The global market for Artificial Intelligence of Things was valued at US$14.1 Billion in 2024 and is projected to reach US$51.3 Billion by 2030, growing at a CAGR of 24.0% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Artificial Intelligence of Things market.
AIoT is fueling a new generation of applications across industries such as manufacturing (predictive maintenance, process automation), healthcare (remote diagnostics, smart wearables), smart cities (traffic control, energy optimization), and agriculture (climate monitoring, autonomous irrigation). By embedding AI models directly into edge devices - such as cameras, sensors, and robots - systems can execute decisions faster, reduce data transmission requirements, and maintain performance even with limited or intermittent connectivity. As digital transformation intensifies globally, AIoT is becoming a foundational layer in building smart, scalable, and resilient cyber-physical systems.
At the same time, cloud-based AI provides the computational heft for model training, historical analytics, and system-wide orchestration. Hybrid AIoT architectures leverage both edge and cloud capabilities to balance performance and scalability: the edge handles immediate decision-making, while the cloud oversees system learning, long-term optimization, and model retraining. Software platforms from AWS, Azure, and Google Cloud are enabling seamless device-to-cloud integration with support for edge analytics, digital twins, containerized applications, and federated learning. This architectural flexibility is allowing enterprises to deploy AIoT in diverse environments while ensuring cost-efficiency, security, and continuous improvement of AI models.
Leading use cases include predictive maintenance in manufacturing, where AIoT systems analyze sensor data to forecast equipment failure and schedule proactive maintenance, thereby reducing downtime. In retail, AIoT enables real-time inventory management, shopper analytics, and personalized promotions using in-store sensors and edge computing. In smart homes, voice assistants and connected appliances are integrating AI for adaptive control and user behavior learning. Logistics companies use AIoT for route optimization, fleet management, and cold chain monitoring. Meanwhile, in healthcare, AIoT is enabling continuous patient monitoring, early anomaly detection, and intelligent hospital resource allocation - making it a vital component of remote and preventive care models.
Government funding, smart infrastructure mandates, and industry-specific standards (such as Industry 4.0, ISO/IEC IoT security frameworks) are supporting the adoption of AIoT across regions. Additionally, open-source AI frameworks, interoperable platforms, and digital twin technologies are simplifying development and integration processes. As AIoT ecosystems expand, with more devices becoming intelligent and interconnected, a pivotal question arises:Can the global AIoT ecosystem deliver truly autonomous, secure, and adaptive intelligence at scale - across industries, geographies, and mission-critical environments?
Segments: Component (Software / Platforms, Services, Professional, Managed); End-Use (BFSI, Retail, Automotive, Transportation & Logistics, Healthcare, Energy & Utilities, Manufacturing, Other End-Uses).
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Artificial Intelligence of Things (AIoT) Market - Key Trends & Drivers Summarized
Why Is the Convergence of AI and IoT Unlocking Next-Generation Intelligence Across Devices and Systems?
The Artificial Intelligence of Things (AIoT) - the fusion of Artificial Intelligence (AI) and the Internet of Things (IoT) - is redefining the way devices, machines, and systems interact by enabling real-time, autonomous decision-making at the edge and in the cloud. IoT provides the sensing and connectivity infrastructure, while AI brings the cognitive ability to analyze data, recognize patterns, predict outcomes, and optimize operations without human intervention. This convergence allows for a shift from reactive automation to proactive intelligence, where devices can learn, adapt, and self-optimize based on contextual insights.AIoT is fueling a new generation of applications across industries such as manufacturing (predictive maintenance, process automation), healthcare (remote diagnostics, smart wearables), smart cities (traffic control, energy optimization), and agriculture (climate monitoring, autonomous irrigation). By embedding AI models directly into edge devices - such as cameras, sensors, and robots - systems can execute decisions faster, reduce data transmission requirements, and maintain performance even with limited or intermittent connectivity. As digital transformation intensifies globally, AIoT is becoming a foundational layer in building smart, scalable, and resilient cyber-physical systems.
How Are Edge AI and Cloud Intelligence Powering the Evolution of AIoT Architectures?
The advancement of edge computing, low-power AI chips, and distributed machine learning is significantly shaping AIoT deployment models. Edge AI enables data to be processed locally, reducing latency, bandwidth consumption, and cloud dependency - essential for time-sensitive applications like autonomous vehicles, industrial robots, and smart surveillance. Purpose-built AI processors, such as Nvidia Jetson, Intel Movidius, and Google Coral, are allowing real-time inferencing at the edge with minimal energy consumption, enabling scalable AIoT implementations in constrained environments.At the same time, cloud-based AI provides the computational heft for model training, historical analytics, and system-wide orchestration. Hybrid AIoT architectures leverage both edge and cloud capabilities to balance performance and scalability: the edge handles immediate decision-making, while the cloud oversees system learning, long-term optimization, and model retraining. Software platforms from AWS, Azure, and Google Cloud are enabling seamless device-to-cloud integration with support for edge analytics, digital twins, containerized applications, and federated learning. This architectural flexibility is allowing enterprises to deploy AIoT in diverse environments while ensuring cost-efficiency, security, and continuous improvement of AI models.
Where Is AIoT Adoption Accelerating and Which Use Cases Are Leading Market Growth?
AIoT adoption is accelerating globally, with high uptake across North America, Western Europe, and rapidly growing investment in Asia-Pacific. In the U.S., AIoT is central to industrial automation, smart home ecosystems, and logistics optimization. Europe is leveraging AIoT for smart city development, energy grid intelligence, and environmental monitoring, supported by the EU’s digital strategy and sustainability goals. Asia-Pacific - particularly China, Japan, South Korea, and India - is witnessing rapid deployment in smart manufacturing, public safety, and precision agriculture, driven by large-scale infrastructure investments and government-backed digital initiatives.Leading use cases include predictive maintenance in manufacturing, where AIoT systems analyze sensor data to forecast equipment failure and schedule proactive maintenance, thereby reducing downtime. In retail, AIoT enables real-time inventory management, shopper analytics, and personalized promotions using in-store sensors and edge computing. In smart homes, voice assistants and connected appliances are integrating AI for adaptive control and user behavior learning. Logistics companies use AIoT for route optimization, fleet management, and cold chain monitoring. Meanwhile, in healthcare, AIoT is enabling continuous patient monitoring, early anomaly detection, and intelligent hospital resource allocation - making it a vital component of remote and preventive care models.
What Is Fueling the Global Growth of the Artificial Intelligence of Things (AIoT) Market?
The growth in the AIoT market is driven by a confluence of accelerating digital transformation, increasing sensor proliferation, and the need for autonomous, intelligent systems that operate in real-time. A critical driver is the exponential growth of IoT data, which requires AI capabilities to derive actionable insights and automate responses. Businesses are investing in AIoT to enhance operational efficiency, reduce human error, cut costs, and gain competitive differentiation through data-driven innovation. Edge AI advancements, lower hardware costs, and the maturation of 5G and LPWAN connectivity are further enabling scalable AIoT deployments in both consumer and industrial domains.Government funding, smart infrastructure mandates, and industry-specific standards (such as Industry 4.0, ISO/IEC IoT security frameworks) are supporting the adoption of AIoT across regions. Additionally, open-source AI frameworks, interoperable platforms, and digital twin technologies are simplifying development and integration processes. As AIoT ecosystems expand, with more devices becoming intelligent and interconnected, a pivotal question arises:Can the global AIoT ecosystem deliver truly autonomous, secure, and adaptive intelligence at scale - across industries, geographies, and mission-critical environments?
Report Scope
The report analyzes the Artificial Intelligence of Things market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Component (Software / Platforms, Services, Professional, Managed); End-Use (BFSI, Retail, Automotive, Transportation & Logistics, Healthcare, Energy & Utilities, Manufacturing, Other End-Uses).
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the AI Software / Platforms segment, which is expected to reach US$17.7 Billion by 2030 with a CAGR of a 20.8%. The AI Services segment is also set to grow at 26.7% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $3.7 Billion in 2024, and China, forecasted to grow at an impressive 22.9% CAGR to reach $7.9 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Artificial Intelligence of Things Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Artificial Intelligence of Things Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Artificial Intelligence of Things Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as AIoT Holdings, AIoT Inc., AItoAir, APLUX, Aritium Technologies and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 42 companies featured in this Artificial Intelligence of Things market report include:
- AIoT Holdings
- AIoT Inc.
- AItoAir
- APLUX
- Aritium Technologies
- Butlr Technologies
- Coderitter
- easemyai
- EPIC iO
- Espressif Systems
- Fogsphere
- GE Digital
- iCHASE
- Intel Corporation
- Kontakt.io
- m'AI Touch Technology
- Microsoft Corporation
- Moon Innovations
- Powerfleet
- Qorvo
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What's Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSISIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
CANADA
JAPAN
CHINA
EUROPE
FRANCE
GERMANY
ITALY
UNITED KINGDOM
REST OF EUROPE
ASIA-PACIFIC
REST OF WORLD
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- AIoT Holdings
- AIoT Inc.
- AItoAir
- APLUX
- Aritium Technologies
- Butlr Technologies
- Coderitter
- easemyai
- EPIC iO
- Espressif Systems
- Fogsphere
- GE Digital
- iCHASE
- Intel Corporation
- Kontakt.io
- m'AI Touch Technology
- Microsoft Corporation
- Moon Innovations
- Powerfleet
- Qorvo
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 154 |
| Published | May 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 14.1 Billion |
| Forecasted Market Value ( USD | $ 51.3 Billion |
| Compound Annual Growth Rate | 24.0% |
| Regions Covered | Global |
