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Internet of Things (IoT) in Construction – Thematic Research

GlobalData has a positive view on the outlook for the global construction industry following the historic collapse in activity in 2020 due to COVID-19 restrictions. The global IoT in the construction market is expected to witness significant growth in 2025 increasing from $4.4 billion in 2019. IoT is one of the most significant technological investment areas for construction companies. Companies that invest in IoT will be long-term winners in the construction industry.

IoT is key to digitalization in the construction industry. The internet of things, or IoT, describes the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. IoT is hugely beneficial to the construction industry. It allows different assets and people to be monitored and accounted for across a traditionally fragmented industry.

What are the market dynamics of IoT in construction?

Sensors, asset monitors, wearables, and integration with building information modeling (BIM) can all improve safety, productivity, and, therefore, profit margins. For an industry that has large sites to manage, strict project timelines, hazardous working conditions, and tight profit margins, IoT can create a manageable view of construction sites for project managers, streamline operations, and protect workers. However, industry uptake of IoT is not uniform globally. Over the next five years, IoT will continue to disrupt the construction industry, particularly as edge computing develops and improves data processing capabilities, alongside the proliferation of connected devices. All construction companies should therefore invest in IoT.

COVID-19 saw construction projects halted to prevent the spread of the virus among workers. However, as the world enters a post-COVID era, more construction workers are returning to work. As construction project momentum picks up, investing in new technologies, like wearables, is essential to keep employees safe. IoT proximity sensors can help manage social distancing and track any potential outbreaks. According to a survey by GlobalData, 62% of construction industry executives strongly agree or agree that technology spending in the construction industry will accelerate because of COVID-19. Health and safety is a key business use case for IoT in the construction industry. Wearable devices can measure dangerous vibration levels, proximity to others, and proximity to electricity. Also, IoT sensors can also automate different tasks, speeding up project delivery.

Technologies like building information modeling (BIM) are becoming more widespread in construction projects, digitalizing processes, and keeping stakeholders informed. IoT integration with BIM technology is the future of the construction industry, visualizing sensor data within a BIM model and creating a complete picture of projects in real-time. As IoT and AI become more commonplace in the construction industry, companies can use existing data to forecast the materials and labor needed for a new project during the procurement stage.

What are the value chain segmentations in IoT?

According to Globaldata, the value chain for IoT is classified into five layers: devices, connectivity, data, apps, and services. In the device layer, we find the makers of connected things, including sensors, embedded chips, and their components. Connected things can include connected cars, smart thermostats, fitness bands, smart light bulbs, or a parcel in a delivery truck. The essential electronic components include microcontroller chips, AI chips, communications chips, and sensors.

The connectivity layer comprises the process starting from the first entry point into a data network to the transfer of stream data around data centers where it can be analyzed. The app layer provides consumers and enterprises the control systems they need to track and monitor connected devices. This layer is likely to become the most profitable segment of the IoT value chain.

In the data layer, the information is collected, processed, integrated with other systems, analyzed, and utilized in an IoT environment. As the IoT grows, sensors will pop up everywhere, resulting in a massive increase in the amount of data collected. In some instances, the sheer volume of data collected at the edge of the network will make it infeasible to transport it to a central hub, so it will have to be processed at the edge. In the services layer, we find the technology service providers who provide system integration, consulting and other data services related to the development and maintenance of IoT ecosystems.

Which are the leading construction companies in the IoT theme?

The major construction companies in the IoT theme include Acciona, AECOM, Balfour Beatty, Ferrovial, Koninklijke BAM, Laing O’Rourke, and Larsen & Toubro (L&T).

IoT in construction, Key players

IoT in construction, Key players

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Market report scope

Key Companies Acciona, AECOM, Balfour Beatty, Ferrovial, Koninklijke BAM, Laing O’Rourke and Larsen & Toubro (L&T).
Value Chain Devices layer, Connectivity layer, Data layer, Apps layer and Services layer.

This report provides an overview of IoT in construction. It provides:

  • Comprehensive IoT value chain identifying the five layers of IoT technologies: device layer, connectivity layer, data layer, app layer, and services layer. The value chain explains these layers and drills down into different issues and trends within these layers
  • Analysis of the main challenges facing the construction industry and impact assessment of IoT on the construction industry, addressing many of these challenges
  • Extensive coverage and analysis of relevant companies’ relative positions in the IoT theme. This includes leaders and laggards in IoT
  • Listing and analyzing of all AI-related M&A activity in the construction industry from January 2020-present
  • Forecast valuations of the IoT in the construction market up to 2025, segmenting the market by IoT services, IoT software, and IoT hardware
  • Unique thematic scorecard that ranks construction companies according to their positioning in the ten themes most important to the industry, of which IoT is one
  • Construction executive opinion survey results and data on IoT patents and jobs for leading construction companies
  • Case study examples of market-leading use cases of IoT in the construction industry

Reasons to Buy

  • Survive the COVID-19 downturn by understanding how IoT can navigate problems, enhance site safety, streamline operations, and automate tasks.
  • Position yourself for future success by investing in the right IoT technologies. Cut through the noise with GlobalData’s invest-explore-ignore ratings for each IoT technology for each segment of the industry (conceptual design, feasibility studies, planning and permitting, financing, design and engineering, construction, and operations and maintenance).
  • Benchmark your company against 48 companies in the construction sector in terms of how prepared each business is for IoT disruption.
  • Develop relevant and credible sales and marketing messages for construction companies by understanding key industry challenges and which IoT products are desired.
  • Identify attractive investment targets by understanding which companies are most advanced in the themes that will determine future success in the construction industry.

Key Players








Balfour Beatty

Bouygues Construction Matériel


Built Robotics





Gammon Construction

General Electric (GE)





Johnson Controls International

Koninklijke BAM


Laing O’Rourke

Larsen & Toubro (L&T)






PCL Construction







Samsung Electronics






Smart Cap Technologies

Software AG








Table of Contents


Value chain

Construction challenges

The impact of IoT on construction

Case studies

Market size and growth forecasts

Mergers and acquisitions

IoT timeline


Sector scorecard


Further reading

Thematic methodology

Frequently Asked Questions

The IoT value chain is segmented into devices layer, connectivity layer, data layer, apps layer, and services layer.

The major construction companies in the IoT theme include Acciona, AECOM, Balfour Beatty, Ferrovial, Koninklijke BAM, Laing O’Rourke, and Larsen & Toubro (L&T).


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