10 Must-Watch Construction Industry Trends for 2022 to Stay Competitive

by Tejjy Inc CEO

10 Must-Watch Construction Industry Trends for 2022 to Stay Competitive

In Europe, countries like Spain, Ireland and Romania are experiencing a boom in recent years in the construction sector. Asia-Pacific is expected to lead the construction market in near future, with China and India being the main drivers of growth. China, India, Indonesia as well as several developed economies like U.S. and Russia are anticipated to occupy about 3/4th of the international construction market in the next 5 years. Against this backdrop, real estate agents, contractors, engineering companies, construction firms and residential and non-residential builders are the prime sectors. According to the forecast made by Markets and Markets, the global industry would be led by infrastructure, private housing and commercial construction activities. Before delving deep into the future of the construction industry after Covid-19 and the new construction trends 2022, let's take a quick look at the backdrop of the construction industry 2021.

What is the Outlook of the Construction Industry in 2022?

The overall outlook of the construction industry varies to a great extent by country and region.

Global Prediction

Countries to Rise

Sectors to Grow

Star Performer of Economy Recovery from Covid

Reasons for the Growth of Residential Construction

3.2% growth in 2022


Residential Construction

Residential Construction in USA

·         Bigger living space

·         Low mortgage rate

·         Low housing inventory



As per GlobalData, there would be a 3.2% growth of the construction sector throughout the world in 2022. That could be the slowest growth of the decade but the industry is not slow in all places. Even though the Middle East is on a decline, the Chinese are accelerating infrastructure investments for preventing similar market conditions. The US construction industry is predicted to rise by 1.8% in 2021 and 3.7% in 2022. The forecast assumes that residential construction would continue to grow regardless of the supply chain challenges. Some of these challenges include the dearth of building materials and rising prices, lack of skilled labor & land and augmenting costs for new homes that cause project delays and a boost in price inflation. The residential construction sector constitutes the star performer of US economic recovery from the Covid-19 pandemic with a double-digit growth rate since the third quarter of 2020. The sector has also made significant contributions to the economy and construction industry. Demand for bigger living space, low mortgage rates and a low housing inventory supported the growth of this segment.

Where is Construction booming in the US?

In 2021, the states that have seen the majority growth include Florida, Texas, Arizona, Georgia, Washington, and Nevada. They have observed residential developments with the fastest-growing city being Texas.

Construction Industry Trends in 2022:

After a year of turmoil due to the COVID pandemic, 2022 would be the year of reemergence and growth. The new trends in construction technology would change onsite construction, enhance the ability to win projects and increase profits. Further, it would bring about a change in the role of industry professionals. New ideas would reduce cost and labor shortages, paving the way to decreased error and wastage. 2022 is set to be the year showing some common themes to become more evident globally.

Here are 10 construction trends to watch that would influence the sector as a whole and help you stay competitive.

       1. Protective Equipment:  With the impact of the COVID-19 pandemic, there are strict guidelines for the construction sites to stay updated with safety protocols as per state regulatory measures. The industry witnessed the rise of machines that help to identify safety issues and eliminate all threats at the pre-construction stage. Wearable innovation at the job site with ‘work boots’ connected to Wi-Fi, alert others on the site if someone falls. ‘Mules’ are used to move or transport hazardous materials. Similarly ‘tasked robots’ help to construct scaffolding as well as lay bricks autonomously. Some robots are also prepared to re-augment human decisions like deciphering and translating data into actionable insight and creating a space for higher-level jobs. People would trust the 3D printing technique, which leads to reduced risk of transportation through environmental sensors, detecting, heat, noise and wind at the construction site. 3D printing also warns construction workers to evacuate and move expensive construction equipment in case of a natural disaster or emergency.


       2. Technology Usage: Technological innovations could enhance operational efficiency throughout 2022. Some of them include Smart Contracts, Blockchain, Drones, Augmented Reality (AR), etc.


·         Smart Contracts: Smart contracts are negotiated, verified and automated by a computerized protocol.  ‘Digital Built Britain’ or the phrase coined to describe the next level of BIM maturity recommended ‘smart contracts’ for construction procurement in Level 3 BIM, as a replacement of paper-based contracts. With smart contracts, organizations work in a shared system to do business, enabling them to purchase, track and pay for services. Construction firms could use smart contracts as an all-in-one tracking system from different parties, enforcing blockchain.


·         Blockchain: Implementing this technology helps to improve project transparency, reducing back-and-forth communications over simple objectives. The powerful component of the technology provides a secured workflow and a streamlined procurement process, enabling all stakeholders to enhance productivity. Using this system, AEC professionals make faster closeouts, enhanced security, improved tracking and automated supply chain.



·         Drones: Drones continue to be the fastest-growing trend, year. The technology provides more benefits than aerial photography for real estate as well as commercial efforts. Advanced drone software facilitates rapid decision making, streamlining the construction workflow. Drones are used in aerial surveys, excavation measurement, material stockpiling, and monitoring job site progress and personal safety. The technology helps to decrease labor costs and the risk of theft, keeping projects on schedule.


·         Artificial Intelligence (AI): AI helps to track real-time interactions with workers, objects and machinery on the site, alerting supervisors of potential safety problems, productivity issues and other construction errors.


·         Augmented Reality (AR):  AR enables remote workers to inspect job sites as if in person. AEC professionals implement AR for efficient project-staging, and making preconstruction projects for buyers, saving time & money and providing improved insights. AR combined with wearable technology enables 3D visualization of future building projects, automated building measurement, safety training as well as hazard simulations.


·         Building Information Modeling (BIM): BIM software is used at a dual monitor computer.  The technology helps industry leaders to excel with better efficiency, allowing users generate computer renderings of buildings. The ease of model management and data sharing enables superior prefabrication, leading to accurate and on-time completion. According to Autodesk, the intelligent 3D modeling process helps professionals manage buildings. As per Finances Online, a popular platform for SaaS/B2B software, top BIM software applications for 2022 include Autodesk BIM 360, Trimble Connect, Navisworks, Revit, BIMx etc.


       3. Need for Skilled Laborers: The most significant construction trend in the last few years is the increase in the demand for skilled labor. Women are coming up to fill competitive roles. The industry also targets Gen Z, born between 1995 & 2010, in recruiting. The COVID-19 pandemic changed the attitudes towards education, resulting in increased attitudes towards trade school, positioning construction firms to exhibit growth potential in the industry and abundant opportunities for experimenting with new technologies.


       4. Accessibility of Worksite & Mobile: Mobile applications facilitate workers to execute real-time inspections and obtain accurate measurements from mobile phone camera. The pandemic mandated that the team collaborate without access to materials, space or other teammates. AECOM – the world’s trusted infrastructure consulting firm developed technology for virtual public meets so that projects continue to go ahead without personal gatherings. Other mobile applications include ‘AirMeasure’ – the ultimate AR measuring tool and ‘Infotycoon’ – a cloud-based quality management tool to manage & control documentation, workflow and compliance.


       5. Innovative Building Materials to Combat Rising Costs: U.S. Bureau of Labor Statistics stated that the Producer Price Index for construction goods increased by 17% in 2021. Increased rate of interest leads to further pressure on construction. Technologies like drones, Augmented Reality and Building Information Modeling facilitate in combating the cost pressure to some extent. Using some of the innovative building materials like self-healing concrete, transparent aluminum, 3D graphene, invisible solar cells and light-emitting concrete also help in this regard.


       6. Green Building: Green construction is the most expected standard for homebuyers and commercial tenants with sustainable construction coming to the mainstream. Renewable energy captured 11% of the energy market in 2019 (according to the U.S. Energy Information Administration) and is anticipated to grow in future. Buildings are accountable for 40% of U.S. energy consumption as well as 30% of greenhouse gas emissions. The benefits include reduced carbon footprint, resource usage and building models. It is evident as per research that green buildings have a positive psychological and physiological impact on inhabitants as well as a passerby. Nowadays, the practice of having rooftops with the plant is quite common in urban places across the globe.


       7. Modular and Offsite Construction: Prefabrication and modularization aren’t showing any signs of slowing down. The market dominated by the residential sector is anticipated to rise to about $110 billion by 2025, driven by a dearth of skilled labor and cost-cutting techniques. 21-story Citizen M Bowery Hotel in Manhattan, 2019, is one of the tallest modular construction projects in the United States. Several international builders have plans to reduce on-site construction activity to 25% by 2025 through prefab construction. Modular projects provide the ability to regulate employee safety in climate-controlled and ventilated environments, making them ideal for maintaining social distancing practice.


       8. Construction Management Software: Construction management software applications are considered to be vital tools for staying competitive, building a business and mastering operational efficiency. The best software manages comprehensive needs starting from Request for Information to data compiling, file sharing with teams, budget, documentation, payroll and inventory monitoring. Some of the competent construction management software applications for 2022 include Autodesk, Buildertrend, Fieldwire, Procore, Quickbase and RedTeam.  Choose the right construction management software to manage your needs by evaluating customized options and training to get up and running.



       9. Emphasis on Residential Projects: As global investment from companies enhances in megaprojects, Skanska, announced that they’re not pursuing large transportation public-private projects, rather emphasizing low-risk arrangements.  Residential construction spending is up by 25% in 2021 and is expected to rise by 7% in 2022.


       10. Smart Cities:   Tech companies like IBM, Cisco and Microsoft are investing on megaprojects for building smart cities. They are more complex and interconnected compared to most megaprojects and need intense planning and development before commencement. The international smart city market is anticipated to rise to 20.5%, attaining $2.5 trillion by 2025. Significant megaprojects include Hudson Yards in New York City, Masdar City in the UAE, Songdo International Business District in South Korea, and India’s Delhi-Mumbai Industrial Corridor. All the projects range from 10 to more than $100 billion and are anticipated to influence the economy, enhance infrastructure and contribute to environmental health.

Final Thought:

All these construction industry trends are rapidly transforming the global market. There’s no doubt that the increasing prices and skilled labor shortage would continue in the coming years. Further, regulatory challenges would become stricter with enhanced scrutiny on workplace safety and climate change adaptation. By adopting new practices, leveraging new technologies and investing in new projects, builders and developers would be able to reduce risk, win more contracts and enjoy profitability. The pandemic has indeed created an incongruity in the construction. However, looking forward, you will get a positive outlook. The construction industry is likely to experience an upswing throughout 2022 as the U.S. economy starts recovering from the pandemic.

 Added to that, new economic centers are continuously growing. While the construction firms endeavor efficiency and safety, grow your business through Building Information Modeling technology from Tejjy Inc. BIM Company in USA. Keep up with the demand of customers by staying abreast with the BIM engineering and construction industry trends in 2022. Schedule an appointment with Tejjy Inc. by contacting at 202-465-4830 or and embrace the latest BIM integrated commercial and residential construction trends 2022.

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About Tejjy Inc Advanced   CEO

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Joined APSense since, September 19th, 2019, From Maryland, United States.

Created on Jan 2nd 2022 22:26. Viewed 1,079 times.


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