IoT in Construction: Use Cases, Benefits, and Challenges

IoT technology has exploded in popularity in recent years, triggering the mass proliferation of smart devices, wearables, and interconnected webs of sensors. It's revolutionised healthcare, reshaped consumer experiences, and, in the context of construction, overhauled the day-to-day work of global projects.

But how did we get here? How is IoT evolving the construction sector as we know it? And, what are the key IoT use cases driving change within this industry?

In this article, we're taking a deep dive into IoT in construction, with a focus on the how, what, and why of the Internet of Things.

We'll be covering:

What is IoT in construction?
How has IoT impacted the construction sector?
What are the benefits of IoT in construction?
What are the key use cases for IoT in construction?
What are the challenges of IoT in construction - and how are senior leaders tackling them?
What's next for IoT in construction?
Tackling IoT within your business

Let's dive right in.

What is IoT in construction?

Before we get into the details, what do we mean by construction IoT? The Internet of Things refers to devices embedded with software, sensors, and processing faculties to connect to, and transfer, data over the web.

These can range from home devices, like smart fridges that alert you when stock is low, to industrial machinery equipped with IoT technology that transforms metal into an autonomous behemoth.

In the context of construction, the interconnectivity of IoT devices is phenomenally important. From wearable devices that track worker safety metrics to IoT machines that survey sites - the construction industry has increasingly relied on IoT to streamline it’s operations.

How has IoT impacted the construction sector?

By the end of 2024, the State of IoT report predicts that there will be over 18 billion IoT devices worldwide, with the construction industry driving a sizeable portion of that growth. So much so, that the construction IoT market is projected to reach 26.5 billion by 2027, growing at a compound annual growth rate of 16.5%.

But what has led to this rapid growth? And what makes IoT technologies so valuable to the construction sector?

Despite existing as a technology - in one form or another - since the early 90s, IoT really came into its own since the 2010s. In fact, at the turn of the decade, the number of connected machines surpassed the number of humans on the planet.

While for many this looked like Fitbits and smart thermostats, for the construction industry this resulted in a host of innovations, including:

Worker safety wearables (like smart helmets or sensor-enabled boots)
Environmental sensors (to monitor for things like temperature, humidity, pressure, etc)
Machinery and equipment monitoring devices (to provide on-site analytics or report equipment integrity)
Remotely operated devices (to provide access to otherwise inaccessible or unsafe sites)
IoT-powered site surveys (to provide detailed project overviews)

The autonomy, insights, and collaborative opportunities presented by IoT devices have resulted in a number of benefits for the construction sector.

What are the benefits of IoT in construction?

Evolving a traditionally hands-on sector into a digitally interconnected web of data, IoT, has, perhaps unsurprisingly, triggered a waterfall of benefits.

Improved efficiency and productivity rates: With the ability to monitor equipment downtime, resource requirements, labour metrics, and more - IoT devices can dramatically improve the efficiency of construction projects while accelerating their productivity potential overall. With IoT, senior leaders can rely on real-time insights that allow them to better plan the purchasing of materials, update machinery, or create safer working environments. Better yet, this vast collection of data can be collated in one spot, to allow for top-down analysis that delivers better construction lifecycles overall.
Automating mundane or unsafe tasks: Not all tasks are created equal, and in the context of construction, this can sometimes look like risky environments, monotonous labour, or needlessly slow-paced methods. With IoT technology, teams can intertwine human skill sets with IoT devices to automate parts of the construction process. This might look like autonomous tracking of worker productivity, or, it could even look like brick-laying robotics that report on the integrity of a building overall. For construction companies, this is an immediate value-add, that can fill labour gaps, improve employee morale, or accelerate project delivery times.
Improved safety: Perhaps one of the greatest benefits of IoT in construction has been the improvement of worker safety, and the integrity overall of development sites. From wearable devices for contractors to remote-monitoring devices, IoT has been a key part of the puzzle when it comes to creating a better working environment overall. Better yet, with IoT, data is continuously monitored, logged, and easily shared - so construction sites can meet compliance requirements with more ease.
Predictive maintenance: The construction sector relies on a sizeable suite of expensive machinery and equipment to keep its projects running. Companies can quickly haemorrhage cash, not just in the upkeep of these devices, but in unexpected downtime when equipment fails to deliver. With IoT, however, devices can either self-report their maintenance needs, or, the technology can be used to survey, monitor, and report the health status of on-site equipment. This allows teams to better plan for equipment maintenance, extend the lifespan of tools, and prevent as much downtime as possible.
Resource and waste management: Site materials are crucial to keeping construction operations going, but they come at a premium. Fortunately, IoT can make the monitoring, upkeep, and reporting for site materials simple - allowing teams to accurately predict project needs, prevent wastage, and optimise expenditure overall.
Data-driven planning: Construction teams have a powerful competitive advantage when equipped with a vast interconnected web of data. By collecting and analysing the insights of IoT devices, teams are not just better equipped to see the state of things today, but also to intelligently plan the next steps needed to deliver on the project.
Sustainability and reporting: IoT devices can be particularly useful when it comes to measuring the environmental impact of a project - allowing a company to report on air quality, noise levels, energy consumption, and more. Armed with this data, companies can improve the eco-friendliness of their projects, in addition to reporting on climate commitments they may have made. This extends to the social responsibility of construction companies, with IoT devices providing a window into worker safety, satisfaction, and opportunities to make staff happier overall.

What are key use cases for IoT in construction?

So, we've explored IoT's rise in popularity, how it has impacted the construction sector, and the key benefits teams are facing today. Next, let's dive into the most popular use cases for IoT in construction.

Equipment monitoring

Knowing the health, location, and usage of our devices is pretty advantageous information to have. IoT-equipped machinery has now become commonplace across the construction sector, in turn making predictive maintenance, productivity reporting, and project progress an intuitive part of the technology. The result? Greater control over company materials, and less downtime overall.

IoT-enabled sites

You've most likely come across a "smart home" or a "smart city" in recent years. Perhaps in your own home, you can control the temperature and lighting from the ease of your mobile phone. This same ease of control has extended to construction, with "smart sites" that embed IoT at the heart of their operations. From drones to automated machines, to wearable devices, these connected sites report on a wealth of information - resulting in a more performant operation overall.

Materials and supply chain management

As mentioned, IoT can monitor site equipment, report on its integrity, check for resource dips, and predict project needs. This is a particularly advantageous use case for senior leaders running construction projects - allowing them to manage on-site resources while providing the information needed to tackle supply chain management with a competitive edge.

Site-wide safety improvements

The safety of a site and its workers is one of the greatest priorities of any construction project. However, without the right data, risks can be almost impossible to mitigate. Prone to dangers, the construction industry has earned a damning collection of statistics that point to the dire need for safety improvements within the sector.

Between 2023/2024, the Health and Safety Executive reports that construction deaths accounted for twice as many fatalities as the second most impacted industry (agriculture, forestry, and mining).
In 2023, the HSE reported that 69,000 construction workers suffered from work-related ill health (from physical ailments to mental health problems).
In total, 2.6 million working days were lost in the construction sector, due to workplace injuries and health problems.

IoT is a game-changer here, both from the context of monitoring a worker's safety, to equipping teams with autonomous machinery that can take over the most risky components of a project.

Better yet, IoT devices can report back on this data, highlight areas for improvement, and flag to teams where safety measures may be failing.

Site surveillance

From mapping a site to monitoring it throughout a project's lifecycle, drones and IoT-enabled devices have become a huge component of smart site surveillance. With IoT, teams can take a bird's eye view of construction sites, in addition to monitoring unusual activity and alerting HQ to damage or vandalism. This allows for better planning, risk mitigation, and resource preservation.

Regulatory compliance

The construction sector is beholden to a number of compliance requirements, but collecting, recording, and sharing that data can be a mammoth task. Fortunately, with IoT, devices can self-report and record site-wide quality issues - and flag far in advance when something needs to be rectified. This helps construction companies meet compliance requirements with greater ease - in addition to resolving issues at speed.

What challenges do senior leaders face with IoT in construction and how do they tackle them?

While IoT devices come with a host of benefits, like any technology, they have their challenges. Below, we tackle some of the most common issues that go hand-in-hand with IoT, and how senior leaders tackle them.

Cybersecurity: We're starting with one of the biggest threats when it comes to IoT: data security. Your devices will record and report on a lot of data, and much of it will be sensitive. Whether that's worker data or confidential site specifics, this is information that you don't want in the public eye. And, thanks to GDPR regulations, a data breach could set you back up to £17.5 million or 4% of your annual revenue - whichever is higher. For senior leaders that invest in IoT, cybersecurity measures, security audits, and employee training is a key priority.
Integration with legacy systems: While the construction sector has undergone an impressive digital transformation, many companies still use a series of legacy systems that keep the business propped up. As a result, IoT integration can, at times, be challenging - which limits the benefits construction companies can glean from their expensive investment. For many senior leaders, a phased approach is taken to new technologies, with a progressive update of a construction company's technological ecosystem.
Demonstrating ROI: IoT devices can be costly, extending far beyond the device itself, into the need for skilled workers, staff training, device maintenance and more. While there are numerous benefits to IoT, proving that benefit can be a challenge. For senior leaders looking to earn buy-in, it is advisable to run pilot projects that can quickly demonstrate value, and earn the trust of the business overall.
Human resistance: Perhaps one of the most common challenges, across countless industries, is the human instinct to resist change. In the construction industry, this can be pronounced, with 77% of respondents in one survey stating they found the implementation of new technologies within their business challenging. This leads to low adoption rates, poor utilisation of resources, or misused equipment. For senior leaders looking to scale this challenge, it's important to focus on quality training, demonstration of benefits, and accountability frameworks that embed IoT devices as an intuitive part of workers' day-to-day.

What's next for IoT in construction?

In just a few years, IoT technology has had a massive impact on the construction sector, from creating safer workplaces to creating more efficient project lifecycles. So, what's next for construction IoT?

AI and machine learning: AI has experienced a phenomenal boom in recent years, thanks to improvements in the foundation models available, the capability of hardware, and the increased ability of companies to create custom models. We can expect AI-powered IoT devices to become increasingly popular as the tech advances.
Smart materials: While the notion of self-healing concrete sounds like science fiction, it (and many other smart material innovations) is on the rise. Combined with the self-reporting capabilities of IoT, we can expect an even more advanced approach to materials and their maintenance.
Autonomous vehicles: While autonomous vehicles have been in the pipeline for quite some time, on-site autonomous machinery is now a reality within the construction sector. While they remain a costly purchase, they can have huge impacts on the automation, safety, and operational processes of construction projects. As innovation accelerates in this sector - the accessibility of autonomous construction vehicles is expected to improve.

Tackling IoT within your business

Implementing IoT within your construction company? Whether you're addressing how to integrate IoT with infrastructure, or exploring the best way to keep your team connected - Lyon Tech can ensure you get the most value from your investment.

Discover Lyon Tech for construction IoT now.