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.
A comprehensive 250-page market study released on September 3, 2025, finds the global IoT in construction market is estimated at USD 19.3 billion in 2025 and is projected to reach USD 72.1 billion by 2035, representing a compound annual growth rate (CAGR) of 14.1%. The study identifies an incremental market opportunity of USD 52.8 billion over the next decade and highlights a shift from early adoption to broadly integrated, AI-driven IoT ecosystems after 2030.
The study points to a mix of operational and regulatory pressures that are pushing construction firms to adopt connected technologies. Rising labor shortages and productivity demands are making automated monitoring, asset tracking and predictive maintenance high priorities on sites that run heavy equipment or complex schedules. At the same time, tighter safety and environmental rules increase the value of wearable sensors, environmental monitors and machine diagnostics that generate compliance records and post-incident evidence.
Adoption is expected to follow two phases. From 2025 to 2030, project owners and contractors will drive uptake through use cases focused on asset tracking, predictive maintenance and worker safety, with market value expected to surpass USD 37 billion during this period. Between 2030 and 2035, growth is expected to accelerate as large construction firms roll out AI-driven IoT ecosystems to support real-time decision-making, energy management and tighter regulatory compliance.
Asia-Pacific is identified as the key growth engine, led by megaprojects. Country-level projections show higher-than-average expansion in the region: China at 19.0% CAGR and India at 17.6% CAGR from 2025–2035. Europe and North America will maintain steady expansion with notable country-level growth: France ~14.8% CAGR, United Kingdom ~13.4% CAGR, and United States ~12.0% CAGR. China’s growth is tied to large infrastructure investment and broad 5G rollouts; India’s to smart city and PPP projects.
The market is segmented by component (hardware, software, services), by deployment mode (cloud, on-premises, hybrid), by technology (AI, big data analytics, cloud computing, AR/VR), and by application (asset tracking, safety, project management, quality control, energy management, predictive maintenance). Early commercial returns are concentrated in rugged field hardware, cloud platforms that centralize multi-site data, and AI analytics that convert large sensor volumes into actionable forecasts.
Competitive intensity is rising as technology vendors, equipment makers and construction firms collaborate on integrated solutions. Key strategies in the market include partnerships for tailored deployments, interoperable cloud APIs for platform-to-platform integration, and investments in AI-driven predictive capabilities. Security, data interoperability and scalability are recurring priorities for buyers and vendors alike.
Deployment challenges cited include upfront costs for smaller contractors, integration with legacy systems, cybersecurity risks tied to increased data flows, and a workforce skills gap needed to operate and interpret IoT solutions. Typical mitigation pathways include pilot projects, strategic vendor partnerships, staff training and stronger security practices.
As cloud connectivity, edge computing and machine learning mature, the IoT in construction market is expected to expand into planning, monitoring and post-construction maintenance workflows, turning site-generated data into a shared resource for transparency, productivity and regulatory compliance. The most rapid gains after 2030 will come where firms combine sensor networks, AI analytics and centralized cloud platforms at scale.
The market is estimated at USD 19.3 billion in 2025 with projections to reach USD 72.1 billion by 2035.
Hardware accounts for the largest component share in 2025, while cloud deployment leads overall deployment modes and AI leads technology revenue share.
Asia-Pacific is expected to lead adoption, with especially strong growth in China and India. Europe and North America will continue steady expansion.
Asset tracking, predictive maintenance, worker safety, energy management and remote project oversight are the primary near-term use cases.
Key barriers include initial costs for smaller firms, system integration with legacy equipment, cybersecurity concerns, and a shortage of skilled personnel to manage IoT solutions.
| Feature | Summary |
|---|---|
| 2025 market value | USD 19.3 billion |
| 2035 projection | USD 72.1 billion |
| 10-year CAGR (2025–2035) | 14.1% |
| Top component (2025) | Hardware — 56.7% share |
| Top deployment (2025) | Cloud-based — 61.2% share |
| Top technology (2025) | Artificial intelligence — 58.6% share |
| Primary use cases | Asset tracking, predictive maintenance, worker safety, energy management, project oversight |
| Regional growth leaders | Asia-Pacific (megaprojects), with strong country-level growth in China and India |
| Key growth drivers | Labor shortages, regulation, sustainability goals, 5G and cloud/edge tech maturity |
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