A new report by Allied Market Research found global IoT (internet of things) in construction generated $8.2 billion in 2019, and is expected to generate $19.0 billion by 2027, witnessing a CAGR of 14.0 % from 2020 to 2027. The report is titled IoT in Construction Market by Application (Machine Control, Site Monitoring, Fleet Management, Wearables, and Others), End User (Residential and Non-residential), and Component (Hardware, Software, Connectivity, and Services): Global Opportunity Analysis and Industry Forecast, 2020–2027.
Efficient safety management on construction sites, surging productivity and the skilled labor shortage drive growth of IoT in construction. Rising security threats in connected devices impinges on market growth. Accelerating adoption of robotics in construction and continued resource and waste optimization pose potential for new IoT opportunities throughout the forecast period.
COVID-19’s halt in international trade and prolonged lockdowns have negatively impacted IoT’s expansion in construction. But various countries relaxing restrictions on commerce and creating regulations to maintain economic activity are allowing construction to resume implementation of IoT use.
The asset monitoring segment accounted for the largest construction IoT market share in 2019, holding nearly one-third of the total share of the global IoT in construction, and is projected to maintain its lead status throughout the forecast period. This is due to high expenditure on sensors and technologies for asset management. However, the wearable segment is estimated to grow the fastest, with a CAGR of 19.1% from 2020 to 2027, owing to increasing awareness for smart wearables to promote risk management on construction sites.
Based on component, the hardware segment held the highest market share, contributing to more than one-third of the total market share of global IoT in construction in 2019, and is expected to maintain its dominance by 2027. This is due to the high price of technology related to IoT embedded products. The connectivity segment is estimated to witness a CAGR of 15.8% during the forecast period, owing to government initiatives for development of connectivity infrastructure.
Based on region, Asia-Pacific, followed by North America, accounted for the highest contribution in terms of revenue of global IoT in construction, contributing to more than two-fifths of the total share in 2019, and will maintain its leadership status throughout the forecast period. This is due to increased expenses on manufacturing infrastructure in countries such as China, India, Indonesia, and others. However, LAMEA is projected to grow at the highest CAGR of 16.9% from 2020 to 2027, owing to the rise in infrastructure development on surging public private partnerships (PPPs).
Leading market players
- Topcon Corporation
- Hilti Corporation
- Autodesk Inc.
- Oracle Corporation
- Hexagon AB
- CalAmp Corporation
- Trimble Inc.
- Pillar Technologies Inc.
- Triax Technologies Inc.
- AOMS Technologies