5 Key Architecture, Engineering and Construction Industry Trends to Watch Out for in 2024

Introduction

Trends in the Architecture, Engineering and Construction (AEC) industry are likely to be shaped by a myriad of elements in 2024: inflation, high interest rates, increasing labor costs, fluctuations in material prices, cross-border raw material sourcing and transport issues, a shortage of skilled labor, and stricter lending standards.

Despite these challenges, there is room for optimism. Due to infrastructure demand and pressure on stakeholders for data transparency and integration, the global AEC technology ecosystem has witnessed a surge in investments. Indeed, according to McKinsey, it is estimated that, between 2020 and 2022, $50 billion was invested in AEC tech – 85% higher than the previous three years.

Furthermore, there is a demand for long-term construction, partly due to increased stimuli by governments, such as Europe’s €800 billion NextGenerationEU fund, India’s multi-billion dollar ambitious infrastructure push, and Saudi Arabia’s new-age visionary infrastructural initiatives.

Additionally, the construction sector in the US may experience a flow of funds thanks to legislations such as the Infrastructure Investment and Jobs Act (IIJA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act.

As AEC firms create their blueprints for 2024, what are the key industry trends that they could capitalize on? Silverskills discusses them in this article.

Key Trends in the AEC Industry

A Focus on Sustainability

The construction and building sector accounts for a staggering 37% of global greenhouse gas emissions.

In 2024, we anticipate a significant emphasis on net-zero building initiatives, which aim to achieve carbon neutrality by minimizing energy consumption and utilizing renewable energy sources. Indeed, according to the US Green Building Council (USGBC), green building is a key global priority.

Sustainable design principles are increasingly being incorporated into AEC projects, including green building materials, energy-efficient systems and passive design strategies. Furthermore, the integration of renewable energy technologies such as solar panels, wind turbines, and geothermal heating systems will become more commonplace in building designs.

Finally, the concept of circularity – where materials and resources are reused, recycled, or repurposed – is gaining traction as the industry seeks to minimize waste and environmental impact.

With these practices, the AEC industry is expected to be better positioned to align with the goal of Net Zero by 2050.

Resilient & Adaptive Design

To mitigate the effects of climate change, such as rising sea levels and extreme weather events, the AEC industry must incorporate resilient and adaptive design strategies.

This year, we can expect increased focus on the use of durable materials, elevated structures, green infrastructure, and adaptive reuse.

Adaptive reuse involves renovating and retrofitting existing buildings for new purposes, rather than demolishing and building anew. This trend has gained momentum due to reduced costs, environmental concerns and historical preservation efforts. Think warehouses converted into trendy lofts or historic factories repurposed as modern office spaces.

Furthermore, the concept of “resilient cities” is gaining momentum, with urban planners implementing strategies to improve community resilience through better land-use planning, infrastructure upgrades, and emergency preparedness initiatives.

By incorporating resilience into the built environment, cities can enhance their ability to bounce back from shocks and stresses while ensuring the safety and well-being of residents.

Artificial Intelligence (AI)

One of the most prominent AEC industry trends is the adoption of AI – in the construction sector, AI is expected to grow at a CAGR of 20% between 2023–2032. Industry leaders are continuing to prioritize technology investments.

With the emergence and ongoing maturation of AI and other disruptive technologies, the AEC industry is primed to achieve improvements in compliance, cost control, quality, project design, and schedule optimization.

However, some challenges remain. Many AEC companies report having difficulty identifying the right use cases to generate value with AI. Furthermore, they continue to harbor concerns about cybersecurity and lack of trust.

To help address these challenges, developing cybersecurity strategies, particularly risk mitigation strategies, is recommended.

Furthermore, use cases for AI in construction are diverse, and AEC companies can leverage them to gain benefits such as cost efficiency and optimized building performance. Some applications include generative materials design, smart summaries for drone surveys, and optimized site plan generation. Silverskills is at the forefront of this change and is trialing the use of innovative AI applications in engineering outsourcing. For more information on our current projects, consult with us.

Modular Construction

The global market for modular construction is expected to be valued at $199.11 billion by 2033. This growth is ascribed to a rising awareness of the advantages of modular and prefabricated construction, which can help meet the demands of green practices, affordable housing, and fast completion. Prefabricated and modular construction also offer solutions to many challenges faced in the AEC industry, including supply chain disruptions, shortage of skilled labor, and costly materials.

Furthermore, advancements in manufacturing technologies, such as 3D printing, are pushing the boundaries of what can be achieved with prefabricated components, allowing for more complex and customizable designs.

One of the most compelling advantages of modular and prefabricated construction is its efficiency.

Traditional construction methods are often hampered by delays due to weather, supply chain issues, and labor shortages. In contrast, modular components are manufactured in controlled factory settings, mitigating many of these challenges.

A study by McKinsey highlighted that modular construction can speed up construction by as much as 50% and cut costs by 20% with the right environment. These efficiencies are especially crucial in sectors such as housing and hospitality, where speed to market is a significant competitive advantage.

Sustainability is another key driver behind the adoption of modular and prefabricated construction. The controlled factory environment facilitates more precise construction. Indeed, in certain cases, modular construction can reduce the overall waste weight by up to 83.2%.

Collaboration & Project Delivery Innovations

The complex nature of construction projects often necessitates collaboration among a diverse set of stakeholders.

In 2024, there is a noticeable trend toward embracing collaborative project delivery approaches, including Integrated Project Delivery (IPD) and Public-Private Partnerships (PPPs). These models emphasize shared objectives, risk-sharing, and performance-based rewards, leading to more efficient and effective project outcomes.

IPD is a project delivery method in which a single agreement joins together key parties involved in the construction, design, and fabrication of a project. This fosters continuous collaboration throughout the project’s stages, which in turn enhances efficiency and boosts project outcomes.

On the other hand, PPPs are arrangements between government entities and private sector companies where both parties share resources, risks, and rewards in the delivery of a public infrastructure project.

This model is particularly beneficial for large-scale and complex projects such as airports and ports, as it leverages the expertise and efficiency of the private sector while ensuring public interests are safeguarded.

Furthermore, PPPs enable innovative financing solutions, spreading the cost of infrastructure development over time, and often leading to quicker project completions compared to traditional public sector project delivery methods.

Technology plays a pivotal role in facilitating this collaboration, as cloud-based platforms allow for effortless communication and sharing of information. As the AEC industry becomes more globalized, digital transformation and tools are essential for coordinating efforts across different geographies and time zones.

Conclusion

Powering into 2024, the increasing emphasis on sustainability and efficiency, despite economic unpredictability, highlights the necessity for agility and flexibility.

By embracing AEC industry trends, professionals can seize investment opportunities and realize efficient expansion. This way, they not only improve the efficiency and effectiveness of their projects, but also lay the groundwork for a more sustainable and equitable global community.

Adapting to changes swiftly and strategically to stay ahead in a competitive landscape can be challenging. Silverskills helps you anticipate and respond to change in the AEC industry even before your clients. Our services for the AEC industry include but are not limited to Building Information Modeling (BIM) services, CAD services, Scan-to-BIM (point cloud) modeling, design support services and Digital Transformation services.

Leverage the expertise of our qualified architects, engineers, and technicians. Contact us now.