Imagine a construction site where materials are tracked in real time, and potential equipment failures are predicted before they happen. This isn’t the future—it’s happening now, thanks to the transformative power of Internet of Things (IoT) in the construction industry.
A game-changer across multiple industries, from manufacturing to healthcare, construction is one of the more surprising sectors where IoT is making significant inroads.
IoT is transforming equipment reliability and project management for the construction industry in ways previously unimagined by enabling informed decision-making and better coordinated workflows. The industry faces excessive pressure because of tight deadlines, and the need to optimize resources to meet narrow budgets. There is also a need to quickly locate and ensure equipment is used safely in designated areas.
IoT injects value in all of these cases—transforming the way the construction industry operates.
A New Era for Construction
At its core, IoT involves the connection of physical devices—often through sensors—to a network, enabling data collection and remote control. While this concept has had a major impact on sectors like retail and automotive, its application in construction might seem unexpected. Yet, connected devices and IoT sensors are now playing a pivotal role in streamlining construction processes, particularly in the management and maintenance of equipment.
The construction sector has always faced challenges related to tight deadlines, narrow budgets, and significant investments in equipment. A single piece of malfunctioning equipment can bring entire projects to a halt, leading to costly downtime.
This is where IoT sensors, integrated with connected systems like a Computerized Maintenance Management System (CMMS), are making all the difference.
Data-Driven Decision-Making
In a commercial construction project, where timelines are tight, equipment reliability is critical. Downtime from unexpected equipment failures can derail an entire project, jeopardizing deadlines and financial outcomes. According to a study by McKinsey & Company, poor equipment management can contribute to as much as 20-25 percent of lost productivity in construction projects.
Enter IoT. By deploying IoT sensors on construction equipment, companies can continuously monitor the health of their machinery. These sensors collect and analyze data on factors such as temperature, humidity, and vibration, offering real-time insights into the condition of equipment. This continuous data stream enables construction firms to make better, data-driven decisions about when to service or replace machinery.
Instead of reacting to breakdowns, companies can now take a proactive approach, addressing equipment issues before they become costly problems. For instance, maintenance enabled by IoT sensors can revolutionize how construction companies manage their assets. The data from IoT sensors triggers action when equipment reaches a maintenance-ready state. This is a form of condition-based monitoring, which is part of predictive maintenance.
Commercial Projects and the Impact of Downtime
A study by Deloitte found that predictive maintenance can reduce unplanned downtime by up to 50 percent and extend the life of machinery by 20-40 percent, a significant improvement for companies managing fleets of high-value construction equipment.
Downtime is the enemy of any construction project. When equipment fails unexpectedly, it not only halts the project but can create a cascade of issues, including missed deadlines, budget overruns, and strained client relationships.
Imagine a commercial construction project relying on a crane that suddenly breaks down. The crane is essential for moving materials, so every minute it’s offline translates into lost time, escalating labor costs, and possible fines for project delays.
By integrating IoT sensors with a CMMS, construction companies can effectively mitigate such risks. The CMMS system continuously monitors the data provided by IoT sensors, and as soon as a potential issue is detected. It automatically generates a work order for the equipment in question if there are any problems or concerns. This not only saves valuable time but also removes the burden of manually assigning tasks to the maintenance team.
Condition-Based Monitoring
A key advantage IoT brings to the construction industry is the shift from traditional maintenance approaches to condition-based monitoring. Condition-based monitoring ensures that maintenance is performed when certain predefined conditions are met. So, if the temperature of a piece of equipment rises above a certain threshold, or if humidity levels reach a point that could cause corrosion, IoT sensors alert the system.
The CMMS then uses this data to automatically schedule maintenance or adjustments, preventing minor issues from evolving into major, costly breakdowns.
This approach offers several benefits. First, it reduces the need for unnecessary maintenance, as equipment is serviced only when needed. Second, it minimizes the risk of catastrophic failures by catching problems early. And, it ensures equipment reliability, which is critical for safety, meeting project timelines and staying within budget.
IoT in Action in Construction
Many commercial construction firms have already adopted IoT technology. IoT-powered predictive maintenance not only reduces downtime but improves worker safety by supporting OSHA compliance. This proactive approach helps prevent accidents, ensures a safer working environment, and reduces the risk of costly legal fines due to non-compliance.
Another use case is to track devices. IoT sensors can act as GPS trackers, helping workers and project managers find equipment and ensure it’s used or stays in a specific area. This system connects with a CMMS to improve work order and project management.
Additionally, IoT devices help in measuring worker productivity and maintaining optimal levels of inventory in the construction industry, though the former use case is gradually gaining traction.
The global market for IoT in construction was valued at $11.2 billion in 2022 and is expected to surge to $44.2 billion by 2031 as an increasing number of construction companies integrate it within their operations. While IoT is widely used for maintenance and fleet management in construction companies, it has also contributed significantly to project accuracy, waste reduction, and alleviating costs.
The Future of IoT in Construction
The construction industry is just beginning to unlock the full potential of IoT. As technology continues to advance, we can expect to see even more innovative applications of connected devices in this space. Previously, IoT devices were less accessible because of a large system cost, but now smaller devices can integrate into a CMMS at lower costs, and in small phases.
In the future (and some are already doing it), we might see entire construction sites operating with interconnected IoT systems, from machinery to workers’ wearables—creating real-time data. This would enable construction managers to monitor every aspect of a project remotely, from equipment health to workforce efficiency, further optimizing project outcomes.
IoT continues to transform the construction industry in ways that many would not have anticipated. By enabling better equipment health monitoring, predictive maintenance and efficient project management, IoT is helping construction firms stay competitive and experience exponential growth.
