Introduction to IOT in construction market
Construction means formation of objects, systems and organizations as it covers the processes including buildings, infrastructure, and more such associated activities. Further, internet of things is the ability of internet enabled devices to communicate independently. Since, construction market is fundamentally changing to enable the productivity and process improvement, Internet of Things continues to have a greater impact on working of the industry. Construction companies are adopting technology to address workplace concerns to understand what’s happening at different stages of the construction process in real time. Internet of things is widely used in remote operations, safety management and predictive maintenance applications.
Market Size and Forecast
The market for IoT in construction is anticipated to record a CAGR of around 16% over the forecast period, 2020-2028. The key factors expected to drive the growth of the market include safety & security concerns, increase in the productivity at construction site along with a significant demand for IoT in construction. In order to overcome challenges related to safety and theft at the construction site, human security agents are not sufficient to monitor the huge construction sites. With the help of IoT, the sensors will easily notify the current location of the lost material and it will update the risks associated with the work and the workers. Further, with real time IoT data, every worker will get updated about the job site issues and will be able to prevent the situations that can lead to an incident.
The application type is segmented into remote operations, predictive maintenance, fleet management, safety management and others, out of which, the remote operations segment is anticipated to account for the largest share owing to the growing usage of internet of things for machine control and real time monitoring of workers. It allows the machines to connect with physical or wireless internet to give instructions remotely. IoT operates in such areas that are hazardous for humans because of toxic gases or pollution and helps them to benefit from remote support. These factors are anticipated to account for the growth of the market over the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Growth Drivers
Rise in the Productivity and Maintenance at Construction Sites
In construction sector, it is mandatory to meet the deadlines and targets, in order to avoid budget increase. Internet of things leaves people with less labour work and enables more efficiency. Further, through IoT the adequate supply of materials is ensured as the supply unit is fitted with a suitable sensor which automatically decides the quantity and make orders automatically for the smoothness of the project.
In addition, it is important to manage the fuel and power consumption, as inactive management of them will impact the overall cost of the project. IoT gives real time information about the status of every asset, refuelling of the equipments and schedules of maintenance. Moreover, sensors can be used to monitor the issues regarding damage along with the expiration of the materials. These factors, allow the clients to focus on their core business and thus, driving the growth of the market over the forecast period.
Restraints
High Initial Cost of Implementing Internet of Things in Construction Market
The price of Internet of Things is usually higher than the initial hardware and software implementation. In addition, with the greater functionality of IoT, companies have to pay higher price. For an IoT solution, vast amount of data is generated and invoicing of this data will cost to metered billing, thus affecting the pricing model. Moreover, hardware is most important parameter that decides the cost of production and more complex is the technology; more will be the cost of implementation. Therefore, high cost of IoT is predicted to act as a restraint towards the growth of market over the forecast period.
Market Segmentation
Our in-depth analysis of IoT in construction market includes the following segments:
By Product Type
- Hardware
- Software
- Services
By Application Type
- Remote Operations
- Fleet Management
- Safety Management
- Predictive Maintenance
- Others
By Project Type
- Commercial
- Residential
- Others
By End Users
- Manufacturing
- Infrastructure
- Mining
- Others
By Region
On the basis of regional analysis, the IoT in construction market is segmented into five major region including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market for IoT in construction in North America is anticipated to dominate the market on the account of presence of multiple Original Equipment Manufacturers (OEM’s) grabbing the use of internet of things in the construction in the region. The Asia Pacific region is projected to account for the highest growth rate owing to the increased demand of IoT in construction from India, China and other Asian countries. The rise in the digitalization and investment in construction sector is fueling the growth of the market.
The IoT in construction market is further classified on the basis of region as follows:
- North America (US and Canada) Market size, Y-O-Y growth and Opportunity analysis.
- Europe (France, Germany, Italy, Spain, UK, and Other parts of Europe) Market size, Y-O-Y growth and Opportunity analysis.
- Asia Pacific (Japan, India, Thailand, China and rest of Asia Pacific) Market size, Y-O-Y growth and Opportunity analysis.
- Latin America (Mexico, Argentina and Brazil) Market size, Y-O-Y growth and Opportunity analysis.
- Middle East & Africa (Middle East, South Arabia and South Africa) Market size, Y-O-Y growth and Opportunity analysis.
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