Global Internet of Things (IoT) in Construction Market to Reach US$61.7 Billion by 2030

The global market for Internet of Things (IoT) in Construction estimated at US$25.0 Billion in the year 2024, is expected to reach US$61.7 Billion by 2030, growing at a CAGR of 16.3% over the analysis period 2024-2030. Software, one of the segments analyzed in the report, is expected to record a 17.1% CAGR and reach US$31.3 Billion by the end of the analysis period. Growth in the Hardware segment is estimated at 16.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.0 Billion While China is Forecast to Grow at 15.4% CAGR

The Internet of Things (IoT) in Construction market in the U.S. is estimated at US$7.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.3 Billion by the year 2030 trailing a CAGR of 15.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 14.4% and 13.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.6% CAGR.

Global Internet of Things (IoT) in Construction Market - Key Trends and Drivers Summarized

How Is the Internet of Things (IoT) Transforming Construction?

The Internet of Things (IoT) is rapidly transforming the construction industry by improving project management, enhancing worker safety, and increasing operational efficiency. IoT devices, such as sensors, wearables, and connected machinery, allow for real-time tracking of materials, equipment, and personnel, giving construction managers greater control over job site operations. These connected devices provide data on equipment utilization, worker productivity, and environmental conditions, enabling better decision-making and more efficient project execution. IoT solutions also play a critical role in enhancing safety by providing real-time alerts on potential hazards, monitoring worker health, and enabling automated compliance checks with safety regulations. As construction projects become more complex, IoT is helping companies streamline operations and reduce costly delays.

How Are Technological Advancements Shaping the IoT in Construction Market?

Technological advancements in IoT sensors, drones, and AI-powered analytics are expanding the use cases for IoT in construction. Advanced sensors embedded in machinery and materials monitor usage, detect wear and tear, and optimize maintenance schedules, reducing downtime and extending equipment life. Drones equipped with high-resolution cameras and IoT sensors are used for site surveys, progress monitoring, and safety inspections, providing detailed data and reducing the need for manual checks. AI-driven analytics platforms can process the vast amounts of data generated by IoT devices to predict project risks, optimize workflows, and reduce operational inefficiencies. These technological advancements are making construction sites more connected, safe, and efficient.

How Do Market Segments Define the Growth of IoT in Construction?

Components include hardware such as sensors and wearable devices, software platforms for data management, and services such as integration and consulting. Applications include fleet management, worker safety, predictive maintenance, and asset tracking, with asset tracking being the largest segment as construction firms look to reduce equipment theft and misplacement. End-users include commercial construction, residential construction, and infrastructure development, with infrastructure projects adopting IoT at a higher rate due to their scale and complexity. The market is expanding rapidly in regions such as North America and Europe, where smart city initiatives and infrastructure investments are driving demand for connected construction solutions.

What Factors Are Driving the Growth in the IoT in Construction Market?

The growth in the IoT in construction market is driven by several factors, including the increasing demand for operational efficiency, advancements in connected devices, and the rising focus on worker safety. As construction projects grow in scale and complexity, companies are adopting IoT solutions to manage resources more effectively, reduce waste, and improve productivity. Technological innovations such as AI-driven analytics and drone-based monitoring are also driving adoption by enabling real-time data collection and analysis, improving project outcomes. Additionally, the growing emphasis on safety and compliance in the construction industry is pushing companies to invest in IoT devices that monitor environmental conditions, worker health, and equipment performance in real time.