Artificial Intelligence of Things (AIoT) Market 2023-2030 By Deployment (On-premises, Cloud), Component (Software, Service), End-user (Manufacturing, Healthcare, Retail, BFSI, Infrastructure, Automotive) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Information Technology | Pages : 179 Pages | Published On : Jul 2023
The Artificial Intelligence of Things (AIoT) Market, valued at over USD 9 billion in 2022, is projected to experience a compound annual growth rate (CAGR) of 20% from 2023 to 2030. This growth is fueled by the increasing adoption of AI and IoT technologies across various industries. AIoT combines the strengths of artificial intelligence and the Internet of Things to deliver advanced data analysis, enhanced operational efficiency, and improved decision-making capabilities. Consequently, there is a growing demand for AIoT solutions in sectors such as healthcare, manufacturing, retail, and transportation. Furthermore, the rise of edge computing, cloud computing, and 5G networks plays a significant role in driving the adoption of AIoT.
IoT Data as a Service (IoTDaaS) is a technology utilized by AIoT to improve decision-making, data management, human-machine interaction, and analytics operations. Through IoT, data is generated, which is subsequently analyzed by AI to generate valuable insights. These insights then drive the desired behaviors or actions needed to enhance effectiveness and productivity.
In the digital transformation market, security and privacy concerns stand out as critical challenges. With organizations increasingly dependent on digital technology, they accumulate and store vast quantities of sensitive data, which exposes them to the risks of cyberattacks and data breaches. Additionally, as the number of interconnected devices expands, the attack surface for hackers widens, posing greater difficulties in safeguarding these devices and the data they handle.
AIoT Market Trends
The growing demand for the Internet of Things (IoT) combined with AI technologies to enhance decision-making processes in businesses, along with the adoption of edge analytics solutions, is expected to contribute to the market's growth. The integration of IoT and AI allows the devices within an IoT network to make decisions. These decisions are made at the network's edge, utilizing edge computing. Edge computing combines microcontrollers with a wide range of sensors to enable local high-level processing and decision-making.
AIoT Component Segmentation
In 2022, the software segment accounted for a significant value in the AIoT market, surpassing USD 5 billion. The global demand for AIoT platform software is driven by the need for improved risk management capabilities, optimization, reduced downtime, intelligent real-time process monitoring, and enhanced data management and analysis. Prominent platform providers like IBM, AWS, Google, Microsoft, and GE offer IoT platforms with AI capabilities, including machine learning-based analytics. Many enterprises are adopting AIoT platform software due to its ability to rapidly generate insights from the vast amounts of data generated by IoT devices.
AIoT Deployment Segmentation
In 2022, the cloud deployment segment held a significant 45% market share in the AIoT industry. This can be attributed to the advantages of cloud-based AIOps platforms, which eliminate firewall restrictions that may hinder access to on-premises solutions. Additionally, cloud-based and Software-as-a-Service (SaaS) platforms eliminate overhead and maintenance costs. Moreover, cloud object storage services offer unlimited virtual storage capacity, removing the storage volume and scalability limitations associated with locally installed hardware.
AIoT End-user Segmentation
The healthcare sector is expected to witness a CAGR of over 25% in the AIoT market until 2032. AIoT is gaining momentum in the healthcare industry, where wearable devices like smartwatches and fitness trackers are increasingly being utilized to monitor and track patients' health status. These devices can gather data on various health parameters, such as heart rate, blood pressure, sleep patterns, and physical activity, enabling doctors to diagnose and treat various health conditions.
AIoT Regional Analysis
The United States is experiencing growth in the artificial intelligence of things market due to the increased adoption of IoT. The IoT landscape is rapidly expanding across multiple industries, with IoT devices and sensors being deployed to gather data and enhance operational efficiency. As the number of connected devices continues to rise, robust platforms are needed to handle the vast amounts of data generated and extract valuable insights. AIoT platforms provide the necessary infrastructure and tools to effectively manage and analyze this data. Additionally, predictive analysis is driving the market in the U.S., as AI algorithms within these platforms can analyze complex patterns and correlations in IoT data, identify anomalies, predict future trends, and offer real-time recommendations. These capabilities empower businesses to optimize operations, improve customer experiences, and drive innovation.
The Asia Pacific region achieved a revenue of over USD 2 billion in the AIoT market in 2022. The adoption of AIoT technology is on the rise in this region, particularly in major countries like China, Japan, and India. The region's large population, widespread adoption of mobile and internet technologies, and flourishing manufacturing sector have contributed to the increasing demand for AIoT applications. In the Asia Pacific region, AIoT adoption is expanding across industries such as smart cities, healthcare, transportation, agriculture, and manufacturing. For example, several Asian countries are undertaking projects to build smart cities that leverage AIoT technologies to enhance livability.
AIoT Industry key players
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, and 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 manufacturer specializing in low-density LPDRAM and an emerging provider of AI memory solutions for edge/IoT applications, formed a collaboration with Synopsys. Their joint effort aims to deliver scalable and optimized RAM solutions for upcoming IoT software and hardware. This solution ensures verified interoperability between Synopsys' DesignWare Synchronous Serial Interface (SSI) IP and AP Memory's IoT RAM. The Synopsys DesignWare IP offers high transfer rates and low latency in serial memories, catering to the requirements of IoT and mobile applications.
- In January 2022, Origin Wireless and nami.ai introduced a novel AIoT platform that utilizes Wi-Fi access points to enable sensing capabilities in even the smallest smart devices. This advancement allows these devices to differentiate between humans, pets, robot vacuums, and appliances. Origin's Wi-Fi sensing software leverages AI algorithms to track Wi-Fi radio waves and activate sensors within the software when these waves interact with people, walls, or objects. Through this edge-hosted platform, important events such as a person falling or changes in breathing rate can be detected. Origin's goal is to provide businesses and brands with a comprehensive solution by combining intelligent AI algorithms, software, and hardware.
Artificial Intelligence of Things (AIoT) Market Segmentation:
Market, By Component
Market, By Deployment
Market, By End-user
Market, By Regions
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- South Africa
Table and Figures
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