Architecture, Engineering and Construction (AEC) Market reached $12.3 Trillion in 2023 and is expected to reach $16.0 Trillion by 2031, growing with a CAGR of 3.4% during the forecast period 2024-2031. The AEC market’s steady growth is driven by major infrastructure investments and technology adoption in the U.S., alongside strategic digital transformation efforts like the Nemetschek & Takenaka MoU on AI‑driven AEC solutions, and Japan’s push for smart, energy-efficient urban development and advanced construction technologies supporting long-term sustainable expansion.

The construction industry headed into 2026 with a mix of stubborn challenges and new opportunities. ForConstructionPros.com has received reports from multiple companies pointing to an industry that will confront tight labor conditions, rising material costs and uneven regional demand, even as investment grows in smarter systems, digital tools and long-term resilience.

Despite ongoing economic uncertainty, several sectors are positioned for growth, and data-driven planning is expected to shape how to approach projects in the year ahead.

On Nov. 17, 2025, the Environmental Protection Agency and U.S. Army Corps of Engineers announced a proposed rule on a common-sense definition of “waters of the United States” under the Clean Water Act.

Generally, the proposed ruling aims to define and clarify the scope of federal jurisdiction over Clean Water Act permitting, which in past years has been unclear. According to an EPA fact sheet, the proposed rule would ensure federal jurisdiction is focused on “relatively permanent, standing or continuously flowing bodies of water.”

Total construction starts expanded 2.6% in December to a seasonally adjusted annual rate of $1.24 trillion, according to Dodge Construction Network. Nonresidential building starts fell by 6.6%, residential starts increased 1.0%, and nonbuilding starts grew 16.3% over the month. For the full year, total construction starts expanded 5.4%. Nonresidential starts were up 4.5%, residential starts were down 4.8% and nonbuilding starts were 18.7% higher when compared to 2024.