Internet of Things (IoT) in Construction Market Synopsis

Internet of Things (IoT) in Construction Market Size Was Valued at USD 14.7 Billion in 2023 and is Projected to Reach USD 50.1 Billion by 2032, Growing at a CAGR of 14.6% From 2024-2032.

IoT construction refers to the use of smart devices or electronics that serve as a link between the construction process and the physical construction environment. To do this, these devices gather and share information, which facilitates constant observation, assessment, and management of different factors regarding construction ventures. The integration of IoT in construction organizations lead to increase efficiency, safety and also the sustainability of resources, equipment and buildings, reduction of the time required for repairing or replacing damaged parts, increasing efficiency in communication between different working groups and stakeholders.

• The IoT market in construction sector is likely to show exponential growth trend in the future as the construction industry players continue to embrace the adoption of digital technologies to execute their processes. Real time information concerning the performance of equipment, climatic conditions, and worker activity is gathered with the help of the Internet of Things devices including sensors, drones and wearables that are being installed in the construction sites. This information allows the construction firms to plan and allocate its resources properly while at the same time it helps in tracking the progress, and forecasting of project losses or slow progress. Furthermore, the trend towards smart buildings and structures is influencing the Internet of Things’ use in construction in an effort to address the construction industry’s intents and pursuits of using IoT for energy, maintenance, and comfort.
• As the construction industry continues to advance in the digital age, this has also been being evident in the IoT market which is expected to experience even more growth in the coming years with research already predicting high levels of IoT investment in construction. They include project visibility, regulatory requirements where compliance is an essential factor, as well as sustainability measures where there are requirements to integrate them.
• Moreover, the construction firms are now positioning themselves to gather and harness big data gathered from various IoT devices contributing improved efficiency and competitive advantage arising from IoT platforms and analytics solutions. However, the published adversities like data security, interoperability, and the lack of the required skills among the workforce are still evident concerning the widespread adoption of IoT in construction, increasing the significance of security measures and consistent investment in training and education.

Internet of Things (IoT) in Construction Market Trend Analysis

Integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies with IoT devices and data analytics platforms

• This integration allows construction companies to gain an even greater understanding of the stream of information collected by connected IoT sensors and devices. Enhancement and application of AI and ML to construction firms offer solutions to predict equipment failures and construct schedules or even automate the entire process which would be efficient and cheaper. For instance, the use of machine learning techniques for prediction of failures S improving efficiencies, by predicting failings from real time data of equipment and thereby allowing preventive action as and when the signal is detected.

Development of specialized AI-powered IoT solutions

• An opportunity stemming from this trend is the possibility to design the sophisticated IoT systems based on an AI approach that can comprehensively meet the requirements and address the peculiarities of the construction sphere. The construction companies that can present the AI cognitive and also predictive analytics-based solutions, self-driven construction machinery, and the smart sensors, monitoring system shall be in an advantageous position in the market.
• Moreover, as AI and ML technologies to advance and develop independently with the growth of the technologies, that makes it possible to have access for the small construction firms for employing the IOT solutions integrated with the AI enabling abilities of the establishment of the IOT inside construction sector. In general, one can conclude that considering IoT, AI, and ML as the top trends opens up great potential for improving productivity, security, and minimizing the overall environmental impact of construction businesses and their projects.

Internet of Things (IoT) in Construction Market Segment Analysis:

Internet of Things (IoT) in the Market Segmented based on Component, application, and end-users.

By Component, Services segment is expected to dominate the market during the forecast period

• On the basis of distribution system, it is further classified into Services and Devices where the Services segment is expected to overtake the Devices segment in the Internet of Things (IoT) market in construction industry throughout the forecast period. It is a broad field that relates to consulting, implementation, maintenance, and support solutions that service construction companies need to implement and manage IoT efficiently. Due to the increase in the number of IoT solutions being employed in construction projects that involve things like multiple sensors, smart devices, and data analysis solutions, the need for such services is anticipated to rise quickly as well. Construction companies have started appreciating the importance of collaborating with suitable service providers with pertinent specialization in IoT implementation that can be tailored to suit construction firms and with sufficient support services for the optimal utilization of IoT technology.
• Furthermore, as the IoT continues to expand as a system of systems, there are some important points that can be emphasized: As the number of applications across the construction industry continue to expand, an increased need for consulting services is anticipated in assisting construction firms in identifying how to integrate IoT into organizational strategies and goals, as well as choosing the most appropriate IoT solutions for enterprises. Therefore, the Services segment has the potential to be a key enabler in the growth of IoT and kindling the digital journey of the construction industry for better and optimized differentiation for efficiency, safety, and productivity of construction projects.

By Application, Predictive maintenance segment is expected to held the largest share

• Within the context of IoT in Construction, examining the market dynamics also identifies growth in new segments and new players, where the most significant development is seen to be found in the segment of predictive maintenance. As IoT devices along with sensors are incorporated at the construction site, preventive maintenance is an innovative model that shifts the idea of equipment maintenance. Through using chronological tracking and artificial neural network, construction companies get the alerts of the failing equipment so as to work on preventing the equipment from failure. The benefits include reducing costly down time, improving operating efficiency and increasing safety when working on construction areas.
• Likewise, predictive maintenance enables construction firms to plan their spending better; identify when particular, pieces of equipment will likely fail; and ensure that maintenance processes are more efficient and cost-effective. As a result, the segment entails a tremendous potential for future growth to support the growing focus of construction companies on predictive maintenance as a means of managing risks and enhancing operational efficiency, simultaneously highlighting the segment’s critical importance in the development of construction IoT technology.

Internet of Things (IoT) in Construction Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• The Asia Pacific region is expected to maintain the majority of the IoT market in construction within the forecasted time period mainly because of several factors. Demographic factors such as urbanization, increase in population, effectiveness of infrastructure development projects such as bridge construction in countries like China, India and some countries in south East Asia put pressure on construction companies to adopt enhanced construction technologies. Furthermore, there is a growing trend in this region for governments to leverage smart building and infrastructure solutions to deal with the issues like traffic congestion, energy consumption and environmentally Sustainable infrastructure.
• Moreover, like many industries, the IoT is also well-developed in Asia Pacific with many hardware and software innovators as well as system integrators, thus promoting the use of IoT in construction across the region. Further, organizational strategies like China’s ‘Made in China 2025’ and India’s ‘Smart Cities Mission’ development programs also are fostering IoT investments across digital transformation and smart infrastructure undertakings suitable for construction projects. Therefore, the market for construction IoT in the Asia Pacific region is set to experience remarkable growth in the various construction segments such as residential, commercial, and infrastructure segments, making the region as the most dominant IoT market in construction in the future years.

Active Key Players in the Internet of Things (IoT) in Construction Market

• Hilti Corporation (Liechtenstein)
• Triax Technologies, Inc. (United States)
• Topcon Corporation (Japan)
• Oracle Corporation (United States)
• Trimble, Inc. (United States)
• CalAmp Corporation (United States)
• Autodesk, Inc. (United States)
• Advanced Opto-Mechanical Systems and Technologies Inc. (United States)
• Hexagon AB (Sweden)
• Pillar Technologies, Inc. (United States), and Other key Players.

Key Industry Developments in the Internet of Things (IoT) in Construction Market:

• In April 2020, AOMS has formed a partnership with the Canadian firm PCL Construction. The objective of this collaboration is to improve Job Sight Insights (JSI) on the cloud-based platform of PCL. In addition to these parameters, the platform incorporates supplementary sensor technology that evaluates vibration, sound, concrete maturity, and strength.