Construction site using IoT devices, wearables and cloud analytics to monitor assets, safety and performance.
Global, September 3, 2025
A comprehensive market study finds the global IoT in construction market set for rapid expansion, rising from about USD 19.3 billion to roughly USD 72.1 billion over the next decade, driven by a projected 14.1% CAGR. Growth is led by rugged field hardware, cloud-first deployments and AI analytics that enable asset tracking, predictive maintenance and worker safety. Asia-Pacific, especially China and India, will be the primary growth engine. Key challenges include upfront costs for smaller contractors, legacy system integration, cybersecurity and a skills gap; mitigation includes pilots, partnerships and staff training.
The market for Internet of Things (IoT) in construction is projected to grow from USD 19.3 billion in 2025 to USD 72.1 billion by 2035, a compound annual growth rate (CAGR) of 14.1%. The total opportunity over the period is estimated at USD 52.8 billion, underscoring a long runway for deployment across project sites, plants, and urban developments. In the near term, the market is expected to surpass USD 37 billion during 2025–2030 as owners and contractors adopt connected devices, sensors, and analytics to track assets, manage risk, and improve productivity.
Analysts anticipate the initial phase (2025–2030) to be driven by project owners and contractors seeking better asset tracking, predictive maintenance, and workforce safety. The second phase (2030–2035) is expected to accelerate as large-scale construction firms deploy AI-driven IoT ecosystems to enable real-time decision-making, energy management, and stricter regulatory compliance. This progression positions IoT as a core driver of productivity, safety, and cost optimization across the global construction sector.
Geographic dynamics point to Asia-Pacific taking the lead in adoption through megaprojects, while North America concentrates on smart infrastructure. Cloud-based deployment is forecast to account for a dominant share of revenue in 2025, with on-site hardware, sensors, and edge devices forming the backbone of real-time data collection. The use of AI-enabled analytics, big data, and cloud-based platforms is expected to mature in coming years, enabling scalable, data-rich solutions for planning, monitoring, and post-construction maintenance.
Hardware is expected to hold a commanding 56.7% of total revenue in 2025, driven by on-site connected devices such as sensors, RFID tags, cameras, and GPS modules. Cloud-based deployment is projected to capture 61.2% of market revenue in 2025, reflecting the demand for flexible, scalable storage and real-time dashboards across multiple project sites. The AI technology segment is forecast to account for 58.6% of IoT-in-construction revenue in 2025, as machine learning models analyze sensor data, forecast equipment failures, and support safety and scheduling decisions.
Adoption is supported by a trend toward digitized and automated job sites, with integrated networks of connected devices, sensors, and AI-driven analytics platforms providing visibility into assets, energy use, structural health, and worker safety. Deployment modes are categorized as Cloud-based, On-premises, and Hybrid, with cloud systems enabling centralized coordination across sites and rapid integration with BIM and other project-management tools. Edge intelligence and remote updates help keep systems current while reducing data transfer costs.
IoT applications span several categories, including real-time asset tracking and monitoring, site and worker safety, project management, quality control and compliance, energy management and smart buildings, predictive maintenance, and other use cases. End-user segments include construction companies, government and public sector entities, and equipment manufacturers, among others. Geographic coverage includes North America, Latin America, Western and Eastern Europe, Russia & Belarus, Central Asia, East Asia, South Asia & the Pacific, and the Middle East & Africa, with Asia-Pacific identified as the key growth engine and Europe/North America maintaining steady expansion.
Country-level projections highlight China driving the fastest growth among large markets with a 19.0% CAGR for 2025–2035, supported by infrastructure investments, 5G rollout and broad IoT integration. India follows at 17.6%, aided by smart-city projects and sensor-based monitoring deployments. In Europe, France is projected to grow at 14.8%, and the United Kingdom at 13.4%, while the United States is expected to advance at 12.0% through 2035. Asia-Pacific remains the primary driver of growth, with Europe and North America sustaining consistent expansion.
Market segmentation includes components (Hardware, Software, Services); deployment modes (Cloud-based, On-premises, Hybrid); technology segments (Artificial intelligence, Big data analytics, Cloud computing, Augmented reality and Virtual reality); and applications and end-user categories. Notably, hardware leadership is linked to the demand for on-site devices, while cloud-based solutions are favored for scalability, data sharing across sites, and secure analytics. AI is increasingly central to predictive maintenance, risk forecasting, and site safety analytics, weaving together sensor data with scheduling and budgeting systems to create unified information flows.
Adoption is accelerating as labor shortages push managers toward automated workflows and remote oversight. Governments and private stakeholders are investing in smart construction technologies to reduce downtime, minimize waste, and support remote management. Sustainability goals and stricter safety mandates are fueling use of environmental sensors, smart wearables, and machine diagnostics tools. As cloud connectivity, edge computing, and machine learning mature, the market is expected to expand further, delivering scalable, data-rich solutions for planning, monitoring, and post-construction maintenance.
Competitive dynamics point to ongoing collaboration across technology providers, equipment manufacturers and construction firms to deliver integrated IoT solutions. Hardware, software, and services providers are pursuing interoperability, robust security, and scalable architectures to support multinational projects and diverse regulatory environments. In practice, a growing ecosystem includes asset-tracking devices, IoT-enabled wearables, drone surveillance, sensor networks for structural health, and AI-powered analytics platforms that tie directly into project-management and BIM systems.
Across the market, examples of participating vendors and platforms include providers offering IoT-enabled telematics for machinery, sensor networks for environmental monitoring, and AI-driven analytics tied to construction planning tools. Tools and platforms that integrate with Building Information Modeling (BIM), cloud-based analytics, and field sensors are supporting real-time decision-making, resource optimization, and enhanced safety compliance on site. The overall trend is toward interoperability, data-driven workflows, and scalable solutions that can be adapted to projects of various sizes and complexity.
Overall, the IoT in construction market is positioned for sustained growth through mid-decade and beyond, with hardware leading deployment in the near term, cloud-enabled analytics enabling broader site coordination, and AI unlocking deeper insights for safety, maintenance, and productivity. The regional mix suggests that Asia-Pacific will continue to drive expansion, while mature markets in North America and Europe will focus on smart infrastructure applications and digital safety compliance. The evolving landscape will be shaped by advances in sensor technology, 5G and edge computing, and integrated data platforms that connect on-site reality with planning, budgeting and regulatory compliance.
Q: What is the estimated market value for IoT in construction in 2025?
A: The market is estimated at USD 19.3 billion in 2025.
Q: What is the projected market value by 2035?
A: The market is projected to reach USD 72.1 billion by 2035.
Q: What is the expected CAGR from 2025 to 2035?
A: The expected CAGR is 14.1% for 2025–2035.
Q: Which segment leads market revenue?
A: The Technology segment is led by Artificial intelligence, with AI expected to hold a majority share in 2025, alongside hardware and cloud deployment trends shaping revenue.
Q: Which region is expected to lead adoption?
A: Asia-Pacific is expected to lead adoption, with North America focusing on smart infrastructure.
Q: What are the main deployment modes?
A: Cloud-based, On-premises, and Hybrid deployments are the primary modes.
Q: What are key use cases for IoT in construction?
A: Real-time asset tracking and monitoring, site and worker safety, energy management, predictive maintenance, and project management are core use cases.
Q: What factors are driving adoption?
A: Rising labor shortages, demand for safety and risk mitigation, predictive maintenance needs, energy management, and stricter building regulations are major drivers.
Q: Which country markets show notable growth?
A: China (roughly 19.0% CAGR), India (about 17.6%), France (around 14.8%), the United Kingdom (about 13.4%), and the United States (roughly 12.0%) are highlighted for notable growth through 2035.
| Feature | Description | Representative Data |
|---|---|---|
| Market size (2025) | Estimated value of the IoT in construction market in 2025 | USD 19.3B |
| Market size (2035) | Projected value by 2035 | USD 72.1B |
| CAGR (2025–2035) | Compound annual growth rate over the period | 14.1% |
| Incremental opportunity (2035–2025) | Difference between 2035 and 2025 valuations | USD 52.8B |
| Leading deployment mode (2025) | Primary deployment approach | Cloud-based with 61.2% revenue share |
| Leading hardware share (2025) | Hardware market share of total revenue | 56.7% |
| AI technology share (2025) | AI sector share within IoT in construction | 58.6% |
| Regional leader in adoption | Region expected to drive adoption | Asia-Pacific |
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