AIoT Market

According to a research report "AIoT Market by Platform (IoT Device Management, IoT Application Enablement Platforms, IoT Connectivity Management, IoT Cloud, IoT Advanced Analytics), Technology (Machine Learning, NLP, Computer Vision, Context Aware AI) - Global Forecast to 2030" published by MarketsandMarkets, the AIoT market is projected to grow from USD 25.44 billion in 2025 to USD 81.04 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 26.1% during the forecast period. The need for AIoT solutions is expected to grow due to the exponential increase in data generated from IoT devices. As the number of connected IoT devices continues to rise exponentially, there’s an urgent need for robust frameworks that can effectively manage and analyze the data generated. The other key factor for enhancing the AIoT market is the need for automation and efficient running of activities. In the modern world, most companies are increasingly oriented towards implementing AIoT systems in their marketing strategies to enhance operational efficiency while reducing costs. The need to enhance user experience and provide personalization plays a crucial role in the growing AIoT market, enabling businesses to respond quickly and in a more personalized manner to their customers' needs when combined with IoT devices, which is appealing to many businesses in this era.

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Based on offering, the platforms segment holds the largest market size.

In the AloT market, platforms help develop and deploy AI solutions, thereby enhancing the performance and functionality of IoT systems. These platforms serve multiple purposes and are categorized into various subcategories. IoT device management is a platform that oversees the entire life cycle of IoT devices, from installation and operations to maintenance and upgrades. This process aims to ensure that the designed figures are used effectively and safely for the period for which they were intended. IoT application enablement platforms are the platforms that collect the requirements needed for the development and monetization of AIoT applications. This enables the integration of various devices and information, making it easier for application developers to create and manage applications that process data generated from IoT devices. IoT connectivity management platforms and services are designed to manage data flow within the network and between IoT devices and the cloud. An IoT cloud is defined as a service that provides a flexible architecture for storing, managing, and analyzing large quantities of IoT data to enable better and quicker business decisions. IoT advanced analytics utilizes big data analytics and AI techniques to analyze performance data collected from IoT devices, providing actionable insights that can help improve operations.

Based on deployment type, edge-based AIoT is projected to register the highest CAGR during the forecast period.

Edge-based AloT implementations leverage the advantage of processing data closer to the IoT devices or at the extremities, thereby reducing the dependency on high bandwidths and the latencies associated with data analysis. AloT systems with edge characteristics are managed into three major layers: the collection terminal, connectivity, and edge layer, each performing its designated functions. Specific hardware components in the collection terminal layer include sensors, vehicles, embedded systems, tags, and active mobile components that are wired to gateways through existing electrical lines. In this case, the connectivity layer also possesses field gateways that connect with the collection terminal layer using these power transmission lines. Finally, the edge layer includes functionalities such as data warehouses, data processing resources, and even insight generators within the system.

Based on region, North America holds the second-largest market share.

North America has been relatively predominant in technological advancements, widespread adoption in other industries, and significant investment in the AIoT segment. This region is expected to hold the second-largest market share of the global AIoT market due to its technological prowess. The manufacturing, healthcare, and transportation sectors are expected to be the primary drivers of IoT technology adoption. For instance, manufacturing industries utilize AIoT solutions, such as predictive maintenance and supply chain management, to drive market growth. Likewise, AIoT’s primary concern in healthcare is the delivery of virtual patient care and personalized medicine.

Key Players

The major vendors covered in the AIoT market include IBM (US), Cisco (US), AWS (US), Google (US), Microsoft (US), Oracle (US), HPE (US), Intel (US), Hitachi (Japan), and SAP (Germany).

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