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Digital Transformation potential in Smart Construction

Digitally transformative technologies are finding strong traction in construction contexts, where a range of security concerns (including site security, equipment protection, and worker safety) are at a premium. Meanwhile new digitally transformative technologies are changing the way that construction projects are conceived, designed, and delivered so that maximise different stakeholders can work together on the same projects in the most efficient ways possible.

Nine key domains of change in Smart Construction

Overall, we have identified nine key domains of change in the Smart Construction sector that are enabled by digital transformation, as illustrated below.

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These domains of change are discussed in more detail in our report Digital Transformation in the Construction Sector:

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The domains of change discussed in the report comprise:

  • Worker Safety including connected wearables, exosuits, drones, and AR/VR systems used at construction sites to support enhanced jobsite worker safety.
  • Site Security including solutions to guard against unauthorised access and support other aspects of construction site protection.
  • Asset Tracking includes tracking and monitoring solutions to safeguard construction assets (equipment, machinery, consumables, and tools) and prevent theft and misuse.
  • Autonomous Construction including solutions that can perform repeatable and mundane construction tasks.
  • Enhanced Project Efficiency encompasses visualisation of construction buildings including HVAC systems for virtual tours and sharing of real-time project data for timely project execution.
  • Digitised Concrete Management includes concrete sensors used to test and analyse concrete parameters including strength and temperature.
  • Next Generation Construction includes additive manufacturing and prefabrication methods to optimise and modernise the construction process.
  • Digital Marketplace including an online marketplace for connecting construction companies with construction equipment providers. Such solutions offer an environment where equipment can be accessed on an as-needed basis to lower (or remove) financial burdens associated with purchasing construction equipment outright.
  • Enhanced Project Collaboration using BIM (Building Information Modelling) Systems encompasses BIM-based solutions to reduce rework and bring efficiencies across project stakeholders through better collaboration.

Collectively, the activities listed above will bring significant changes to the Smart Construction sector.

IoT and Smart Construction

IoT is one of the key technology groups impacting the Smart Construction sector and further detail and analysis of key IoT applications for the Smart Construction sector can be found in Transforma Insight’s Forecast Insight Reports. Some of these applications are directly relevant to the sector, whilst others are only indirectly related.

Directly related IoT applications and Forecast Insight Reports include:

  • Security Tracking – Includes a range of security-related applications for security guards, prison guards, and for offender tagging. The use of ‘smart soldier’ equipment by defence personnel in a military context is also included.
  • Worker Safety – This report focuses on lone worker safety solutions across various industry verticals, particularly those involving dangerous environments such as logging and mining. It also covers personal monitoring and support solutions, including bodycams, for fire service, police, and emergency medical service personnel.
  • Real Time Location Systems – The Real Time Location Systems Application Group covers the use of trackers attached to pieces of equipment or employees for locating them, typically with great accuracy, in real-time. These solutions are normally used within defined areas (such as hospitals, building sites, and factories) with dedicated infrastructure to support them.
  • Asset Monitoring – This application group encompasses a variety of assets that are suitable for remote monitoring. This includes the monitoring of livestock and associated applications such as automated feeders. It also covers the monitoring of fitness equipment located in gyms and other shared contexts. Tracking and monitoring of equipment in ambulances is also incorporated as part of the healthcare vertical. Furthermore, this Application Group includes connected video gaming machines, gambling machines and other devices such as pachinko machines. Monitoring the condition, availability, and use of assets important to public health such as life rings and defibrillators is also present in this application group, including access to potentially dangerous infrastructure such as substations.
  • Environment Monitoring – The use of sensors to monitor for a diverse range of pollutants or other environmental factors. This might include CO2, flood water, radioactivity, seismic shock, or pollutants from industrial processes, as well as seismic, tsunami, hurricane, and flood monitoring.
  • Infrastructure Monitoring – Includes the monitoring of road and rail infrastructure, dams (including hydroelectric and tailing), levees, reservoirs, weirs, and pipelines, for the purpose of checking for structural issues, breakages, theft, or other faults. Monitoring devices installed during construction projects counts within the Construction vertical but subsequently to the appropriate specific vertical (typically government) at point of handover.
  • CCTV – Connected video cameras used for public safety and surveillance, mostly installed and monitored by government bodies for the monitoring of streets and public places.
  • HVAC – The HVAC Application Group includes smart and connected heating, ventilation, and air conditioning equipment, as might be deployed in consumer or enterprise contexts. Systems are generally comprised of controllers and potentially smart peripheral devices. Devices such as thermostats and air conditioning units are not included in the forecasts unless these devices are themselves smart and connected: ‘dumb’ peripheral equipment and sensors are not included in the forecasts.

Indirectly related IoT applications and Forecast Insight Reports include:

  • Electricity Smart Meters – Devices that record the consumption and, where relevant, generation of electricity at a location and transmits this data to providers. In some instances, these devices transmit usage data to users in order to encourage more energy-efficient behaviour. This application includes smart meters in both residential and commercial settings.
  • Electric Vehicle Charging – This Application Group covers electric vehicle charging points with a connection to monitor usage, load, power distribution, and payments related to electric vehicle (EV) charging for both public and private uses. All EV chargers for homes, workplaces, public and commercial uses have been taken into consideration.
  • Waste Management – Waste Management covers the monitoring and handling of waste to reduce its harmful effects on humans, the environment, and other planetary resources. The Waste Management Application Group includes the use of connected refuse bins (such as those provided by Bigbelly), aftermarket monitoring devices for wheelie bins, and other refuse collection systems.
  • Trigger Devices – Simple devices that are triggered and indicate the need for action, such as something which is full and needs to be emptied or something which is empty and needs to be filled. Examples include buttons for room service, table service, replenishment of communal supplies, commercial mail delivery and collection boxes, and customer voting buttons.
  • Access Control & Intercoms – Access control and intercoms in the context of smart buildings (both residential and enterprise), as well as building access control, and venue monitoring and control for amusement parks and sports venues. Additionally, this application group also includes a range of security solutions used in prisons (for example, CCTV, door sensors, access control and other security equipment). It also covers personal devices for border control guards and devices specifically associated with border control points.
  • Assisted Living – Assisted Living solutions include lifestyle support and people tracking devices for the disabled, elderly, and infirm. It includes connected medicine dispensers for prescription adherence, tracking devices for wander management, alarm systems for fall management, and comprehensive living solutions for round the clock monitoring of patients.
  • Global IoT Forecast Report, 2024-2034
  • Public Space Lighting – The monitoring, control and management of smart lighting for streets and other public spaces, typically provided by local government or utilities. Smart lighting in buildings and other private areas is not included in this Application Group, it is part of the ‘Building Lighting’ Application Group.
  • Building Lighting – Monitoring and control of interior and exterior building lighting. Includes lightbulbs, light fittings (such as smart bulb sockets and smart switch plates), and controls, as might be deployed in consumer or enterprise contexts.
  • Global AIoT Forecast, 2023-2033
  • Building Safety & Security – Building Safety & Security includes sensors, management devices and peripheral devices used for safety and security on commercial premises and private homes. Private Security Cameras used in residential and commercial buildings, are also included in this application group.
  • Road Fleet Management – Road Fleet Management covers in-vehicle transportation logistics solutions including job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. It can be delivered as a service via a dedicated aftermarket device or through factory-fit connectivity (accessed via the vehicle head unit). The forecast takes both heavy- and light-duty vehicles into consideration. It includes devices deployed in cars, vans, trucks, and buses, along with heavy vehicles such as tractors, combine harvesters, pile drivers, tunnelling machines, cranes, and other off-road equipment.
  • Unmanned Non-Road Vehicles – The Unmanned Non-Road Vehicles Application Group represents autonomous wheeled and tracked vehicles used for transporting materials, performing specific tasks or other similar activity in verticals such as agriculture, construction, mining, manufacturing, baggage handling, warehousing, space exploration or emergency response. The types of vehicles covered in this Application Group include forklifts, bomb-disposal vehicles, portside automated vehicles, straddle carriers and other specialised vehicles.
  • Building Automation – Building Automation refers to the centralised control of a building’s HVAC, lighting, security and surveillance systems, access control, electrical systems, doors, blinds, and others. We also include systems for monitoring indoor air quality and systems for monitoring and controlling water flow. This Application Group does not include standalone security alarms, fire control systems, lighting systems, HVAC, lift monitoring systems, access control, lift monitoring and travellators.
  • Gas Smart Meters – Device that records the consumption of natural gas at a location and transmits this usage data to providers. In some instances these devices will transmit usage data to users in order to encourage more energy efficient behaviour. This application includes smart meters in both residential and commercial settings.
  • Water Smart Meters – Water Smart Meters includes monitoring devices that record the consumption of water at a location and transmits this usage data to providers. In some instances, these devices also transmit usage data to users in order to encourage more water-efficient behaviour. This application includes smart meters in both residential and commercial settings.
  • Unmanned Aquatic & Aerial Vehicles (Drones) – This Application Group consists of two main categories: Unmanned Aerial Vehicles, which include fixed-wing and rotor wing unmanned aerial vehicles (UAVs) for military, government, consumer, or commercial use, and Unmanned Aquatic Vehicles that comprises small underwater and surface vehicles, typically manufactured for military use or exploration.
  • Global IoT Forecast Report, 2023-2033
  • Smart Home – This Application Group refers to internet-connected consumer devices or appliances used around the home. The definition includes consumer webcams, household VoIP phones, baby alarms, home weather stations, home fitness equipment, connected photo frames, and distributed screens (including various devices that can potentially incorporate screens to relay information, including mirrors, and clocks). Connected kitchen equipment also features, but appliances such as fridges and freezers are covered in the White Goods Application Group. It also includes other consumer devices such as lost item finders, connected heaters, and connected cat flaps.
  • Real World 'Visualisation' – Includes the use of Human Machine Interface (HMI), Augmented Reality (AR), and Virtual Reality (VR) devices such as smart connected glasses, such as Microsoft’s Hololens, or Google Glass, used in either a consumer or enterprise context; standard and ruggedised tablets that can be used to access information about machinery and processes (and more); and large scale video walls, either in the context of control rooms, or to support immersive experiences.

Other content and related analysis

Besides the detailed sector-focussed content described above, Transforma Insights offers an extensive range of thematic- and vendor-focussed research that will prove invaluable to any end-user seeking to leverage new and emerging digitally transformative technologies.

Of particular note are our Vendor Insight and CSP Peer Benchmarking reports, which provide detailed profiles of leading vendors who might be able to support a range of end-user digital transformation projects.

Our Key Topic Insight reports focus on the qualitative aspects of Digital Transformation, including investigation of interesting or noteworthy topics.

Detailed analysis of regulations that might apply to digitally transformative projects around the world can be found in our Regulatory Database. Meanwhile, our Case Study Database contains more than 1,000 case studies of technology implementations. Each case study contains detailed information on the specifics of the deployment. Used in aggregate it can provide unrivalled guidance on project prioritisation, best practice and vendor selection.

Sector Report

Related Reports

All Reports
REPORT | OCT 06, 2025 | Paras Sharma ; Matt Arnott
This report provides Transforma Insights’ view on the market for Worker Safety solutions involving the use of the Internet of Things. This segment comprises Emergency Services Personal Monitoring and Lone Worker Safety. To provide a safe and worker-friendly environment, companies are ramping up their efforts to reduce workplace accidents and enhance transparency and accountability of workers. Worker Safety solutions can help reduce human and capital loss due to on-site worker injuries. To address this market, manufacturers have developed connected wearable devices in multiple shapes and models which can be worn as armbands, insoles (for tracking a worker’s movement and posture), or as vests. Some devices are equipped with cameras and provide indoor and outdoor location tracking via GPS or beacons. Many devices offer SOS functionality in case of emergencies. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | SEP 17, 2025 | Matt Arnott ; Nikita Singh
This report provides Transforma Insights’ view on the Asset Monitoring market. This segment comprises a diverse set of applications including Livestock Monitoring, Commercial Fitness Equipment, Emergency Medical Services Asset Monitoring, Gaming Machines, and Health & Safety Notification. Remote monitoring of devices enables frequent checks of devices, minimising downtime and costs by detecting potential failures early and allowing maintenance to be scheduled before any issue arises. Also, without the need for physical inspection, a large number of assets can be easily managed across multiple locations. While Short Range connectivity technologies will dominate, many of these applications use LPWA-based solutions due to their extensive coverage, low cost, and low power usage. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity, and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | MAR 28, 2025 | Paras Sharma ; Matt Arnott ; Nikita Singh
This report provides Transforma Insights’ view on the Environment Monitoring market. This segment comprises industrial air, water, noise, nuclear radiation, odour detection, river water pollution, and dust monitors placed across industrial sites to monitor pollutants discharged from industrial processes. The segment also includes earthquake, flood, hurricane, and tsunami monitors placed across vulnerable areas to send real-time data to monitoring centres. Industrial pollution affects millions of lives around the world. Globally, governments are ramping up efforts to lower pollution levels by using alternative sources of energy and monitoring pollution levels using smart environment monitors. By using environment monitors, industries and governments get a better view of the situation and can take appropriate actions to mitigate the risks of air, water, and noise pollution. Monitoring floods, tsunamis, and earthquakes can help in reducing potential damage these natural disasters can cause. Sensor data can alert monitoring centres and communities of potential risks and provide adequate safety measures. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | MAY 01, 2024 | Suruchi Dhingra
Several new regulations are being introduced around the world to promote circular, sustainable, and responsible economies. The goals of these regulations are clear: businesses should deploy an efficient mechanism to review how they design, source, manufacture, dispose, reuse, and recycle products. Mechanisms often report carbon emitted at each stage to promote clean energy use, and also limit the use of harmful substances, increase the degree of reuse and recycling by material composition tracking, limit materials from certain countries, and ensure human rights obligations and thus, responsible sourcing. To track these metrics, most of these regulations stress the importance of visibility and traceability of products throughout the value chain. The accurate collection and reporting of data mandated by the regulations discussed in this report is impossible without employing digitally transformative technologies that enhance the tracking and traceability of the discussed elements. Intelligent track and trace that combines technologies such as distributed ledger, IoT, AI, and analytics will be essential to automate tracking, making it fast and efficient to trace products throughout their journey. The whole process is made efficient through the adoption of a range of techniques: Product identifiers: the key identifier information that a stakeholder needs to accurately identify a product and to access related information. Data sharing: a common standardised way to share information among all relevant stakeholders. Supply chain traceability: essential to prove provenance and qualifications by tracking the origin of materials and physical flow of goods through the value chain. IoT: all of the above drive the adoption of IoT as it enables accurate and efficient data collection. Digital supply chain twin: to virtually track journeys with change of state. Artificial intelligence: intersects with other technologies for additional insights. In this report, we discuss the major regulations (including the EU’s Batteries Regulation, Carbon Border Adjustment Mechanism, and End of Life Vehicles Directive and others and the USA’s Inflation Reduction Act, and various EV battery-related and other regulations from around the world) that are shaping the circular, ethical, and green economy. We also discuss the role technology plays in facilitating the requirements of supply chain transparency related regulations.
REPORT | FEB 20, 2024 | Paras Sharma
The use of video monitoring solutions has unlocked significant improvements, from round-the-clock surveillance for security purposes to object detection, gesture detection, facial recognition, and motion tracking across industries to gain real-time business insights and prescriptive analysis. Using video analytics, businesses can unlock greater value by analysing spatial and temporal information, provide instant alerts in the event of anomaly detection, and take actions when rules are flouted. Business opportunities, deployment challenges, and stakeholder complexities vary across each application. The demand for video analysis is primarily driven by the benefits that it can bring like better operational efficiency, enhanced public safety, and decreased manual work. There is a wide range of applications that can make use of some or all of these business benefits to gain a competitive advantage and provide a quality service or product to the end-user. There are 23 applications, around 7% of the total applications found in our IoT forecast database, for which video analysis can potentially substitute for IoT devices. Livestock Monitoring, Traffic Monitoring, Parking Space Monitoring, Fire and Security Alarms, Patient Tracking, and Trigger devices are some of the key IoT applications which can be substituted with video analysis. As per our analysis, Security Alarms, Stock Level Monitoring, In-Vehicle Road Pricing Devices, and Fire Alarms are the top applications in terms of connected devices that can potentially be replaced by video analysis. The number of IoT devices for the above-mentioned applications is expected to grow from around 0.9 billion in 2022 to around 2.4 billion by 2032. Even though the share of IoT devices that can be replaced by video analytics is expected to be less than 10% during the forecast period, we cannot neglect the potential of video analysis due to its business benefits and varied use cases across applications. Additionally, in cases where video analytics can substitute for LPWA connections, this substitution may represent an upsell opportunity for mobile network operators and an opportunity to deploy a higher bandwidth connection.