IoT In Construction Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 15.58 Billion |
| Market Size (2030) | USD 31.49 Billion |
| CAGR (2025 - 2030) | 15.12% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
IoT In Construction Market Analysis
The IoT In Construction Market size is estimated at USD 15.58 billion in 2025, and is expected to reach USD 31.49 billion by 2030, at a CAGR of 15.12% during the forecast period (2025-2030).
- In the construction industry, the Internet of Things (IoT) is revolutionizing project management, boosting efficiency, safety, and productivity. With IoT technologies, construction sites can harness real-time data collection and analysis, leading to sharper decision-making.
- Construction firms increasingly rely on advanced data analytics tools, enabling them to glean insights, optimize resources, and accurately forecast maintenance needs. Moreover, there's a rising adoption of autonomous construction equipment, enhanced with IoT sensors and artificial intelligence (AI). This trend not only boosts operational efficiency but also elevates safety by minimizing human exposure to hazardous conditions.
- IoT devices play a pivotal role in monitoring environmental parameters like air quality, temperature, and humidity. Such monitoring ensures worker safety, promptly identifying harmful gas levels or extreme weather threats. For instance, gas sensors can swiftly notify both workers and management of potential gas leaks, facilitating immediate evacuation if needed.
- Workers equipped with IoT devices, such as smart helmets or vests, can monitor both their vital signs and surrounding environmental conditions. These wearables track metrics like heart rate and fatigue, promptly alerting supervisors to any signs of distress or health concerns. Furthermore, research from Relevant Software highlights that companies leveraging IoT for safety management have achieved a commendable 19% drop in workplace injuries and a 25% decrease in accidents.
- However, the setup costs for IoT technology can be prohibitive. For example, Building Information Modeling (BIM) software can range from USD 3,000 to USD 5,000, not including training and ongoing maintenance expenses. Also, the vast amounts of sensitive data generated by IoT devices pose significant cybersecurity risks. Many construction firms lack adequate cybersecurity measures, making them vulnerable to data breaches and cyberattacks. Such factor might hinder the market growth.
IoT In Construction Market Trends
AI to Hold Significant Market Demand
- Through the integration of Internet of Things (IoT) and Artificial Intelligence (AI) technologies, the construction industry is witnessing a significant transformation. This convergence is bolstering operational efficiency, safety, and decision-making processes on construction sites.
- Techniques like modular construction and automation are shifting major production processes offsite. This shift not only reduces the physical workload but also minimizes exposure to hazardous activities on job sites. Tools such as IP cameras, drone imagery, and 3-D-generated models amass vast amounts of visual data. AI then analyzes this data, addressing quality control issues like execution defects and monitoring structural health.
- As of early 2024, data from the US Census Bureau reveals that only about 1.5% of U.S. construction firms have embraced AI technologies. An additional 2.26% are poised to adopt them shortly. Moreover, AI-driven analytics are streamlining inventory tracking and resource allocation, ensuring timely material availability and curbing delays and cost overruns.
- Industry expert surveys indicate that a notable 74% of construction firms are eyeing new technologies to boost productivity and competitiveness. The industry anticipates a transition from experimental phases to the full-scale adoption of AI and IoT solutions in 2024, underscoring a pronounced trend towards these technologies.
- Advanced AI methods, such as reinforcement learning, empower algorithms to assess myriad project tasks and workflows over time. This adaptive learning enhances planning strategy accuracy. Coupled with IoT, there's potential for a marked reduction in workflow time.
- Looking ahead, the construction sector is poised for further evolution with the integration of cutting-edge technologies like augmented reality (AR) and robotics. These advancements promise to elevate design visualization, training, and on-site operational efficiency. The burgeoning market for AI in construction underscores a pivot towards more automated and data-centric project management methodologies.
North America is Expected to Hold a Major Share of the Market
- North America's construction industry is undergoing a significant transformation, with the Internet of Things (IoT) at the forefront, driving enhancements in efficiency, safety, and productivity on construction sites.
- Leading the charge, the U.S. is heavily investing in smart building initiatives, integrating technologies like Building Information Modeling (BIM) and real-time monitoring systems. These efforts are bolstered by substantial investments in smart infrastructure projects, including a notable commitment of over USD 500 billion by the U.S. government to smart city initiatives.
- The U.S. is a key player in this market due to its investment in Building Information Modeling (BIM) and real-time monitoring systems, which enhance operational efficiency and safety protocols. The implementation of IoT solutions has led to increased productivity on construction sites, with reported improvements of around 8% in productivity due to wearable technologies, as per industry experts.
- In Canada, a remarkable 92% of businesses have embraced IoT solutions, showcasing the technology's deep integration into operational workflows. The construction sector reaps significant benefits from IoT, leveraging applications like remote monitoring, predictive maintenance, and asset management to optimize resources and bolster safety. Furthermore, a survey by Relevant Software reveals that 78% of Canadian firms plan to deepen their investment in IoT solutions within the next two years.
- With technological advancements, hefty infrastructure investments, and an unwavering emphasis on safety and efficiency, North America's IoT in construction market is set for robust growth. As companies continue to adopt these solutions, they stand to redefine traditional construction practices, heralding a new era of operational capabilities.
IoT In Construction Industry Overview
IoT In Construction market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Latium Technologies, Ynomia, Lattice Build Technology, and others.
The future of IoT in construction looks promising as technology continues to evolve. Increased connectivity will facilitate better machine-to-machine communication and data analytics capabilities. This evolution is expected to lead to more automated processes, further enhancing project efficiency and safety standards across the industry. In summary, the adoption of IoT in construction is not just a trend but a necessity for companies aiming to stay competitive in an increasingly digital landscape. By leveraging these technologies, the construction industry can achieve significant improvements in safety, efficiency, and cost management.
IoT In Construction Market Leaders
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Latium Technologies
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Ynomia
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Lattice Build Technology
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NanoDust
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N-iX
- *Disclaimer: Major Players sorted in no particular order
IoT In Construction Market News
- September 2024: Hitachi, Ltd. and Hitachi Building Systems, Co., Ltd. announced that they have newly developed a new model of BuilMirai building IoT solution for small and medium-sized buildings (hereafter, the solutions). The solutions are included in the Lumada, improve building management efficiency, maintain and improve operational quality, and enhance user comfort. By launching the solutions, Hitachi and Hitachi Building Systems strengthen their green & smart building business.
- August 2024: Eyrus and Insight Risk Technologies announced a strategic alliance to provide comprehensive IoT solutions for construction sites and builder's risk insurance. This partnership aims to enhance safety, reduce losses, and optimize project financial performance.
IoT In Construction Industry Segmentation
IoT devices can help with digital transformation by allowing software construction companies to access real-time data. The information allows faster, more accurate insights and better management. Digital transformation also allows for the automation of time-consuming tasks.
The IoT in construction market is segmented by type (hardware, software, services), by end-user (commercial, residential), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Hardware |
| Software | |
| Services | |
| By End-user | Commercial |
| Residential | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
IoT In Construction Market Research FAQs
How big is the IoT In Construction Market?
The IoT In Construction Market size is expected to reach USD 15.58 billion in 2025 and grow at a CAGR of 15.12% to reach USD 31.49 billion by 2030.
What is the current IoT In Construction Market size?
In 2025, the IoT In Construction Market size is expected to reach USD 15.58 billion.
Who are the key players in IoT In Construction Market?
Latium Technologies, Ynomia, Lattice Build Technology, NanoDust and N-iX are the major companies operating in the IoT In Construction Market.
Which is the fastest growing region in IoT In Construction Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in IoT In Construction Market?
In 2025, the North America accounts for the largest market share in IoT In Construction Market.
What years does this IoT In Construction Market cover, and what was the market size in 2024?
In 2024, the IoT In Construction Market size was estimated at USD 13.22 billion. The report covers the IoT In Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the IoT In Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
IoT In Construction Industry Report
Statistics for the 2025 IoT In Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IoT In Construction analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
