1. Introduction
Global warming driven by an increase in greenhouse gas emissions is one of the most pressing present issues humanity faces. While the consequences witnessed recently are disturbing, there is even the potential for severe catastrophic impacts in the future [
1]. The construction industry (CI) has long been known for its remarkable contributions to economic growth globally, yet there is a recent contradiction between its positive impact and carbon emissions [
2]. For instance, while the CI accounts for 15% of the global GDP, it contributes a significant share of about 39% of carbon dioxide (CO
2) emissions globally [
3,
4]. As of 2004, buildings accounted for 8.6 billion t-CO
2-e, and it is predicted that it could reach up to 15.6 billion t-CO
2-e by 2030 if serious actions are not taken [
5]. The construction industry’s significant carbon footprint has prompted increasing research attention and policy responses globally. In response to these environmental concerns, international bodies like the Intergovernmental Panel on Climate Change (IPCC) have established ambitious targets, including achieving net-zero carbon emissions by the early 2050s [
6].
From the literature, several key factors contributing to excessive CO
2 emissions in the CI have been identified. These include energy-intensive construction processes, poor waste management, high material demand coupled with inefficient usage, and lack of real-time monitoring [
7,
8,
9]. As the global population rises at a fast pace with increasing economic growth, a high demand is placed on buildings and infrastructure. The high consumption of materials by the CI has been attributed largely to ineffective materials management. China for instance used 335 million tonnes of steel in 2018 (48.8% of the world’s total), which amounted to 46.5% of its total steel consumption market [
10]. According to Gasue et al. [
11], while there is a high demand for raw materials for construction products, construction practices tend to produce a lot of construction and demolishing (C&D) waste. The CI already consumes over 30% of the earth’s raw materials and 25% of water resources. It also generates up to 3 billion tonnes of C&D waste each year [
8]. Surprisingly, waste generated from construction practices possesses high recycling and reuse potential; however, only 40% is reused, recycled, or sent to energy facilities [
12]. A plethora of negative consequences on the environment, economy, public health, and social life are the result of poor management of C&D. In addition, construction practices are characterized by high energy use during the overall lifecycle of buildings. According to Fufa and Venås [
13], fossil fuel consumption by heavy machinery operations, equipment, and on-site processes holds a major share of carbon emissions by the CI.
While there is the need for efficiency in energy consumption, ineffective energy monitoring, outdated machinery, and suboptimal scheduling present significant challenges, protracting carbon footprints. According to Hasselsteen et al. [
14], a significant amount of energy used on-site is wasted due to the absence of real-time monitoring. The operational and maintenance phases of buildings also have significant influences on energy consumption and associated carbon emissions.
Traditional approaches have largely relied on conventional analytical methods for estimating emissions; however, these methods often provide static and retrospective data that limit their utility for proactive decision-making. In response, recent research has shifted towards real-time monitoring and management of emissions across construction processes, enabling timely interventions that can significantly reduce carbon releases. Such a transition highlights the importance of accurate and reliable data as a cornerstone in achieving low-carbon objectives within the industry [
3]. Within this context, carbon tracking and management has emerged as a critical mechanism for advancing sustainability in construction supply chains. Effective monitoring provides actionable insights that not only facilitate compliance with regulatory frameworks but also drive innovation in design, material selection, and project delivery [
3,
5]. Although scholars consistently emphasize the value of emissions tracking in supporting reduction efforts, comprehensive research into the integration of modern digital technologies—particularly the Internet of Things (IoT)—remains limited. IoT’s ability to generate real-time, granular, and verifiable data presents a unique opportunity to transform carbon management from a reactive to a predictive and optimized practice, filling a critical gap in current construction sustainability discourse [
3,
14].
Building operational energy is a major contributor to global CO
2 emissions [
15], but emissions across planning, on-site activities, and building operations can be mitigated through digital transformation, with IoT offering powerful opportunities for real-time monitoring and optimization [
16,
17]. IoT, being a network of things or objects with unique identification (UID) or internet protocols, is able to understand, send, and receive data regarding the object’s environment through other connected devices. According to Mannino et al. [
16], IoT is “an ecosystem that contains smart objects equipped with sensors, networking, and processing technologies integrating and working together to provide an environment in which smart services are taken to the end-users.” Previous research has begun exploring IoT applications in construction, with Villa et al. [
17] highlighting energy usage optimization through predictive maintenance and automatic fault detection. While Gbadamosi et al. [
18] conducted a systematic review of general IoT applications in smart construction (including offsite manufacturing, safety management, and logistics), the study did not address carbon emission reduction strategies. The study identified potential areas like energy management and waste minimization but lacked focused analysis on how these technologies could be implemented specifically for decarbonization of the CI. Similarly, Atassi and Alhosban [
19] described IoT’s capabilities for real-time energy monitoring and automatic process control, but without explicit connection to carbon reduction objectives. Despite IoT’s potential for construction decarbonization, significant knowledge gaps remain [
14,
20,
21]. Research is fragmented across isolated applications without establishing measurable carbon impacts [
17,
22]. No comprehensive review specifically addresses IoT’s role in construction carbon reduction. Construction stakeholders lack evidence-based implementation frameworks [
9], and IoT’s real-world effectiveness remains unverified [
3,
8]. Against this backdrop, this research aims to provide the first systematic literature analysis on the role of IoT in reducing carbon emissions in the CI. These specific objectives will be addressed in achieving the aim of the study:
To investigate the current state of application of IoT technologies in reducing carbon emissions within the construction industry.
To examine the role of IoT in reducing carbon emissions in the construction industry.
To explore the challenges and limitations associated with the integration of IoT technologies for carbon reduction in construction practices.
To identify opportunities for effective application of IoT technologies in reducing carbon emissions in the construction industry.
The significance of this study lies in its timely contribution to the urgent global agenda of decarbonizing the CI. While the construction sector is indispensable for economic growth and infrastructure development, its disproportionate share of global carbon emissions necessitates immediate and innovative responses. By systematically reviewing and synthesizing evidence on IoT applications, barriers, and opportunities, this research provides a focused understanding of how digital transformation can advance sustainable practices. The study goes beyond fragmented analyses by explicitly connecting IoT’s technical capacities—such as real-time monitoring, predictive analytics, and resource optimization—with measurable pathways for carbon reduction. This approach bridges the gap between technological potential and practical implementation, thereby offering actionable insights for policymakers, practitioners, and researchers seeking to align construction practices with international carbon neutrality targets.
The remainder of the paper is structured as follows.
Section 2 outlines the research methodology, detailing the systematic literature review (SLR) approach, search strategy, and analysis procedures employed to ensure rigor and transparency of the study.
Section 3 presents the findings and discussion, highlighting the current state of IoT applications for carbon reduction, the challenges and limitations encountered in practice, and the opportunities for enhancing adoption.
Section 4 identifies limitations of the present review and sets out directions for future research, particularly in relation to emerging digital technologies and long-term impact assessments. Finally,
Section 5 concludes the paper by synthesizing the key insights and drawing implications for industry and academia, with emphasis on the socio-technical integration framework proposed to advance IoT-enabled carbon reduction in construction.
4. Limitations and Future Research Directions
While this systematic review employed rigorous selection criteria to ensure a high-quality analysis, several limitations warrant acknowledgment. First, the dynamic and rapidly evolving nature of IoT technologies means that cutting-edge innovations, pilot projects, and industry applications may not be fully captured in the academic literature reviewed. This time-lag between technological advancement and scholarly reporting may underrepresent the most recent developments in practice. Second, the review was limited to peer-reviewed journal articles, potentially excluding valuable insights from industry reports, policy documents, and technical standards that often drive early adoption. Third, the review synthesized findings from 17 core studies, which, while methodologically robust, limits the statistical generalizability of conclusions across diverse geographic, regulatory, and market contexts. Additionally, language restrictions and reliance on two major databases (Scopus and Web of Science) may have excluded relevant regional or non-English publications, particularly from emerging economies where IoT experimentation is growing.
Future research should therefore pursue several directions. First, longitudinal and large-scale empirical studies are needed to evaluate the sustained impacts of IoT-enabled systems on embodied and operational carbon reduction across entire building lifecycles. Such studies would provide evidence on whether early adoption benefits translate into long-term decarbonization. Second, interdisciplinary research exploring IoT integration with other emerging technologies, including AI, blockchain, BIM, and digital twins, can provide holistic solutions for verifiable carbon tracking and predictive management. Third, comparative cross-country analyses should be undertaken to understand how regulatory frameworks, cultural factors, and infrastructural capacities influence IoT adoption and effectiveness, thereby identifying context-specific best practices. Fourth, future studies should give stronger attention to standardization and policy frameworks, developing robust IoT implementation protocols that ensure interoperability, data security, and comparability across projects. Participatory research that engages industry practitioners, policymakers, and communities will be essential in co-developing practical strategies that address skill gaps, organizational resistance, and cost barriers. By addressing these gaps, future scholarship can move beyond proof-of-concept studies to support scalable, equitable, and industry-wide IoT adoption for construction decarbonization. Finally, it should be noted that while the proposed socio-technical integration framework offers a conceptual pathway for IoT-enabled carbon reduction, it has not yet been empirically validated. Future research should therefore focus on testing the framework through pilot projects and case studies to assess its practical applicability and effectiveness.
5. Conclusions and Implications
This systematic review investigated the role of IoT technologies in reducing carbon emissions in the CI, which contributes approximately 39% of global CO2 emissions. Through rigorous bibliometric and content analysis of 17 selected articles, the study identified four key application areas where IoT technologies demonstrate significant carbon reduction potential: smart monitoring systems, energy efficiency applications, sustainable implementation frameworks, and smart built environment integration. The findings reveal that IoT serves as a technological bridge between carbon management objectives and practical implementation in construction. As smart monitoring systems, IoT enables real-time emissions quantification through multilayered architectures that transform environmental management from reactive to proactive approaches. In energy management, IoT creates dynamic demand-driven systems that have demonstrated up to 105% energy offset through real-time monitoring and algorithmic control. For sustainable implementation, IoT functions as a digital backbone for sustainable workflows, quality assurance mechanism, and integration layer between design and construction. Within smart city contexts, IoT enables buildings to function as nodes in broader sustainability networks. The research reveals a significant technology-practice gap, where organizational factors frequently outweigh technological barriers in implementation. The co-occurrence analysis confirmed the technological interconnectedness between IoT applications and sustainability objectives, while highlighting collaboration patterns dominated by China, the United States, and the United Kingdom.
For industry practitioners, this research provides evidence-based guidance for leveraging IoT in carbon reduction strategies, emphasizing that successful implementation requires not only technological investment but also organisational alignment, skills development, and strategic integration with business objectives. The findings suggest that IoT adoption should be framed as part of a broader digital transformation agenda rather than a stand-alone technological upgrade. This entails fostering cross-disciplinary collaboration between project managers, engineers, IT specialists, and sustainability officers to ensure that IoT applications are embedded into existing workflows and supply chain processes. Furthermore, the study highlights the importance of capacity-building initiatives, where firms actively invest in training programmes to upskill employees in IoT operation, data analytics, and cybersecurity, thereby addressing one of the key barriers to adoption.
At the policy level, the study underscores the need for governments and regulatory bodies to establish supportive frameworks that incentivise IoT-driven sustainability practices. This includes developing standards for interoperability, offering financial incentives or tax credits for green digital innovation, and integrating IoT-enabled carbon tracking into regulatory compliance mechanisms. By doing so, policymakers can create a more enabling environment that accelerates industry-wide decarbonisation.
For researchers, the study provides a platform for future investigations into the socio-technical dynamics of IoT adoption. It highlights the need to explore not only the technological aspects but also behavioural, cultural, and organisational factors that influence implementation success. Additionally, the study calls for more empirical case studies that document real-world applications, challenges, and outcomes of IoT adoption across different contexts and project scales. Collectively, these implications reinforce the notion that IoT is not simply a technological solution but a transformative enabler whose potential is maximised when embedded within holistic strategies for sustainable construction.