IoT in Construction Industry: Challenges & Use Cases

The potential use of IoT in construction and real estate areas is tremendous. The Internet of Things (IoT) refers to a network of interrelated computing devices, and the technology that facilitates communication between these devices. These devices are embedded with sensors, processing ability, software, actuators, and other technologies enabling them to connect with each other and send and receive data. It is estimated that by 2025 there will be over 75 billion IoT devices, which brings into limelight the increasing importance of an IoT development company.  

IoT in Construction: Scope and possibilities

As per reports, construction firms are fully aware of the scope and possibilities of digital technology. According to a KPMG survey, 95% of companies involved with the construction sector believe that emerging technologies like IoT will have a profound impact on their industry. Over 70% say new technology adoption, including IoT deployments, is part of their long-term objective for better ROI.

According to PwC, 98% of businesses operating in construction sector believe that adaptation of technology like IoT can boost their overall efficiency by as much as 20%. Construction is one of the sectors set for digital revolution, which means organizations that are slow to respond run the risk of lagging behind their competitors. The scope and possibility of IoT in the construction sector is tremendous. It is for the simple reason that the construction industry is evolving at a quick pace to meet the ever-growing needs and expectations of a growing population and rapid urbanization. 

The construction industry is quickly adopting new tactics, technologies and techniques to improve their efficiency, and deal efficiently with challenges common to the sector. The construction industry can employ a lot of technologically based devices and equipment that can help organizations make optimum use of resources, and minimize wastage of available resources with correct technological planning and regulated expense. These devices can also minimize risks which are comparably higher in construction industry as compared to other industries. 

The Internet of Things (IoT) offers a site where equipment, materials, and workers are tied to a central that monitors their activities in real-time. This ensures that all safety precautions are followed, rules and regulations are strictly adhered to, and resources are properly utilized. 

Applications of IoT in Construction Industry

Wearable devices to minimize risk of injury

These are the gadgets that can be given to laborers working at the construction sites to minimize risks of injury and accidents. Such devices can issue a warning noise or signal if a worker gets too close to a risky zone. Such IoT gadgets can also be used to track the position of a worker involved in some accident or mishaps.

These wearables devices come equipped with sensors connected to the central server, which serves as a data repository, and provides real-time warnings or instructions to workers. 

One notable name when it comes to manufacturing of wearable devices for construction workers is Smartcap. 

Project delivery within time and budget 

The inability to complete projects within the scheduled time, and within the specified budget has been the scourge of construction industry since a long long time. This problem has only been getting worse with time as rising cost and complexity of modern construction projects leads to more cost overruns. The use of IoT apart from helping keeping a tab on resources can also help in estimation, thus giving managers, and investors more confidence about completing the project on time.

Real-Time Site Map

This technology can be used to keep tracks of the workers on the job site, and ensure that they are kept out of the danger zone. Such devices can be employed to create a real-time map of the construction site so that concerned authorities are aware of a worker’s location and the work that is being carried out.  

Also, some danger zones can be marked on the map to ensure that only few people with the necessary authorization can enter such spaces.  and others can be discouraged from entering such spaces if it’s not necessary.

Maintenance systems to keep a tab on construction-related expense

There are IoT devices that can help an organization keep a tab on construction-related expenses. These devices can track and record data that can help management comprehend how resources are being utilized, and what more can be done to make full use of available resources. 

For example, Bimba is a tool that tracks downtime of machines. A good IoT development company can help you develop IoT devices that will efficiently cater to all your requirements.

IoT can help deal with labor shortage 

Shortage of skilled labors and workers is one of the major issues plaguing the construction industry. The situation has gotten worse because of the pandemic. 

As more and more boomers retire from the construction industry, the shortage of skilled labors to replace them is being acutely felt. According to reports, the construction industry is currently facing shortage of 350,000 employees in the field.

IoT-based automation can speed up the work of pending projects, and help organizations deliver projects on time. 


The construction sector has been quickly adopting new technologies and communication strategies to deal with several issues that the industry has to confront on regular basis. A reputable IoT development company can help businesses operating in the construction industry by designing IoT solutions that can help them efficiently deal with resources management and budgeting. IoT devices can also help with adequate utilization of resources to keep the project within budget.