12 Construction Industry Trends & Insights

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How is the construction industry evolving in 2024?

The adoption of 3D printing is increasing

The current trends in the construction industry signifies a fundamental change to the building landscape. With an increased adoption of technology and sustainable practices, there is one clear goal in mind: to improve efficiency in all aspects. This is also prompted by a growing focus on environmentally-friendly practices. Of course, there are emerging regulations that are responsible for the construction industry evolving in 2024. 

Below we discuss 12 key factors that are expected to experience growth:

Adoption of 3D printing

No longer a new phenomenon, 3D printing has become a popular trend in the construction industry, with significant usage already. 3D printing will make it easier to make rapid prototypes and complex building components, whilst reducing time, costs and waste. This technology in the construction industry is forecasted to push the boundaries of both design and architecture. 

Building Information Modeling (BIM)

BIM technology is the digital representation of a building and covers a range of its physical and functional characteristics. It allows for easier collaboration and decision-making between architects, engineers and other professionals. In the construction industry, this trend will likely be developed further and as a result will improve efficiency.

Artificial Intelligence

Whilst artificial intelligence is breaking the surface across many industries, the AI trend in the construction industry is expected to become a vital component eventually. AI is able to perform predictive analytics, as well as manage projects and optimise designs. This can shorten the timescale of projects and therefore reduce costs.

Drones and autonomous vehicles 

Another revolution in recent years are drones and autonomous vehicles. In relation to construction work, drones can be used for surveying, while autonomous vehicles can be used to transport materials onto sites. This supports the current regulatory environment’s heavy focus on improving worker safety.

Green building materials 

In light of growing environmental concerns and with the global move towards green building practices, we expect to see increased use of sustainable materials such as bamboo and green concrete, as well as recycled plastics. This is in line with emerging building regulations, and Government reports on the construction industry show that 90% of construction waste in the UK is recovered or recycled*. However, this is generally from downcycling which results in a loss of quality, so there is still a long way to go.

Energy efficiency and renewable energy

As part of the global effort to reduce carbon emissions, there is increased practice of designing buildings with renewable energy sources, such as solar and wind, as well as ensuring they are more energy-efficient in operation. This will become more prevalent in forecasts within the construction industry. 

Water conservation

The implementation of water-saving plumbing systems, as well as technologies to harvest rainwater in new buildings, support the conscious move towards sustainable water use. The Construction 2025 strategy places great emphasis on smart and sustainable solutions.

Modular and prefabricated construction

It’s forecasted that the construction industry will continue to move towards modular and prefabricated methods of construction, as it not only reduces time, costs and waste, but also improves quality control. Learn more about the trend of modern methods of construction (MMC).

Digital twin technology

Digital twin technology has gained significant momentum in recent years and we expect its continued growth. This technology creates a virtual replica of a physical building in real-time, monitoring its behaviour, performance, and changes which is helpful for maintenance and future planning.

Investment in education

With the speed of innovative technologies being developed, skilled workers are in high demand. It’s crucial that there is dedicated investment into educating and training workers on digital tools for companies to begin utilising new technology.

Safety training

Interestingly, safety training has been enhanced with virtual reality (VR) and augmented reality (AR), in order to reduce work accidents and protect workers on site. This is a key trend in the construction industry at the moment, with the regulatory environment focused on improving worker safety.

Diverse workforce

For the past few years, there have been conscious initiatives across the construction industry to create a more diverse workforce by recruiting more women and other underrepresented groups. Not only will this tackle shortages in labour, but it’s also expected to enhance the sector with a variety of skill sets. 

What is the current regulatory environment affecting constructions?

Currently within the construction industry, the regulatory environment has increased scrutiny on efficiency, safety and sustainability across all phases of construction projects - and there are several reasons for this. With growing concerns of climate change, there has been a global move towards green buildings practices and utilising renewable energy sources. This has pushed the construction industry to focus on reducing its environmental footprint, by building new buildings and retrofitting existing ones to be more energy efficient.

Innovative technology is also constantly developing, with the aim of speeding up construction timelines and meeting current housing shortages. This, along with the priority of increasing worker safety, has led to strict building regulations that outline how buildings should be designed, constructed and maintained. 

Anticipated changes in 2024 and how it might impact the industry?

In 2024, construction industry trends are expected to continue to prioritise sustainability and digital integration, as an effort to reduce carbon emissions and tackle environmental concerns. There is also likely to be additional safety regulations to improve construction practices and protect workers. 

Digital tools will also become more developed, with methods such as Building Information Modelling (BIM) and Modern Methods of Construction (MMC) which will make collaboration easier between teams and therefore increase efficiency across all projects. 

It’s very likely that regulations will become progressively stricter in 2024 and beyond. In order for UK construction companies to grow, there will need to be an adaptation of green building practices and integration of digital tools. While this may have higher costs to start with in terms of investment and training, long-term savings and benefits are expected. Simply put, keeping up with emerging construction industry trends is crucial in order to stay ahead in the competitive landscape.

What global economic influences the construction industry in 2024?

The global economy often influences construction industry statistics, including the cost of materials, resulting profit margins, and financing of construction projects. Construction industry reports suggest there are many factors in 2024 that will continue to impact both price and demand - in particular interest rates and costs of inflation. When interest rates are low, the cost of borrowing loans is less, which makes it cheaper to finance new projects and increases demand for construction work.

However, current interest rates across the world are high in order to manage inflation, which means costs of borrowing are also higher. This, combined with an economic restriction whereby individuals and businesses are budgeting their outgoings, will likely slow down the pace of new construction projects. Here is some recent data measuring the UK construction industry’s growth that reflects a decrease in new work.

It’s important to remember that we are still recovering economically from the COVID-19 pandemic, along with managing current geopolitical tensions and continued supply chain disruptions. However, recent construction industry statistics suggest the global push towards sustainability and energy efficiency has led to a higher demand for retrofitting existing buildings. Below is a report of the construction industry in Quarter 4 of 2023.

In 2024, as long as construction companies are adapting to economic conditions, emerging regulations and prioritising sustainability and efficiency, there is still opportunity for growth of the UK construction industry, regardless of the current fluctuation of the economy. Make sure your company is keeping up to date with building regulations, observing statistics from the construction industry and preparing for the changing landscape.

Construction industry trends: FAQs

What are the 3 major segments of the construction industry?

Generally, the 3 major segments of the construction industry include residential, commercial and infrastructure construction. Residential refers to new housing and renovations, commercial covers offices, retail spaces and other venues, and infrastructure focuses on public utilities, including roads and railways.

What is SWOT analysis in the construction industry?

SWOT analysis is a framework used for strategic planning and analysing in both internal and competitive settings. The SWOT of a construction company would include their Strengths, Weaknesses, Opportunities and Threats. Used effectively, SWOT analysis can help improve a company’s strategy in a competitive landscape.

What is the market analysis of a construction company?

The market analysis of a construction company is an assessment that aims to identify opportunities and challenges. It looks at the state of the construction industry, including its size and specific trends. It also considers the regulatory environment and competitive landscape, as well as the health of the wider economy.

What is the current trend in the construction industry?

Currently, in the UK and across the globe, the construction industry is focused on implementing green building practices as well as integrating digital technologies. The overall aim is geared towards sustainability, efficiency and safety, in light of current housing shortages, increasing demand for construction and growing climate concerns.

*Source: The Environmental Audit Committee report 2022, Building to net zero: costing carbon in construction.

Disclaimer: The information contained on this page is intended as an overall introduction and is not intended as advice from a professional. Travis Perkins aims to avoid, but accepts no liability, in the case that any information stated is out of date.