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    UK Ai In Iot Market

    ID: MRFR/ICT/63680-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    UK AI in IoT Market Research Report By Component (Platforms, Software Solutions, Services), By Technologies (ML and Deep Learning, NLP), and By Vertical (Manufacturing, Energy and Utilities, Transportation and Mobility, BFSI, Government and Defense, Retail, Healthcare and Life Sciences, Telecom, Others)- Forecast to 2035

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    UK Ai In Iot Market Summary

    The United Kingdom AI in IoT market is poised for substantial growth, projected to reach 1795 USD Million by 2035.

    Key Market Trends & Highlights

    UK AI in IoT Key Trends and Highlights

    • The market valuation is expected to grow from 425.6 USD Million in 2024 to 1795 USD Million by 2035.
    • A compound annual growth rate (CAGR) of 13.98 percent is anticipated from 2025 to 2035.
    • The increasing integration of AI technologies in IoT applications is driving market expansion.
    • Growing adoption of smart devices due to enhanced connectivity is a major market driver.

    Market Size & Forecast

    2024 Market Size 425.6 (USD Million)
    2035 Market Size 1795 (USD Million)
    CAGR (2025-2035) 13.98%

    Major Players

    Oracle, PTC, Dell Technologies, Siemens, Google, Arm Holdings, Accenture

    UK Ai In Iot Market Trends

    The growing use of smart technologies in a variety of industries is propelling the UK AI in IoT market's notable expansion. 5G's improved connection, which allows for more connected devices and faster data transfer rates, is one of the main factors propelling the market.For sectors like manufacturing, transportation, and healthcare, this increased connection is essential since it allows for real-time data analysis and decision-making. Additionally, government programs that support digital innovation and smart city initiatives are driving the incorporation of AI into IoT systems.

    A crucial area for businesses to investigate is the increasing emphasis on security solutions to shield IoT devices from online attacks. Recent trends indicate that startups and established businesses are working together more frequently to take advantage of AI's potential for Internet of Things applications.

    Interest in AI-powered IoT solutions that assist in monitoring and lowering energy use across multiple industries is also being fueled by the rise in awareness of sustainability and energy efficiency. All things considered, the UK AI in IoT market is poised for sustained growth, driven by technical advancement, encouraging regulations, and the need for more intelligent, effective systems.

    UK AI in IoT

    Market Segment Insights

    UK

    UK AI in IoT Market Segment Insights

    AI in IoT

    AI in IoT Market Component Insights

    The Component segment of the UK AI in IoT Market encompasses critical elements such as Platforms, Software Solutions, and Services, which are essential for facilitating advanced applications and enhancing operations across various sectors.The market is on an upward trajectory, with the revenue from AI-driven IoT applications reflecting significant potential for growth, driven by increasing investments in digital transformation and innovation. One key factor propelling the demand for Platforms is the rising need for robust frameworks that can support an array of IoT devices and services, ensuring seamless integration and data interoperability.

    Software Solutions are gaining importance as organizations implement AI technologies for data analytics, real-time decision-making, and predictive maintenance, allowing them to derive valuable insights and drive efficiencies in operations.Services in the UK market are particularly essential as they provide the necessary support for implementation, management, and continual optimization of AI in IoT systems, enabling businesses to adapt to evolving technological landscapes.

    The dynamic UK landscape, with its focus on sustainability and innovation, fosters a competitive environment for these components, encouraging the development of tailored solutions that address specific industry needs.Additionally, the convergence of AI with IoT is reshaping market trends, enabling companies to drive efficiencies while enhancing user experiences across both consumer and industrial applications.

    Amid these advancements, challenges such as data privacy, security concerns, and the need for compliance with regulation are significant, requiring businesses to implement robust frameworks that address these risks effectively.As firms navigate these obstacles, opportunities for growth persist, particularly in sectors such as healthcare, transport, and smart cities, where AI in IoT innovations can yield transformative benefits.

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

    The engagement of government initiatives and industry collaborations further propels the development of the UK AI in IoT Market, creating a conducive ecosystem for the emergence of cutting-edge technologies that leverage the capabilities of AI and IoT.Insights into the UK AI in IoT Market segmentation indicate that Platforms and Software Solutions are likely to play pivotal roles in shaping the future landscape of the industry by enabling a smarter, more connected world.

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

    AI in IoT

    AI in IoT Market Technologies Insights

    The UK AI in IoT Market is rapidly evolving, particularly in the Technologies segment, which significantly shapes how artificial intelligence is integrated into Internet of Things applications. This segment broadly encompasses various technologies, including machine learning and deep learning, as well as natural language processing.

    The importance of machine learning and deep learning lies in their capability to process vast amounts of data and derive valuable insights, driving automation and efficiency across different sectors such as agriculture, healthcare, and manufacturing.

    These technologies are pivotal in enhancing predictive analytics and improving decision-making processes, offering substantial benefits in operational efficiency and resource management. Similarly, natural language processing plays a crucial role in enabling effective communication between IoT devices and users, allowing for more intuitive user experiences and better data interpretation.

    The demand for these technologies is projected to grow, largely fueled by advancements in data analytics and increasing IoT deployments across the UK. As organizations continue to leverage data for strategic decision-making, the UK AI in IoT Market is expected to witness considerable progression, driven by innovations and emerging applications within the Technologies segment.

    AI in IoT

    AI in IoT Market Vertical Insights

    The UK AI in IoT Market is witnessing a dynamic transformation across various verticals, highlighting significant advancements and adoption of technologies. The manufacturing sector plays a crucial role, utilizing AI and IoT for predictive maintenance, optimizing production processes, and enhancing supply chain efficiency, which aligns with the UK government's initiative to bolster the industrial sector.

    The energy and utilities sector is equally impactful, focusing on smart grids and energy management systems that facilitate real-time monitoring and reduce operational costs. Transportation and mobility are being revolutionized through AI-driven analytics, enabling smarter traffic management and improving safety measures, vital for urban areas in the UK.

    Critically, the BFSI sector leverages AI and IoT for fraud detection, risk assessment, and personalized customer experiences, positioning itself as a frontrunner in technology adoption. Government and defense applications employ these technologies for smart surveillance and logistics, contributing to national security.

    Get more detailed insights about UK Ai In Iot Market Research Report - Forecast to 2035

    Key Players and Competitive Insights

    The UK AI in IoT market is experiencing significant competitive dynamics, propelled by intensifying technological advancements and an increasing focus on digital transformation across various sectors.With the integration of artificial intelligence into Internet of Things devices, companies are leveraging data analytics, machine learning, and predictive insights to enhance operational efficiencies and customer experiences.The competitive landscape is characterized by a mix of established players and innovative startups, all vying for market share in an environment that prioritizes agility and collaboration. As organizations seek to harness the full potential of interconnected devices, the role of competitive intelligence becomes crucial in understanding market demands, technology trends, and strategic positioning.

    Within the UK AI in IoT market, Oracle stands out due to its robust portfolio encompassing cloud platforms, integrated analytics, and a wide array of IoT applications. The company's strong capabilities in data management and analytics allow it to provide organizations with comprehensive solutions that enhance operational efficiencies and foster informed decision-making.Oracle has established a significant presence in various industries, including manufacturing, healthcare, and smart cities, providing tailored solutions that meet specific sector needs. The strength of Oracle lies in its ability to integrate AI-driven insights into existing business processes, thereby allowing organizations to maximize their IoT investments and drive innovation.

    PTC holds a prominent position in the UK AI in IoT market through its focus on augmented reality, digital twin technology, and IoT solutions. The company is known for its flagship product offerings, which include ThingWorx, a leading industrial IoT platform that empowers businesses to develop connected solutions swiftly and efficiently.PTC’s strengths are augmented by strategic mergers and acquisitions aimed at enhancing its technological capabilities and expanding its market presence. The company fosters partnerships within the UK to deliver comprehensive solutions catered to industries such as manufacturing, automotive, and aerospace, ensuring that its products remain at the forefront of technological advancements.Through its persistent innovation and commitment to integrating AI with IoT, PTC continues to play a pivotal role in transforming how businesses operate in an increasingly connected world.

    Key Companies in the UK Ai In Iot Market market include

    Industry Developments

    Oracle declared in March 2025 that it would invest $5 billion in cloud infrastructure in the UK to foster AI innovation. SPARK Matrix named PTC a leader in the worldwide Industrial IoT market in 2023. The UK's fastest AI supercomputer, "Dawn," was introduced by Dell Technologies in 2023 in partnership with Intel and UKRI to tackle computational issues in academia and industry.Siemens and IoT Tribe launched the Flywheel Program in 2023 to assist AI-powered aircraft businesses. More than 60% of generative AI firms in the UK selected Google Cloud, according to a 2023 Google research. To encourage AI innovation, the company started the 'Gemini for UK' campaign.

    The strong demand for AI chip designs drove Arm Holdings' 2023 initial public offering (IPO), which valued the business at $120 billion. Accenture revealed in 2023 that more UK businesses had intentions to invest in AI, demonstrating an increasing dedication to AI adoption.Microsoft launched a £2.5 billion AI infrastructure plan in the UK in 2023, however progress of the project is being hampered by grid connection delays. These examples demonstrate how the UK is actively involved in the AI in IoT space, with large investments and programs fostering innovation and expansion.

    UK AI in IoT

    Market Segmentation

    AI in IoT Market Vertical Outlook

    • Manufacturing
    • Energy and Utilities
    • Transportation and Mobility
    • BFSI
    • Government and Defense
    • Retail
    • Healthcare and Life Sciences
    • Telecom
    • Others

    AI in IoT Market Component Outlook

    • Platforms
    • Software Solutions
    • Services

    AI in IoT Market Technologies Outlook

    • ML and Deep Learning
    • NLP

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 331.98(USD Million)
    MARKET SIZE 2024 425.6(USD Million)
    MARKET SIZE 2035 1795.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 13.979% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Oracle, PTC, Dell Technologies, Siemens, Google, Arm Holdings, General Electric, Accenture, Cisco, Huawei, SAP, IBM, Intel, Amazon, Microsoft
    SEGMENTS COVERED Component, Technologies, Vertical
    KEY MARKET OPPORTUNITIES Smart home automation solutions, Industrial IoT advancements, Healthcare monitoring systems, Predictive maintenance applications, Enhanced security surveillance technologies
    KEY MARKET DYNAMICS Growing adoption of smart devices, Increasing demand for automation, Rising investments in AI technologies, Enhanced data analytics capabilities, Government support for innovation
    COUNTRIES COVERED UK

    FAQs

    What is the projected market size of the UK AI in IoT Market in 2024?

    The UK AI in IoT Market is expected to be valued at 425.6 million USD in 2024.

    What will be the market size of the UK AI in IoT Market by 2035?

    By 2035, the UK AI in IoT Market is projected to reach a value of 1795.0 million USD.

    What is the compound annual growth rate (CAGR) for the UK AI in IoT Market from 2025 to 2035?

    The expected CAGR for the UK AI in IoT Market from 2025 to 2035 is 13.979%.

    What are the key components of the UK AI in IoT Market?

    The UK AI in IoT Market is segmented into components such as Platforms, Software Solutions, and Services.

    How much will the Platforms segment be valued in 2035?

    The Platforms segment of the UK AI in IoT Market is expected to be valued at 417.0 million USD in 2035.

    What is the expected value of the Software Solutions segment in 2024?

    The Software Solutions segment is projected to be valued at 160.0 million USD in 2024.

    Which companies are major players in the UK AI in IoT Market?

    Major players in the UK AI in IoT Market include Oracle, PTC, Dell Technologies, Siemens, and Google among others.

    What is the anticipated value of the Services segment in 2035?

    The Services segment of the UK AI in IoT Market is expected to be valued at 718.0 million USD in 2035.

    How does the growth rate of the UK AI in IoT Market compare across segments?

    The growth dynamics across segments show promising trends, particularly in Software Solutions and Services.

    What are the key drivers for the growth of the UK AI in IoT Market?

    Key growth drivers include increasing adoption of AI technologies and the demand for smart IoT solutions.

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