Key Technology Trends in the Construction Industry in 2025

Victoria Sokolova . Last Update: November 12, 2024 . Digital Transformation . 18 mins READ 0 comments

The construction industry is undergoing a substantial transformation shaped by innovations, challenges, and other factors that are forcing building companies to change the way they work and deliver their projects. 

Read the article to learn what construction trends will shape the industry in 2025, and how building companies are expected to address current challenges and ensure sustainable growth.

Technology Trends in Construction: 2025 Outlook

Like any other industry, the construction domain has been increasingly digitalized and modernized in recent years—companies are leveraging software, sensors, drones, and other technologies that revolutionize construction activity and are sure to transform the construction industry in 2025 and beyond. While the complexity of construction projects is increasing, digitalization provides construction companies with a number of benefits: high efficiency of processes, precise project planning and visualization, real-time cooperation, new market opportunities, reduced risks, more effective decision-making, optimized construction costs, improved safety, etc.

Let’s review in more detail the innovations in construction technology that will drive the industry’s development in 2025.

Additive manufacturing

3D printing in construction is a game-changing technology—in contrast to building objects of traditional bricks and mortar, builders can “print” three-dimensional objects layer-by-layer using a digital file. The 3D technology helps create not only parts and components but also large objects, e.g., bridges, houses, and even skyscrapers. As a result, construction companies can minimize their projects’ timelines, reduce labor costs, optimize the use of material resources and eliminate waste, which makes additive manufacturing an attractive technology for government and private construction companies.  

Construction drones

Construction drone technology allows construction professionals to make real-time images and gather data that will help identify potential problems that are impossible to detect from the ground (e.g., damage or crackings on buildings).

The use of drones to perform laser scanning of construction sites before construction starts will minimize the number of mistakes made during construction project planning and increase the safety of construction environments. Virtual reality and drone scanning can make project information more accurate—e.g., technical engineers will be able to get the exact size and projection of buildings faster, and project managers will be able to sustain value. 

Building information modeling (BIM)

Building information modeling is one of the relatively new trends in construction management. This software allows its users to obtain a detailed 3D model of a building that includes all its structures and components in a virtual environment. It’s already been successfully used, especially for complex construction projects: it makes it possible to get a full picture of the physical and functional characteristics of a structure, timely detect and correct errors at the design stage, and create realistic construction project schedules based on this data. 

In 2025, we expect this technology to become even more commonplace; these tools can be integrated with artificial intelligence and the Internet of Things to provide more actionable insights and improve collaboration between construction project teams.  

Connected construction sites

Connected construction sites embrace a network of devices, sensors, and software required to connect data, equipment, and people. This enables more effective communication and collaboration in real time, promotes safety, and increases the efficiency and productivity of the construction processes. The technology is still developing, so in the near future, we expect to see a wider variety of its applications in construction projects. 

Robotics and automation

Industries widely use robotics and automation to streamline their processes, and the construction domain is no exception. These technologies help construction companies cope with a lack of skilled workers, reduce costs, and contribute to sustainability. Robots don’t get tired or make costly mistakes that require rework; they can perform repetitive tasks efficiently and work faster, so using them for the construction process reduces projects’ timeline, which is also a great advantage. In contrast to traditional construction methods, leveraging automation technologies can also minimize the number of accidents on construction sites, especially when working in hazardous environments or performing dangerous tasks. Finally, applying automation and robotics improves the quality of the work performed. All of these factors make the adoption of these technologies a good investment for construction companies that can improve their performance in the long run. So, we expect robotics and automation to become more sophisticated (more common use of cobots and humanoids) and be widely used in 2025 and beyond. 

Digital twin

Digital twins make it possible to create digital replicas of real objects and processes with the help of AI, IoT, immersive technologies, and cloud services. In the construction industry, digital twins are used to create digital copies of buildings, infrastructure facilities, and other objects. Construction firms can get the following benefits from using digital twins in their projects:

  • Better visualization (a detailed overview of every construction process, detecting potential threats);
  • Improved planning of construction projects;
  • Increased safety as a result of regular monitoring of the construction site and worker environment);
  • More effective collaboration (every participant of the construction process can interact with virtual models and collaborate in the virtual environment);
  • Predicting the need for maintenance and preventing breakdowns and delays.     

Given all these benefits, this technology is here to stay in the construction industry in 2025.

Generative AI

Generative AI is gaining momentum across industries, and the construction domain keeps up. The applications of this cutting-edge technology in construction are diverse:

  • Detecting and correcting building code violations;
  • Design and architecture: e.g., automated design generation, 3D modeling, visualizations;
  • Site planning and optimization;
  • Automated compliance checking. 

The use of AI-powered tools and generative AI in the construction industry helps building companies increase efficiency, prevent costly issues, ensure compliance with regulatory requirements, and contribute to sustainability.  

Therefore, the technology trends in the construction industry contribute to streamlining its projects, reducing costs and construction timelines, and improving the quality of work performed. So, in 2025 we’re going to see their increased applications in the construction domain.

Other Construction Management Trends and Challenges in 2025 

1. Sustainable construction.

The focus on sustainable practices and reducing environmental impact is peculiar to most industries—they are making efforts to reduce their carbon footprint, which in many cases is a legal requirement. For this reason, the construction domain implements various green building practices—installing energy-efficient windows and doors, using fixtures and plumbing components made of recycled materials, creating sustainable buildings, etc.

One of the examples of how the construction industry is moving towards sustainability is a trend for erecting Net Zero Energy Buildings (NZEBs) that produce and consume equal amounts of energy throughout the year. The popularity of energy-efficient buildings is increasing as they reduce the need for fossil fuels, minimize their tenants’ energy consumption and energy costs, and generally make homes more sustainable.

2. Construction workforce shortage.

The construction sector has been suffering from labor shortages that are explained by a high turnover rate and aging of the workforce. This is a real challenge for the domain—without the required skilled labor, construction managers will struggle with project delays and cost overruns. The industry is experiencing the need for a variety of construction workers: e.g., field engineers, welders, carpenters, project managers, safety and quality managers, architects, etc.

Therefore, addressing the persistent labor shortage will be one of the construction industry trends remaining in 2025. Construction companies are going to take the following measures to address these challenges: 

  • Leveraging AI and automation to ensure efficiency;
  • Focusing on employee retention, e.g., facilitating employees’ professional development within a company, thinking of career advancement for current roles;
  • Attracting young people (e.g., by offering competitive wages);
  • Creating opportunities for peer-to-peer knowledge transfer;  
  • Developing workplace culture focused on wellness and safety programs. 

3. Using alternative materials.

In line with the industry’s sustainability efforts, construction firms more and more often work with eco-friendly and prefabricated materials (modules, panels, etc.). The use of advanced building materials is currently gaining momentum and will remain a trend in 2025 and beyond. The main advantages of prefabrication are reducing construction time, increasing work efficiency, and corresponding to sustainability initiatives.

An example of sustainable materials is cross-laminated timber (CLT) which is a lightweight alternative to traditional materials used to build roofs, floors, walls, and ceilings. What are the benefits of CLT? First, it’s less energy-consuming than traditional materials like concrete and steel. Second, it’s fire-resistant and durable, even during earthquakes. Finally, these materials can be prefabricated and then just installed on the construction site, which makes the process much shorter. 

4. Increased worker safety.

The construction field and the building processes are rather injurious, so the focus on creating a safe working environment is becoming more and more intense every year. Among other things, this involves improved training and conducting safety inspections more frequently. Digital technologies can also contribute to minimizing construction worker injuries:

  • Virtual reality can be applied for more effective worker training;
  • Artificial Intelligence helps detect potential hazards thanks to analyzing data from various sensors;
  • Wearable devices assist in safety monitoring: they can track worker activity, perform real-time data analysis, and send alerts in an emergency.

As the technologies become more sophisticated, we can expect that compliance with job safety standards will continue to rise thanks to more advanced opportunities for protecting workers from hazards. 

5. Ongoing supply chain issues.

Since the COVID-19 pandemic, this challenge has become common across industries. Even though the situation is gradually getting better, supply chain challenges will remain in the industry in 2025. This is caused by the increased demand for construction materials, ongoing geopolitical tensions, workforce shortages (especially a lack of workers at companies producing construction materials), increased shipping costs, and natural disasters. Supply chain disruptions negatively affect construction processes, increasing project timelines, causing delays, and unplanned expenditures. At the same time, companies are expected to implement measures to overcome supply chain challenges: e.g., diversifying suppliers, leveraging supply chain management tools, implementing modular construction, etc.    

6. Modular construction.

This is one of the emerging trends in construction industry. Modular construction includes building structures away from the construction site, in the controlled manufacturing environment, with their subsequent transportation to the building site. In other words, the construction site becomes the place for assembling the previously created components of buildings. This technology is becoming popular for both residential construction and nonresidential buildings—hospitals, schools, hotels, etc. Compared to the traditional methods, modular construction has the following advantages: 

  • Reducing construction projects’ lead times;
  • Increasing efficiency;
  • Cost optimization;
  • Meeting sustainability requirements;
  • Minimizing material waste; 
  • Meeting the demand for affordable housing and infrastructure buildings. 

Therefore, this relatively new trend will surely persist in 2025 and play an important role in addressing construction industry challenges and achieving the industry’s goals. 

7. Increasing number of construction projects. 

The number of projects implemented in the construction industry is expected to increase in 2025. This is explained by the following factors:

  • Government investments in construction initiatives and the need to implement infrastructure projects;
  • The demand for sustainability;
  • Technological developments and implementation of innovations;
  • Decreasing interest rates and projected favorable financial environment. 

Construction project management challenges also involve uncertainty caused by persisting supply chain challenges, rising costs for construction materials, and geopolitical tensions. At the same time, increasing reliance on real-time data and leveraging digital tools with predictive analytics and intelligent construction management software can help construction firms overcome uncertainty and challenges and increase project management success.

Contact Epicflow’s experts to learn how construction management software can help you run your construction projects seamlessly under conditions of uncertainty and workforce and material shortages, make informed decisions, and deliver projects on time and within budget.

Key Takeaways

The trends in construction haven’t changed dramatically in recent years. Basically, the domain is looking for ways to address current economic issues, improve operations, and optimize costs. In addition to that, the future of the construction industry is expected to be much more sustainable and safe for its workers. Here are the key trends shaping the future of construction. 

  1. In 2025, the construction industry is expected to continue its environmental sustainability journey by using more eco-friendly advanced materials and green building methods to create sustainable buildings.
  2. The construction domain is going to continue its efforts to overcome skilled labor shortages and ongoing supply chain issues.
  3. The industry is actively implementing digital technologies, and these new construction trends are here to stay in 2025 and beyond: 3D printing, construction drone usage, connectivity between construction sites, building information modeling, robotics and automation, and digital twin. Following the digitalization trends in the construction industry and leveraging the latest artificial intelligence tools allows construction companies to optimize their resources, reduce material costs, decrease their projects’ duration, and improve the quality of building operations. 
  4. Construction firms are expected to use advanced building materials and offsite construction to optimize costs, increase efficiency, reduce waste, and finish their projects faster.  
  5. The number of construction projects to implement is going to increase in 2025.  

References 

  1. 2025 Engineering and Construction Industry Outlook. Deloitte. Retrieved from: https://www2.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html
  2. Pearcey, Linn. (2023). Top Four Construction Trends for 2024 and Beyond. Retrieved from: https://learn.aiacontracts.com/articles/top-four-construction-trends-for-2024-and-beyond/
  3. Top 10 Construction Trends & Innovations for 2025. Retrieved from: https://www.startus-insights.com/innovators-guide/top-10-construction-industry-trends-innovations-in-2021/construction