Smart city and communication network concept. 5G. IoT (Internet of Things), representing AEC industry trends

An exclusive conversation with Eduardo Lazzarotto, chief product & strategy officer at ALLPLAN, about AEC industry trends

Eduardo, the AEC industry has traditionally been fragmented and slower to adopt digital transformation. What do you see driving changes?

Eduardo: You’re absolutely right. The AEC industry has been characterised by complexity, inefficiencies and a lack of standardisation.

However, we’re witnessing a significant shift in 2025. The combination of sustainability regulations, labour shortages, modular construction, digital twins and AI-driven automation is transforming how buildings are designed, built and managed. These trends are not just incremental improvements; they are fundamentally reshaping the industry’s workflows and mindset.

Sustainability is becoming a key driver in design decisions. How is technology supporting this transition?

Eduardo: Sustainability is no longer just a consideration – it’s a design KPI. Governments and clients worldwide are demanding carbon-conscious construction, which means architects and engineers need tools that can track and optimise carbon impact from the very beginning.

At ALLPLAN, we are integrating real-time sustainability metrics into our software, allowing professionals to make informed decisions on materials, energy efficiency and lifecycle impact.

We are also expanding our design-to-build offering, seamlessly integrating architecture and engineering offerings, and enabling users to optimise their designs with market-leading structural engineering workflows.

This not only ensures compliance with regulations but also improves project outcomes.

How is the role of architects and engineers evolving in this new landscape?

Eduardo: The responsibilities of design professionals are expanding. Beyond traditional design tasks, they now need to ensure regulatory compliance, risk and cost assessments, and energy efficiency – all while managing increasingly complex projects.

The challenge is that many firms are struggling with staffing shortages. This is where technology plays a crucial role: by automating compliance checks, streamlining reporting and enhancing collaboration, we can reduce the administrative burden and help professionals focus on innovation rather than manual processes.

Modular and prefabricated construction is gaining momentum. What’s driving this shift?

Eduardo: Several factors are pushing Design for Manufacturing & Assembly (DfMA) into the mainstream: labor shortages, rising costs and advancements in digital design.

The construction industry is moving towards industrialised workflows, where standardised prefabricated components allow for faster, more cost-effective buildings. Our software is evolving to support this transition, enabling seamless integration of modular design elements from concept to execution.

Digital twins has been a buzzword for years. How are they changing project lifecycles today?

Eduardo: Digital twins are now an essential part of project execution. We’ve seen a 15x growth in the digital twin market since 2020, and it’s easy to understand why. These real-time models provide a continuous data loop from design to facility management, allowing stakeholders to make informed decisions and prevent costly errors.

In 2025, the focus is on seamless data integration, ensuring that models remain accurate and up to date throughout the entire building lifecycle.

Image courtesy of ALLPLAN

With more stakeholders involved in projects, how can technology improve collaboration?

Eduardo: By 2027, megaprojects will make up a quarter of global GDP, meaning collaboration is more critical than ever.

The challenge is that AEC projects involve a wide range of professionals, from designers to contractors to owners, all using different tools. That’s why real-time data sharing, multi-user workflows and cloud-based project management are no longer optional; they’re essential.

Our gal is to provide a connected ecosystem where all stakeholders can work seamlessly together, reducing costly miscommunication.

Speaking of cloud technology, how is it shaping AEC workflows?

Eduardo: Cloud computing is revolutionising the way architects and engineers work.

Today, over a third of AEC professionals access their data via the cloud most of the time, and this number is only growing. The reason is simple: as projects become more complex, processing large models locally is no longer feasible. The cloud enables real-time collaboration, remote access and high-performance computing for tasks like structural analysis and rendering. This shift is making AEC workflows faster, more flexible and more efficient.

Finally, AI is being increasingly adopted in AEC. What impact will it have on the industry?

Eduardo: AI is no longer an experiment; it’s becoming a core part of the design process. The construction industry is expected to generate substantial AI-driven value, and we’re seeing AI being used to automate repetitive tasks, optimise material selection and predict project risks. This significantly reduces iteration time and helps engineers focus on innovation rather than manual labor.

Moving forward, we expect AI to play a crucial role in generative design, real-time structural analysis and construction site automation.

What’s your key takeaway for AEC professionals as we move into this new era?

Eduardo: The industry is undergoing a once-in-a-generation transformation. What was once a fragmented manual process is now becoming smarter, more connected and data driven. AI, digital twins, modular construction and cloud-based workflows are not just trends; they are fundamentally reshaping the way we build.

Gone are the days of starting from scratch for every project. The future of AEC is about scalability, automation and integration. The question is no longer whether these changes will happen but whether firms are ready to embrace them. At ALLPLAN, we are committed to providing the tools and technologies that help AEC professionals stay ahead of the curve.

Thank you, Eduardo, for your insights.

*Please note that this is a commercial profile.

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Key trends reshaping the AEC industry
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