As per MRFR analysis, the US AI in IoT Market Size was estimated at 2.12 (USD Billion) in 2023. The US AI in IoT Market Industry is expected to grow from 2.85(USD Billion) in 2024 to 43 (USD Billion) by 2035. The US AI in IoT Market CAGR (growth rate) is expected to be around 27.982% during the forecast period (2025 - 2035).
In the US AI in IoT market, the integration of artificial intelligence in Internet of Things devices is gaining traction, reflecting a strong trend towards automation and improved efficiency. Companies are increasingly leveraging AI to analyze vast amounts of data gathered from IoT devices, which helps optimize operations across various sectors, including manufacturing, healthcare, and smart buildings. A key market driver for this growth is the need for predictive maintenance and real-time analytics, enabling businesses to reduce downtime and operational costs while enhancing productivity.
Moreover, government initiatives aimed at promoting technological innovation in IoT, such as funding research and development projects, are further propelling market growth.Opportunities in the US AI in IoT market can be explored through the development of smart cities, where connected devices enhance public services and manage resources efficiently. For instance, cities are using IoT combined with AI for traffic management, waste management, and energy consumption monitoring.
The increasing adoption of edge computing is also significant, as processing data closer to the source can improve response times and reduce bandwidth usage, which is critical in applications like autonomous vehicles. Recent trends indicate a shift towards more robust cybersecurity solutions as the number of connected devices increases, making them more vulnerable to cyber threats.Companies are investing in AI-driven security measures to protect sensitive data and maintain user trust. Additionally, there is a growing focus on interoperability among various IoT devices, allowing for smoother communication and integration. Overall, the US market reflects a dynamic landscape where the fusion of AI and IoT continues to evolve, presenting numerous opportunities for innovation and growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US AI in IoT Market Industry is experiencing a significant surge in the demand for smart devices, which is driving market growth. According to the Consumer Technology Association, over 500 million connected devices were in use in the United States in 2022, reflecting a rapid increase in consumer adoption of Internet of Things solutions. This growing demand for smart homes, wearables, and smart appliances is primarily fueled by advancements in artificial intelligence and machine learning, enabling these devices to offer enhanced functionality and seamless connectivity.Organizations like Amazon and Google are major players that have heavily invested in AI technologies for their IoT products, contributing to this increase by providing users with intuitive experiences. As technology continues to evolve, it is projected that the number of smart devices will double in the next few years, elevating the overall importance of AI in Internet of Things applications.
U.S. governmental policies and initiatives are significantly impacting the growth of the US AI in IoT Market Industry. The Federal Government has allocated substantial funding toward Research and Development programs for artificial intelligence and IoT integration, which is expected to drive innovation and commercialization of new technologies. For instance, the National Institute of Standards and Technology's ongoing efforts to establish a framework for IoT security and interoperability have paved the way for safer and more reliable IoT ecosystems.Such initiatives contribute to an expected growth in investments in AI-integrated IoT solutions, estimated to reach billions of dollars over the next several years, enhancing the U.S. position as a global leader in technology innovation.
The growing quantity of data generated by IoT devices necessitates advanced data analytics solutions powered by artificial intelligence, propelling growth in the US AI in IoT Market Industry. Industry reports suggest that the volume of data generated from IoT devices could surpass 79.4 zettabytes by 2025, necessitating robust analytics tools that can process and analyze this data efficiently. Major technology firms, such as IBM and Microsoft, are investing in AI-driven analytics platforms that help organizations derive actionable insights from their IoT data.This is leading to better decision-making strategies in various sectors including smart cities, healthcare, and manufacturing, thus driving market adoption and innovation in AI integrated IoT solutions.
The Component segment of the US AI in IoT Market encompasses various critical elements, including Platforms, Software Solutions, and Services, each playing an indispensable role in shaping the technological landscape. Platforms serve as the foundational infrastructure, enabling seamless connectivity and interoperability among devices. They facilitate real-time data processing and analytics, significantly enhancing decision-making processes across industries.
As businesses increasingly adopt IoT technologies, the demand for robust platforms that can handle large data volumes while ensuring security and scalability is on the rise. Software Solutions within this segment focus on providing specialized applications that leverage AI capabilities to streamline operations and improve efficiency. These solutions are pivotal for industries such as manufacturing, healthcare, and smart cities, where data-driven insights can lead to significant operational improvements and cost reductions.
By employing advanced algorithms, organizations can predict maintenance needs, optimize resource allocation, and enhance customer experiences, making Software Solutions a vital component of the overall market strategy.Services, including Consulting, Integration, and Maintenance, are essential for the successful deployment and management of AI in IoT systems. They provide the necessary expertise for businesses looking to navigate the complexities of integrating AI with IoT. As companies seek to leverage these technologies, the provision of specialized services becomes crucial for ensuring that systems operate optimally and deliver the expected return on investment. Understanding the dynamics of this Component segment is essential for stakeholders aiming to capitalize on the growth and innovation within the US AI in IoT Market, as each category not only supports but also amplifies the capabilities of AI-driven IoT applications across various sectors.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US AI in IoT Market is experiencing robust growth, primarily driven by advancements in Technologies such as Machine Learning (ML), Deep Learning, and Natural Language Processing (NLP). The rapid integration of ML and Deep Learning into IoT devices enhances data analysis capabilities, allowing for more accurate predictions and real-time decision-making. Organizations are leveraging these technologies to optimize operations and improve customer experiences through personalized solutions. NLP, on the other hand, plays a crucial role in enabling natural interactions between users and IoT systems, resulting in more intuitive user interfaces and improved automation processes.
The demand for these technologies is fueled by increasing data generation from IoT devices and the necessity for intelligent data processing. As companies aim to harness vast amounts of data effectively, Machine Learning and Deep Learning are emerging as significant contributors to market growth, offering the ability to derive actionable insights from complex datasets. Meanwhile, the ongoing evolution of NLP is facilitating the development of smarter and more responsive IoT applications, ultimately driving user engagement and satisfaction. The interplay of these technologies positions the US AI in IoT Market for continued expansion, as businesses seek to capitalize on the efficiencies and competitive advantages they offer.
The US AI in IoT Market has seen significant advancements within various verticals, showcasing expanding applications and the potential for further growth. Manufacturing is increasingly adopting AI-driven IoT solutions to enhance productivity through real-time monitoring and predictive maintenance, which contributes to operational efficiency. The Energy and Utilities sector employs these technologies to optimize resource usage and sustainability efforts, helping in tracking energy consumption and reducing waste. Transportation and Mobility benefit from AI in IoT for smart logistics and autonomous vehicles, improving safety and efficiency in urban mobility.In BFSI, these technologies are vital for fraud detection and customer service personalization.
Government and Defense leverage AI and IoT for enhanced surveillance and resource management, playing a crucial role in national security. The Retail sector sees advancements in customer experience through personalized marketing and inventory management, while Healthcare and Life Sciences utilize AI for better patient monitoring and predictive health analytics. Telecom is focusing on expanding connectivity through IoT devices, leading to significant improvements in communication networks.Collectively, these verticals drive the market growth, reflecting a comprehensive adoption of AI technologies in everyday applications across various industries.
The US AI in IoT Market presents a dynamic landscape characterized by rapid growth and continuous innovation. As artificial intelligence technologies increasingly integrate with the Internet of Things, various sectors are seeing transformative changes in operational efficiency, data processing, and predictive analytics. This confluence creates a highly competitive environment where companies strive to develop advanced solutions that promise improvements in user experience and cost effectiveness.
Organizations are focusing on creating seamless interoperability amongst devices while harnessing the power of AI to analyze vast datasets efficiently. Consequently, both new entrants and established players compete vigorously to capture market share and establish leadership positions in this evolving domain.SAP stands out in the US AI in IoT Market primarily due to its robust enterprise resource planning solutions combined with its AI-driven analytics capabilities.
This integration allows SAP to offer comprehensive services that enhance real-time data visibility and decision-making for businesses across various industries. SAP’s strength lies in its extensive portfolio of applications that improve the management of resources and operations through intelligent systems. Enhanced features such as predictive maintenance, asset monitoring, and supply chain optimization empower clients to utilize AI functionalities in conjunction with IoT technologies effectively. With a strong market presence, SAP positions itself strategically to meet the growing demand for intelligent IoT solutions, underscoring its commitment to driving innovation and operational excellence for businesses in the US.Bosch operates as a competitive force in the US AI in IoT Market, leveraging its expertise in industrial automation, smart home technology, and mobility solutions.
Through a diverse range of products and services, including sensors, connectivity platforms, and advanced analytics, Bosch aims to create a cohesive ecosystem facilitating IoT applications. Its strengths lie in significant investments in research and development, which enable Bosch to innovate continuously and adapt to emerging technology trends. The company has pursued strategic partnerships and acquisitions to broaden its capabilities, enhancing its presence in smart cities and sustainable technologies within the US scope. Bosch's focus on delivering tailored IoT solutions underscores its commitment to improving efficiency and sustainability across multiple sectors, further solidifying its position as a leader in the competitive landscape of AI-driven IoT solutions.
In recent months, the US AI in IoT Market has seen substantial advancements and developments. Companies like Microsoft have been enhancing their Azure IoT platform to integrate AI capabilities more effectively, which reflects a growing trend toward intelligent edge computing. Meanwhile, GE has been focusing on AI applications in industrial IoT, showcasing predictive maintenance solutions that could revolutionize manufacturing. Notably, Bosch has announced partnerships aimed at advancing smart home technologies with AI integration, signifying their commitment to this sector. In terms of merger and acquisition activity, Oracle's acquisition of Cerner in June 2022 aligns with their strategy to strengthen healthcare IoT solutions, further enhancing their AI capabilities in the sector. Furthermore, IBM's strategic focus on quantum computing for IoT applications and NVIDIA's advancements in AI-driven graphics processing units are driving growth in this market segment. The increasing incorporation of AI across various sectors is projected to boost the overall market valuation, reflecting a larger shift toward automation and smart technologies in the US. Over the past few years, the market has witnessed continuous investment from major players, collectively driving innovation and expanding the potential applications of AI in IoT.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 2.12(USD Billion) |
| MARKET SIZE 2024 | 2.85(USD Billion) |
| MARKET SIZE 2035 | 43.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 27.982% (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 Billion |
| KEY COMPANIES PROFILED | SAP, Bosch, GE, Oracle, Cisco, IBM, Microsoft, Qualcomm, Intel, Google, Salesforce, NVIDIA, Amazon, Honeywell, Siemens |
| SEGMENTS COVERED | Component, Technologies, Vertical |
| KEY MARKET OPPORTUNITIES | Smart home automation growth, Industrial IoT optimization, Predictive maintenance solutions, Enhanced security systems, Energy management applications |
| KEY MARKET DYNAMICS | Increasing adoption of smart devices, Rising demand for automation solutions, Growing focus on predictive maintenance, Enhanced data analytics capabilities, Proliferation of 5G technology |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US AI in IoT Market is expected to be valued at 2.85 billion USD in 2024.
By 2035, the US AI in IoT Market is projected to reach a value of 43.0 billion USD.
The expected CAGR for the US AI in IoT Market from 2025 to 2035 is 27.982%.
The US AI in IoT Market is divided into components like Platforms, Software Solutions, and Services.
The Platforms segment is estimated to be valued at 12.5 billion USD by 2035.
The Software Solutions segment is expected to reach 15.0 billion USD by 2035.
The Services segment is projected to be valued at 15.5 billion USD by 2035.
Major players in the market include SAP, Bosch, GE, Oracle, Cisco, IBM, Microsoft, and others.
Key applications include smart cities, industrial automation, and healthcare innovations.
Emerging trends such as automation, predictive analytics, and improved connectivity present significant growth opportunities.
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