In 2024, the construction sector experienced both highs and lows. Data from Deloitte shows that the industry grew steadily, with a 10% increase in value and a 12% boost in output. Construction spending topped $2 trillion, staying strong through the first half of the year.
We also faced our fair share of challenges—including labor shortages, higher interest rates, and inflation.
Still, there are plenty of reasons to be optimistic. New technologies are streamlining workflows, and infrastructure investments continue to fuel long-term growth.
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With all that in mind, we caught up with several construction experts and asked them to share their thoughts on what’s next for the construction industry in 2025. Check out what they have to say.
"For 2025, the pervasive use of common data environment (CDE) will continue globally in the AEC / built environment industry. I also think more robotics and automation will be introduced to aid in projects that can enhance productivity. Data visualization and insights will have more impact too as they will not only be used for analytics but for AI use cases to be predictive and prescriptive as well."
"The construction industry is on the brink of transformative change as we move into 2025, marked by resilience, adaptation, and significant advancements. Key trends are influenced by economic conditions, changes in public policy, and inflation. Technological innovations, evolving workforce dynamics, and a focus on sustainability and inclusive policies will shape the future. The industry will face unique challenges and opportunities requiring a balance of objectivity and optimism. Several key areas will shape the industry in the coming year are advancing technology integration for productivity and safety, DEIA evolving terminology and stabilizing efforts, constant prioritizing of workforce development, sustainability and green building practices, and many more."
"Paving the way for innovation in 2025, I think we will start to see more widespread data-led approaches to project delivery. Over the past 10 years we’ve seen amazing leaps forward in the availability of construction technology tools. From point solutions satisfying a specific requirement, or platforms as single sources of truth, we have started to see the emergence of "ConTech 3.0" where all sizes of businesses in the industry are adopting more of an awareness and deployment of data strategies such as those we have traditionally seen in sectors like finance. Data collection and standardization are the two prerequisites to any attempt at deploying AI in any format, and construction has started to make moves in this direction over 2024."
"Looking ahead to 2025, disruptive technologies will continue to increasingly shape the construction industry at an unprecedented pace. Advanced machinery and software are taking on tasks that not only complement but sometimes surpass human expertise and precision. However, it is essential to remember that machines lack the essence of life. They remain objective algorithms fueled by our collective global input. For now, the control remains in human hands. As social and subjective beings, our Human Intelligence – encompassing creativity, values, and resilience, both individually and in teams – will be critical in ensuring we remain relevant and in unlocking the full potential of these technologies for the greater good of society, both socially and sustainably."
"In 2024, we burst into the next phase of how the construction industry’s evolution, especially in the past 18 months. How we design, the aids we use, the amount of automation, the trust in this automation, the integration from design to construction, and the ability to compare and check in real-time have all changed our way of working. In 2025, we must be on our toes to be ready to jump into the next way of working or we will get left behind and risk being obsolete before we know it. My prediction will be around the wider adoption of AI into our everyday work practices. Most of us are using these as efficiency aids for now but the integration and wider automation practices will bring us to places we can’t yet imagine."
"I foresee construction moving toward a more automated, manufacturing-based methodology, incorporating AI, robotics, and smart technology in 2025. Automated fabrication, for example, could involve the use of intelligent machinery and robotics, where materials—such as pipe cut lengths and bends are defined by digital models and then input too and processed by machines. This process integrated alongside a robust site set-out will guarantee an accurate installation and mitigate rework and material waste."
"In 2025, the construction industry will continue to embrace transformation rather than resist it. The shift toward industrialized methods is a response to the industry’s historical inefficiencies—unpredictable schedules, excessive waste, and misaligned communication. The essence of industrialized construction is not just about doing things differently but about doing them better, systematically harnessing lessons learned from past projects to achieve greater outcomes. This approach enables meaningful progress, turning the aspiration for continuous improvement into a standard practice."
"As the construction industry evolves, several trends are shaping the future in 2025. One prominent trend is the increased focus on efficiency and reduced errors and rework on construction sites. Customers are increasingly asking for solutions that help them manage quality assurance and control (QA/QC) tasks, track errors early during construction, and integrate these findings back into the design phase to create a continuous feedback loop. This not only saves time and materials but also enhances the overall efficiency of construction projects.
Additionally, there is a significant push towards adopting augmented reality (AR) and virtual reality (VR) technologies on construction sites. Firms are exploring how these immersive technologies can aid in on-site tasks, such as tracking as-built conditions and performing real-time comparisons with design plans. For instance, Autodesk's investment in GAMMA AR, a third-party partner in the Autodesk ecosystem, highlights the industry's move towards integrating AR for better on-site efficiency."
"Construction trends are evolving to improve various aspects of the industry in 2025. One significant trend is the improvement of data quality and data analytics by centralizing data to enhance reporting and trend identification, which supports on-site teams in making data-driven decisions. Another trend is adopting modular construction and Design for Manufacture and Assembly (DfMA) to address workforce shortages and quality issues by prioritizing modular approaches with productization. Generative and data-informed design is also gaining traction, with tools like Forma being utilized for context-driven designs, particularly in real estate projects. Additionally, there is a focus on establishing a golden thread of information and asset management strategies to manage project assets throughout their lifecycle. Lastly, there is an increasing emphasis on carbon reporting and design practices to improve carbon reporting and efficiency in design processes."
"Projecting into 2025, the construction industry is prepared to see a significant transformation driven by digitalization, sustainability, and industrialized construction practices. BIM will become the norm for managing complex projects, integrating matured capabilities such as sustainability metrics and facility management. The adoption of modular and prefabricated construction will probably escalate, reducing construction times and costs while addressing labor shortages.
In Spain, the actual "BIM Plan" for public contracts will serve as a pivotal driver for this transformation, acting as a catalyst for the industry's digitalization. This initiative mandates the use of BIM methodologies in public procurement, ensuring standardized workflows and fostering collaboration across project stakeholders. It will not only improve efficiency and transparency in public infrastructure projects but also create a ripple effect, encouraging private sector adoption of BIM and associated technologies."
"In 2025, the construction industry will continue to see a shift towards the utilization of data and technology. General contractors, subcontractors, and owners are increasingly recognizing the value of how digitizing project data enhances their workflows and decision-making processes. One prominent trend is the adoption of mobile devices in the field. Contractors are streamlining their workflows using smartphones and tablets, allowing for digital documentation, reviewing specifications, marking up drawings, and communicating with the office from the field. This trend is creating a ripple effect, encouraging other contractors to adopt similar technologies to avoid falling behind.
The use of mobile devices and cloud-based systems will rely on a single source of truth environment, promoting improved collaboration and dynamic insights. Overall, the construction industry’s move towards digitization in a common data environment will lead to more efficient and improved project management, execution, and profitability."
"2024 left a lot of uncertainty in the construction industry. We saw a tremendous amount of budgeting and feasibility studies but very few projects come to fruition. Due to the election and raising interest rates, many customers put their projects on hold. With the election behind us, we are hopeful that we will see a lot more projects get executed in 2025."
"As data integration, visualization, and automation become possible through low-code/no-code solutions, I believe that with the further increase in citizen developers, the improvement and differentiation of UI/UX in data utilization and analysis will intensify in 2025. Furthermore, alongside this trend, I believe that businesses related to sensing technologies, analysis and utilization techniques, and extracted sample data in both the real world and digital twins will accelerate."
"From DPR’s viewpoint, construction is booming and the overall economic climate outlook is strong in 2025, with diverse opportunities across most regions and our core markets. How the economy looks after the elections—like interest rates and inflation—will play a big role in financing options for most projects.
Advanced manufacturing and mission-critical sectors in the U.S. are experiencing significant growth due to rising demand for technological innovation and digital infrastructure. Life Sciences is set for growth in 2025, encouraged by strong M&A, IPO, and private equity activity, largely driven by Big Pharma, despite some regional softness and fewer opportunities for smaller firms.
Healthcare systems are experiencing a period of stabilization despite ongoing economic uncertainties and challenges from natural disasters and geopolitical conflicts. Following a high point in interest rates, the Federal Reserve’s recent rate cut to 4.75-5.00% is expected to enhance access to capital and refinancing options for healthcare organizations, positively impacting their financial outlook in 2025."
"As we approach 2025, the construction industry is poised for significant transformation driven by emerging trends and technologies:
Industrialized Construction (IC): Industrialized Construction will become increasingly popular in 2025 as the industry works to address challenges like global demand, sustainability, and workforce shortages. We know that IC has the potential to be highly disruptive, which explains why many attempts to shift physical effort from unpredictable and unsafe jobsite to more controlled factory environments have not succeeded. However, organizations that adopt a deliberate and well-planned approach are achieving greater predictability and more sustainable project outcomes.
Data-Driven Decision-Making: Last year marked a pivotal moment for AI in construction as companies began to recognize opportunities to leverage the vast amounts of data generated by digital technologies. In 2025, construction firms across the globe will increasingly invest in predictive tools and AI to unlock the full potential of their data.
Improved Collaboration: Collaboration is a significant issue in the construction industry—the complexity of projects, the number of stakeholders, and coordination challenges are just the beginning. In 2025, we’ll begin to see enhanced collaboration through the accelerated adoption of technologies and processes that streamline communication among stakeholders.
Platform Integration: Construction technology has seen investor dollars pouring into software companies focused on delivering innovative solutions. Many of these technologies address specific pain points in the construction lifecycle. However, to truly tackle lifecycle inefficiencies, industry professionals are increasingly adopting a platform approach, which will likely expand further in 2025. Platforms that connect design, construction, and operations enable better collaboration and seamless data flow across the lifecycle.
Adoption of AR/VR: The use of augmented reality (AR) and virtual reality (VR) technologies will continue to expand as the tools mature. These technologies will allow project teams to virtually interact with designs, visualize potential challenges, and communicate ideas more effectively, leading to improved planning and execution."
"In 2025, the construction industry's biggest opportunity lies in leveraging Autodesk Construction Cloud as a true CDE. By integrating data from various applications seamlessly through Workato, teams can automate workflows, centralize data, and ensure real-time accessibility. The ability to connect Autodesk Construction Cloud with other platforms will reduce manual work, eliminate silos, and create a streamlined, data-driven construction environment.
Low-code and no-code solutions, particularly Workato, are set to dominate the industry. These tools enable easy automation and integration without requiring extensive coding knowledge, making advanced technology accessible across all levels of an organization. With Workato at the core, companies can build solutions to improve operational efficiency, foster collaboration, and unlock the full potential of Autodesk Construction Cloud.
The drive to "do more with less" will define construction practices in 2025. By using Workato to optimize workflows, companies can reduce resource dependencies, improve sustainability, and better address workforce shortages. For example, Workato can help automate compliance processes, track sustainability metrics in Autodesk Construction Cloud, and provide teams with actionable insights, ensuring alignment with both regulations and environmental goals."
"As we look ahead to the future of the construction industry, several key trends and predictions emerge that will shape the landscape in 2025 and beyond. Significant among these is the introduction of new financial disclosure requirements related to climate impacts, which will take effect for large Australian companies starting from January 1, 2025. Large and medium-sized construction companies will be affected in a rolling scheme which will be in full force by 2028. The reporting requirements are designed to provide investors with access to comparable information about the entity’s exposure to, and management of, climate-related financial risks, allowing for greater transparency regarding those entities’ plans and strategies. Whilst this is Australian legislation, I believe this will have an impact throughout the APAC region to find ways to transition to a low carbon future for construction."
"The construction industry in 2025 is poised for transformative growth by integrating cutting-edge technologies and sustainable practices. I predict the increased use of AR and drones for field operations and construction analytics, the adoption of modular and prefabricated construction to address labor shortages, and the integration of AI and data for enhanced project efficiencies and decision-making. Sustainability will remain a major focus, with an emphasis on green building practices, reusing materials, and reducing carbon emissions. The industry will also see a rise in digital technologies such as BIM, digital twins, and XR (Extended Reality) for improved project management and collaboration.
I believe the largest push in 2025 will be for better data management. As companies continue to leverage cloud-based platforms on their construction projects, data is often scattered across various systems. Even when construction projects are being handled in the same connected platform, companies sometimes need to work within a project controlled by another company and, therefore, do not have reliable access to that project’s data going forward (something that the Bridge tool in Autodesk Construction Cloud aims to help with). With reliable access to project data, companies can start to analyze their data using business intelligence tools, like Power BI and Autodesk’s Insight Builder, to track their business KPIs."
"In 2025, the construction industry will build on significant progress in digital twins, which have evolved beyond 3D models into data-rich ecosystems. Digital twins, along with reality capture, will continue to grow beyond empowering facility owners to serve as communication hubs for communities and campuses. The broader integration of IoT will transform real-time building performance monitoring. Digital twins will be implemented not only in large facilities such as museums, academic campuses, and life sciences buildings but also in existing and new, mid-size and smaller building types that have the greatest need for MEP system efficiencies. This will allow for tracking and analyzing the energy performance of spaces and equipment, taking a significant step toward achieving sustainability goals.
Digital twins enable the visualization of historical data to refine future designs, balancing function, comfort, and efficiency. Key trends for 2025 include the increasing use of extended reality for data visualization and collaboration."
"The construction industry in 2025 will undergo significant changes driven by sustainability, digital transformation, and resilience. Projects will increasingly adopt end-to-end digital platforms that connect design, construction, and operations seamlessly, breaking down silos and improving efficiency. Sustainability will dominate, with clients demanding carbon reduction and circular construction practices reinforced by regulatory pressures. Additionally, climate change adaptation will be a key focus, driving innovation in materials, designs, and operational strategies to ensure the long-term viability of infrastructure."
"In 2025, I predict the construction industry will continue its adoption of connected construction. Over the past few years, we’ve seen significant technological advancements, and the next step will be to integrate these tools further and break down the silos between various systems. This will enable more seamless collaboration and improve overall project efficiency.
Additionally, the use of advanced devices such as drones, wearables, and other IoT products will become increasingly prevalent. These tools will play a critical role in data collection, reducing the reliance on manual input and improving the accuracy and speed of information gathering. By leveraging these technologies, the industry can enhance operational efficiency, minimize errors, and allow professionals to focus more on high-value tasks that require their expertise, ultimately driving productivity and innovation across the industry."
"Looking ahead to 2025, we will see companies prioritizing even more investment in their employees, along with shifts in org structures and roles. While there will be a continued focus on talent development and efforts to empower our people, there are other drivers as well. Innovation will be accelerating at faster paces than ever before. This includes both from a technology standpoint and processes standpoint. It’s a necessity due to outside factors.
We will also start to see more larger AEC firms investing in technology directly, in VC companies, or in some cases, merging with other companies and creating new investment collectives. Additionally, to control cost and schedule, I anticipate we will see some significant vertical integrations and mergers within the supply chain as well."
"It’s tough to look forward to 2025 without looking back at the last few years. Just a few years ago we had major supply shortages which left companies having to rethink business plans for expansion or even the price of construction material going through the roof. Construction has still seemed to be strong though as there as always been a need for residential housing but additionally people are finding some balance in new market norms. I’m predicting a sizable increase in hotels, retail, and healthcare for 2025 with even more of an increase in highways and bridges."
"I expect in 2025 we will continue to see AI and digitalization continue to grab headlines, with improvements and progress in this technology developing exponentially. As a result, AI will increasingly become business-as-usual. It may however take more time for people and organizations to be equally aware of the risk management and contractual liability aspects that come with the use of such technologies. Our industry is often more reactive than pro-active when it comes to the legal, contractual and liability, side of what we do – not least because risk management may require an outlay of cost and time for a -seemingly – theoretical problem. Yet claims and losses due to bad management of digital tools and AI, vague or uncertain scopes, and misaligned expectations, is inevitable and given the sharp uptake of the technologies, it would not be surprising to start seeing such issues at the backend of 2025."
Want more trends content? Check out two more 2025 construction trend breakouts:
