This article presents five major predictions that shape the trajectory of this industry, drawing on the results of a recent study global research conducted in this area.
Prediction 1: Accelerate digital maturity through industrial AI

Construction and engineering companies will increasingly adopt advanced information systems to address fragmented operations. About 63% of companies say they plan to adopt new enterprise resource planning (ERP) platforms. ERP platforms serve as digital backbones to integrate operations and information system components, laying the foundation for implementing industrial AI. Historically, the industry has lagged behind in digital adoption, relying on disjointed enterprise systems and manual processes, such as Excel spreadsheets, that compromise decision-making and data accuracy.
The implementation of industrial AI will revolutionize project management by transforming the way data is collected, analyzed, and used. AI will enable smarter and more accurate forecasts and thus better risk management. AI-driven predictive maintenance, for companies that own their own equipment, will help optimize project outcomes. However, successful AI adoption depends on establishing accurate and consistent data structures – something a robust and modern ERP system can provide.
Digitalization enables companies to improve productivity, standardize operations, and ensure better project control. Moving from fragmented to integrated systems will also reduce disruptions by replicating best practices in projects and business processes. More importantly, it will enable companies to ensure better financial control of projects and improve margins. A global study reveals that 71% of companies regularly exceed project budgets and deadlines, better operational and financial control, enabled by integrated technology, is necessary to ensure financial sustainability.
Forecast 2: Diversification of activities for sustainable growth
Over the next three years, diversification will be a core strategy for 60% of construction and engineering firms. Beyond traditional project-centric models, firms will focus more on exploring new revenue streams such as facilities management, services and maintenance, modular and prefabricated construction, and rental models. This diversification reduces reliance on irregular and volatile project revenue streams and complements them with stable, recurring revenue from additional business activities. This strengthens the resilience and overall value of the firm.
Customers increasingly demand support throughout the asset lifecycle – from design and construction to operation and maintenance. This development not only meets customer expectations, but also increases the market value of construction and engineering companies.
However, this diversification requires a strong digital infrastructure to effectively manage these new business models. For many companies, this is a challenge because their existing information systems are designed to handle only traditional, project-centric processes. To enable this diversification, the next-generation construction company will need a solution that can manage traditional construction processes and support new industrialized construction methods, as well as services, facilities, maintenance management, and rental models. With the right ERP solution, a company can then effectively expand into new markets, ensure compliance with local regulations, and maintain operational control.
Prediction 3: Standardization to increase efficiency and control
By 2025, for 80% of construction companies, standardization of processes, data structures and materials will become a priority. This approach enables repeatable and efficient operations for projects. By adopting standardized workflows and templates, companies can achieve a certain uniformity, which is essential to improve project performance and profitability.
Centralized information systems will support this standardization, facilitating the transition from document-based processes to data-driven operations. Accurate data allows companies to analyze past performance, identify areas for improvement, and implement continuous improvements.
Industrialized construction – with its emphasis on modular, prefabricated components and a platform approach – is the main driver of this trend. Inspired by manufacturing principles, on-site construction processes are moving closer to an assembly process. This shift in approach is helping companies reduce costs, improve quality and speed up project timelines by 30 to 50 percent, according to industry experts. Governments are also encouraging this shift by mandating sustainable and reusable designs. For example, the UK has set a target of building 300.000 new homes per year using modular construction methods by 2025.
Prediction 4: Sustainability at the heart of concerns
Sustainability will increasingly dictate how projects are planned and executed. By the end of 2025, driven by regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) in Europe and Leadership in Energy and Environmental Design (LEED) standards in North America, more than 60% of companies will integrate sustainability into their digital transformation strategies.
The growth of industrialized construction is changing the way assets are built, with a focus on standardized materials and platforms. Adherence to sustainability goals is also driving companies to do more work in offsite assembly centers or manufacturing plants.
In addition, the demand for green buildings and infrastructure is growing rapidly. Companies that integrate sustainability into their operations gain a competitive advantage by attracting environmentally conscious customers and investors.
Digital platforms will play a vital role in managing sustainability initiatives. Modern, cloud-based systems allow companies to track and report on data such as carbon footprint, energy efficiency and waste reduction in real time. Advanced analytics and AI can also help optimise resource use, ensuring projects meet strict environmental standards.
Prediction 5: Industrial AI and Data-Driven Operations
The adoption of industrial AI will accelerate, with 55% of construction and engineering companies looking to integrate AI into their operations by 2025. Again, the shift from document-based to data-driven management will be key to unlocking the full potential of AI.
AI applications in the construction and engineering sector range from predictive analytics to automated planning, project anomaly detection and risk assessment. For example, AI can predict supply chain disruptions or simulate project scenarios, helping companies make proactive decisions. Digital twins – the technology that companies are most interested in according to the industry study – will also gain traction, enabling real-time monitoring and management of assets throughout their lifecycle.
Centralization and standardization of data are prerequisites for AI deployment. Companies must integrate and systematize data from disparate sources to ensure consistency and accuracy. This transformation helps reduce risk, improve resource utilization, and increase financial results and project profitability.
To look forward
The construction and engineering industry is at a crossroads. Challenges related to low productivity, fragmented systems, sustainability, and poor project performance are pushing these companies toward digital transformation initiatives. By adopting industrial AI, diversifying business models, and standardizing processes, companies can gain greater control, profitability, and resilience.
The coming years will be marked by a profound change, as companies move from traditional methods to innovative, technology-driven solutions. Companies that act quickly to modernize their processes will not only be able to meet today’s challenges, but also emerge as leaders in a rapidly evolving industry.
Tribune by Alain de Martin de Viviés, Team Leader PreSales at IFS (LinkedIn).