Construction IoT Market Share

Global Construction IoT Market Overview

Construction IoT Market Size was valued at USD 12.8 Billion in 2022. The Construction IoT industry is projected to grow from USD 14.95 Billion in 2023 to USD 51.78 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.80% during the forecast period (2023 - 2032). The increased need for improved efficiency and productivity in the construction industry and the increasing focus on safety and risk management in construction projects are the key market drivers enhancing market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction IoT Market Trends Growing need for improved efficiency and productivity in the construction industry is driving the market growth

Market CAGR for construction IoT is being driven by the rising need for improved efficiency and productivity in the construction industry. Construction projects involve numerous variables and activities that need to be closely monitored and managed. IoT devices, such as sensors and cameras, provide real-time data on various aspects of a construction site, including equipment utilization, worker locations, and material inventories. This data is invaluable for project managers and stakeholders to make informed decisions, optimize resource allocation, and prevent delays.

IoT technology enables remote monitoring and management of construction sites. Project managers can access critical data and oversee operations from virtually anywhere, allowing for quicker responses to issues and the ability to make adjustments in real-time. This remote management capability is particularly important for large and complex projects. IoT devices help in the efficient utilization of resources, such as heavy machinery, tools, and labor. By tracking the usage and condition of equipment, project managers can schedule maintenance, prevent breakdowns, and ensure that resources are allocated where they are most needed. This optimization leads to cost savings and increased productivity. IoT can improve the tracking and management of construction materials and supplies. Sensors on shipments and storage areas provide visibility into inventory levels and delivery schedules. This helps in reducing material waste, preventing shortages, and ensuring that construction projects have the necessary materials on time.

IoT technology is used to optimize energy consumption on construction sites. Smart lighting and HVAC systems can be controlled based on occupancy and need, reducing energy waste. This is not only environmentally responsible but also contributes to cost savings over the course of a project. IoT plays a pivotal role in enhancing construction site safety. Wearable devices and sensors can monitor workers' vital signs, detect hazardous conditions, and alert supervisors in case of emergencies. This focus on safety not only protects workers but also minimizes disruptions and costly incidents. Accurate and real-time data from IoT devices enable project managers to maintain tighter control over timelines. They can identify bottlenecks, delays, or deviations from the project schedule and take corrective actions promptly to ensure projects are completed on time and within budget.

The wealth of data generated by IoT devices allows for data-driven decision-making. Project managers can use historical data to optimize future projects, select the most efficient construction methods, and refine their strategies for increased productivity. Thus driving the Construction IoT market revenue.

Construction IoT Market Segment Insights

Construction IoT Offering Insights

The Construction IoT market segmentation, based on offering, includes Hardware, Software, and Services. The software segment dominates the market, accounting for the largest market revenue due to its ability to harness and make sense of the vast amount of data generated by IoT devices on construction sites. IoT sensors and devices collect data on everything from equipment performance to worker safety, and software applications are essential for processing and analyzing this data in real time. This data-driven approach empowers construction professionals to make informed decisions, optimize processes, and proactively address issues, resulting in enhanced efficiency, reduced project delays, and better resource allocation. Additionally, construction IoT software often includes project management, scheduling, and collaboration tools that enable seamless communication among project stakeholders, streamlining the workflow and reducing communication gaps.

Figure 1: Construction IoT Market, by Offering, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction IoT Application Insights

The Construction IoT market segmentation, based on application, includes Remote Operations, Safety Management, Fleet Management, Predictive Maintenance, and Others. The remote operations category plays a central role in dominating the market of construction IoT (Internet of Things). This is primarily because IoT technology enables construction professionals to remotely monitor and control critical aspects of their projects from virtually anywhere. This includes overseeing heavy machinery, tracking worker productivity, and even managing equipment maintenance, reducing the need for physical presence on construction sites. The ability to remotely assess real-time data, make informed decisions, and respond to issues promptly not only enhances productivity but also contributes to cost savings and safety improvements, making it a fundamental driver in the adoption of construction IoT solutions. Additionally, remote operations align with the growing trend toward digitalization and automation in the construction industry, further cementing the importance of IoT technology.

Construction IoT Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Construction IoT market area dominates this market due to its early adoption of technology, strong infrastructure investment, and a well-established construction industry that values innovation. The region's proactive approach to digitalization, stringent safety regulations, and a focus on sustainability further solidify North America's leadership in the construction IoT market.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: CONSTRUCTION IOT MARKET SHARE BY REGION 2022 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Construction IoT market accounts for the second-largest market share due to the stringent regulatory requirements, a focus on sustainable construction practices, and the demand for advanced technology solutions to enhance project efficiency and safety. Further, the German Construction IoT market held the largest market share, and the UK Construction IoT market was the fastest-growing market in the European region.

The Asia-Pacific Construction IoT Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rapid urbanization, increasing infrastructure development, and a growing demand for smart and connected construction solutions across the region. Moreover, China’s Construction IoT market held the largest market share, and the Indian Construction IoT market was the fastest-growing market in the Asia-Pacific region.

Construction IoT Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Construction IoT market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Construction IoT industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Construction IoT industry to benefit clients and increase the market sector. In recent years, the Construction IoT industry has offered some of the most significant advantages to the construction industry. Major players in the Construction IoT market, including Caterpiller Inc., Sigfox, Oracle Corporation, CalAmp Corp., Losant IoT, Giatec Scientific Inc., WorldSensing, Kore Wireless, Trimble Inc., Autodesk Inc., and others, are attempting to increase market demand by investing in research and development operations.

Trimble Inc. is a well-known American technology company headquartered in Sunnyvale, California. Founded in 1978, Trimble is a leading provider of advanced positioning, mapping, and geospatial technology solutions. The company specializes in developing hardware, software, and services that are used in a wide range of industries, including construction, agriculture, surveying, and transportation. Trimble's products and services are instrumental in improving productivity, efficiency, and sustainability in various applications. In 2022, Trimble acquired Viewpoint Systems, a provider of construction management software, for $1.2 billion. The acquisition strengthens Trimble's position in the construction technology market and gives it access to Viewpoint's customer base and expertise in construction management software.

Bentley Systems, Incorporated is an American software company headquartered in Exton, Pennsylvania. Founded in 1984, Bentley Systems is a leader in providing software solutions for infrastructure and engineering professionals. The company specializes in software applications that support the design, construction, and operation of infrastructure projects, including buildings, roads, bridges, utilities, and industrial facilities. Bentley's software covers various aspects of infrastructure, such as building information modeling (BIM), project management, geospatial analysis, and asset performance management. In 2021, Bentley Systems acquired SYNCHRO, a provider of 4D BIM and construction scheduling software, for $500 million. The acquisition gives Bentley Systems access to SYNCHRO's technology and expertise in 4D BIM and construction scheduling, which will help it develop more comprehensive solutions for construction IoT.

Key Companies in the Construction IoT market include

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  Caterpiller Inc.

  
  


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  Sigfox

  
  


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  Oracle Corporation

  
  


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  CalAmp Corp.

  
  


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  Losant IoT

  
  


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  Giatec Scientific Inc.

  
  


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  WorldSensing

  
  


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  Kore Wireless

  
  


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  Trimble Inc.

  
  


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  Autodesk Inc.

  
  

Construction IoT Industry Developments

January 2023: Bentley Systems acquired Seequent, a provider of geoscience software, for $1.1 billion. The acquisition will strengthen Bentley Systems' position in the geotechnical engineering market and allow it to offer a more comprehensive suite of solutions to its customers.

January 2023: Siemens and Autodesk announced a partnership to develop and deliver new solutions for the digital transformation of the construction industry. The partnership will combine Siemens' expertise in building automation and Autodesk's expertise in construction software.

February 2023: Hexagon AB acquired Leica Geosystems, a provider of surveying and measurement technology, for $3.7 billion. The acquisition will give Hexagon AB a stronger presence in the construction technology market and allow it to offer a more integrated suite of solutions to its customers.

November 2023: The World Economic Forum launched the "Platform for Shaping the Future of Construction" initiative, which aims to accelerate the adoption of digital technologies in the construction industry.

Construction IoT Market Segmentation

Construction IoT Offering Outlook

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  Hardware

  
  


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  Software

  
  


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  Services

  
  

Construction IoT Application Outlook

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  Remote Operations

  
  


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  Safety Management

  
  


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  Fleet Management

  
  


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  Predictive Maintenance

  
  


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  Others

  
  

Construction IoT Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America