The architecture, engineering, and construction (AEC) industry is undergoing a substantial change, and the technological advancements are shaping the future of this industry. Over years, numerous tools have been developed based on building information modeling (BIM) and the Internet of Things (IoT) to manage a variety of tasks and activities within different construction and operational phases in the AEC industry. Recently, with the advent of novel internet-enabled technologies in providing the ability of real-time connectivity, researchers have started to develop virtual design and construction (VDC) and digital twin approaches to remotely monitor, control, and optimize different work progresses and activities in real-time at any work level in the AEC industry. This paper presents a reference model to illustrates the main advantages and applications of VDC and digital twin, and to demonstrate their trends and anticipated cost savings in the AEC industry at a global level. These technological advancements along with augmented reality (AR) and virtual reality (VR) can offer the unique benefit of real-time monitoring of the current status as well as predicting the future of any physical structure at any level of work. The global demand and usage of these technological advancements will lead to great cost savings in the AEC industry which would be US$950 million in design and construction and US$400 million in operation and maintenance phases in the non-residential AEC industry in 2025. This paper also discusses the future challenges of VDC and digital twin in the industry. As a main line of future research, these technologies can simultaneously be utilized with artificial intelligence to enable human-centered decision making to automate and optimize work progresses. Such integrations of VDC, digital twin, artificial intelligence, and human-centered approaches will shape the future of the AEC industry and provide numerous research opportunities in this domain.