LoT in Construction Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Application (Asset monitoring, Predictive maintenance, Fleet management, Wearables, Others), By End-User (Residential, Non-residential), By Component (Hardware, Software, Services, Connectivity), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 15.58 Billion
CAGR (2026-2031)	12.91%
Fastest Growing Segment	Predictive maintenance
Largest Market	North America
Market Size (2031)	USD 32.28 Billion

Market Overview

The Global LoT in Construction Market will grow from USD 15.58 Billion in 2025 to USD 32.28 Billion by 2031 at a 12.91% CAGR. The Global IoT in Construction Market encompasses the integration of interconnected sensors, wearables, and machinery on job sites to facilitate real-time data collection, asset tracking, and operational monitoring. The primary drivers supporting this market’s growth include the critical necessity for enhanced on-site safety through wearable alerts and the rising demand for predictive maintenance to minimize equipment downtime. Unlike temporary adoption trends, these drivers represent structural shifts toward digitization to address long-term efficiency requirements. According to the Associated General Contractors of America, in 2025, 44% of construction firms planned to increase their investment in artificial intelligence, a strategic commitment that necessitates the comprehensive data gathering capabilities provided by IoT infrastructure.

One significant challenge that could impede market expansion is the complexity of data interoperability and integration across disparate systems. As stakeholders adopt proprietary devices from various vendors, the lack of standardized communication protocols often creates data silos, complicating the seamless analysis required for a return on investment and deterring broader implementation.

Key Market Drivers

The critical need for operational efficiency and productivity enhancement stands as a primary catalyst for IoT integration. As construction projects grow in complexity, firms are increasingly deploying connected sensors and fleet management systems to dismantle data silos and optimize resource allocation. This shift is driven by the realization that granular, real-time visibility into project status can significantly reduce costly delays and rework. According to Procore, in the '2025 How We Build Now' report, 43% of construction respondents indicated that access to real-time and historical project data would improve their business performance, underscoring the direct correlation between IoT-enabled data gathering and profitability.

Simultaneously, the mitigation of skilled labor shortages through automated solutions is accelerating market momentum. With the workforce gap widening, companies are turning to IoT-enabled wearables and equipment automation to augment human capabilities and ensure continuous site monitoring without heavy personnel reliance. These technologies not only compensate for reduced headcount but also attract a tech-savvy generation of workers by modernizing the job site environment. According to the Associated General Contractors of California, February 2025, 68% of surveyed respondents identified the pressing demand for skilled labor as a key challenge, a deficit that is compelling firms to bridge productivity gaps through digital innovations. This structural reliance on technology is reflected in broader investment trends; according to the Associated General Contractors of America, in 2025, nearly all firms planned to maintain or increase software investment, with only 1% to 3% of respondents expecting a decrease.

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Key Market Challenges

The complexity of data interoperability and integration across disparate systems constitutes a structural impediment to the expansion of the Global IoT in Construction Market. As industry stakeholders deploy a multitude of proprietary sensors and devices from different vendors, the absence of standardized communication protocols frequently results in fragmented data environments. These data silos prevent the creation of a unified operational picture, making it difficult for companies to correlate real-time field data with broader project metrics. Consequently, the inability to seamlessly aggregate and analyze information undermines the efficiency gains that IoT infrastructure is designed to deliver, complicating the validation of return on investment for prospective buyers.

This technical fragmentation directly hampers market growth by deterring firms from scaling their digital initiatives. When critical data remains isolated within incompatible systems, decision-makers struggle to derive the actionable insights necessary for predictive maintenance and safety monitoring. According to the Associated General Contractors of America, in 2025, 28% of construction firms cited the integration between software used inside their company as one of their biggest information technology challenges. Such friction in technology adoption slows the sector's overall digitization, as companies delay further investment until they can ensure cohesive system functionality and data accessibility.

Key Market Trends

The Integration of Digital Twin Technology with Real-Time IoT Data is transforming static models into dynamic assets that optimize project lifecycles. Unlike traditional modeling, these digital twins ingest data from on-site sensors to simulate real-world conditions, allowing teams to predict structural behavior and reconcile design specifications with physical progress instantly. This shifts the industry toward connected operational environments where data continuity is paramount. The structural transition to these integrated platforms is evident in broad expenditure trends; according to Bentley Systems, February 2025, in their '2024 Financial Results', subscription revenue rose 13.2% to 90% of total revenue, signaling a robust industry commitment to the cloud-based digital ecosystems necessary for supporting live twin infrastructure.

Simultaneously, the Focus on IoT Solutions for Sustainable and Green Building Certification is emerging as a decisive market force driven by stringent regulatory mandates. Firms are increasingly embedding IoT sensors to monitor energy intensity and carbon emissions in real-time, replacing retrospective reporting with verifiable performance data. This application establishes sustainability as a profitable differentiator rather than just a compliance checklist. The financial incentive is a strong adoption catalyst; according to Autodesk, July 2025, in the '2025 State of Design & Make: Spotlight on Construction' report, 72% of business leaders believe sustainability initiatives can generate more than 5% of annual revenue, cementing the link between IoT-enabled green practices and financial growth.

Segmental Insights

Based on analysis from leading market research firms, the Predictive maintenance segment is currently positioned as the fastest-growing category within the Global Internet of Things (IoT) in Construction Market. This accelerated growth is primarily driven by the critical industry need to minimize unplanned equipment downtime and reduce significant operational costs associated with machinery failure. By leveraging advanced sensor technologies to monitor asset health in real time, construction firms can identify mechanical anomalies before they escalate. This transition from reactive repairs to proactive maintenance strategies extends equipment lifecycles and optimizes project timelines, fueling widespread adoption across the sector.

Regional Insights

North America maintains a leading position in the global IoT in construction market, driven by the early integration of digital solutions to enhance operational efficiency. The region benefits from a high concentration of established technology providers and substantial investments in infrastructure modernization projects. Additionally, stringent workplace safety mandates from regulatory bodies such as the Occupational Safety and Health Administration promote the utilization of remote monitoring systems and wearable sensors. These factors create a favorable environment for the widespread adoption of connected construction technologies throughout the United States and Canada.

Recent Developments

• In November 2024, Procore Technologies unveiled a new product category called Resource Management at its annual industry conference. This comprehensive solution enables contractors to track and plan labor, equipment, and materials on a unified platform, addressing the complexity of managing diverse project resources. The launch also included new artificial intelligence-powered scheduling and safety tools designed to enhance efficiency and mitigate risks on construction sites. By integrating these capabilities, the company aims to provide greater visibility and control, helping construction firms improve productivity, reduce delays, and protect their profit margins across the entire build lifecycle.
• In November 2024, Trimble announced significant enhancements to its App Xchange and launched the Trimble Marketplace to facilitate better connectivity between applications and data in construction workflows. This development allows software developers to build and sell ready-to-use integrations, thereby expanding the ecosystem of connected solutions for contractors. The marketplace features numerous integrations with third-party solutions, aiming to automate work and transform workflows across project management, workforce management, and finance. This initiative underscores the company's commitment to improving coordination, productivity, and data sharing between teams and phases in the construction industry.
• In October 2024, Bentley Systems announced a strategic partnership with a multinational technology company to integrate high-quality geospatial content with its infrastructure engineering software and digital twin platform. This collaboration enables infrastructure professionals to leverage photorealistic 3D tiles for real-world geospatial context, enhancing the design, construction, and operation of assets. The integration allows users to visualize projects with immersive 3D experiences, improving decision-making and project resilience. By combining cloud capabilities with engineering data, the initiative aims to unlock meaningful insights throughout the infrastructure lifecycle, from planning to asset operation.
• In September 2024, Komatsu integrated artificial intelligence into its smart construction edge solution in partnership with a leading technology corporation. This advancement utilizes AI to process drone-captured data, enabling the automated removal of obstacles such as machinery and buildings from terrain maps. The updated solution, which allows for accurate drone surveys without the need for ground control points, streamlines the creation of 3D point clouds and digital twins. This integration focuses on optimizing construction processes through digital transformation, thereby maximizing worksite safety, improving productivity, and supporting environmental sustainability in earthmoving and surveying operations.

Key Market Players

• Microsoft Corporation
• Amazon Web Services, Inc.
• Siemens AG
• Cisco Systems, Inc.
• Intel Corporation
• Qualcomm Incorporated
• Huawei Technologies Co.Ltd
• IBM Corporation

By Application	By End-User	By Component	By Region
Asset monitoring Predictive maintenance Fleet management Wearables Others	Residential Non-residential	Hardware Software Services Connectivity	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global LoT in Construction Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• LoT in Construction Market, By Application:

• Asset monitoring
• Predictive maintenance
• Fleet management
• Wearables
• Others

• LoT in Construction Market, By End-User:

• Residential
• Non-residential

• LoT in Construction Market, By Component:

• Hardware
• Software
• Services
• Connectivity

• LoT in Construction Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE