IoT in Construction Market Size By End-User (Residential And Non-residential), By Component (Hardware And Software), By Geography Scope And Forecast

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

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IoT in Construction Market Valuation – 2024-2031

The construction industry is transforming due to the implementation of the Internet of Things (IoT). The market was valued at USD 9967.76 Million in 2023 and is on track to grow to a valuation of USD 28493.82 million by 2031, expanding at a CAGR of 14.03% from 2024 to 2031.

We're seeing this growth happen because everyone wants to get things done faster and more efficiently. Labor and material costs are going up, so we need better solutions. Plus, more and more construction companies are using digital tools, and there's a big push for safer job sites. That's where IoT in construction really shines! It makes things more efficient by tracking assets, keeping an eye on equipment, and improving worker safety. It also helps cut costs by preventing equipment breakdowns, making sure we're using our assets wisely, and of course, keeping everyone safe. And the best part? IoT gives construction companies real-time data to make smarter decisions about their projects. As the IoT market keeps growing, we're going to see even more cool solutions that will completely change how we build things.

IoT in Construction MarketDefinition/ Overview

In construction, the Internet of Things (IoT) refers to the integration of internet-connected devices and sensors into construction equipment, structures, and processes to gather and exchange real-time information. This technology improves the monitoring, control, and automation of construction activities, increasing efficiency, safety, and production.

IoT applications in construction include remote equipment monitoring and maintenance, real-time tracking of materials and assets, automated site surveillance for security and safety, predictive machinery maintenance, and environmental monitoring for optimal site conditions. The construction industry may use IoT to streamline processes, cut costs, and improve project results.

What are the key factors driving the growth of the IoT in the construction market?

The growth of the IoT in the construction market is driven by several key factors.  One significant factor is the increasing demand for efficiency and productivity. Traditionally, the construction industry has faced challenges with inefficiencies and delays.  However, IoT offers a solution by providing real-time data on equipment location, worker activity, and material usage. This valuable data can be used to optimize workflows, improve resource allocation, and ultimately reduce project timelines and costs.

Another factor driving the market growth is the rising cost of labor and materials.  The construction industry experiences steady increases in the cost of both labor and materials. IoT can help to mitigate these rising costs by improving efficiency and reducing waste. For instance, downtime of equipment can be prevented by tracking equipment health and extending the lifespan of machinery. Additionally, material usage can be optimized by IoT, minimizing waste and reducing overall project costs. The construction industry is also witnessing a growing adoption of digital technologies.

Plus, with more and more people using Building Information Modelling (BIM), we're seeing even better digital tools popping up! Think of it this waythe IoT is like a sidekick to BIM, feeding it real-time info to keep those BIM models super accurate. This means way better planning and execution on projects. Speaking of better, let's talk safety. Construction sites? Not exactly known for being relaxing. But good newsIoT wearables can keep tabs on workers and their health, letting supervisors spot trouble fast and jump in if things go south. And it's not just about people – environmental sensors can keep an eye on air quality, noise, and dust, making sure everyone has a healthier and safer place to work.

What Are the major challenges hindering the wider adoption of IoT solutions in construction?

So, getting more IoT tech onto construction sites isn't as easy as it sounds. One big headache is security. Think about itconstruction sites are always changing, which makes them juicy targets for cyberattacks. Those little IoT gadgets, often not super powerful, might not have the toughest security, meaning someone could sneak in and mess with the data they're collecting. Then there's the whole data thing. IoT sensors spit out tons of information, and companies can get buried in it! Just storing, organizing, and actually making sense of all that data is a real challenge. Plus, trying to make all that new IoT data play nicely with the software they're already using? That can be a total nightmare, and might mean spending a ton of cash to upgrade their IT stuff.

Another thing slowing down IoT adoption? We just don't have common standards yet. Right now, there aren't any agreed-upon protocols for different IoT devices and platforms to talk to each other in construction. This lack of compatibility really messes with how well things work together, making it tough to share data and combine it across different systems. Plus, the construction industry is facing a skilled worker shortage. Getting these IoT solutions up and running, and keeping them running smoothly, means you need people who really know their stuff – like sensor tech, data analysis, and cybersecurity. Unfortunately, it can be hard for construction companies to find and keep folks with these specialized skills. And let's not forget the cost! It takes a lot of money upfront to put in all the IoT sensors, connect them to what you already have, and build the IT backbone to support it all. Construction companies, especially the smaller ones, might be wary of investing in this technology if they're not totally sure what they'll get back from it.

Category-Wise Acumens

How Does Software Provide the Evolving Needs of the IoT in Construction Market?

The software segment is estimated to dominate the market during the forecast period. The genuine value of IoT in construction is found in the data acquired by hardware sensors. Construction software serves as a platform for data analysis, insight generation, and decision-making. This can include optimizing resource allocation, tracking project progress, anticipating future delays, and increasing overall efficiency. The demand for data-driven construction methods is increasing, as is the requirement for strong software solutions.

Construction projects are complicated and varied. Software provides greater flexibility and modification than hardware components. Construction organizations can select software solutions that are suited to their requirements, combining data from numerous sensors and hardware devices used on their projects. This provides a more comprehensive perspective of project operations and improves decision-making at all levels.

Furthermore, the success of IoT in construction is dependent on seamless connection and data exchange among various hardware components and software platforms. Construction software plays an important role in maintaining interoperability. Construction software, by providing a centralized platform for data collecting, processing, and visualization, enables disparate hardware devices and sensors to collaborate effectively, maximizing the value of the entire IoT ecosystem.

How Does Adoption of Building Information Modeling in Non-Residential Propelling the Market Forward?

The non-residential segment is estimated to dominate the market during the forecast period. BIM is a digital depiction of a building or infrastructure project that enhances cooperation and decision-making throughout the construction process.  IoT devices and sensors may interface seamlessly with BIM platforms, giving real-time data to improve project efficiency and resource allocation.

Furthermore, many governments are establishing more stringent standards for energy efficiency and sustainability in construction projects. IoT solutions can assist address these needs by tracking energy consumption, optimizing building operations, and decreasing waste. This emphasis on sustainability motivates investment in smart building technologies for non-residential construction.

Gain Access into IoT in Construction Market Report Methodology

Country/Region-wise Acumens

Which business models for delivering IoT solutions are most prevalent in the North American construction market?

The delivery of IoT solutions in the North American construction market is being shaped by several prominent business models. One of the most prevalent models is the subscription model. This approach grants construction companies access to both the necessary hardware (sensors, wearables) and the software platform for data analysis and visualization through a recurring fee.  This eliminates the upfront capital expenditure for hardware and offers flexibility in scaling the solution based on the specific needs of each project.

Think of Hardware-as-a-Service (HaaS) as another great option! It's like separating owning the tools from using the blueprints. Construction companies can basically rent the hardware sensors and even those cool wearables they need just for the length of the project, while also paying for access to the software platform. This way, they don't have to shell out a ton of cash upfront and don't have to worry about fixing the gear themselves. Plus, more and more companies are offering pre-made packages that include both the hardware and software, all set up to work perfectly for specific construction jobs – they call it the bundled solution model. This makes it super easy for construction companies to choose what they need, knowing everything will work together. These three options – Subscription, HaaS, and Bundled Solutions – are really catching on in North America, probably because they're all about saving money, being easy to get started with, and being able to grow as needed. They really fit the needs of all kinds of construction companies, from the big guys doing huge projects to the smaller folks just needing something for a specific task.

While other models like the outcome-based model are emerging, they are still gaining momentum. The established models mentioned above offer a more predictable cost structure and a clear path to ROI, which aligns well with the North American business landscape where these factors are highly valued.

How can advancements in mobile technology and big data analytics influence the development and adoption of IoT solutions in the Asia Pacific construction industry?

The Asia Pacific construction industry is on the cusp of a significant transformation driven by advancements in mobile technology and big data analytics. These advancements are influencing the development and adoption of IoT solutions in several key ways.

Mobile tech is really shaking things up with how we gather and watch over data these days. Think about itsmartphones and tablets are way better now, so we can grab data live from construction sites – things like what the weather's doing, how the equipment's running, and what the workers are up to. This real-time data gives project managers the info they need to make smarter calls. Plus, with 4G and 5G getting more common in places like Asia Pacific, all that data from IoT sensors on site can flow easily to central systems. That means we can keep an eye on things from afar and tweak stuff as needed, which boosts efficiency and helps us make even better decisions. And let's not forget the cool mobile apps! These put real-time data visualization, task management, and teamwork tools right in the hands of construction pros, making it easier to talk and work together on the job site.

Think about all that data coming from IoT sensors – that's where big data analytics really shines! By digging into that info with specialized tools, construction companies can spot emerging trends, figure out the best way to use their resources, and even see potential delays coming. It's all about using data to make smarter decisions, leading to more efficient and safer projects. Plus, those advanced analytics aren't just for planning – they can also predict when equipment needs maintenance, keeping downtime and repair costs down while extending the life of your gear. Want to boost worker productivity? Big data can help with that too! By tracking performance, identifying areas for improvement, and tweaking workflows, you can optimize labor costs and, more importantly, improve worker safety through real-time monitoring. It's the perfect matchmobile tech for collecting real-time data, and big data analytics for turning that data into something you can actually use. This powerful combo puts the Asia Pacific construction industry in a great position to really take advantage of IoT and dramatically improve project efficiency, safety, and the bottom line.

Competitive Landscape

The IoT in construction market thrives on a dynamic interplay between established industry leaders, agile startups, and technology providers. Each player contributes to the evolving needs of the construction sector as it embraces digital transformation for enhanced efficiency and sustainability. Leading companies differentiate themselves through cutting-edge advancements in sensor technology, data analytics, and interoperability. Strategic partnerships between construction giants and technology providers are fostering innovation and accelerating solution adoption.

Some of the prominent players operating in the IoT in construction market include

  • Trimble
  • Caterpillar
  • Procore Technologies
  • Autodesk
  • Oracle Corporation
  • Bentley Systems
  • Hitachi, Ltd.
  • Bosch Software Innovations
  • Bechtel Corporation
  • Kiewit Corporation
  • PCL Construction
  • Hexagon AB
  • DJI
  • Rhumbix
  • Hilti Group

Latest Developments

  • In September 2022, Hexagon AB acquired iConstruct Pty Ltd, a BIM software developer. Their iConstruct Pro tool integrates data from different BIM models into a single 3D model, simplifying project management for construction professionals.
  • In May 2022, Giatec announced that HeidelbergCement had made a strategic minority investment in the company. HeidelbergCement is one of the world’s largest manufacturers of building materials and solutions.
  • In March 2021, Oracle released its latest platform called Oracle Fusion Cloud Supply Chain and Manufacturing. The platform comes with updated features such as IoT Asset Monitoring and IoT Production Monitoring capabilities. These features help customers monitor critical aspects of their assets and offer a complete view of their production line output.

Report Scope

REPORT ATTRIBUTESDETAILS
STUDY PERIOD

2018-2031

Growth Rate

CAGR of ~14.03% from 2024 to 2031

Base Year for Valuation

2023

Historical Period

2018-2022

Forecast Period

2024-2031

Quantitative Units

Value in USD Million

Report Coverage

Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis

Segments Covered
  • Component
  • End-user
Regions Covered
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
Key Players
  • Trimble
  • Caterpillar
  • Procore Technologies
  • Autodesk
  • Oracle Corporation
  • Bentley Systems
  • Hitachi, Ltd.
  • Bosch Software Innovations
  • Bechtel Corporation
  • Kiewit Corporation
  • PCL Construction
  • Hexagon AB
  • DJI
  • Rhumbix
  • Hilti Group
Customization

Report customization along with purchase available upon request

IoT in Construction Market, By Category

End-User

  • Residential
  • Non-residential

Component

  • Hardware
  • Software
  • Others

Geography

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Research Methodology of Market Research

To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our .

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