Construction trends: with 2020 behind us, it’s time to gear up to what promises to be a better and more prosperous year for most American construction firms. We anticipate several of the construction trends we witnessed throughout 2020 to accelerate: digital transformation continues to gain momentum, resulting in firms adopting cloud-based project management and collaboration software, and more mobile technology and AI showing up on the jobsite. These technologies are enabling firms to adapt to the challenges of the pandemic while realizing substantial efficiency gains and cost savings.
Let’s take a look at some recent research and statistics that demonstrate the impact of these construction trends on the industry:
COVID-19’s Impact
- 40% of construction firms have had to lay off staff due to the Covid-19 outbreak. (AGC)
- 48% of ACG members surveyed were directed to halt or cancel a project that was already underway because of COVID-19. (AGC)
- 40% of their commercial and institutional projects were delayed as of April, 2020 due to the pandemic. That number decreased to 26% by July, 2020 and is expected to decrease to 22% by Q1 this year. (Dodge Data & Analytics)
- Roughly 75% of civil and commercial contractors say they’ve changed work procedures to increase social distancing. (Dodge Data & Analytics)
- Remote working is more common among commercial contractors than civil contractors (67% versus 50%) (Dodge Data & Analytics)
Digital Transformation
- 98% of engineering and construction companies agree that digital solutions are critical to the future viability of their company. (Ernst & Young)
- Worldwide spending on digital transformation technologies and services increased 10.4% in 2020 to $1.3 trillion, despite the financial impact of the virus. (Statista)
- 86% of respondents to a 2021 Board of Directors survey said rapid digital transformation is now a key priority. (Gartner)
Cloud Computing and Collaboration Tools
- 85% of construction contractors use or plan to use cloud-based solutions. (AGC)
- 75% of construction companies use cloud storage. (CITE + Dropbox)
- Workplace productivity is strengthened by 20-30% through online collaboration tools and digital workplaces. (McKinsey)
- The global construction project management software market was valued at over 1.2 billion in 2018 and is expected to reach $2.25 billion by 2028 at a CAGR of 6.2%. (Market.US)
- The market size of the Construction Project Management Services industry is expected to increase 4.6% in 2021. … The market size of the Construction Project Management Services industry in the US has grown 6.0% per year on average between 2016 and 2021.
- Connected teams demonstrate a 21% increase in profitability. (Gallup)
Artificial Intelligence in Construction (AI)
AI
- The market for AI in construction could reach $4.51 billion by 2026. (Reports and Data)
- By 2035, AI has the potential to increase profits in the construction industry by 71%. (Accenture)
Robots
- The global market for construction robots estimated at $87.4 million in 2020, and could reach $252.5 million by 2027 — a CAGR of 16.4%. (Research and Markets)
BIM
- The global Building Information Modelling (BIM) market is projected to reach $13.2 Billion by the end of 2024, a 18%+ CAGR since 2017. (Market Research Engine)
- 49% of builders surveyed use BIM in their companies for visualizations. (Statista)
- 82% of BIM users report a positive ROI. (Dodge Data and Analytics)
Sensors and IoT
- Global use of sensors is expected to reach $27 billion by 2022, up from $7.5 billion in 2016. (Zion Market Research)
- 60% of commercial real estate owners, end users and industry partners surveyed plan to use sensors and other smart technologies over the next two years to track sustainability measures. (2019 STO Building Group Sustainability Survey)
- There will be more than 64 billion IoT devices installed around the world by 2026 (Business Insider)
- Smart home device purchases are forecasted to surpass $78 Billion by 2023. (Strategy Analytics)
Jobsite Technology
Drones
- Drone services for construction sites increased 239% from 2018 to 2019. (Drone Base)
- 63% of contractors use drones on their projects. (USG + U.S. Chamber of Commerce)
Worksite Surveillance
- Three-fifths of construction companies use 360-degree construction cameras on their projects, and 15% own more than 20 of them. (U.S. Institute of Building Documentation)
- 71% of owners say that capturing and retaining more data during design and construction will reduce lifecycle operations costs. (PlanGrid @FMICorporation)
Wearables
- IDC predicts 279 million wearables will be in use by the end of 2023.
- 33% of contractors will use wearable technology in the next three years. (USG + U.S. Chamber of Commerce)
Mobile technology
- 80% of construction professionals say mobile technology is a top priority.
- 75% of construction companies provide project managers and field superintendents with mobile devices. (Autodesk + FMI)
Sustainability and Green Building
- The global green buildings market is expected to grow at a CAGR of 10.26% from 2018 to 2023. North America leads the global green building market with a 29.41% market share. (MRFR)
- In 2021, 60% of projects for 47% of construction firms will be green building projects. (Statista)
- 91% of homebuilders use energy-efficient approaches, and 69% do so on the majority of their projects (Constructech)
Ready to capitalize on the construction trends and technologies impacting the industry in 2021? Watch a demo of our products!
