Structural Health Monitoring (SHM) Market

Market Overview

The global Structural Health Monitoring (SHM) Market was valued at approximately USD 2.3 billion in 2024 and is projected to reach USD 5.8 billion by 2033, growing at a CAGR of 10.8% during the forecast period (2025–2033).

Structural health monitoring (SHM) is the use of sensors, data acquisition systems, and analytical techniques to characterize major infrastructure performance as well as detect structural deficiencies while real-time monitoring. The use of SHM systems to ensure the safe, reliable, and sustainable performance of civil structures (e.g., bridges, dams, buildings, tunnels, offshore platforms) adds a layer of safety or confidence. For example, as compared with standard inspections or use of the structure over time, SHM systems provide another continuous monitoring method to examine for changes in cracking, stresses, vibrations, corrosion, or any other indication of impending failure indications.  The market is flurrying with the growing incidences of infrastructure failure, increasing investment in smart cities, and growing needs for predictive maintenance to help analyze and plan maintenance city for infrastructure reliability and long-term sustainability. Further, developments in wireless sensor technology along with integration with AI-based analytical techniques are valuable assets in enhancing SHM in non-infrastructure (e.g., aerospace, energy, transportation) industries.

Market Dynamics

Market Drivers

Aging Infrastructure and Rising Risk of Structural Failures

The mounting concern about global aging infrastructure needs is a key driver to the structural health monitoring market. Many decades-old bridges, tunnels and buildings continue to deteriorate, posing significant safety concerns. For example, the 2021 American Society of Civil Engineers (ASCE) report graded the infrastructure in the U.S. as a C− and highlighted that 42% of U.S. bridges are 50 years old or older.

The tragic collapse of the Genoa bridge in Italy in 2018 killed 43 people and underscored the potential of catastrophic consequences when structural degradation is ignored. These incidents prompted governmental and private ownership investment in preventive infrastructure maintenance measures, including SHM systems.

With significant increases in SHM deployments in aging infrastructure in Japan, Germany and China particularly regarding high-consequence infrastructure and real-time monitoring, most at-risk structures will now monitor changes in their environment and make real-time risk management decisions to prevent accidents and limit long-term maintenance costs.

In addition to monitoring the effects of aging infrastructure, we are seeing more structures that will be stressed continuously because of climate-related events such as floods, increased heat levels, and seismic activity. Thus, we see a growing demand for continuous monitoring. This demand is critical in urban areas where the potential for the consequences of infrastructure failure are amplified by the concentration of people and infrastructure in one area.

Advancements in Sensor Technologies and Integration with AI & IoT

The transformation of sensor technologies and their interface with the Internet of Things (IoT) and artificial intelligence (AI) is transforming the SHM industry. Modern SHM systems can now utilize wireless smart sensors, MEMS accelerometers and even fiber optic sensors that can provide high accuracy, real-time monitoring and significantly improve the ability to predict and prevent structural failures.

For example, in 2023, the University of Cambridge partnered with industry leaders to monitor railway bridges across the UK hoping to apply AI-driven, wireless SHM systems to optimize asset management using predictive maintenance.

Other companies such as Nova Metrix and COWI are using machine learning in conjunction with existing structural health monitoring (SHM) platforms to identify early-stage structural performance anomalies. These intelligent systems can continuously measure and analyze enormous amounts of historical and real-time data in order to generate safety alerts when conditions approach levels of stress, displacement, corrosion, or vibration that may be outside the bounds of acceptable performance.

The rapidly growing popularity of smart infrastructure for smart city initiatives, especially in countries like South Korea, Singapore and the UAE, is fueling the demand for SHM. This provides benefits associated with enhanced safety – by monitoring urban infrastructure health risks of beyond safe limits – reduced lifecycle costs – through performance based decisions – and, better information for infrastructure investment managing limited public resources.

Market Restraints

High Initial Costs and Complex Installation

One of the main barriers for the uptake of structural health monitoring systems is the initial capital outlay and installation complexity. A comprehensive SHM system typically requires some combination of advanced sensors, data acquisition hardware, software platforms, and communications networks, all of which requires substantial capital investment.

For example, fiber-optic monitoring system installed on a large bridge can exceed hundreds of thousands of dollars depending on size, location, and the desired data resolution. Installation can often require skilled labor and typically will require some complex and temporary physical access to the structure with a loss of operational time costing additional indirect expenses.

These factors can make it uneconomical for aging infrastructure in developing economies with limited funding and constrained infrastructure budgets. The return on investment for SHM systems is often seen as long term which may also make it unattractive in planning cycles developing economies where faster short-term payoffs are attractive.

Moreover, there are no standardized installation protocols or consistent interface between hardware and software supplied by different vendors which simplifies installation, represents another barrier to uptake and creates uncertainty regarding competitive market penetration.

Segmental Analysis

The Structural Health Monitoring (SHM) Market is segmented by component, technology, application, and end-user Each segment contributes uniquely to enhancing structural safety, operational efficiency, and real-time maintenance.

By Component

In the market hardware is the leader for the largest market share in 2024, as in the majority of cases in 2024 these represent the vast majority of sensors deployed across structural assets (bridges, buildings, and industrial structures) such as strain gauges, accelerometers, and displacement sensors. These sensors are at the core of the SHM system and as such provide real-time data with respect to any stress, dynamic loading or vibration changes.

Software is the fastest growing in comparison to hardware as that is also on the rise in adoption with predictive maintenance and failure detection that are reporting more services using AI- and IoT-enabled analytics, as well as higher adoption of real-time data management platforms due to growing smart city projects.

Services, including installation, maintenance, and consulting, showing their intent with SHM systems, and as more SHM systems are adopted and growing requirement for public and private sectors, the increasing use of service providers which are able to provide contracted services in the management of SHM systems has increased.

By Technology

Wired SHM Systems have a larger market share because of their stable performance under harsh conditions, and long-term monitoring of critical infrastructure. Wireless SHM Systems are increasing in popularity, driven by advances in IoT connectivity, battery life, remote sensing technology, and being technically and operationally easier to install compared to wired systems in structures that are mobile or hard to reach.

By Application

Bridges and dams are undoubtedly the largest application segment growing mostly as a function of aging assets and increased global investment into monitoring and performance assessment systems to avoid major failure scenarios. Buildings and stadiums are steadily growing based upon demand for effective monitoring of structural integrity because of rising urbanization, and corresponding structural safety from seismic activity.   

Wind turbines and airframe are also major segments of interest based on accelerating renewable energy projects and safety in aerospace respectively. Marine vessels and tunnels complete the segments that benefit from SHM systems to monitor complex structures in environmental contexts that are often harsh or dynamic.

By End User

The civil infrastructure sector remains the primary market driver by leveraging government efforts to modernize old transportation systems and public works. Aerospace & defense is also providing growth opportunities because SHM is utilized for airplane fatigue monitoring, while also providing mission-critical safety assurance.

For energy and mining, SHM can monitor the health of equipment used for powerful equipment, especially in high-risk environments like offshore platforms or deep-earth mining operations. Other sectors (including water utility and oil & gas) are starting to implement SHM to control their asset life cycle and reduce unplanned downtime.

Regional Analysis

North America

The highest market share for SHM (38.2%) is in North America in 2024 because of aging infrastructure, advanced monitoring technology, and strong regulations. The United States dominates in this region due to the number of aging bridges and highways that are greater than 50 years old.

The Federal Highway Administration (FHWA) has provided resources and technical assistance through SHM systems to prevent failures from collapsing or bucking. The region has adopted robust wireless SHM technologies that are increasingly integrated with IoT, artificial intelligence, and big data analytics—those with a footprint in civil and aerospace industry are especially likely to adopt innovations.

Europe

Europe is a substantial market for SHM. The market share in 2024 is 27.4 mainly due to stringent safety regulation compliance and substantial investment in the infrastructure public maintenance and upkeep. The largest markets where SHM monitoring is being adopted include Germany, France, and the UK—particularly due to the monitoring and upkeep of historical structures, energy infrastructure, and various railway systems. Moreover, the Horizon 2020 initiative from the European Union created substantial funding towards a number of recent SHM-based research projects that led to higher adoption rates across the infrastructure industry within civil and industrial sectors.

Asia-Pacific

On the rate of growth observed in the Asia-Pacific region which has been indicated as expected to grow rapidly with the greatest growth rate during the anticipated period. This growth is driven by rapid urbanisation, smart cities, and large construction projects in China, India, Japan, and South Korea, which have seen significant improvements in infrastructure. Government authorities have continued investment in bridges, dams, metros and airports by incorporating SHM systems. Also, the Chinese Belt and Road Initiative has increased demand for structural monitoring of transnational infrastructure. 

Latin America and Middle East & Africa

Latin America is developing in the SHM market but mainly on the lead of the development of infrastructure in Brazil, Mexico, and Chile, and developing more infrastructure is slowly driving the market. The market share in Latin America has been small but population and investment is pushing the infrastructure growth in transportation and energy infrastructure, with strong growth expected in earthquake-prone areas in the region.

The development of the SHM field in Latin America is being limited at this time due to little technological awareness and limited financial resources in the area, thus limiting the growth in certain geographies. In terms of the SHM market in the Middle East & Africa, the market is still in its infancy, with players in UAE, Saudi Arabia, and South Africa expected to invest significantly in large scale infrastructure projects, including airports, stadiums and smart cities like NEOM – Saudi Arabia, with projects including SHM systems as projects are looking to manage structures for performance, including longer assets in harsh environments.

Recent Development

1. May 2025: Introduced expert insights on solar farm fire risk mitigation using its DFOS technology, underlining its expanding role in renewable energy infrastructure safety.
2. April 2025: Opterro received a major order for its LiteSense™ fiber-optic SHM system from an Asia-Pacific infrastructure client.
3. November 2024: Opterro delivered UltraSense™ and VHS interrogator systems to universities and distributors in the U.S. and Asia.