This report identifies key demand-side trends in the engineering and construction (E&C) industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in this space based on Avasant’s assessment.

Why read this Market Insights?

Facing rising material costs, labor shortages, supply chain disruptions, and stricter ESG demands, E&C enterprises are accelerating their digital transformation. Companies are turning to modular construction, AI-powered procurement, and robotics to boost efficiency and strengthen operational control. Fragmented systems are being replaced by integrated platforms that improve data coordination and support more informed decisions. As sustainability moves from optional to essential, firms are deploying carbon tracking tools, digital twins, and life cycle assessments to meet regulatory and investor expectations. To scale these initiatives effectively, industry leaders are partnering with digital service providers to drive innovation across the value chain.

The Engineering and Construction Digital Services 2025 Market Insights™ aids enterprises in this sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Scope of coverage
  • Key market drivers and enterprise response
  • Avasant recognizes 12 top-tier service providers supporting the engineering and construction industry in digital transformation

Demand-side trends (Pages 8–15)

• • Modular construction has transitioned from being a specialized approach to an increasingly mainstream strategy utilized by the construction industry.
  • AI-driven procurement has evolved from a forward-looking innovation to a growing foundational tool for construction firms navigating price volatility.
  • Construction firms are rapidly deploying robotic layout systems and AI-integrated field tools to combat labor insufficiency.
  • Data integration is evolving from fragmented silos to unified ecosystems as construction firms address inefficiencies caused by disconnection.
  • Sustainable intelligence is becoming indispensable as the construction sector faces intensifying ESG disclosure pressures

Key contacts (Page 16)

Read the Research Byte based on this report. Please refer to Avasant’s Engineering and Construction Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.