The progress of our society is reflected in the building sector, which emphasises the necessity of constantly modifying our instruments to take advantage of new opportunities. An example of cutting-edge technology with the potential to completely transform the construction sector is the Internet of Things (IoT). The goal of this comprehensive analysis is to help the construction industry improve the understanding of how crucial it is to embrace IoT. In this study, a systematic review of the relevant literature was conducted to identify the factors that contribute to enhancing IoT applications in the construction industry. The primary objective was to list and evaluate the most important uses, advantages and difficulties of using the IoT in the building sector. This systematic review revealed that the IoT has significant potential to transform the construction industry by improving productivity, safety, sustainability and quality across the entire construction lifecycle. However, barriers such as data privacy and cybersecurity and a lack of standardised protocols need to be addressed. The review concludes that the IoT is likely to revolutionise the construction sector in the coming years if these challenges can be overcome. These findings imply that construction firms need to experiment with IoT and analytic tools across phased use cases, whilst policy and industry groups must collaborate on technology standards and protocols. Although obstacles exist, strategic IoT implementation promises major operational breakthroughs in the construction sector in the near future.