IoT in Construction Market Insights
Global IoT in Construction Market size was valued at USD 14.8 Billion in 2023 and is poised to grow from USD 16.89 Billion in 2024 to USD 48.51 Billion by 2032, growing at a CAGR of 14.1% during the forecast period (2025-2032).
The IoT in construction market is growing at a rapid pace as more construction companies adopt connected technologies to improve efficiency, safety, and sustainability on the job site. Thus, the construction industry is moving away from traditional construction practices and adopting the integrated, data-driven processes made possible by IoTs.
A major driver of IoT adoption is the ability to conduct predictive maintenance, with IoT sensors tracking equipment health and conditions to minimize the risk of unplanned breakdowns and repair costs. Likewise, smart wearables and environmental IoT sensors can improve site safety by monitoring worker health conditions, site hazards, and compliance with safety standards. This means not only a better quality of life for workers but less risk and liability for construction companies.
Another key consideration is leveraging IoT data to enhance project management and productivity. Cloud-based platforms that capture live data from IoT devices can get managers access to data from their construction job site, ensuring real-time decision-making, better cost control, and improved collaboration between all stakeholders. Combined with BIM (Building Information Modeling) and AI technologies, use of IoT is accelerating the digital transformation in construction.
What Role Does AI Play in Predictive Maintenance and Efficiency?
Artificial intelligence is greatly enhancing the capabilities of the IoT within construction by transforming site data into actionable data and adding efficiencies to the process while supporting safety and sustainability. New IoT devices like sensors, drones, and GPS trackers offer vast streams of data every day, while the predictive analytics, anomaly and potential failures detection capacity and automation within AI techniques enable users like project managers to make decisions faster and smarter.
- One example of this was in March 2025, Skanska, a global construction company, with obvious multiple ongoing projects, adopted and began using AI process-driven IoT platforms across their European operations to predict mechanical failures in equipment. They were able to identify the location of equipment through GPS and had access to real-time information generated by IoT sensors through cranes, scaffolds, and machinery to help identify signs of wear and schedule maintenance. They were also using AI to examine environmental data from IoT sensor devices, called into play, when energy waste occurred, helping support Skanska’s green building commitments. This case demonstrates that AI-enabled IoT is not only improving safety and efficiency for construction users but is progressing the construction industry about sustainability and technological transformation.
Market snapshot – (2025-2032)
Global IoT in Construction Market ($ Bn)
Country Share for North America Region (%)
To get more reports on the above market click here to
Buy The Report
IoT in Construction Market Segments Analysis
The IoT in construction market is segmented into component, deployment mode, end-user, application, technology and region. By component, the market is segmented into hardware, software and services. By deployment mode, the market is segmented into cloud-based, on-premises and hybrid. By technology, the market is segmented into artificial intelligence, big data analytics, cloud computing, augmented reality and virtual reality and others. By application, the market is segmented into real time asset tracking and monitoring, site and worker safety, project management, quality control and compliance, energy management and smart buildings, predictive maintenance and others. By end-user, the market is segmented into construction companies, government and public sector, equipment manufacturers and others. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
What Makes Hardware Indispensable for Monitoring and Safety?
As per global IoT in construction market outlook, hardware segment dominated the market. Hardware devices include sensors, wearables, GPS, drones, and connected machinery, all essential components of an IoT-enabled construction site. Hardware is a unique segment because of its utility capturing real-time data on safety, performance, and ensuring site conditions are acceptable. Construction companies rely on these hardware devices to monitor operations and accidents and track performance throughout the life cycle of a project. Thus, hardware is the most significant and fundamental segment of this IoT in construction market.
As per global IoT in construction market forecast, the software segment is the fastest growing in the market. As IoT devices are deployed, construction firms require software platform(s) for data analysis, visualization, and real-time monitoring. Through advanced AI-driven analytics, cloud dashboards, and project management platforms, these software solutions can help with predictive maintenance, workflow improvement, and safety management. With an ever-accelerating digital transformation leading to a smart construction way of working, the new requirement for software that allows for the possible integration of multiple IoT devices and actionable intelligence insights.
Why Do Cloud-Based Solutions Lead IoT Deployment in Construction?
As per IoT in construction market outlook, cloud-based segment dominated the market. Its popularity is attributable to the flexibility, scalability, and accessibility it provides to construction firms, allowing them to manage multiple sites and devices in real-time. Cloud platforms are used to eliminate the need for heavy IT infrastructure on-site, manage remote sites, and implement faster update cycles and integrations. Airspace for large construction projects also creates opportunities for large firms to use cloud-based solutions for central monitoring, predictive analytics, project collaboration across dispersed teams.
As per IoT in construction market analysis, hybrid segment is the fastest growing. It allows companies to keep specific data on premises for security or regulatory compliance, while at the same time using the cloud for scalability, analytics, or remote monitoring. The increasing upward trend of hybrid deployment is indicative of the balance between security, control and efficiency, as it is hard to ignore the increasing connectivity of the construction project environment.
Global IoT in Construction Market By Component (%)
To get detailed analysis on other segments,
Request For Free Sample Report
IoT in Construction Market Regional Insights
How is the IoT in Construction Market doing in North America?
As per industry analysis, North America is one of the leading regions within the IoT in the construction market. The market is growing rapidly and supplemented by the region’s developed infrastructure, appetite for technological innovation, and supportive government initiatives around smart and sustainable buildings. North America has a very established construction and industrial sector paving the way for efficiency through IoT devices.
US IoT in Construction Market
The United States comprises the largest market share in North America. The key adoption areas supporting the market in North America are large infrastructure projects, urban renewal and coordinated safety enforcement. Companies across the construction space are utilizing sensors, drones, automated personal protective equipment (PPE), and AI data analytics solutions to monitor their equipment, mitigate down time in restoration projects, monitor worker health and safety.
Canada IoT in Construction Market
The IoT in construction market in Canada is driven rapidly changing urbanization trends, expanded industrial opportunity, and developing government endorsed programs for smart and sustainable building. IoT deployment in Canada is associated with equipment monitoring, site missions/environmental conditions, and later worker personal/health monitoring assessments.
Is The IoT in Construction Market Growing in Asia-Pacific?
Asia-Pacific is the fastest-growing region in the IoT in construction market. The market growth is driven by increasing levels of urbanization and industrialization, along with government initiative surrounding the development of smart cities. The IoT industry provides improved project level management, increased safety, and better use of resources in the commercial, residential, and industrial sectors.
Japan IoT in Construction Market
Japan is an early adopter of IoT-enabled construction technologies specifically for smart buildings and automated project management. Japanese construction companies make use of IoT sensors, drones, and artificial intelligence analytics to track site conditions, improve operational effectiveness, and create energy-efficient and safe buildings. The development of smart cities by the governments in Japan and sustainable programs will support the further development of IoT in Construction.
South Korea IoT in Construction Market
In South Korea, IoT is a key requirement for smart and automated infrastructure, along with industrial automation/scaling in construction. Construction companies in South Korea use connected devices and IoT platforms to track equipment to increase productivity levels in worksites and keep people safe on building sites. Construction companies are integrating AI with IoT and BIM to achieve the vision of advanced smart construction particularly for high-rise buildings, commercial complexes, and industrial projects.
What is the Status of the IoT in Construction Market in Europe?
As per regional outlook, Europe is a large market for IoT in construction that is established and gradually growing. The advances are being driven by strict safety and environmental regulations, government-backed smart infrastructure initiatives, and a need to modernize residential and commercial projects. Companies will use IoT solutions to remotely monitor their construction sites, for predictive maintenance, and to remotely monitor and manage resources in construction and reduce cost in developing projects in compliance with legalities. Real-time compliance is valuable, if regulatory standards can be part of the decision-making process at the time of the component’s and/or complexes completion in construction.
Germany IoT in Construction Market
As per regional forecast, Germany has a robust construction sector and is leading the way towards using IoT for industrial and commercial projects. Companies are leveraging IoT devices to monitor machines, track workforces’ activities as they conduct their work, and ultimately ensure that there is safety compliance at each stage of their construction process. The government has taken actions to promote green buildings and initiatives around smart infrastructure, which create more forward-thinking companies in accepting future proof connected construction solutions.
U.K. IoT in Construction Market
In the U.K., the adoption of IoT technologies to enable companies to respond positively to urban redevelopment, develop long-standing smart infrastructure for latent risk, and to navigate regulatory obligations is growing. The construction firms have and continue to adopt connectivity enables monitoring systems to facilitate organizational efficiencies in existing technical mediums, to reduce downtimes, and to progressively ensure worker safety for both commercial and residential project completions in cities.
Italy IoT in Construction Market
The market growth in Italy is propelled by awareness of sustainability, benefiting from infrastructure initiatives via government, IoT systems, and general projects. Systems and systems thinking is being actively developed uptake of uses in IoT systems for civil infrastructure in urban and industrial construction project
Global IoT in Construction Market By Geography
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
IoT in Construction Market Dynamics
IoT in Construction Market Drivers
Increasing Demand for Smart Construction and Infrastructure Projects
- One of the major factors boosting the IoT in the construction market is the momentum globally toward smart infrastructure and sustainable urbanization. Governments and private investors are allocating large sums into projects like smart cities, green buildings, and next-generation transport systems, all of which require technological advancements to implement efficiently. IoT devices which can encompass drones deployed for aerial mapping of sites to sensors installed in a structure for monitoring are vital to ensuring that projects fulfill efficiency, safety, and sustainability objectives.
Heightened Focus on Worker Safety and Operational Efficiency
- The construction industry continues to deal with problems related to safety risk and productivity issues, with more projects turning to IoT technology as a possible solution. IoT-enabled wearables, including smart helmets, safety vests, and biometric sensors, monitor workers’ health, fatigue levels, and real-time location on construction sites. This data helps create a safer work environment by enabling faster responses to potential hazards and improving overall site safety management.
IoT in Construction Market Restraints
High Implementation and Maintenance Costs
- A significant constraint on the IoT in the construction market is the high cost of implementing and maintaining connected systems. IoT implementation may include all sorts of different devices, such as sensors, wearables, drones, and connected equipment, and the software platforms to use and collect the data. These costs can escalate quickly and often include the costs associated with networking, cloud storage, and cyber security programs which can be cost prohibitive for small and medium-sized companies in construction.
Data Security and Privacy Issues
- The significant constraint is the issue of data security and privacy. IoT devices in construction collect sensitive data and continuously generate and transmit that information, such as project site details, the ramp up/usage information for project equipment, workforce overall or individual performance, and the health conditions the worker displays while at work. This type of data is potentially massive and must be stored, transitioned, and analyzed securely. If data security is breached, private project details or workers’ information is potentially exposed, resulting in financial loss and reputational risk to construction firms.
Request Free Customization
of this report to help us to meet your business objectives.
IoT in Construction Market Competitive Landscape
The global IoT in the construction industry is very competitive with established technology vendors, equipment manufacturers, and innovative start-ups. The major players are focusing on developing partnerships, rolling out products and integrating platforms to create a footprint in the market. Companies like Trimble, Honeywell, Bosch, Caterpillar and Siemens are leveraging IoT with real-time monitoring, predictive replacement, and technology to upgrade on site safety needs. According to market strategies, in 2024, Trimble devised an inventive IoT-capable construction management platform that can link all aspects of a construction site by integrating GPS tracking capabilities with wearables paired with AI-based analytics that can allow project managers to track equipment monitoring.
The IoT in the construction market is experiencing an increase in new startups that are facilitating digital transformation across the construction ecosystem. These startups are enabling new solutions; smart wearables, AI-enabled IoT platforms, connected equipment, and real-time site monitoring systems, that are addressing new challenge areas such as worker safety, equipment tracking, predictive maintenance, and energy efficiency.
- Unearth: Unearth is a Seattle-based company using drone and IoT technology for construction project management. The startup began in 2016 and raised $1.3 million to build a platform that leverages aerial imagery, real-time data, and machine learning to drive greater project coordination, collaboration, and efficiency.
- Bild AI: Bild AI is a company founded on February 2024 by Roop Pal and Puneet Sukhija and recently raised $3.1 million from Khosla Ventures as a seed. The startup uses artificial intelligence to automate blueprint analysis and cost estimation of construction projects in order to increase efficiency and reduce preconstruction costs in housing.
Top Player’s Company Profiles
- Honeywell International Inc.
- Bosch Software Innovations
- Oracle Construction and Engineering
Recent Developments in IoT in Construction Market
- In July 2025, Open Cosmos, a satellite hardware company, acquired the Portuguese IoT company Connected, marking one of the quickest exits in European space-tech history. Through this acquisition, Open Cosmos will expand their IoT ecosystem, in particular by taking their capabilities in the realm of connected devices and remote monitoring to the construction and infrastructure project sectors.
- In February 2025, Autodesk and Procore Technologies announced a strategic partnership to maximize efficiency by better integrating Autodesk’s design tools with the Procore’s construction management platform, sharing real-time data between design and construction.
- In January 2025, Vertiv, a global leader in critical digital infrastructure, completed the purchase of Waylay, a Belgium-based startup specializing in an IoT platform. Vertiv will be able to deliver integrated and automated IoT solutions in various construction and industrial environments for real-time data processing, operational enhancements, and increased efficiency.
IoT in Construction Key Market Trends
- Integration of AI and Predictive Analytics: One of the most prominent upcoming developments is artificial intelligence combined with the IoT systems. Construction companies and project managers are able to analyze relatively vast amounts of data through technology that merges AI algorithms with IoT sensor data. In short, the prior trend in construction technology had driven predictive analytics which now has produced better accountability of operational costs while reducing downtime for example and generating optimized efficiency in execution of sizable construction projects.
- Emergence of Smart Wearables and Connected Safety Devices: Along with the use of AI technology on construction sites, IoT-enabled wearables and safety devices are now being adopted at a scale to help monitor workers’ health and track site conditions in real time. Smart helmets, vests, and environmental sensors are being deployed to allow Bluetooth-device functionality like fatigue detection, location tracking and hazardous condition identification. This workplace safety trend leverages new IoT-driven technologies to enable better risk management practices and to remain compliant with strict safety regulations, all while creating improved worker productivity and well-being.
IoT in Construction Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the IoT in construction market is rapidly changing as the construction industry continues on its digital transformation journey to improve safety, efficiency, and sustainability. Construction firms are implementing IoT technologies such as sensors, drones, connected machinery, and wearables on-site in increasing numbers to monitor operations, track assets, and ensure that workers are safe in real-time. Various trends related to urbanization, the increasing demand for smart infrastructure, and government initiatives for sustainability are encouraging the adoption of IoT for construction applications in residential, commercial, and industrial projects. While adoption is increasing rapidly, there are still challenges through the costs of implementation, data security, and the potential risk of integration that limit widespread adoption.
| Report Metric | Details |
|---|---|
| Market size value in Construction | USD 14.8 Billion |
| Market size value in 2032 | USD 48.51 Billion |
| Growth Rate | 14.1% |
| Base year | 2024 |
| Forecast period | (2025-2032) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements
for quicker decision making. This platform allows you to compare markets, competitors who are prominent
in the market, and mega trends that are influencing the dynamics in the market. Also, get access to
detailed SkyQuest exclusive matrix.
Buy The Complete Report
to read the analyzed strategies adopted by the top vendors either to retain or gain market share
