Construction trends

Digital transformation in construction: 2025 trends

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Digital transformation is no longer just a buzzword. It’s a reality that companies across multiple industries must now face. While the construction industry has traditionally been seen as resistant to change, new digital technologies are finally revolutionizing this perception. As new tools can deliver increased efficiency, safety, and sustainability, embracing digital solutions has become a need for construction businesses and for related built asset management fields.

As businesses scramble to stay ahead of the curve, it is essential for them to understand the trends that will define this transformation in 2025 and beyond. In this article, we’ll explore the main challenges, as well as the top trends shaping digital transformation in construction, equipping you with the knowledge you need to thrive in an increasingly digital world.

Digital transformation in the construction sector: 15% shorter project timelines

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But what is digital transformation? It is the process of integrating digital technology into all aspects of a business or organization. This involves fundamentally changing operations, while delivering more value to customers.

When embracing digitalisation, some industries have been quicker than others. According to a report by McKinsey & Company, the construction industry lags behind other industries in digitalisation, with only 1% of construction firms considered digital leaders. At the same time, 70% of construction projects overrun their budget and 80% of projects fail to be delivered on time.

But the same McKinsey report highlights that there are many benefits to embracing digital transformation in the construction sector: construction projects using digital collaboration tools saw a 15% reduction in project schedule duration.

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Digital transformation challenges in the construction industry

While the benefits to embracing digitalisation are numerous, companies still need to overcome some very common challenges. The biggest ones are:

Unfortunately, resistance to change can be a major barrier when it comes to any business embracing new technologies, especially for construction companies. This is deeply rooted in traditional norms and skepticism about new methods. Doubts about the reliability and practicality of digital tools, coupled with unclear communication of their advantages, can make innovation seem more disruptive than helpful. This barrier can be overcome through information, research, strong stakeholder buy-in, and proper employee training.

The industry overall is unfortunately facing workforce shortages. According to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS), there were an average of 445,000 job openings per month during the last quarter of 2023

Statistics in Europe aren’t too different. According to CIOB research, the UK workforce has an aging demographic, which is leading to increased pressure to attract and retain skilled workers. At the same time, many employees lack experience with technologies and applications like collaboration and process management tools, or data analytics.

Embracing digital transformation can help with overcoming these challenges. Digital tools can increase efficiency, minimise human errors, improve decision-making and generally ensure better processes and workflows. They can make teams more efficient, despite the workforce shortages. However, companies will need to support teams with improving “digital literacy”. They can do that by implementing phased training programs tailored to different skill levels, leverage online courses, workshops, and mentorship to make the learning process more accessible and cost-effective.

The adoption of any new technology will involve integrating it with existing processes.

This is no easy task, as many construction companies still rely on legacy systems that are outdated and difficult to integrate with modern technology. These include old ERP systems or outdated versions of BIM software. At the same time, they often lack proper project management tools and still manage data using Excel spreadsheets. Document management often remains paper-based or stored on shared network drives. Not having efficient tools in place will slow down project development and decision-making.

Integrating digital tools with existing workflows often requires breaking down data silos and establishing seamless communication between systems. An evaluation of the existing technology stack and a phased-out implementation plan can help overcome this challenge.

5 major digital transformation trends in the construction industry

Despite the challenges described above, there is no doubt that the digitalisation of construction projects is necessary. We can already see this across various industries and construction professionals, along with others in the built asset management sector, are slowly embracing digital platforms.

Here are 5 trends that are already being embraced within the industry:

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As the construction industry is undergoing a significant transformation, Building Information Modeling (BIM) plays an essential role. BIM transcends the creation of impressive 3D models; it enhances decision-making processes throughout every phase of a project. This advanced technology offers an accurate digital representation of both the physical and functional characteristics of a facility, enabling architects, engineers, and contractors to proactively identify and address potential issues before they escalate into costly problems.

BIM advancements, particularly open standards like IFC and BCF championed by buildingSMART, are crucial for realizing smart buildings. IFC’s standardized representation of building elements allows integration of data from diverse systems like Building Management System (BMS) and IoT sensors, enabling a holistic view of building performance. This interoperability, facilitated by IFC and BCF, supports data-driven decision-making for optimized operations, energy efficiency, and occupant comfort.

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cde-bim-umsetzung

As the construction industry is undergoing a significant transformation, Building Information Modeling (BIM) plays an essential role. BIM transcends the creation of impressive 3D models; it enhances decision-making processes throughout every phase of a project. This advanced technology offers an accurate digital representation of both the physical and functional characteristics of a facility, enabling architects, engineers, and contractors to proactively identify and address potential issues before they escalate into costly problems.

BIM advancements, particularly open standards like IFC and BCF championed by buildingSMART, are crucial for realizing smart buildings. IFC’s standardized representation of building elements allows integration of data from diverse systems like Building Management System (BMS) and IoT sensors, enabling a holistic view of building performance. This interoperability, facilitated by IFC and BCF, supports data-driven decision-making for optimized operations, energy efficiency, and occupant comfort.

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3D printing is poised to transform the construction industry by revolutionizing material sourcing and usage. This innovative technology allows for the layer-by-layer creation of objects from digital models, resulting in unprecedented design freedom and the ability to produce complex shapes that traditional methods cannot achieve.

It excels in fabricating intricate architectural designs more efficiently, significantly reducing both time and waste. Notably, full-scale buildings have been printed using specialized concrete mixtures, showcasing their potential to reshape housing markets.

3D printing enables prefabrication, allowing components to be printed on-site, which streamlines logistics and cuts costs. While challenges in mass production remain due to the high cost of large-scale printers, the benefits—such as faster timelines, cost savings, and enhanced design flexibility—make it a compelling option for the future. As technology evolves, its ability to address labor shortages and produce materials on demand will further solidify its role as a standard in modern construction.

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Gone are the days of relying solely on spreadsheets for quantity takeoffs, estimates, and bids.

Advanced takeoff and estimating tools not only streamline bidding and estimating processes but also allow construction professionals to focus on winning more business and mitigating risks. With cloud-based technology, you can manage bids and estimates from anywhere, enhancing collaboration and accuracy.

Thinkproject’s Built Asset Lifecycle Platform, through its Commercial & Contract Management and VDC Manager solutions, enhances this by ensuring fairness and transparency in the bidding process. It makes distributing tender documents easy, giving everyone access to vital information. Additionally, it streamlines bid evaluations with automated workflows, guiding you efficiently from start to finish.

Digital twins are virtual representations of physical assets, systems, or processes, that are continuously updated with real-time data. This concept bridges the gap between the digital and physical worlds, enabling better decision-making, cost-efficiency, and predictive insights. Digital twins can merge a series of various technologies: IoT sensors for real-time data collection, BIM as the foundational digital model, AI and machine learning for data analysis and predictive insights, cloud computing for data storage and accessibility, and AR/VR for immersive interaction and enhanced collaboration.

By integrating IOT sensor data or other feeds, you can create a dynamic intelligent twin that is able to provide real-time data and alerts regarding the current performance of your asset. At Thinkproject, we are actively working on developing that and have customers who use this for a range of use cases.

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The adoption of digital tools is also driving sustainability in construction. From AI-optimized designs that reduce material usage to energy-efficient smart buildings, technology is helping the industry meet its sustainability goals:

  • Innovations like 3D printing and circular economy practices minimize waste, while water conservation technologies such as greywater recycling and low-water concrete ensure efficient water use.
  • Energy efficiency is achieved through smart systems that optimize energy use during construction and in finished buildings.
  • Renewable energy sources like solar panels power construction sites, while electric and hybrid machinery reduce greenhouse gas emissions.
  • Energy modeling tools and carbon capture technologies further enhance sustainability in both design and operations phases.
  • By pre-fabricating elements in controlled factory settings, modular construction minimizes on-site waste, expedites building timelines, and improves quality control

 

How Thinkproject supports digital transformation for the construction industry

What do all of the above trends have in common? They all generate a high amount of data and involve the use of various tools. Managing different types of data from various sources, especially if you are still connected to legacy systems, is not very efficient.

This is where Thinkproject can help. The Thinkproject Built Asset Lifecycle platform with its connected data ecosystem helps you manage all your build asset data – from virtual design data to construction plans and contracts – this platform has you covered.

Learn more about Thinkproject solutions or reach out to schedule a custom demo.

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