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
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIoT in Construction Market Size By End-User (Residential And Non-residential), By Component (Hardware And Software), By Geography Scope And Forecast
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.
This growth is fueled by the increasing demand for efficiency and productivity, rising labor and material costs, growth in digital adoption for construction purposes, and the need for enhanced safety on construction sites. The implementation of IoT in construction offers numerous benefits. Improved efficiency and productivity are achieved through tracking assets, monitoring equipment performance, and improving worker safety. IoT can reduce costs by preventing equipment downtime, optimizing asset utilization, and improving safety. Enhanced decision-making is another benefit as IoT equips construction companies with real-time data for better project decisions. The continuous growth of the IoT market paves the way for even more innovative solutions that will revolutionize the construction industry.
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.
Furthermore, the widespread adoption of Building Information Modelling (BIM) has paved the way for further integration of digital solutions. IoT complements BIM by providing real-time data that can be used to update and inform BIM models. This leads to more accurate project planning and execution. Improved safety needs are another factor influencing market growth. Construction sites are inherently dangerous environments. Fortunately, IoT wearables can track worker location and vital signs. This allows supervisors to identify potential hazards and respond quickly to emergencies. Additionally, environmental sensors can monitor air quality, noise levels, and dust concentrations. This ensures a safer and healthier work environment for everyone on the construction site.
What Are the major challenges hindering the wider adoption of IoT solutions in construction?
Wider adoption of IoT solutions in construction is hindered by several major challenges. One key concern is security. Construction sites, due to their dynamic nature, are susceptible to cyberattacks. IoT devices, often with limited processing power, may lack robust security features, increasing the risk of unauthorized access or manipulation of data collected by these devices. Data management and integration present another challenge. The sheer volume of data generated by IoT sensors can overwhelm construction companies. Effective storage, management, and analysis of this data pose significant difficulties. Additionally, integrating IoT data with existing construction management software can be complex, potentially requiring substantial upgrades to IT infrastructure.
A lack of standardization is another hurdle. Currently, there are no standardized protocols for communication between different IoT devices and platforms used in construction. This incompatibility creates problems with interoperability and hinders data exchange and integration across various systems. The construction industry also faces a shortage of skilled workers. Implementing and maintaining IoT solutions requires a workforce with technical expertise in sensor technology, data analytics, and cybersecurity. Unfortunately, attracting and retaining workers with these specialized skill sets can be challenging for construction companies. Cost considerations are another factor hindering wider adoption. Significant upfront costs are associated with deploying IoT sensors, integrating them with existing systems, and building the necessary IT infrastructure. Construction companies, particularly smaller firms, may be hesitant to invest in this technology without a clear understanding of the return on investment it can offer.
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.
Another popular model is Hardware-as-a-Service (HaaS). This model separates hardware ownership from software access. Construction companies can lease the required hardware sensors and wearables for the duration of the project while subscribing to the software platform. This approach reduces upfront costs and eliminates the burden of hardware maintenance for construction companies. Pre-configured packages containing both hardware and software components tailored to specific construction project needs are also being increasingly adopted through the bundled solution model. This simplifies the selection process for construction companies and ensures compatibility between hardware and software elements. These three models (Subscription, HaaS, and Bundled Solutions) are particularly favored in the North American construction market due to their focus on cost-effectiveness, ease of implementation, and scalability. They cater to the diverse needs of construction companies, from large firms undertaking complex projects to smaller contractors requiring solutions for specific tasks.
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 technology advancements are enhancing data collection and monitoring. Improved capabilities of smartphones and tablets allow for real-time data collection directly from construction sites, including environmental conditions, equipment status, and worker activity. This valuable data provides project managers with crucial insights for better decision-making. Widespread adoption of advanced mobile networks (4G, 5G) in many Asia Pacific countries facilitates seamless data transmission from IoT sensors on construction sites to centralized platforms. This enables remote monitoring and control of various project aspects, leading to improved efficiency and decision-making. Additionally, advancements in mobile technology led to the development of user-friendly mobile apps for construction professionals. These apps provide real-time data visualization, task management, and collaboration tools accessible from a mobile device, fostering better communication and coordination on-site.
Big data analytics plays a crucial role in utilizing the vast amount of data generated by IoT sensors. This data can be effectively analyzed using big data tools, allowing construction companies to identify trends, optimize resource allocation, predict potential delays, and make data-driven decisions to improve project efficiency and safety. Additionally, advanced analytics can be used to predict maintenance needs for equipment, minimize downtime and repair costs, and improve equipment lifespans. Big data analytics can also be used to track worker productivity, identify areas for improvement, and optimize workflows, leading to optimized labor costs and improved worker safety through real-time monitoring. The convergence of mobile technology and big data analytics creates a powerful combination. Mobile technology provides real-time data collection, while big data analytics allows for the extraction of actionable insights from this data. This combined approach positions the Asia Pacific construction industry to leverage the full potential of IoT solutions and achieve significant improvements in project efficiency, safety, and overall project outcomes.
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 ATTRIBUTES | DETAILS |
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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 |
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Regions Covered |
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Key Players |
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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
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