IoT in Construction Market Analysis | 2024-2030

Market Insights

The IoT in construction market was estimated at USD 14.3 billion in 2023 and is likely to grow at a CAGR of 16.35% during 2024-2030 to reach USD 41.4 billion in 2030.

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Market Dyanamics

Introduction

The Internet of Things (IoT) is revolutionizing the construction industry by enabling smart connectivity, efficient resource management, and enhanced safety measures. As a technology-driven approach, IoT integrates sensors, software, and devices into construction processes to collect, analyze, and share data in real-time. This paradigm shift is driving productivity improvements, cost reductions, and better project outcomes in a traditionally labor-intensive sector.

Market Driver

Use of IoT on construction sites for increased productivity and safety

IoT technology has proven to be beneficial in various industries, including healthcare, manufacturing, and automotive, where systems management and automation are crucial. It can improve safety and productivity on construction sites by enabling interconnectivity between devices and systems and syncing them to a central server for simplified monitoring. This allows supervisors to perform tasks efficiently, stay informed about project aspects, and tackle issues first-hand. IoT also reduces downtime and prevents machine failure by controlling the movement, status, and progress of machinery in real time. This connectivity aids in planning and coordinating activities, increasing productivity, and reducing delays.

Market Restraint 

The higher initial cost of (IoT) in the construction industry

The construction sector benefits from the use of technology, but the initial cost of setting up technology is high, with BIM software costing between USD 3,000 and USD 5,000. This includes long training durations, high training and service costs, and lower wages for workers in some countries. Construction companies also discourage technology use due to increased project costs.

Market Opportunities

Asia-Pacific spreading interest in loT

Governments in Asia, including India, China, and Malaysia, are investing heavily in infrastructure and construction to create smart cities. The Asia-Pacific infrastructure market is expected to contribute 60% to the global market by 2025, driving the low-to-total (loT) in the construction market. Countries like Hong Kong, Singapore, and China are enforcing strict safety laws to control accidents at construction sites, putting workers' lives at risk. This high safety feature in the construction industry is expected to provide growth opportunities for the Asia-Pacific construction market.

Segment Analysis

By Project Type

"The residential segment held the larger share of the market in 2023"

Based on the project type, the market is segmented as commercial and residential. The residential segment held the larger share of the market in 2019 and is expected to remain dominant during the forecast period. The higher share is attributed to the rising residential development in developing economies and increasing renovation activities in developed nations.

By Offering Type

"The software segment accounted for the largest share in 2023"

Based on the offering type, the market is segmented as hardware, software, and services. The software segment accounted for the largest share in 2019, owing to the growing adoption of Building Information Modelling (BIM). The segment is expected to maintain its dominance during the forecast period as well.

By Application Type

"The remote operations segment accounted for the largest share in 2023"

Based on the application type, the market is segmented as safety management, remote operations, predictive maintenance, fleet management, and others. The remote operations segment accounted for the largest share in 2019, on account of the rising utility in residential as well as commercial constructions and it is likely to lead the market during the forecast period as well.

Regional Analysis

"North America is projected to be the largest market for IoT in construction during the forecast period"

In terms of regions, North America is projected to be the largest market for IoT in construction during the forecast period. The North American market is expected to expand with a lucrative CAGR due to the presence of dominant market players, and growing investment in infrastructure and construction projects in the region.

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Key Players

The following are the key players in the IoT in construction market (arranged alphabetically)

• Autodesk Inc.
• Caterpillar Inc.
• Calamp Corp
• Giatec Scientific Inc.
• Kore Wireless
• Losant IoT
• Oracle Corporation
• Sigfox
• Trimble Inc.
• Worldsensing

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s IoT in construction market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The IoT in construction market is segmented into the following categories:

By Project Type

• Commercial  
• Residential 

By Offering Type

• Hardware 
• Software 
• Services 

By Application Type

• Safety Management 
• Remote Operations (FACTs) 
• High-Voltage, Direct Current Systems (HVCDs) 
• Fleet Management 
• Others 

By Region:

• North America (Country Analysis: the USA, Canada, and Mexico) 
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research:

Stratview research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.