Construction industry trends
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Construction industry trends 2026+
Construction faced a reckoning in 2025 that exposed the industry's structural fragility. Material costs spiked 22% year-over-year while skilled labor shortages reached crisis levels: over 500,000 positions remained unfilled in the US alone.
Projects stalled from a lack of demand instead of the inability to deliver. Insurance costs for climate-vulnerable infrastructure doubled in coastal markets, and carbon regulations made traditional building methods economically unviable in major European cities.
Yet 2025 also accelerated the industry's digital transformation. Autonomous construction equipment moved from demonstration projects to active job sites: Built Robotics' self-operating excavators reduced grading costs by 30% while improving precision. Digital twins became standard for major projects, with real-time monitoring reducing rework by 40%.
The shift was forced by necessity: traditional methods can no longer meet delivery timelines, budget constraints, or environmental mandates simultaneously. The construction firms that will lead in 2026 are those that used 2025 to industrialize their operations by adopting manufacturing principles, scaling automation, and designing for both performance and deconstruction from day one.
This construction trend report examines the key factors shaping the industry.
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New and declining trends for 2026
The trends tracked in this year's report reflect how 2025 converted construction's long-term challenges into immediate regulatory and operational requirements. As some trends evolved from standalone issues into baseline requirements, they lost momentum.
These replacements address construction's 2025 reality: regulations now have teeth, material choices directly impact project viability, and automation is an operational necessity rather than an efficiency enhancement. Built Robotics' autonomous equipment reduced site labor requirements by 30% while improving precision. Low-carbon concrete and bio-based materials aren't premium options anymore; they're often the only economically viable choice in carbon-regulated markets.
Due to major updates, the integrated digital twin ecosystems for design and forecasting expanded beyond pre-construction planning to become live project management infrastructure that coordinates across design, construction, and operations phases simultaneously.
These changes reflect an industry where regulatory compliance, automation, and sustainability converged from separate initiatives into integrated operational requirements that determine which projects get built and which firms stay competitive.
Design & planning trends
The design and planning segment is increasingly driven by sustainability, resilience, and inclusivity. Technological innovations like AI-driven design and digital twins enhance efficiency and precision, while ecological trends push low-carbon and water-conserving designs. Stricter building codes and incentives reinforce sustainable practices.
Social and political influences emphasize well-being, accessibility, and community engagement. Economic pressures promote modular construction and value engineering, while adaptive zoning policies and resilient infrastructure investments push innovation within evolving regulations.
In the following, we highlight the three most critical design & planning trend developments. Download here the complete list of all 125 trends, affecting the construction industry 2026+.
AI-Driven Generative Design Acceleration
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
Regulation-Driven Climate-Resilient Planning
Summary: Planning that incorporates climate resilience is gaining prominence.
Current Situation: Designs now integrate features that help buildings and urban areas withstand environmental stressors like heatwaves, floods, and storms, enhancing long-term viability.
Expected Development: Enhanced use of predictive climate data and sustainable materials will drive planning strategies, making urban designs more adaptive and durable against climate change.
Challenges: High costs and alignment with fast-evolving climate regulations.
Time to Impact: 4-6 years
Potential Impact: Very High
STEEP Segment: Ecological
This year’s trend development
Integrated Digital Twin Ecosystems for Design and Forecasting
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
Materials & equipment trends
The construction material and equipment segment is adapting to rising material costs and supply chain disruptions by turning to local and sustainable alternatives. Stricter environmental regulations and incentives are driving the adoption of low-carbon equipment and materials to meet compliance standards efficiently.
Politically, localization policies and mandatory carbon reporting are reshaping sourcing and logistics. Green certifications and subsidies for eco-friendly machinery are now critical for competing in public projects while changing tariffs are pushing companies to diversify sourcing and boost local production.
In the following, we highlight the three most critical material & equipment trend developments. Download here the complete list of all 125 trends, affecting the construction industry 2025+.
Smart Construction Equipment
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
Electrification of Heavy Equipment
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
Adoption of Low-Carbon Construction Materials
Summary: The shift towards low-carbon alternatives like green concrete and recycled steel is accelerating to reduce emissions.
Current Situation: Construction companies are adopting low-carbon materials to meet sustainability goals and reduce their environmental impact.
Expected Development: Wider industry use of carbon-negative materials such as hempcrete and bio-based composites will gain traction, supported by stricter regulations.
Challenges: High production costs and limited availability can slow adoption.
Time to Impact: 2-4 years
Potential Impact: Very High
STEEP Segment: Social
This year’s trend development
Construction work trends
The construction work segment is evolving with stricter environmental regulations and incentives for sustainable practices, pushing firms to adopt eco-friendly materials and low-emission machinery. Government infrastructure funding and labor reforms are also reshaping on-site processes, emphasizing safety and training.
Trade policies and material price fluctuations are driving localized sourcing to stabilize supply chains. The adoption of renewable energy solutions and efficient waste management is increasing as companies adapt to meet these political and environmental shifts.
In the following, we highlight the three most critical construction work trend developments. Download here the complete list of all 125 trends, affecting the construction industry 2025+.
Advanced Materials for On-Site Construction
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
Adoption of Low-Emission Machinery
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
AI-Powered Robotics for Specialized Tasks
Summary: AI-powered robots designed for tasks like rebar tying, concrete finishing, and complex welding are redefining precision and efficiency in on-site construction work.
Current Situation: Robotics in construction has moved beyond basic applications, with robots like TyBOT used for tying rebar and SAM (Semi-Automated Mason) for bricklaying. These robots help alleviate labor shortages and improve task consistency.
Expected Development: Advanced robotics will feature enhanced AI capabilities for adaptive decision-making, allowing for more complex tasks such as 3D-printing of structural components and autonomous interior finishing.
Challenges: Integrating these robots with workflows, ensuring job site safety, and addressing high capital investments.
Time to Impact: 4-6 years
Potential Impact: Very High
STEEP Segment: Technological
This year's trend development
Infrastructure management trends
The infrastructure management segment is witnessing a transformative phase driven by political and regulatory pressures. Governments are enforcing stricter security regulations and mandating resilience against climate impacts, ensuring structures can withstand increasing environmental challenges. Decarbonization policies and net-zero targets are accelerating the adoption of sustainable materials and practices, while localization policies push for the use of locally sourced materials to boost regional economies and reduce emissions.
Smart infrastructure initiatives are fostering technological integration, and encouraging the use of IoT and AI for efficient management and resilience. Public-private partnerships are expanding to finance these large-scale projects, balancing costs and expertise. Compliance costs, technical expertise, and the retrofitting of existing infrastructure remain significant challenges, but the impact of these developments promises to create safer, greener, and more resilient infrastructure.
In the following, we highlight the three most critical infrastructure management trends. Download here the complete list of all 125 trends, affecting the construction industry 2025+.
Growth of Green Building Certifications
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
Push for Decarbonization and Net-Zero Mandates
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
Digital Twins for Dynamic Infrastructure Oversight
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
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