IoT in Construction Market Report 2025

The IoT in construction market size has grown rapidly in recent years. It will grow from $13.59 billion in 2024 to $15.66 billion in 2025 at a compound annual growth rate (CAGR) of 15.3%. The growth in the historic period can be attributed to adoption of building information modeling (BIM), enhanced safety measures, efficiency and productivity gains, rise of smart buildings and infrastructure, cost reduction through automation.

The IoT in construction market size is expected to see rapid growth in the next few years. It will grow to $28.86 billion in 2029 at a compound annual growth rate (CAGR) of 16.5%. The growth in the forecast period can be attributed to 5g connectivity advancements, increased focus on sustainability, rise in remote construction monitoring, collaboration platforms and interoperability, demand for contactless construction operations. Major trends in the forecast period include emergence of digital twins, IoT-enabled safety solutions, asset tracking and management, predictive maintenance for equipment, data analytics for decision-making.

The rising demand for construction and infrastructure activities is anticipated to drive the growth of the IoT in the construction market in the future. Construction involves assembling various elements to create structures for specific locations, guided by detailed designs and plans. The IoT in the construction sector helps develop sustainable strategies for utilizing recycled materials and implementing zero waste practices. This technology can also aid in educating the workforce about sustainable construction concepts. Consequently, as demand for construction activities rises, so does the need for IoT solutions in this field. For example, in November 2023, the Office for National Statistics, a UK-based statistical authority, reported that total new work in the construction industry increased by $19.78 billion in 2022, with both private and public new work growing by 16.8% and 13.1%, respectively, compared to 2021. Therefore, the increasing demand for construction and infrastructure projects is fueling the growth of IoT in the construction market.

An increase in industrial automation is projected to boost the growth of the IoT in the construction market moving forward. Industrial automation involves the application of advanced technologies, control systems, and machinery to automate various industrial processes and operations. Integrating industrial automation with IoT technologies in construction improves productivity, safety, resource management, and decision-making processes, leading to more efficient and sustainable construction practices. For instance, in April 2024, the International Federation of Robotics, a Germany-based non-profit organization dedicated to promoting and supporting the robotics industry, reported that sales in the automotive segment rose by 1% in 2023, with a record 14,678 robots installed, following a significant 47% increase in installations in 2022, which totaled 14,472 units. Consequently, the rise in industrial automation is driving the growth of the IoT in the construction market.

Technological advancements emerge as a key trend in the IoT in the construction market, with major companies developing new technologies to meet market demands. For instance, EarthCam introduced the IoT StreamCam 4K in 2023, a platform enabling one 4G LTE data connection to be shared among up to eight low-power wireless devices. This innovation facilitates efficient recording of interior development and job site conditions, supporting features such as a precise photo time clock, visitor tracking, delivery monitoring, and QR code reading.

Major companies are launching new products such as the Connect Box to bolster revenues in the IoT in the construction market. Siemens, a prominent automation company, launched the Connect Box in March 2023 - a universal and open IoT solution that combines the functionalities of a gateway, controller, and modem in a single device. This smart IoT solution is designed to manage smaller buildings, connecting to a wide range of equipment, including sensors, meters, heating, cooling, and air handling equipment, along with building automation and control systems (BACS).

In September 2022, Hexagon, a Sweden-based provider of digital solutions, acquired iConstruct for an undisclosed sum. This acquisition was intended to strengthen Hexagon's portfolio in the construction technology sector, with a focus on integrating advanced Building Information Modeling (BIM) solutions to enhance project delivery and operational efficiency. iConstruct is an Australia-based provider specializing in IoT applications for construction.

Major companies operating in the IoT in construction market include Trimble Inc., Pillar Technologies Inc., Triax Technologies, Brickeye LLC, Hilti Aktiengesellschaft, Topcon Corporation, Autodesk Inc., Oracle Corporation, Hexagon Metrology AB, Sigfox S.A., Caterpillar Inc., Losant IoT inc., Giatec Scientific Inc., WorldSensing S.L., Kore Wireless Group.Inc., Robert Bosch GmbH, Versatile Natures LLC, SiteAware Inc., SmartVid Inc., Reconstruct Inc., Rhumbix Inc., Bridgit Solutions Inc., PlanGrid Inc., Procore Technologies Inc., Fieldwire Inc., BuildingConnected Inc., Bluebeam Inc., Raken Inc., Honeywell International Inc.

North America was the largest region in the IoT in construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global IoT in construction market report during the forecast period. The regions covered in the lot in construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the lot in construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

IoT in construction refers to the utilization of internet-connected tools and equipment aimed at enhancing effectiveness and efficiency in construction projects. The Internet of Things (IoT) is employed to monitor materials, personnel, and machinery, optimizing man-hours and ensuring the timely progress of building projects. In construction, IoT is utilized to track the location, functionality, safety, and overall condition of personnel, tools, and equipment.

The primary categories of IoT in construction encompass hardware, software, connectivity, and services. IoT hardware includes various components such as bridges, sensors, routers, and others, performing crucial functions such as system activation, identification of project-specific objectives, and ensuring device security and communication. Diverse applications, including machine control, site monitoring, fleet management, wearables, and others, find usage among residential and non-residential end users.

The IoT in construction market research report is one of a series of new reports that provides IoT in construction market statistics, including IoT in construction industry global market size, regional shares, competitors with IoT in construction market share, detailed IoT in construction market segments, market trends, and opportunities, and any further data you may need to thrive in the IoT in construction industry. This IoT in construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The IoT in the construction market consists of revenues earned by entities by providing safety, maintenance, resources management and budgeting, concrete curing, structural health monitoring, and waste management services. The market value includes the value of related goods sold by the service provider or included within the service offering. The IoT in the construction market also includes sales of sensors, processors, and gateways which are used for providing services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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