AI in IoT Market

AI in IoT Market

IoT technology is essential for various organizations to undergo digital transformation, empowering them to upgrade existing processes by developing and monitoring new business models in real-time. Enterprises and service providers have recognized IoT as a key driver of digital transformation initiatives and operational efficiencies. An increasing number of companies now view IoT as critical to business success, contributing to its rising adoption globally.

The global AI (Artificial Intelligence) in IoT (Internet of Things) market witnessed a growth of 7.0% in 2022 as compared to the previous year, resulting in a market size of USD 62.72 billion. Artificial intelligence and the Internet of Things, when combined, have immense potential to transform entire sectors of the economy. The Internet of Things driven by AI creates intelligent technologies that can simulate intelligent behavior and aid in decision-making with minimal to no human involvement.

As data volumes continue expanding exponentially worldwide, relying solely on human-driven analysis to inform strategic decisions will become increasingly untenable for organizations due to constraints around time and cognitive capacity. AI technologies can efficiently analyze large, complex data pools to uncover patterns and relationships that may elude human detection or require disproportionate manual effort. This facilitates the rapid identification of new competitive advantages.

The AI in IoT market can be divided into software, services, and platform. The software category emerged as the top performer in 2022, recording a remarkable revenue growth of ***% from the previous year and attaining a revenue of USD *** billion. However, the platform segment is anticipated to experience the fastest growth, with a projected compound annual growth rate of ***% during the same forecast period.

The AI in IoT market can be divided into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa (MEA). North America was the primary revenue contributor, accounting for ***% of the sales value share in 2022. North America represents a major regional market due to widespread adoption of artificial intelligence and Internet of Things technologies across industries such as automotive/transportation, manufacturing, retail, and healthcare. This high adoption partly explains the region's market growth examined herein. North America also leads in developing AI and IoT applications for emerging end-user sectors.

The region hosts many global IoT and AI vendors, particularly in the United States. Additionally, the region boasts a robust technology ecosystem, and its automobiles have increasingly incorporated software capabilities. When coupled with IoT, AI-enabled devices can autonomously analyze data, make decisions, and act upon insights without human intervention. Tesla's self-driving vehicles exemplify AI and IoT collaboration, as they predict car and pedestrian behavior in various conditions and grow smarter through each trip by determining road conditions, weather, and optimal speed.

The AI in IoT market can be divided into Manufacturing, BFSI (banking, financial services, and insurance), healthcare, IT and telecom, and others.

The prominent players operating in the global AI in IoT market include Intel Corporation, SAP SE, Advantech Co., Ltd., Siemens AG, ABB, Ltd., Cisco Systems, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Amazon Web Services Inc., AT&T Inc., Microsoft Corporation, Salesforce, Inc., Texas Instruments Incorporated, Mitsubishi Electric Corporation, among others.