has emerged as a key trend for the sector, with greater emphasis placed on the protection of sensitive data. This is being handled through a number of strategies, including:
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GDPR-compliant data infrastructure.
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Increased controls on connected devices (otherwise known as IoT).
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Rigorous training for staff, specific to how to prevent a breach - and what to do in the event of one.
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Company-wide cybersecurity mandates, that extend to suppliers.
For companies seeking to scale, cybersecurity has become a key focus in 2024 and beyond - with the integrity of construction companies relying on it.
Labour technology in construction
Labour practices are also undergoing great changes within construction, thanks to technologies that can improve productivity rates, monitor labour shortages, and bolster safety protocols. Below are just some of the technologies reshaping the sector when it comes to labour:
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Wearable technology: Construction projects will often have either unsafe or inaccessible sites, making the labour of workers particularly precarious. Thanks to innovations in smart gear and exoskeletons, workers can now go to new environments, with greater protection.
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HR software: The construction sector has a labour shortage problem, which can slow or even halt projects. New labour monitoring software now enables project managers to better understand available resources, upcoming shortages, and worker productivity metrics. This prevents project downtime while making workforce scheduling dramatically more manageable.
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Virtual reality (VR) and augmented reality (AR): Advances in VR and AR technology have made workforce education and training immersive, allowing for controlled simulations that test and improve a worker's skill set. Not only does this increase the safety of projects, but it also reduces the potential for error in real-life situations.
The rise of sustainability in construction
Global pressures have seen a slow but steady shift towards sustainable building practices within construction.
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Eco-friendly materials: One major trend is the use of eco-friendly materials, such as recycled steel, low-carbon concrete, and sustainable timber. Designed to minimise a project's carbon footprint, these materials often have the added benefit of improving the overall durability of a project.
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Energy-efficient developments: In addition to eco-conscious materials, energy efficiency has become crucial in development. From advanced insulation requirements to energy-efficient windows - the pressure is on construction projects to deliver eco-friendly developments that can weather market fluctuations related to climate demands.
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Sustainable water use: More sustainable practices related to water management are now also becoming popular, with developers paying closer attention to water wastage, smart recycling, and drought-resistant design.
The impact of modular and prefabricated construction
Modular and prefabricated construction methods (project components built off-site in factories and later transported on-site) are continuing to grow in popularity, thanks to their speed, efficiency, increased quality controls, potential for cost-savings, and sustainability opportunities. This is leading to a shift in how buildings are designed overall.
Thanks to a host of significant advantages, modular and prefabricated construction has sky-rocketed in popularity in recent years - with no signs of slowing down.
Business intelligence in construction
Last, but not least, business intelligence is becoming key to digital transformation within construction. Triggering a data-first approach to development, BI is fuelling more profitable projects, improving productivity rates, and accelerating the growth of the sector overall.
In terms of its impact, business intelligence in construction has led to:
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Improved efficiency in project management.
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Project-wide analytics, resulting in better decision-making.
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Real-time reporting dashboards, which trigger better company-wide collaboration.
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Predictive analytics, delivering better forecasting, resource management, and cash flow control.
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Better risk-management strategies, fuelled by historical data and pattern analysis.
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Detailed market insights, enabling better customer experiences, and future planning.
And much, much more.
Interested to see how business intelligence could improve your construction operations? Check out our article on the opportunities BI presents.
Preparing for the future: What construction leaders need to know
For construction leaders looking ahead, one thing is certain: technology, risk management, and infrastructural innovation are key to future-proofing their business. How then can senior leaders get prepared for the industry's continued evolution?
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Company upskilling, and benefit selling: For all its promises, technology becomes ineffective if your team, firstly, cannot use it, and secondly, cannot understand the total benefit of its offering. Leaders would be wise to invest in company-wide training, from best practice approaches to technology, data security processes, and the long-term benefit of new innovations. Be careful not just to illustrate the benefit to business, but how technology itself will improve the individual careers of your workforce.
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ROI-focused investment mindset: While technology has the potential to overhaul your operations, it's a costly venture. Similarly, while the buy-in of your staff is crucial - so too is the buy-in of senior stakeholders, and those in charge of the company's purse strings. Focus on an ROI-first approach to your investments, and focus on technologies most likely to make the biggest and most immediate impact. Not only will this impact the bottom line, but it will earn the trust of senior stakeholders, and unlock more budget for future investments.
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Focus on your infrastructure: Be careful not to waste your investments - if your existing infrastructure struggles to integrate with new technologies, its impact will be greatly limited. Pay special attention to how easily tools can be integrated, and what internal requirements you have (whether that's time or in-house knowledge). Try to focus your attention on upgrades that will slot neatly into your ecosystem. In some instances, it can be wise to invest in external help to ensure your infrastructure can support a digital transformation.
Keeping your construction company competitive: support available
As a competitive industry, keeping ahead can be challenging in construction. While many of the above-emerging trends are geared towards helping companies become more profitable, productive, and fast-paced, not all technologies are equal.
The needs of one company will be wildly different from another, and you want to ensure that your budget, resource-usage, and team morale are spent wisely.
Exploring a digital upgrade or transformation for your construction company? Discover how Lyon Tech can help with bespoke technology support for construction businesses.
