AI in IoT Market Trends

AI in IoT Market Overview

AI in IoT Market Size was valued at USD 6.5 B illion in 2022. The AI in IoT market is projected to grow from USD 8.3 Billion in 2023 to USD 60.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 28.20% during the forecast period (2023 - 2032). Effective management of the data produced by IoT devices to get insightful information, lower maintenance costs, and minimise downtime, are the key market drivers enhancing the market growth.

Figure 1: AI in IoT Market Size, 2023-2032 (USD Billion)

Technologies: Secondary Research, Primary Research, MRFR Database and Analyst Review

AI in IoT Market Trends

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  The pressing need for real-time analysis and monitoring of vast amounts of data is driving the market growth

  
  

The urgent requirement for real-time analysis and monitoring of enormous volumes of data is one of the major factors driving the global Al in loT market. Customers and consumers want a distinctive experience, which is something that vendors in the Al in loT industry are anticipated to capitalise on. High demand for Al solutions in lot-related processes and devices is anticipated as a result. A staggering amount of data is coming in from IoT devices to both large and small businesses. Another important element fueling the expansion of the worldwide Al in lot market in the coming years is the requirement to lower maintenance costs in these processes.

The Internet of Things (IoT) and artificial intelligence (AI) have the ability to completely change various economic sectors. Intelligent technologies that replicate intelligent behaviour and support decision-making with little to no human participation are produced by the Internet of Things (IoT) powered by AI. Artificial intelligence powered by the Internet of Things provides businesses and consumers with a number of advantages, including proactive intervention, individualised experiences, and intelligent automation.

IoT technology is crucial for different organisations to undergo a digital transformation since it gives them the ability to improve current operations by developing and monitoring new business models. IoT has been viewed by businesses and service providers as a significant enabler for accelerating digital transformation and unlocking operational efficiency. IoT usage is rising as more businesses see it as crucial to their ability to succeed. The development of the global artificial intelligence sector has been significantly boosted in recent years by the increasing usage of digital technology and the internet. Technology advancements in a variety of industries are constantly fueled by the large R&D investments made by tech companies. 

As an illustration, in June 2022, Viettel Group and NVIDIA signed a memorandum of understanding (MoU) to establish a strategic partnership to advance artificial intelligence (AI)-based technology research and solutions for Viettel and Vietnam. Viettel and NVIDIA would collaborate to hasten the development and use of Viettel's AI solutions in computer vision, robotics, natural language processing, digital twins, and other areas by using NVIDIA's high-performance computing systems and ecosystems. Thus, driving the AI in IoT market revenue.

AI in IoT Market Segment Insights

AI in IoT Component Insights

The AI in IoT Market segmentation, based on component, includes platforms, software solutions, and services. Software segment dominated the global market in 2022. Customers can get Al in loT software solutions from the majority of major providers. These software programmes are made to manage huge amounts of data, together with its security and privacy, and to address interoperability issues brought on by various heterogeneous devices. They provide flexibility to manage diverse business processes successfully while assisting in the mitigation of interoperability difficulties.

AI in IoT Technologies Insights

The AI in IoT Market segmentation, based on technologies, includes ML and deep learning and NLP. ML and deep learning segment dominated the global market in 2022. ML has the potential to develop into a powerful analytical tool for massive data sets. The majority of the noise gathered by IoT devices can be filtered using ML and edge computing, leaving the pertinent data for edge and cloud analytical engines to process.

Figure 2: AI in IoT Market, by Technologies, 2022 & 2032 (USD Billion)

Technologies: Secondary Research, Primary Research, MRFR Database and Analyst Review

AI in IoT Vertical Insights

The AI in IoT Market segmentation, based on vertical, includes manufacturing, energy and utilities, transportation and mobility, BFSI, government and defense, retail, healthcare and life sciences, telecom, and others (agriculture, education, telecom, and tourism and hospitality). Healthcare and life sciences dominated the AI in IoT Market in 2022. By gathering and analysing high-frequency Internet of Things (IoT) sensor data and computer vision (AI), healthcare organisations can enhance human performance on jobs like making diagnostic or therapeutic judgements, assisting clinicians in treating diseases, etc. 

The combination of IoT and AI technologies (IoT) has the potential to significantly improve routine physical examinations of mobility and balance in healthcare. Care practitioners can streamline evaluation with IoT by taking fewer steps while ensuring that the test is quantitative, reliable, and consistent.

Hospitals, clinics, pharmaceutical companies, and academic institutions that test and store vaccines, including COVID-19 vaccines, still lack visibility into the status and operation of their refrigerators. As a result, IoT-based predictive maintenance for vaccination logistics and safety is becoming more and more necessary. Additionally, IoT can decrease the need for follow-up visits, shorten wait times, identify essential patients, and track medical equipment. It can also enhance diagnostic accuracy and remote patient monitoring.

AI in IoT Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America AI in IoT Market dominated this market in 2022 (45.80%). This is due to the widespread implementation of AI and IoT technologies in numerous industries, including manufacturing, retail, healthcare, automotive and transportation, and so on. This is one of the factors driving the expansion of the market under study in this area. One of the top regions for research into creating IoT and AI applications for brand-new end-user sectors is North America. As of 2022, the United States and Canada have the greatest average per capita device and connection counts, according to Cisco. Further, the U.S. AI in IoT market held the largest market share, and the Canada AI in IoT market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: AI IN IOT MARKET SHARE BY REGION 2022 (USD Billion)

Technologies: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe AI in IoT market accounted for the healthy market share in 2022. Due to significant government investments in the sector, the area has a great deal of potential for vendors to expand. Europe also benefits from the existence of top players, which supports the Al in loT market there. Further, the German AI in IoT market held the largest market share, and the U.K AI in IoT market was the fastest growing market in the European region

The Asia Pacific AI in IoT market is expected to register significant growth from 2023 to 2032. The market in this area is being fueled by the resources that both public and private sector organisations are allocating to the growth of this discipline. Moreover, China’s AI in IoT market held the largest market share, and the Indian AI in IoT market was the fastest growing market in the Asia-Pacific region.

AI in IoT Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the AI in IoT market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, AI in IoT industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global AI in IoT industry to benefit clients and increase the market sector. In recent years, the AI in IoT industry has offered some of the most significant advantages to medicine. Major players in the AI in IoT market, including Cisco Systems, Inc., Verizon, Ericsson, Sierra Wireless, Orange Business Services, Telefónica, Huawei, Moeco, Telit, and Hologram, are attempting to increase market demand by investing in research and development operations.

Microsoft Corp. (Microsoft) offers a variety of software-related services, including development, licencing, and support. The company offers a wide range of server applications, desktop and server administration tools, video games, cross-device productivity tools, business solution tools, and operating systems. It also offers training and certification services. It also develops, manufactures, and sells hardware products like PCs, tablets, game consoles, and other cutting-edge technology. 

The company offers a wide range of services, such as consultancy, cloud-based solutions, and solution support. Through original equipment manufacturers, distributors, resellers, online marketplaces, Microsoft stores, and other partner channels, Microsoft promotes, distributes, and sells its products. The company has operations throughout the Middle East, Africa, the Americas, Europe, and Asia-Pacific. Microsoft's main office is in Redmond, Washington, in the United States. Microsoft announced pre-orders for the Surface Laptop 5 and Surface Pro 9 in November 2022. With this, the firm unveiled its vision for the next iteration of the Windows PC, one in which the PC and the cloud merge and make use of cutting-edge AI technologies to enable novel experiences.

A subsidiary of Amazon.com, Inc., Amazon Web Services Inc (AWS) offers cloud computing services. In addition to computing, storage, databases, networking, analytics, mobile, developer tools, augmented reality, virtual reality, robotics, game tech, machine learning, management tools, content delivery, media services, customer engagement, app streaming, and security, identity, and compliance, the company also provides a wide range of cloud infrastructure services. 

AWS serves a wide variety of industries, including the automotive, digital marketing, telecommunications, education, government, retail, financial services, media and entertainment, gaming, consumer packaged goods (CPG), health and life sciences, oil and gas, power and utilities, and non-profit sectors. In November 2022, AWS IoT Core announced the introduction of AWS IoT Core Device Location. Utilising location information from IoT devices, such as latitude and longitude coordinates, this new functionality enables users to track and control them.

Key Companies in the AI in IoT market include

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  Cisco Systems, Inc.

  
  


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  Ericsson

  
  


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  Verizon

  
  


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  Sierra Wireless

  
  


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  Orange Business Services

  
  


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  Telefónica

  
  


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  Huawei

  
  


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  Moeco

  
  


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  Telit

  
  


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  Hologram

  
  

AI in IoT Industry Developments

January 2023 A device management firm called Servify purchased the AI-enabled engagement platform Jubi.ai. After the deal, Servify will include Jubi.ai.

AI in IoT Market Segmentation

AI in IoT Component Outlook

• Platforms


• Software Solutions


• Services

AI in IoT Technologies Outlook

• ML and Deep Learning


• NLP

AI in IoT Vertical Outlook

• Manufacturing


• Energy and Utilities


• Transportation and Mobility


• BFSI


• Government and Defense


• Retail


• Healthcare and Life Sciences


• Telecom


• Others (agriculture, education, telecom, and tourism and hospitality)

AI in IoT Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
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    • Middle East
    
    
    • Africa
    
    
    • Latin America