IoT in Construction Market

IoT in Construction Industry Forecast (2024-2032)

The global IoT in construction market size reached US$ 11.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach a value of US$ 29.0 Billion by 2032, exhibiting a growth rate (CAGR) of 11.04% during 2024-2032. There are various factors that are driving the market, which include the need for improved working places, stringent safety protocols, rising focus on enhancing operational efficiency, and various collaborations and partnerships among major players.

IoT in Construction Market Analysis:

• Major Market Drivers: The global market is experiencing strong growth, driven by the rising demand for data-driven decision-making and the increasing trend of smart cities and buildings.
• Key Market Trends: The rising demand for improved working places and increasing focus on enhancing operational efficiency are main trends in the market. 
• Geographical Trends: The report provides a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.
• Competitive Landscape: Major market players in the IoT in construction industry are Autodesk Inc., CalAmp, Ferrovial S.A., Giatec Scientific Inc., Hilti Corporation, International Business Machines Corporation, Oracle Corporation, Procore Technologies Inc., Sigfox, Topcon Corporation, Trimble Inc., WakeCap Technologies., among many others.
• Challenges and Opportunities: Data privacy and security concerns represent a key market challenge. Nonetheless, the increasing focus on sustainability and energy efficiency to comply with green building standards, coupled with the rising development of customized solutions that cater to the specific needs of different construction projects, is projected to overcome these challenges and provide market opportunities.
   

IoT in Construction Market Trends:

Rising Focus on Operational Efficiency

The growing demand for the IoT in construction due to the increasing focus on enhancing operational efficiency is influencing the market positively. On construction sites, there is a rise in the need for resource optimization, waste reduction, and productivity enhancement. Construction equipment and machinery are integrated with the Internet of Things (IoT) devices such as sensors and global positioning system (GPS) trackers to give real time information on their state and usage. This allows for better control over operations and ensures that equipment is used optimally. Moreover, IoT construction companies can predict when a machine will require maintenance by continuously monitoring equipment health and performance through IoT sensors. By extending the lifespan of machinery and minimizing downtime, this predictive strategy results in more efficient operations and reduced maintenance expenses. Furthermore, IoT helps track materials and inventory levels on-site, ensuring that resources are used efficiently with minimal wastage. Market players are introducing advanced features that benefit in increasing operational efficiency of construction activities. For instance, on 22 November 2023, AWS IoT TwinMaker launched new features to improve the digital twin entity modeling experience. They introduced three new features in entity modeling to enable users to model, deploy, and scale their digital twins faster and more efficiently.

Growing Demand for Improved Working Conditions

The escalating demand for improved working places, along with stringent safety protocols, are major IoT in construction market growth drivers. IoT is assisting in addressing issues with worker health, safety, and general job satisfaction in numerous ways. Workers' health and safety are tracked in real time by the IoT devices like smart helmets and wearable sensors. These tools can track the vital signs of employees and identify hazardous environmental circumstances. Additionally, IoT systems can enforce safety procedures by triggering alarms or shutdowns if safety breaches occur. If a worker enters a restricted or hazardous area, IoT sensors can trigger alerts or machinery can be shut down to prevent accidents, ensuring a safer working environment. Furthermore, companies are adopting advanced features that minimize the chances of risk for workers and maintain enhanced efficiency. For example, on 28 May 2024, EarthCam® and WakeCap took the initiative to lead the industry with fast-to-deploy solutions for project monitoring and time-lapse documentation. EarthCam’s new edge computer vision and AI object-detection software reduces risk for stakeholders and improves worker productivity. It will also deliver powerful new insights for construction project management teams.

Various Collaborations and Partnerships Among Major Players

Industry participants are broadening their range of products by engaging in joint ventures, acquisitions, and partnerships. These partnerships bring together the skills and strengths of several businesses to introduce more sophisticated solutions. Furthermore, partnerships with software developers allow for the integration of IoT data into existing construction management platforms, thereby enhancing capabilities like real time monitoring, predictive maintenance, and workflow optimization. In line with this, top players are engaging in acquisitions as to provide solutions that increase productivity. For example, WakeCap, the IoT platform for construction project management based in Saudi Arabia, acquired Crews by Core, an artificial intelligence (AI)-powered project delivery platform for the construction industry, on July 1, 2024. This acquisition aims to create a suite of hardware and software tools to increase job site safety, productivity, and profitability.

IoT in construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on components, application, and end user.

Breakup by Components:

• Hardware
• Software
• Services
   

Software accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the components. This includes hardware, software, and services. According to the report, software represented the largest segment.

Software solutions enable real time data analysis, making them largest in IoT in construction market size. They are essential for combining information from different IoT devices like wearables, cameras, and sensors into a single and centralized platform. They support better decision-making, resource efficiency, and site safety for construction management. Furthermore, project management capabilities are included in IoT software, which helps to optimize workflows by offering data on worker productivity, equipment usage, and material management. As a result, this aid in enhancing operational efficiency and keeping projects on schedule and within budget.

Breakup by Application:

• Asset Monitoring
• Predictive Maintenance
• Fleet Management
• Wearables
• Others
   

Asset monitoring holds the largest share of the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes asset monitoring, predictive maintenance, fleet management, wearables, and others. According to the report, asset monitoring accounts for the largest market share.

Construction organizations can use IoT technologies for asset monitoring, which tracks the whereabouts and usage of tools and equipment in real time. This lessens the time spent looking for lost objects and guarantees that all resources are used effectively. IoT-enabled asset monitoring balance workloads, prolong the life of gear, and reduce unnecessary wear and tear. Furthermore, the rising focus on predictive maintenance, along with the need for cost-effective solutions, is providing the IoT in construction market opportunities.

Breakup by End User:

• Residential
• Non-Residential
   

Non-residential represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes residential and non-residential. According to the report, non-residential represents the largest segment.

Non-residential construction projects are more complex and larger in scale as compared to residential projects. They require more sophisticated management and monitoring solutions, making IoT technologies essential for tracking equipment, managing resources, and maintaining timelines. Safety is a major concern in non-residential construction due to the scale and complexity of the projects, which involve heavy machinery, high-rise work, and hazardous materials. IoT devices are used to monitor safety conditions, provide real time alerts, and ensure compliance with stringent safety regulations, thereby reducing accidents while enhancing worker safety.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

North America, particularly the United States and Canada, is one of the most mature markets for IoT in construction. The region has a high adoption rate of advanced technologies, driven by a strong focus on innovation and efficiency in the construction sector. There is a rise in the focus on enhancing project management through real time data and predictive analytics.

The Asia Pacific region is experiencing significant growth in IoT adoption within the construction market, driven by rapid urbanization. In addition, the increasing focus on sustainable building practices is catalyzing the demand for IoT in construction.

Europe is known for its advanced technological infrastructure and commitment to sustainable building practices. The growing need to reduce carbon footprints and enhance worker safety is offering a favorable market outlook.

There are various challenges of IoT in construction industry in the Latin America region such as limited technological infrastructure, high costs of IoT implementation, and a lack of awareness about the benefits of IoT in construction. On the other hand, governing agencies in the region are beginning to support digital transformation in the construction sector.

The increasing focus on improving efficiency and safety in construction projects in the Middle East and Africa region is contributing to the market growth. Moreover, the rising number of residential and commercial spaces in the region is bolstering the market growth.    

Competitive Landscape:

• The IoT in construction market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the IoT in construction industry include Autodesk Inc., CalAmp, Ferrovial S.A., Giatec Scientific Inc., Hilti Corporation, International Business Machines Corporation, Oracle Corporation, Procore Technologies Inc., Sigfox, Topcon Corporation, Trimble Inc., and WakeCap Technologies.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Top players in the market are developing comprehensive IoT platforms that offer end-to-end solutions for the construction industry. By providing a one-stop solution, companies make it easier for construction firms to adopt and integrate IoT technologies into their operations. Furthermore, they are engaging in partnerships and acquisitions to expand their product portfolio and improve brand awareness. Moreover, leading companies are investing in research and development (R&D) activities to innovate new IoT technologies tailored to the specific needs of the construction industry. 

IoT in Construction Market News:

• 31 October 2023: Microsoft Corporation opened a smart building complex that showcases the company’s new Azure Digital Twins service. It will allow building managers to model their physical space digitally and enable real time location of where people are in that physical space and what devices they are using. Azure Digital Twins brings spatial intelligence to the Microsoft Azure IoT platform. 

IoT in Construction Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the IoT in construction industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.