AI in IoT Market: Global Industry Analysis, Trends, Market Size, and Forecasts up to 2030

The report on the global AI in IoT market provides qualitative and quantitative analysis for the period from 2021-2030. The global AI in IoT market was valued at USD 10.39 billion in 2022 and is expected to reach USD 78.24 billion in 2030, with a CAGR of 24.81% during the forecast period 2023-2030. The study on AI in IoT market covers the analysis of the leading geographies such as North America, Europe, Asia Pacific, and RoW for the period of 2021-2030.

AI in IoT, or Artificial Intelligence in the Internet of Things, involves merging AI technology with IoT devices and systems. IoT constitutes a network of physical objects, devices, and vehicles equipped with sensors, software, and connectivity to gather and share data. AI adds intelligence and decision-making capabilities to this data. AI in IoT leverages machine learning and AI techniques to process and derive meaningful insights from vast amounts of data generated by IoT devices. This insight can inform business decisions and drive efficiency improvements. It also enables predictive maintenance, identifying equipment failures in IoT devices based on sensor data and past performance, reducing operational disruptions and costs. The fusion of AI and IoT creates intelligent, data-driven systems that streamline operations, cut expenses, boost automation, and foster innovation across various industries. The AI in IoT market is expanding as these technologies become more accessible and capable. Additionally, AI algorithms play a crucial role in identifying anomalies in IoT data, signaling potential security breaches or equipment malfunctions. This is pivotal for upholding the integrity and security of IoT systems, which is a vital concern for businesses.

The robust growth of the AI in IoT market is primarily driven by the widespread adoption of IoT devices. The increasing deployment of IoT devices serves as a key catalyst for integrating AI into the IoT sector. This synergy between IoT and AI creates new opportunities for automation, data-driven decision-making, and customized experiences, delivering significant benefits across various industries. As the number of IoT devices continues to climb, the demand for AI technologies to effectively process, analyze, and leverage the data they generate is on the rise. This collaborative effort between IoT and AI is reshaping industries and fueling the expansion of the AI in IoT market. A major driving force behind the adoption of AI in the IoT sector is the growing need for automation and operational efficiency. Businesses and industries are actively seeking ways to optimize their operations, and AI-powered IoT devices and systems play a pivotal role in real-time data monitoring and analysis, pinpointing opportunities for process improvement. This, in turn, enhances operational efficiency, minimizes waste, and boosts productivity. The universal desire for automation and efficiency spans across industries, with AI in IoT acting as a catalyst for achieving these objectives. The ability to gather and assess real-time data from IoT devices and leverage AI-driven insights for well-informed decision-making is a powerful tool for streamlining processes, reducing costs, and amplifying overall efficiency. However, one potential hurdle to market growth may be the shortage of skilled personnel in AI infrastructure. Nevertheless, the continuous advancement of AI technologies presents promising opportunities for the future of the AI in IoT market.

North America is expected to dominate the market share in the upcoming forecast period, with the United States serving as a key driver. The U.S., in particular, boasts a thriving technological landscape, with Silicon Valley in California and tech hubs in cities like San Francisco, Seattle, and Boston serving as hubs for innovation. These regions house numerous startups, tech giants, research institutions, and venture capitalists, creating an environment conducive to continuous technological progress. Furthermore, North America benefits from a robust and diverse economy, providing ample resources for the research, development, and implementation of AI in IoT solutions. The region's economic stability and affluence make it highly favorable for technology investments. Additionally, North America has a track record of early technology adoption, and this trend persists in the adoption of AI and IoT. Companies and industries in the region have swiftly integrated these technologies into their strategies to enhance efficiency, reduce costs, and bolster competitiveness. On the other hand, the Asia-Pacific (APAC) region is emerging as the fastest-growing area in the market. APAC encompasses some of the world's largest and most varied markets, including China, India, Japan, South Korea, and various Southeast Asian nations. This diversity offers a wide array of use cases and applications for AI and IoT technologies. Moreover, several governments in the APAC region recognize the strategic significance of AI and IoT and have initiated initiatives and investments to support their growth. These initiatives often involve funding for research and development, regulatory backing, and infrastructure development.

Report Findings

1) Drivers

• The growth of the AI in IoT market is strongly propelled by the widespread adoption of IoT devices.
• The growing demand for automation and efficiency is a key driver of the adoption of AI in the IoT market.

2) Restraints

• The lack of skilled employees in AI infrastructure may act as a barrier to market growth.

3) Opportunities

• The rise in advancements in AI technologies presents prominent future opportunities for the AI in IoT (Artificial Intelligence in Internet of Things) market.

Research Methodology

A) Primary Research

The primary research involves extensive interviews and analysis of the opinions provided by the primary respondents. The primary research starts with identifying and approaching the primary respondents.

The primary respondents approached include:

1. Key Opinion Leaders
2. Internal and External subject matter experts
3. Professionals and participants from the industry

The primary research respondents typically include:

1. Executives working with leading companies in the market under review
2. Product/brand/marketing managers
3. CXO level executives
4. Regional/zonal/country managers
5. Vice President level executives.

B) Secondary Research

Secondary research involves extensive exploring through the secondary sources of information available in both the public domain and paid sources. Each research study is based on over 500 hours of secondary research accompanied by primary research. The information obtained through the secondary sources is validated through the crosscheck on various data sources.

The secondary sources of the data typically include:

1. Company reports and publications
2. Government/institutional publications
3. Trade and associations journals
4. Databases such as WTO, OECD, World Bank, and among others.
5. Websites and publications by research agencies

Segments Covered

The global AI in IoT market is segmented on the basis of component, technology, and industry verticles.

The Global AI in IoT Market by Component

• Platform

o Device Management
o Application Management
o Connectivity Management

• Software

o Real-time Streaming Analytics
o Security
o Data Management
o Remote Monitoring

• Services

o Professional Services
o Managed Services

The Global AI in IoT Market by Technology

• ML and Deep Learning
• Natural Language Processing (NLP)

The Global AI in IoT Market by Industry Verticle

• Manufacturing
• Energy and Utilities
• BFSI
• Transportation and Mobility
• Retail
• Government and Defence
• Healthcare and Life Science

Company Profiles

The companies covered in the report include:

• Amazon Web Services, Inc.
• IBM Corporation
• Autoplant Systems India Pvt. Ltd.
• SAP SE
• Alphabet Inc.
• PTC
• Oracle
• Salesforce, Inc.
• GE DIGITAL
• Hitachi Vantara LLC

What does this Report Deliver?

1. Comprehensive analysis of the global as well as regional markets of the AI in IoT market.
2. Complete coverage of all the segments in the AI in IoT market to analyze the trends, developments in the global market and forecast of market size up to 2030.

3. Comprehensive analysis of the companies operating in the global AI in IoT market. The company profile includes analysis of product portfolio, revenue, SWOT analysis and latest developments of the company.

4. The Growth Matrix presents an analysis of the product segments and geographies that market players should focus to invest, consolidate, expand and/or diversify.