Artificial Intelligence of Things Market Size, Share, Growth Analysis, By Offering, By Technology(Machine learning, natural language processing, generative ai, robotics), By Application, By Industry Vertical, By Region - Industry Forecast 2024-2031

Artificial Intelligence of Things (AIoT) Market size was valued at USD 65.50 billion in 2022 and is poised to grow from USD 82.01 billion in 2023 to USD 495.09 billion by 2031, growing at a CAGR of 25.2% during the forecast period (2024-2031).

The Artificial Intelligence of Things (AIoT) market is rapidly evolving and stands as a significant catalyst for change globally, merging artificial intelligence with the Internet of Things. This convergence is poised to revolutionize our interaction with technology, enhancing daily life across various sectors. Intelligent algorithms and machine learning models are pivotal within the AIoT market, facilitating the connection between AI frameworks and IoT devices, systems, and sensors. This integration empowers connected devices to analyze data, make decisions, and autonomously perform actions, optimizing their efficiency and offering valuable insights. The proliferation of IoT devices, numbering in the billions, coupled with the exponential growth of generated data, drives the AIoT market further. This enables IoT devices to derive value from data, enhance self-optimization, autonomously improve functions, and provide personalized user experiences. For instance, in June 2023, Amazon Go stores disrupted the retail industry with AIoT innovations. These cashier-less stores utilize interconnected smart devices powered by AI, deducting purchases directly from customers' e-wallets upon exit and adjusting totals instantly if items are removed from the cart, fundamentally altering the shopping experience.

Top-down and bottom-up approaches were used to estimate and validate the size of the Artificial Intelligence of Things (AIoT) Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Artificial Intelligence of Things (AIoT) Market Segmental Analysis

Global Artificial Intelligence of Things (AIoT) Market is segmented by offering, technology, application, industry vertical, and region. Based on offering, the market is segmented into hardware, software, and services. Based on technology, the market is segmented into machine learning, natural language processing (NLP), generative ai, robotics, computer vision, autonomous and sensor technology. Based on application, the market is segmented into real-time machinery condition monitoring, supply chain management, predictive maintenance, inventory management, energy consumption management, and others. Based on industry vertical, the market is segmented into BFSI, manufacturing, healthcare, automotive, retail, transportation & logistics, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Artificial Intelligence of Things (AIoT) Market

AIoT has a great influence over digital homes and extends its effort towards the development of sustainable communities. This has fostered the application for the efficient use of energy and water for smart cities and has furthered the market advancement. They augment process efficiency through facilitating automation and improved decision making. For instance, Smart City Development, a company that specializes in manufacturing and conceptualizing smart cities at an affordable price, proposes a solution known as Smart Infrastructure Management or SIM. The solution being referred to lays its foundation in IoT, considered as the foundational pillar of the framework as it presents data processed by AI. Moreover, AIoT is initiatory and deployed to recognize characteristic events. It is implemented onto SIM's tank truck and water management to pre-alert of low water levels in overhead tank (OHT) and subsequently turning on the refill pumps. This helps residents to have a constant water supply while reducing water wastage and boosting the standard of living. So, we see that adopting AIoT to encourage efficient utilization of water and energy is one of the key reasons for the expansion of the global market.

Restraints in the Artificial Intelligence of Things (AIoT) Market

Interoperability between AI and IoT devices raises significant concerns due to inherent security challenges. AIoT systems are data-intensive, handling large volumes of potentially sensitive information, making them susceptible to cybersecurity threats. Security, privacy, and the isolation needed to prevent unauthorized access to AIoT networks are critical concerns in the market. Consequently, safeguarding AIoT systems from malicious attacks and ensuring the confidentiality of user information are major obstacles impeding market growth.

Market Trends of the Artificial Intelligence of Things (AIoT) Market

AIoT is emerging as a potent tool for automating industries and revolutionizing robotics. Modern robots, driven by artificial intelligence principles, can interpret speech and gestures, exchange information, coordinate actions, learn, and operate autonomously under varying conditions, performing complex tasks without human intervention. This trend is significantly enhancing manufacturing, logistics, and various other sectors. AIoT transforms robotics by imbuing them with intelligence and self-sufficiency. Within robots, smart IoT devices collect environmental data such as sensor readings and machine performance metrics. AI algorithms utilize this data to make informed decisions, learn from experiences, adapt to new environments, and enhance operational speed across diverse projects. The integration of autonomous systems with industrial processes promises heightened efficiency and optimized resource utilization across multiple industries. For example, in January 2022, Hitachi Industrial Equipment Systems Co., and Hitachi Limited announced plans to expand their global footprint in industrial robotics across Japan and the ASEAN region. Their strategy includes pioneering full turnkey solutions in line construction fused with digital technologies, reflecting how industrial automation and robotics are driving advancements in the AIoT market.