AIoT Market Size - By Component (Software, Service), By Deployment (On-premises, Cloud), By End-user (Manufacturing, Healthcare, Retail, BFSI, Infrastructure, Automotive) & Global Forecast, 2023 - 2032

AIoT Market Size

Artificial Intelligence of Things (AIoT) Market Size was valued at over USD 9 billion in 2022 and is anticipated to grow at a CAGR of 20% between 2023 and 2032. The market is expanding as more industries adopt AI and IoT technologies. AIoT combines the advantages of artificial intelligence & the Internet of Things to provide advanced data analysis, increased operational efficiency, and improved decision-making abilities. As a result, the demand for AIoT solutions has increased in industries such as healthcare, manufacturing, retail, and transportation. Furthermore, the expansion of edge computing, cloud computing, and 5G networks is driving AIoT adoption.
 

IoT Data as a Service (IoTDaaS) is one of the technologies that AIoT uses to enhance decision-making processes, data management, human-machine interaction, and analytics operations. IoT generates the data, which AI then analyzes to produce insightful information, and, in turn, the desired behavior or action required to increase effectiveness and productivity.
 

Security and privacy concerns are among the most pressing issues confronting the digital transformation market. As organizations rely more on digital technology, they collect & store large amounts of sensitive data, making them vulnerable to cyberattacks and data breaches. Furthermore, as the number of connected devices grows, the attack surface for hackers grows, making it more difficult to secure these devices and the data they collect & transmit.
 

AIoT Market Trends

The increased demand for IoT in conjunction with AI technologies to improve a company's decision-making process as well as the adoption of edge analytics solutions is expected to supplement the market growth. The integration of IoT and AI enables various devices that comprise the IoT network to make decisions. Decisions are made at the edge of the network, using edge computing. In edge computing, microcontrollers are combined with a vast array of sensors to enable high-level processing and decision-making to occur locally.
 

The software segment held a major AIoT market value of over USD 5 billion in 2022. The need for improved risk management capacity, optimization, decreased downtime, intelligent real-time monitoring of processes, and enhanced data management & analysis is driving the demand for AIoT platform software globally. Several leading platform providers including IBM, AWS, Google, Microsoft, and GE provide IoT platforms with AI capabilities such as ML-based analytics. Most enterprises are deploying AIoT platform software due to their ability to quickly generate insights from large amounts of data generated by IoT devices.
 

AIoT Market Analysis

The cloud deployment segment accounted for 45% of AIoT market share in 2022, attributed to the fact that cloud based AIOps platforms eliminate firewall restrictions that can impede access to an on-premises solution. Overhead & maintenance costs are also eliminated with cloud-based and SaaS platforms. Furthermore, cloud object storage services provide unlimited virtual storage capacity, removing the storage volume and scalability constraints of locally installed hardware.
 

The artificial intelligence of things market from healthcare sector is poised to witness over 25% CAGR through 2032. AIoT is gaining traction in the healthcare industry. Wearable devices, such as smartwatches & fitness trackers, are increasingly being used to monitor and track a patient’s health status. These devices can collect data on everything from heart rate and blood pressure to sleep patterns and physical activity, which doctors can use to diagnose and treat various health problems.
 

The artificial intelligence of things market is experiencing growth in the United States owing to rise in the adoption of IoT. The Internet of Things (IoT) is rapidly expanding, with a wide range of industries deploying IoT devices and sensors to gather data and improve operational efficiency. As the number of connected devices continues to grow, there is a need for robust platforms that can handle the massive amounts of data generated and extract valuable insights. AIoT platforms provide the necessary infrastructure and tools to manage and analyze this data effectively. Moreover, predictive analysis is also driving the market in the U.S. By leveraging AI algorithms, these platforms can analyze complex patterns and correlations within IoT data, identify anomalies, predict future trends, and provide real-time recommendations. This capability empowers businesses to optimize operations, improve customer experiences, and drive innovation.
 

The Asia Pacific AIoT market size crossed USD 2 billion revenue in 2022. The use of AIoT technology is growing in the Asia Pacific region. China, Japan, and India are the major countries contributing to the regional market growth. The region's large population, widespread adoption of mobile & internet technologies, and thriving manufacturing sector have all contributed to the growing demand for AIoT applications. In Asia Pacific, AIoT adoption is increasing in industries including smart cities, healthcare, transportation, agriculture, and manufacturing. For instance, some Asian countries are launching projects to build smart cities that will use AIoT technologies to improve livability.
 

AIoT Market Share

Some of the major market players operating in the AIoT market are :

• Amazon Web Services, Inc
• Alibaba Group Holding Limited, Baidu Inc
• Brighterion, Inc
• Canvass Analytics
• Cisco Systems, Inc
• Fujitsu Ltd
• General Vision Inc
• Google LLC
• Intel Corporation
• IBM
• Microsoft Corporation
• Nvidia
• Oracle Corporation
• Tencent Holdings Limited

These companies focus on strategic partnerships and new product launches & commercialization for market expansion. Furthermore, these players are heavily investing in research, allowing them to introduce innovative products and garner maximum revenue in the market.
 

AIoT Industry News:

• In February 2022, P Memory Technology Corporation, a low-density LPDRAM manufacturer and up-and-coming provider of AI memory solutions for edge/IoT applications, collaborated with Synopsys to provide scalable and optimized RAM solutions for upcoming IoT software & hardware. The solution provides verified interoperability between DesignWare Synchronous Serial Interface (SSI) IP from Synopsys and the IoT RAM from AP Memory. For IoT and mobile applications, the Synopsys DesignWare IP provides a high transfer rate and low latency in serial memories.
   
• In January 2022, Origin Wireless and nami.ai launched a new AIoT platform that employs Wi-Fi access points to bring sensing capabilities to the smallest of smart devices, allowing them to distinguish between humans, pets, robot vacuums, pets, and appliances. Origin's Wi-Fi sensing software employs AI to track Wi-Fi radio waves. When the waves collide with people, walls & objects, the sensors in the software activate, allowing the edge-hosted platform to detect important events such as when a person falls over and if there are any effects on their breathing rate. Origin aims to provide businesses and brands with a unified solution by combining intelligent AI algorithms, software, and hardware. 
   

This AIoT market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Software
• Service

Market, By Deployment

• On-premises
• Cloud

Market, By End-user

• Manufacturing
• Infrastructure
• Healthcare
• Retail
• BFSI
• Automotive
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • Singapore
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • GCC
  • South Africa