Greg Davies, CEO of Tendra Technical Services, examines the impacts of technological advances and innovations in the construction sector in 2026
The built environment sector is responsible for creating the places we live, work and visit – but in an era where the rapid onset of technology has heightened the speed of urban evolution like never before, there is a huge onus on the industry’s professionals to react and respond accordingly.
This presents fresh challenges, but also opportunities to learn new skills, advance existing services, and help shape the future of the man-made world in 2026.
Technological advancement
There is undoubtedly a weight of expectation around new technologies being implemented into not only finished structures, but also the processes that bring those structures to life – with tech now available to support everything from architecture and planning to asset management and engineering.
But whilst specialists across the built environment sector are striving to utilise the newest and best digital systems and tools to remain at the forefront of innovation, this presents considerations around everything from project spending to the skills available across the workforce.
The Building Cost Information Service estimates the cost of construction will rise by 15% before the end of the decade, with wider economic pressures, material costs and labour shortages contributing to this increase alongside extra outgoings associated with technology implementation.
With more larger firms having adopted tools like AI, BIM and digital twins, it remains to be seen whether smaller companies will be able to follow suit given the pressures, not only of funding this tech, but also of training employees to be able to use it effectively.
Undoubtedly, we will also see both the governance of and concern around cybersecurity and data protection grow in 2026 and beyond. As digital assets become more commonplace in the built environment, safeguarding is of paramount importance and tighter compliance regulations are likely to be put in place to protect people, places and information.
Climate control
Alongside concerns around data protection, the world is also increasingly focused on the protection of the environment. With the buildings and construction sector accounting for more than a third of all greenhouse gas emissions across the globe, according to the United Nations Environment Programme, it is only natural that the industry is feeling the pressure to enhance sustainability measures.
Leaders must consider the impact of the projects they undertake, with construction itself accounting for a large proportion of emissions; but there is also the question of the emissions associated with the running of structures once completed. Sustainability measures are becoming as common within buildings as technology – and we are seeing a leap from a time when these measures were optional extras, to them now being essential considerations.
Companies who wish to remain competitive must factor in low-carbon materials, retrofitting and renewable energy use, and those likely to thrive going forward are those who go further and explore novel ways to save energy and reduce the impact the built environment has on the climate, nature, and the future state of the world. For example, the HVAC sector is synonymous with PFAS [per- and polyfluoroalkyl] substances, being a large group of synthetic or ‘forever’ chemicals found in many every day and industrial products including cooling for refrigeration. As the industry debates its impact, it’s vital for organisations to move towards sustainable alternatives, like natural gases.
Outside influences
Businesses may be able to make independent decisions and influence outcomes around factors such as sustainability measures and tech implementation on specific projects, but many of the challenges which continue to affect the industry come from the outside and are therefore more difficult to assert control over. Fluctuations in the economy together with added pressures of inflation and the skills shortage affecting many industries has not bypassed the built environment sector.
While there is no magic wand solution to solve these issues, innovative thinking, strong strategies, and bold leadership can absolutely help companies to continue their growth trajectory despite outside pressures. As 2026 advances, we will continue to see success for those companies who have built resilience, agility and proactive risk assessment into their structure, and can therefore effectively plan for known challenges and respond quickly and efficiently to unexpected events.
Construction in 2026 faces challenges- but also opportunities
It would be perilous to ignore all of these really crucial considerations, but it also important to realise the opportunities for the built environment sector, at a time when the future of the world is being shaped by advances made around sustainability, global connectivity and digitalisation, the industry has a pivotal role to play.
The structures being planned today will become the buildings which push boundaries around environmental and technological credentials; which rise to meet the expectations people now have of the buildings they use as homes, workplaces and leisure venues; and which showcase the results of an era of extraordinary innovation.
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