Construction industry trends

Summary: AI-enabled generative design tools will transform architectural workflows by optimizing structures for better efficiency and creativity.

Current Situation: Generative design uses AI to create thousands of design iterations based on input constraints such as cost, sustainability, and structural integrity. This technology allows architects and engineers to explore innovative solutions quickly, but it is currently limited by initial investment costs and training needs. Major design software companies are incorporating AI capabilities into their platforms, making the technology more accessible.

Expected Development: Over the next 2-4 years, AI tools will become increasingly integrated into architectural design processes, automating complex tasks and enhancing feasibility studies. Real-time simulation and modeling will merge with generative design to streamline project workflows.

Challenges: High initial costs and the learning curve for mastering new AI-driven tools remain obstacles, as well as ensuring compatibility with existing design software.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Technological

This year’s trend development

Summary: Urban design is increasingly incorporating climate resilience to address extreme weather and environmental stressors.

Current Situation: Architects and urban planners are embedding adaptive features into designs to cope with climate-related risks like flooding, heatwaves, and storms. This approach ensures long-term viability and safety for urban spaces. Advanced modeling tools and predictive climate data are being used in early design phases to plan for these challenges.

Expected Development: Over the next 4-6 years, more cities will mandate climate-adaptive designs for new developments, integrating climate data and sustainable materials into standard practices. This will lead to urban spaces better equipped to withstand future climate conditions.

Challenges: High costs and the need to align with quickly evolving climate policies can be barriers. Ensuring that designs remain cost-effective while meeting resilience standards is another challenge.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Ecological

This year’s trend development

Summary: Digital twin technology is improving design accuracy and predictive analysis through virtual replicas.

Current Situation: Digital twins are being used to create highly detailed virtual models that simulate the performance of physical structures, enabling planners to identify potential issues before construction. This approach helps optimize design choices and improve collaborative processes.

Expected Development: Over the next 4-6 years, digital twins will integrate with IoT and AI to enhance predictive modeling and real-time data analysis. This will allow more accurate forecasting and adaptation, making projects more sustainable and cost-effective.

Challenges: Managing large data sets and addressing cybersecurity risks are significant challenges. Ensuring interoperability with existing design and planning tools can also be difficult.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Technological

This year’s trend development

Summary: Intelligent machinery enhances construction safety, precision, and efficiency through automation.

Current Situation: Smart construction equipment embedded with IoT sensors and AI capabilities is being deployed to enable autonomous operation and predictive maintenance. These machines improve project timelines, reduce errors, and enhance worker safety by automating repetitive tasks. While many companies have adopted semi-autonomous equipment, fully autonomous machinery is still in development.

Expected Development: In the next 4-6 years, advancements will include collaborative robots (cobots) working alongside human teams and further integration with project management software for seamless operation.

Challenges: High initial costs, regulatory compliance hurdles, and workforce training needs can slow down adoption.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Technological

This year’s trend development

Summary: Transitioning from diesel-powered to electric-powered construction equipment to reduce emissions.

Current Situation: Electric construction equipment, such as battery-powered excavators and loaders, is being introduced to lower greenhouse gas emissions and meet environmental regulations. Early models are deployed in pilot projects, demonstrating the feasibility of quieter and emission-free operation. However, adoption is still limited by current battery technology.

Expected Development: Over the next 4-6 years, enhanced battery life and faster-charging infrastructure will support the broader adoption of electric heavy equipment. Government incentives will further accelerate this transition. 

Challenges: Limited battery life, high initial equipment costs, and the need for widespread charging infrastructure remain significant hurdles.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Ecological/Technological

This year’s trend development

Summary: New regulations require detailed carbon footprint disclosures for materials and equipment used in construction.

Current Situation: Governments are rolling out laws mandating construction companies to report the carbon impact of their projects, driving the need for comprehensive tracking systems. This trend is pushing firms to adopt better data collection methods and technologies to remain compliant and avoid penalties.

Expected Development: In the next 2-4 years, enhanced tracking tools and carbon calculators will become standard, and integrated into equipment management systems to facilitate automated reporting. Compliance will lead to the adoption of more sustainable practices.

Challenges: High implementation costs, complex regulatory landscapes, and the need to align tracking with current systems.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Political/Ecological

This year’s trend development

Summary: Innovative materials such as self-healing concrete and high-strength composites are set to change the way structures are built and maintained, enhancing durability and reducing long-term costs.

Current Situation: While traditional materials still dominate, new materials like self-healing concrete, which can autonomously repair small cracks, and carbon-fiber composites, which offer high strength-to-weight ratios, are being tested in pilot projects. These materials promise improved performance and sustainability but are not yet widely used due to cost and supply challenges.

Expected Development: Within 4-6 years, the construction work segment will see broader adoption of these advanced materials as production costs decrease and industry standards evolve. This shift will lead to more durable, sustainable buildings and reduced maintenance needs.

Challenges: High production costs, limited availability, and the need for updated building codes to accommodate these materials.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Ecological/Technological

This year’s trend development

Summary: The shift towards electrified and low-emission machinery aims to significantly cut greenhouse gas emissions during on-site construction activities.

Current Situation: Most construction work currently relies on diesel-powered machinery, which contributes heavily to CO2 emissions. However, electric and hybrid alternatives are beginning to enter the market, primarily used in environmentally focused projects or by larger firms with the capital to invest in new technologies.

Expected Development: Over the next 4-6 years, advancements in battery technology and reductions in costs will drive the adoption of electric excavators, loaders, and other equipment. This will lead to a significant decrease in on-site emissions and compliance with stricter environmental regulations.

Challenges: High upfront costs for electric machinery, limited charging infrastructure, and the need for worker training on new technology.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Political/Technological

This year's trend development

Summary: A significant shortage of skilled labor is impacting the construction work segment, leading to delays and higher costs.

Current Situation: The industry is facing ongoing difficulties in attracting and retaining skilled labor, exacerbated by an aging workforce and a limited pool of new talent entering the field. This shortage results in overworked teams and extended project timelines, prompting the adoption of automation and outsourcing where feasible.

Expected Development: In the next 4-6 years, investments in training programs and automation technologies will mitigate the impact. Upskilling existing workers and integrating robotics for repetitive tasks will help bridge labor gaps and maintain productivity.

Challenges: High initial investment in training and technology, along with resistance to automation from existing workers, can slow progress.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Social/Economic

This year's trend development

Summary: Green building certifications are becoming a standard, driving eco-friendly construction and infrastructure management practices.

Current Situation: Certifications such as LEED and BREEAM are widely recognized, and their adoption is increasing as infrastructure managers aim to meet environmental regulations and consumer expectations. These certifications push projects to incorporate sustainable materials, energy-efficient designs, and eco-conscious waste management systems.

Expected Development: Over the next 2-4 years, the criteria for certifications will become more stringent, encouraging deeper integration of renewable energy sources, sustainable construction practices, and lifecycle sustainability measures in infrastructure projects.

Challenges: The costs associated with certification, ongoing compliance, and the need for skilled teams to implement these changes present significant challenges.

Time to Impact: 2-4 years

Potential Impact: Very High

STEEP Segment: Ecological

This year’s trend development

Summary: Decarbonization policies are reshaping infrastructure management, requiring sustainable practices to meet net-zero emission targets.

Current Situation: Global policies aimed at achieving net-zero emissions are compelling infrastructure projects to adopt low-carbon materials and renewable energy sources. This push is driven by international agreements and national laws, positioning decarbonization as a key focus for future infrastructure.

Expected Development: In the next 4-6 years, infrastructure projects will be mandated to include carbon capture and energy-efficient designs. This will lead to wider adoption of renewable energy systems, sustainable practices, and innovative construction techniques to meet stringent targets. 

Challenges: The high cost of adopting renewable technologies, carbon offset strategies, and retrofitting older infrastructure to meet new standards.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Political

This year's trend development

Summary: Digital twins enable real-time virtual modeling of infrastructure for enhanced monitoring and predictive maintenance.

Current Situation: Digital twin technology is in the early stages of adoption, providing real-time, data-driven models of infrastructure for visualization and proactive issue identification. This tool helps improve operational efficiency and infrastructure management by simulating potential failures and optimizing performance.

Expected Development: Over the next 4-6 years, advancements in AI integration will make digital twins more self-learning, and capable of automatic corrective measures and energy management. This will transform infrastructure oversight, making it more efficient and predictive.

Challenges: High costs of implementation, data accuracy, and the need for skilled personnel to manage and interpret the systems.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Technological

This year's trend development