Rising Cyber Threats in the Construction Industry

According to the Construction Cybersecurity Market Report 2026, construction companies continue to face a rapidly intensifying cyber threat environment. Recent market reporting indicates that spending on construction cybersecurity is rising sharply as firms respond to increased digitization, greater use of connected jobsite equipment, cloud-based project tools, BIM platforms and the growing risk of ransomware, phishing and data breaches.

According to the article, the global construction cybersecurity market is projected to grow from $7.07 billion in 2025 to $8.58 billion in 2026 and to $18.41 billion by 2030. These projections reflect both the scale of the threat landscape and the increasing importance of cybersecurity as a core operational issue for construction businesses.

Why does this matter for construction clients?

Construction operations are increasingly dependent on digital systems that can create meaningful exposure if they are not adequately secured. Project management platforms, building information modeling systems, connected field devices, remote access tools and industrial control environments can all become entry points for attackers. The article highlights that ransomware and phishing attacks are becoming more common as threat actors use more sophisticated social engineering tactics, making personnel and third-party access points especially significant areas of risk.

In addition to data security concerns, cyber incidents can lead to operational and financial consequences. For example, if a project depends on plans, models, or scheduling data housed in a digital platform and that platform becomes unavailable due to a ransomware attack, work may be forced to stop indefinitely, and project schedules could be impacted in a way that triggers liquidated damages, delay penalties, or other contractual consequences.

Accordingly, cybersecurity risk should be evaluated not only as an IT issue, but also as a revenue continuity and project delivery risk.

Key developments identified in the report

• Rapid projected growth in construction cybersecurity spending reflects heightened industry concern over cyber risk.
• Ransomware and phishing remain major drivers of investment in cybersecurity controls.
• AI-enabled security and intelligent building platforms are emerging as important tools for monitoring, predictive maintenance, and threat detection.

Tariffs and supply-chain pressures may increase costs for imported security hardware, while also encouraging more localized cybersecurity manufacturing and resilience planning.

Practical considerations for clients

Construction companies should consider whether their cybersecurity programs appropriately address both traditional IT systems and operational technologies used in the field. Areas worth reviewing include:

• employee phishing awareness
• remote access controls
• vendor and subcontractor access
• incident response readiness
• protection of project and BIM data
• network segmentation
• backup integrity and
• visibility into connected equipment and building systems.

Organizations using smart building platforms or other AI-enabled tools should also assess data governance, access controls, and contractual risk allocation with vendors.

Companies should also carefully vet third-party vendors and service providers. Many construction firms rely on external platforms, consultants, cloud providers, and subcontractors for critical functions. These third parties can create additional entry points for cyber threats, and it is essential that these vendors maintain their own internal cybersecurity precautions.

Should these cyber threats materialize, construction companies should consider maintaining a written incident response plan that clearly identifies internal decision makers, outside response partners, communication protocols, and steps for preserving evidence and restoring operations. A documented plan can help reduce confusion in the early stages of an incident, support faster containment, and improve coordination across management, IT, operations, legal and outside vendors.

Companies should also evaluate whether endpoint detection and response tools are appropriate for their environment. Unlike traditional antivirus software, endpoint detection and response tools can identify suspicious behavior that may not match known signatures, and can support investigation, containment, and remediation efforts after an attack begins.

In construction settings, where laptops, mobile devices, remote access points, and field-connected systems may create a wider attack surface, these tools can be particularly valuable as part of a broader cybersecurity program.

Bottom line

The construction sector is becoming a larger and more attractive target for cyberattacks at the same time that it is becoming more digitally connected. For construction clients, cybersecurity should be treated not only as a technology issue, but also as a project risk, business continuity, and contractual risk-management issue.

Please contact Walt Green, Emma Looney or any member of the Phelps’ artificial intelligence, cybersecurity, privacy and data protection teams if you have questions or need advice or guidance.