The IoT in construction market was $13.5bn in 2023 and is expected to reach $50.4bn by 2032, a CAGR of 15.8%, due to growing demand for smart infrastructure, according to SNS Insider.

The hardware segment accounted for 55% of the market share in 2023, including RFID tags and connected construction equipment. IoT hardware is making it possible for data collection to happen in real time, allowing projects to run more efficiently.

Globally, governments are enabling the adoption of IoT peripherals with funding programmes. For example, the UK Industrial Strategy Challenge Fund announced £170m in funding during 2023 for smart construction, involving a huge amount of IoT hardware deployment.

The services segment is projected to account for the highest CAGR from 2024 to 2032, due to the growing demand arising from IoT-based services that can help clients reduce maintenance costs and achieve significant operational efficiencies through predictive maintenance, remote monitoring and data analytics. Additionally, investment by the US government in IoT-based construction services through the Infrastructure Investment & Jobs Act further stimulates market growth.

By end use, the commercial segment dominated the market with a 68% share in 2023. This growth results from the increasing number of smart offices, smart retail stores and multi-utility commercial buildings using IoT for automation, energy management and security improvement. According to the US Census Bureau, commercial construction spending was $158bn in 2023, and more than three of them were built using IoT. In commercial infrastructure in Europe, smart city initiatives further drive additional IoT uptake, with 40% of smart city investments in Europe focused on commercial properties.

North America dominated the IoT in construction market in 2023, driven by strong government investments in smart infrastructure. According to the US Department of Transportation, smart infrastructure projects received over $500bn in funding in 2023, fuelling IoT adoption in highways, bridges and buildings. Canada also invested over $300m in IoT-enabled urban development through its Smart Cities Challenge.

Europe is projected to witness considerable progress on account of technological developments and the resurgence of residential construction. On the other hand, the Asia-Pacific region is expected to register the highest CAGR during the forecast period, as use of IoT in construction is growing in China, India, Japan and Singapore. The increased number of government initiatives along with rapid urbanisation in this region are stimulating the growth of this market in Apac.

For more on the report, go to www.snsinsider.com/reports/iot-in-construction-market-4106.