Generative AI in IoT Market Report 2026

The generative AI in iot market size has grown exponentially in recent years. It will grow from $2.03 billion in 2025 to $2.61 billion in 2026 at a compound annual growth rate (CAGR) of 28.3%. The growth in the historic period can be attributed to growth of connected devices and iot ecosystems, increasing demand for operational efficiency, early adoption of AI in industrial automation, rising cloud computing infrastructure, focus on predictive analytics for resource management.

The generative AI in iot market size is expected to see exponential growth in the next few years. It will grow to $6.99 billion in 2030 at a compound annual growth rate (CAGR) of 28%. The growth in the forecast period can be attributed to integration of generative AI for advanced iot analytics, expansion of edge AI solutions, development of context-aware adaptive control systems, increased adoption of personalized iot services, growth in AI-driven predictive maintenance solutions. Major trends in the forecast period include predictive maintenance and optimization, real-time anomaly detection, context-aware decision making, adaptive control and automation, personalized iot services.

The rising demand for anomaly detection in IoT networks is expected to support the growth of the generative AI in the IoT market going forward. Anomaly detection in IoT networks involves identifying irregular patterns or behaviors in data generated by Internet of Things devices. Demand for anomaly detection is increasing due to the need for stronger security, early issue identification, and maintaining reliability and efficiency across connected systems. Generative AI in IoT networks strengthens anomaly detection by applying advanced algorithms to recognize unusual behaviors, improving security, minimizing downtime, optimizing performance, and enabling proactive maintenance and decision-making. For example, in April 2023, according to a report by Check Point, an Israel-based software security provider, the first two months of 2023 saw a 41% increase in average weekly IoT-related cyberattacks per organization compared with 2022, with 54% of organizations experiencing attempted IoT cyberattacks each week. Therefore, the growing demand for anomaly detection in IoT networks is contributing to the growth of the generative AI in the IoT market.

Leading companies operating in the generative AI in IoT market are focusing on developing technologically advanced solutions, such as AI-powered IoT security assistants, to enhance operational efficiency, simplify complex tasks, and address the cybersecurity skills gap through generative AI. AI-driven IoT security assistants improve cybersecurity by delivering real-time event analysis, automating threat identification, and generating actionable insights to mitigate risks. For example, in May 2024, Fortinet Inc., a US-based cybersecurity company, launched its first generative AI IoT security assistant as part of its expanded GenAI network and security operations portfolio. The solution integrates FortiAI, Fortinet’s context-aware AI assistant, enabling natural language queries for tasks such as IoT vulnerability detection, GenAI-assisted scripting, and simplified threat analysis, thereby streamlining security operations and improving accessibility for IT teams.

In June 2023, Accenture Plc., an Ireland-based professional services company, acquired Flutura Limited for an undisclosed amount. This acquisition is designed to reinforce Accenture’s industrial AI services, particularly for clients in the energy, chemicals, metals, mining, and pharmaceutical sectors. In addition, Accenture aims to strengthen its capabilities by delivering advanced AI solutions that improve operational efficiency, optimize performance, and drive innovation across these industries. Flutura Limited is an India-based company specializing in industrial artificial intelligence for IoT applications.

Major companies operating in the generative AI in iot market are Google LLC, Microsoft Corporation, Dell Technologies Inc., Bosch Group, Huawei Technologies Co. Ltd., Amazon Web Services Inc. (AWS), Siemens AG, General Electric Company (GE), Intel Corporation, Accenture plc, International Business Machines Corporation (IBM), Cisco Systems Inc., Qualcomm Incorporated, Oracle Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, Fujitsu Limited, NVIDIA Corporation, Keysight Technologies Inc, Fortinet, Inc, Hitachi Vantara LLC, PTC Inc., Palantir Technologies Inc., Temenos AG, C3.AI Inc.

North America was the largest region in the generative AI in IoT market in 2025. The regions covered in the generative AI in iot market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative AI in iot market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have affected the generative AI in IoT market by raising the costs of imported hardware components, AI chips, and cloud infrastructure critical for AI-enabled IoT solutions. Regions such as North America, Europe, and Asia-Pacific, where industrial and smart city IoT deployments are prominent, are most impacted, particularly in manufacturing, healthcare, and transportation sectors. While costs have increased for hardware-dependent applications, tariffs are also driving local innovation in AI hardware and promoting regional cloud service solutions, which could support long-term adoption of generative AI in IoT systems.

The generative AI in iot market research report is one of a series of new reports that provides generative AI in iot market statistics, including generative AI in iot industry global market size, regional shares, competitors with a generative AI in iot market share, detailed generative AI in iot market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in iot industry. This generative AI in iot market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Generative artificial intelligence (AI) in the Internet of Things (IoT) involves using advanced AI models to create, predict, and optimize data and processes within IoT ecosystems. This integration enhances efficiency, lowers operational costs, and fosters the development of innovative IoT solutions tailored to specific industry needs.

The main types of technology providers in this field include established AI technology companies, IoT platform providers, cloud service providers, and specialized Generative AI startups. Established AI technology companies offer well-developed AI solutions that integrate with IoT systems to improve data processing, predictive analytics, and automation. Deployment modes for these technologies include on-device and cloud-based solutions. Application areas cover anomaly detection, predictive maintenance, adaptive control, resource optimization, personalized services, and contextual decision-making. Industry verticals benefiting from these advancements include manufacturing, healthcare, transportation, agriculture, and others.

The Generative AI in IoT market consists of revenues earned by entities by providing services such as predictive maintenance, automation, workflow optimization, and advanced data analytics for improved decision-making. The market value includes the value of related goods sold by the service provider or included within the service offering. The Generative AI in IoT market also includes sales of products such as intelligent sensors, AI-driven edge devices, automated control systems, and smart monitoring solutions to enhance operational efficiency and data-driven decision-making. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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