Our need for places to live and work is growing—and changing. To meet it, industries are converging on innovative ways to build.
How we build
Constructing the future means reimagining the way we build
Until recently, the companies building the structures and cities where we live, work, meet and play have competed in discrete sectors: engineering, construction, manufacturing, finance and real estate.
But global megatrends are rapidly changing what people need from the built environment, and how those needs can be met. Climate change is intensifying demand for resilient, efficient homes, factories and airports. Urbanisation is putting more pressure on housing and infrastructure. AI promises to lift architects’ and builders’ productivity. Firms are responding with efforts to build more, and to do so faster and better than ever through alliances, partnerships and new ventures. This industry reconfiguration is giving rise to a domain of economic growth centred on how we build.
Capturing the value in the decade ahead
Businesses that grasp the full potential of the Build domain will have the edge in 2035.
The extent of that growth will depend on how megatrends play out.
To obtain a quantitative picture of what the Build domain might look like in 2035, we modelled the potential global economic impact of two of the most pressing megatrends: technological disruption (specifically disruption from AI) and climate change. The result is three divergent scenarios, corresponding to a range of outcomes, from a low of $13.51 trillion to a high of $14.17 trillion.
Sizing the Build opportunity
The nature and scale of the new business opportunities that emerge in the Build domain will depend on how AI adoption and climate action progress. Your strategy should account for a range of possible outcomes. Three scenarios can help leaders in the Build domain consider what the future might bring.
Trust-Based Transformation
Global alignment | Responsible Tech | Sustainable Solutions
In this scenario, the Build domain is holistically transformed. Intelligent buildings are supported by smart infrastructure; urban growth is managed in a controlled, eco-conscious manner that prioritises green spaces; and buildings operate on AI-enabled renewable energy systems.
Who succeeds?
A maker of composite building materials and extruded moulding applies 3D manufacturing and cutting-edge resource management tools to produce water, power, HVAC and connectivity equipment that meets high standards for efficiency, environmental impact and reusability. A design and engineering firm uses AI to rationalise project planning, streamline workflows and optimise resource use.
Tense Transition
Regional alignment | Fragmented Tech | Subscale sustainability
The Build domain operates in a fragmented landscape characterised by regional variations in urban growth, laws, policies and standards. Amid constrained supply chains, infrastructure development is inconsistent, with energy security prioritised over sustainability. Companies focus on immediate, cost-efficient solutions.
Who succeeds?
An engineering firm in the Netherlands uses modular construction methods and localised knowledge of regulations, traffic demand and environmental guidelines to build a resilient, affordable bridge over the Rhine River near Cologne, Germany. It partners with a local provider of sensors and cameras to monitor road conditions and traffic in real time and deploys a smart system to prevent vessels from colliding with the bridge and to support predictive maintenance.
Turbulent Times
Atomised interests | Disruptive and divisive tech | Suspended sustainability
Building in urban areas is erratic, amid lax regulation and diverging industry standards. Buildings for some communities emphasise durability, amenities and infrastructure. Factories are constructed rapidly as immediate needs and short-term profits are prioritised over long-term sustainability, climate resilience and societal impact. Demand begins to overwhelm airports and other public transport facilities. Infrastructure for connectivity and transportation is exposed to cyber and physical threats.
Who succeeds?
A Brazilian construction company teams up with a French private equity firm to design and build gated communities for global cities at risk of extreme weather. The developments are equipped to keep residents safe and comfortable during power and water outages, heatwaves and cold snaps. A tech company in Austin, Texas, joins the venture, bringing AI systems that integrate data from utilities, weather prediction services, emergency radio scanners and social media to warn property managers of disruptions.
Learn more about the three divergent tomorrows
To reinvent for multiple tomorrows, take action today
The process of reinvention needs to start now, with a focus on priorities that respond to the reconfiguration that’s already underway. This means driving hard towards a set of innovation imperatives, securing competitive advantages in areas such as technology and trust, and turning obstacles such as climate threats into enablers of growth.
How to win in the Build domain
Explore all new domains
Select from the nine domains below to learn how they are forming, the size of the opportunity and how to seize the value in motion.
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