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

Global AIoT Market will garner a significant growth rate from 2023 to 2032. The proliferation of IoT devices generates massive data streams, necessitating AI-driven insights to derive value. AI augments IoT capabilities, enabling predictive analytics, anomaly detection, and automation. The continuous efforts and partnerships among companies in AIoT development are pushing the expansion of the market. For instance, in August 2023, by releasing several Generative AI products powered by Google Cloud, Persistent Systems furthered its cooperation with Google Cloud. These services will provide clients at every stage of their AI journeys, from AI explorers to Generative AI disruptors, with the knowledge necessary to successfully identify and integrate these cutting-edge technologies into their organizations at scale.

Industries seek holistic solutions where AI enhances device functionality and data interpretation. Additionally, edge computing gains momentum, ensuring real-time AI processing for time-sensitive applications. As connectivity, data, and intelligence converge, the AIoT market thrives on the synergy between artificial intelligence and the Internet of Things, revolutionizing industries, smart cities, and everyday life.

The overall AIoT Market is classified based on component, deployment type, end-user, and region.

Based on component, the services segment will garner lucrative gains from 2023 to 2032. As businesses grapple with complex data generated by interconnected devices, AI-driven services offer solutions for data management, analysis, and actionable insights. From predictive maintenance to personalized customer experiences, AIoT services enhance efficiency and competitiveness. With the convergence of artificial intelligence and IoT, the increasing demand for AIoT services underscores their essential role in driving innovation, optimizing operations, and unlocking the full potential of connected ecosystems.

By deployment type, the AIoT industry from the on-premises segment will exhibit a high growth rate over 2023-2032. As companies prioritize data privacy and security, on-premises AIoT systems offer control over sensitive information. This deployment type integrates AI capabilities with local IoT devices, enabling real-time analysis without relying solely on cloud resources. The rising demand for on-premises AIoT solutions underscores their pivotal role in providing customizable, secure, and efficient data processing, aligning with diverse industry needs.

Regarding the end-user, the manufacturing segment will capture a decent AIoT market share by 2032. By merging AI capabilities with IoT devices, manufacturers enhance automation, predictive maintenance, and quality control. AIoT-driven insights optimize production efficiency, minimize downtime, and enable real-time decision-making. As the manufacturing landscape embraces Industry 4.0 principles, the rising demand for AIoT solutions underscores their pivotal role in revolutionizing processes, elevating competitiveness, and ushering in a new era of smart manufacturing.

Regionally, the Europe AIoT industry size will expand notably through 2032 due to the focus on technological advancement and sustainable practices, resource optimization, and enhanced customer experiences in the region. From smart cities to industrial automation, the integration of AI and IoT in Europe addresses evolving challenges. The surging demand underscores AIoT's pivotal role in shaping a digitally connected, innovative, and sustainable future across diverse sectors in the European landscape.