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What changed in construction in 2025, and how leaders should prepare for 2026

21st January 2026

     

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Construction executives are asking whether their digital investments are changing how projects are won, built, and operated. Construction trends this year highlighted the importance of decision-makers to translate artificial intelligence, digital twins, and modular construction into practical workflows that deliver value on the very first project.

The year construction became a data industry

The defining shift in construction this year was the move from analogue monitoring and paper trails to fully digital project information environments.

Sensors and IoT devices now capture site data that once lived on clipboards. Central data environments have grown from document repositories into the primary workspace where drawings and even design authoring take place. The same data that keeps a project on track during construction now feeds into facility management systems.

This shifts the focus from individual systems to questions of data standards, governance, and skills. Executives who treat digital as a software procurement issue will struggle in 2026. Those who treat it as a strategy for how project and asset data flows across the lifecycle will be better positioned to comply with ESG requirements and to compete on predictability.

Construction 4.0 leaves the hype cycle

The second major shift is that “Construction 4.0” has become part of the budget. A recent global strategic report values the Construction 4.0 market at $16.7 billion in 2024, with projections of $42.2 billion by 2030. That growth is driven directly by automation, robotics, and smart-site technologies rather than generic IT spending.

In practice, technologies such as reality capture, laser scanning, and 360-degree cameras have become standard on complex projects. This provides training data for computer vision systems that detect clashes, safety risks, and quality issues. Early site robotics has moved from pilot curiosity to serious investigation.

Generative artificial intelligence is the most visible layer of this change. In design offices, automated model generation and generative design are allowing teams to test far more scenarios than traditional workflows ever allowed. In the back office, agents are starting to support tasks such as tender analysis, contract review, and schedule optimisation.

However, the winners in 2026 will not be the organisations with the longest list of AI tools. They will be the ones who are ruthless about linking AI to specific value levers such as bid accuracy, time to site readiness, change order recovery, and cash flow predictability.

Modular construction becomes a capacity strategy

Modular and industrialised buildings have also crossed an important threshold. The global modular construction market is estimated at $91.25 billion this year and is expected to reach $122.24 billion by 2030.

In Africa, modular approaches are increasingly tied to structural capacity constraints across housing, energy, and social infrastructure. From a software perspective, modular is unforgiving. It demands a level of supply chain visibility that paper-based processes cannot support. It also rewards leaders who invest in standardised building systems and who treat data from previous projects as a reusable asset.

Where to in 2026

Three leadership disciplines are key for next year.

First, digital value must be made explicit. Every investment in AI, automation, dashboards, or digital twins must be linked to specific metrics at the project and portfolio levels.

Second, treat competencies as seriously as contracts. The industry has no shortage of technology, but it has a shortage of people who know how to drive it. Structured pilot projects, supported by partners who understand both construction and software, are proving more effective than grand, top-down roll-outs.

Third, design for an industrialised future. Whether or not every project is modular, the direction of travel is clear. Off-site manufacture, repeatable assemblies, and data-rich models are the only realistic way to deliver more with fewer people while meeting stricter ESG expectations.

The industry has reached a point where leaders can no longer claim that the technology is not ready. It is. The question for 2026 is whether leadership, governance, and skills are ready to use it at the speed and scale that competitiveness now demands.

Edited by Creamer Media Reporter

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