IoT in Construction Market to Reach USD 72.1 Billion by 2035, Driven by AI, Smart Safety, and Connected Equipment

The global construction industry is preparing for a sweeping transformation as the IoT in construction market surges ahead, projected to grow from USD 19.3 billion in 2025 to an impressive USD 72.1 billion by 2035. This strong expansion, at a compound annual growth rate (CAGR) of 14.1%, highlights how connected devices, advanced analytics, and artificial intelligence (AI) are reshaping building and infrastructure development worldwide.

Between 2025 and 2030, much of the growth will come from contractors and project owners deploying IoT solutions for predictive maintenance, worker safety, and asset tracking. As the decade progresses, between 2030 and 2035, the next wave of adoption is expected to be powered by AI-driven IoT ecosystems, enabling large-scale construction firms to make real-time, data-informed decisions while meeting stringent sustainability and safety regulations.

Why the Market is Expanding

The construction sector has long faced challenges of cost overruns, labor shortages, and safety hazards. IoT solutions are emerging as a direct response to these issues. By integrating sensors, connected devices, and cloud platforms, construction companies now have the ability to monitor energy use, track equipment, and ensure worker safety with unparalleled precision.

Full Market Report available for delivery. For purchase or customization, please request here: https://www.futuremarketinsights.com/reports/sample/rep-gb-24283

Governments are investing heavily in smart infrastructure, while private developers are embracing digital transformation to cut downtime and operational waste. From structural monitoring to environmental sensors and wearable devices, IoT is helping construction firms stay compliant with regulations, reduce risks, and improve efficiency on projects of every scale.

Another driver is sustainability. With stricter global mandates for energy efficiency and green building standards, IoT-based energy management and predictive systems are becoming essential. This alignment of operational goals with regulatory and environmental priorities is creating long-term momentum for adoption.

Segmental Insights

Hardware Leads the Market

Hardware is projected to dominate the IoT in construction market in 2025 with a 56.7% revenue share. From GPS trackers and RFID tags to safety monitoring wearables, connected hardware forms the foundation of IoT ecosystems at job sites. Rugged, scalable devices are being designed to withstand harsh outdoor conditions, supporting everything from real-time asset tracking to structural monitoring.

Cloud-Based Deployment Accelerates Growth

Cloud platforms are expected to account for 61.2% of the market by 2025. Their scalability, flexibility, and ability to centralize data from multiple project sites make them indispensable for large contractors managing complex infrastructure projects. Cloud systems also simplify integration with analytics platforms, BIM tools, and third-party applications, streamlining collaboration across stakeholders.

Artificial Intelligence Becomes the Core Driver

Artificial intelligence is emerging as the most transformative technology, forecast to capture 58.6% of market revenue in 2025. AI algorithms enable predictive maintenance, safety analytics, and resource optimization, helping firms identify risks and delays before they escalate. The combination of AI with drones, robotics, and wearables is unlocking unprecedented opportunities for automation and decision-making in construction.

Global Market Dynamics

Asia-Pacific at the Forefront

Asia-Pacific is the fastest-growing region, fueled by China's megaprojects and India's smart city initiatives. With China expected to grow at a 19.0% CAGR and India at 17.6%, this region will become the largest hub for IoT-driven construction solutions. Large-scale 5G rollout and digitalization of urban projects are accelerating adoption.

North America Prioritizes Safety and Smart Infrastructure

North America remains a leader in deploying IoT for safety compliance, connected equipment, and smart building systems. The U.S. market alone is forecast to grow from USD 243.2 million in 2025 to USD 433.5 million by 2035 at a 12.0% CAGR, reflecting the region's strong investment in commercial and residential IoT applications.

Europe Embraces Digital Transformation

Germany, France, and the United Kingdom are driving Europe's growth through adoption of predictive analytics, IoT wearables, and smart infrastructure upgrades. France is forecast to grow at 14.8% CAGR, while Germany leads Western Europe with 16.2%, underpinned by regulatory incentives and government-backed digital construction projects.

Spotlight on Key Countries

China is projected to dominate global growth with IoT integration expected across 80% of large projects by 2030. India is closely behind, with IoT-linked BIM adoption expected to surpass 70% of large projects by 2032. Meanwhile, France and the UK are rapidly expanding IoT-enabled energy monitoring and safety systems to meet new regulatory requirements.

In the U.S., IoT adoption is rising as contractors leverage connected fleet management and insurance-backed safety compliance programs. This is helping to improve project transparency and lower operational risks.

Request Market Research Draft Report: https://www.futuremarketinsights.com/reports/iot-in-construction-market

Competitive Landscape

The competitive environment is intensifying as established players and new entrants alike seek to innovate. Autodesk is enhancing BIM with IoT data integration, while Oracle's cloud-based project management tools are enabling real-time analytics. Caterpillar continues to expand IoT-enabled telematics in heavy equipment, helping contractors track performance and reduce maintenance costs.

Hexagon AB's geospatial solutions and Hilti's connected tools are reshaping accuracy and efficiency on job sites. CalAmp specializes in fleet tracking, and Giatec offers IoT-based concrete testing and monitoring. Newer entrants like Kreo are pioneering AI- and IoT-powered project planning platforms, while Losant provides flexible IoT analytics for connected job sites.

What unites these companies is a shared commitment to scalability, interoperability, and safety. Partnerships between construction firms, equipment manufacturers, and technology providers are becoming increasingly common, as integrated solutions are proving to be the future of construction.

Opportunities and Challenges

The incremental market opportunity of USD 52.8 billion by 2035 underscores IoT's critical role in modernizing construction. Still, challenges remain. Data security, interoperability between platforms, and upfront hardware costs can slow adoption. Yet as cloud connectivity and AI mature, these hurdles are expected to be addressed, paving the way for wider, more seamless integration.

Related Reports:

Perimeter Intrusion Detection Market: https://www.futuremarketinsights.com/reports/perimeter-intrusion-detection-market

RFID in Pharmaceuticals Market: https://www.futuremarketinsights.com/reports/rfid-in-pharmaceuticals-market

Defense Communication System Market: https://www.futuremarketinsights.com/reports/defence-communication-system-market

Contact Us:

Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware - 19713, USA
T: +1-347-918-3531
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

This release was published on openPR.