IoT in Construction Market Expected to Reach $44.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “IoT in Construction Market," The IoT in Construction Market size was valued at $11.2 billion in 2021, and is estimated to reach $44.2 billion by 2031, growing at a CAGR of 14.6% from 2022 to 2031.

The main purpose of IoT in construction industry is to use electronically connected hardware and software to ensure the most efficient use of resources, a well-thought-out technical approach, and controlled construction costs. The Internet of Things (IoT) provides a platform for connecting to a central server that manages and tracks operations in real-time for employees, inventories, and equipment. The construction industry currently employs a wide variety of devices for a variety of tasks.

By using sensors, drones, CCTV cameras, and radio-frequency Identification (RFID) tags, IoT-based solutions link construction sites. This enables the collection of real-time data statistics about the workers, inventories, and ongoing activities. Among other advantages, sensors and RFID tags on materials allow for efficient workflows, proactive material ordering, equipment servicing, monitoring of equipment usage, and preventative maintenance. On construction sites, efficient time management minimizes downtime for personnel and equipment, which saves time and money from delays.

Moreover, according to research conducted by the company McGraw Hill Construction based in the U.S., around 97% contractors using building information modeling (BIM) in Japan have reported positive return on investment (ROI). In addition, key players are focused on acquisition strategy to strengthen their business and enhance customer reach. For instance, in September 2022, Hexagon AB has acquired iConstruct Pty Ltd, a developer of building information modelling software used in commercial, infrastructure and industrial construction, iConstruct Pro, is a construction automation tool that enables integration, accessibility and control of design and construction information held within different BIM models, combining all data into a single 3D model.

Together with additional benefits, these businesses have demonstrated a 41% drop in errors, a 21% increase in project estimation accuracy, a 23% improvement in waste management, and a 31% drop in reworks. Moreover, key market players are focused on product launches to strengthen their product portfolio. Fovr instance, in October 2021, Hilti Corporation launched a new Jaibot, a semi-autonomous mobile ceiling drilling robot, for the construction industry. The Hilti Jaibot is used in the construction industry to tackle productivity, labor safety, and reduce labor shortage challenges. The main motto of the product launch is to digitize the construction sites.BIM and other IoT technologies are thus implemented to increase productivity and efficiency on building sites, which in turn fuels the expansion of IoT in construction market growth.

Furthermore, most third-party businesses involved in business operations maintain the information technology systems and networks. Data processing and maintenance involving connected IoT devices is vulnerable to coordinated and targeted cyberattacks. The integrity and confidentiality of the data are compromised as a result. Such cyberattacks may harm consumers' reputations, which may result in fines, legal action from the government, litigation with third parties, and other consequences in addition to informational harm. Such flaws pose a serious risk to IoT implementation, particularly in the construction sector. Thus, rise in security threats in connected devices restrain the growth of IoT in construction market.

In addition, the outbreak of COVID-19 led to a halt in logistic and manufacturing activities across the globe, which, in turn, led to the interruption of the supply chain, thereby hindering the growth of IoT in construction market. However, the situation has improved as the government has relaxed norms around the world for resuming business activities.

Moreover, the construction industry is one of the largest consumers of natural resources. The bulk consumption of resources results in production of huge amounts of construction & demolition (C&D) waste. Construction industry contributes highly toward global carbon emission owing to the use of cement and other construction materials. The existing waste management approaches mainly aim at managing the waste after it is generated. However, with the use of IoT based software, and building information modelling, proper resource planning can be conducted which further reduces the generation of wastage. Data driven decision making during the planning and designing stage of construction project can prevent the aftermath of waste generation and disposal to a large extent. Thus, the use of IoT technologies can help in resource and waste optimization, which in turn is expected to drive the growth and offer IoT in construction market opportunities.

Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging global IoT in construction market trends and dynamics.
• Based on application, the predictive maintenance segment accounted for maximum share of the IoT in construction market analysis in 2021.
• Based on component, the services segment is anticipated to grow with the highest CAGR throughout the forecast period.
• By end user, the non-residential segment generated the highest revenues during 2021 in the IoT in construction market.
• Based on region, Asia-Pacific accounted for largest share of the global IoT in construction market share in 2021.
• The global IoT in construction market forecast analysis from 2021 to 2031 is included in the report.