AI in IoT Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The report covers Artificial Intelligence Growth Statistics and it is Segmented by Component (Platform (Application Management, Connectivity Management, Device Management), Services (Managed Services, Professional Services), Software (Data Management, Network Bandwidth Management, Real-time Streaming Analytics, Remote Monitoring, Security, Edge Solution)), End-user Vertical (BFSI, IT and Telecom, Energy and Utilities, Healthcare, Manufacturing), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD billion) for all the segments.

AI in IoT Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

AI in IoT Market Size

AI In IoT Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 85.20 Billion
Market Size (2030) USD 124.38 Billion
CAGR (2025 - 2030) 7.86 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

AI In IoT Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of AI In IoT Market with other markets in Technology, Media and Telecom Industry

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AI in IoT Market Analysis

The AI In IoT Market size is estimated at USD 85.20 billion in 2025, and is expected to reach USD 124.38 billion by 2030, at a CAGR of 7.86% during the forecast period (2025-2030).

The convergence of artificial intelligence in the Internet of Things (AIoT) is revolutionizing industrial landscapes through enhanced automation and intelligent decision-making capabilities. This transformation is evidenced by the projected growth in IoT connections, which are expected to reach 34.7 billion by 2028, highlighting the expanding scope of connected devices across industries. Strategic partnerships are accelerating technological advancement in this space, as demonstrated by Viettel Group and NVIDIA's collaboration in June 2022, which focuses on developing AI technologies in computer vision, robotics, natural language processing, and digital twins. The integration of AI in IoT is particularly transforming manufacturing processes, where a single manufacturing site can generate more than 2,200 terabytes of data monthly, according to IBM.


The industry is witnessing a significant shift toward cloud-based AI-IoT solutions, driven by the need for scalable and efficient data processing capabilities. This transition is exemplified by recent strategic moves such as Accenture's acquisition of Flutura in March 2023, which aims to expand industrial AI services under the Applied Intelligence brand. The evolution of edge computing and 5G connectivity is further enhancing the capabilities of AIoT systems, enabling real-time data processing and analysis at the network edge. According to Huawei's GIV 2025 forecast, approximately 40 billion smart devices will be equipped with sensing capabilities by 2025, indicating the massive scale of data generation and processing requirements.


The healthcare sector is emerging as a crucial adopter of AI-IoT solutions, with implementations ranging from remote patient monitoring to predictive maintenance of medical equipment. This trend is illustrated by the February 2023 partnership between e& enterprise IoT & AI and Stella Technologies, which aims to explore new opportunities in the GCC region's healthcare sector. The integration of AIoT solutions in healthcare is enabling more personalized patient care, improved diagnostic accuracy, and enhanced operational efficiency in healthcare facilities. These advancements are particularly significant in areas such as telemedicine consultations, remote healthcare monitoring, and smart medical device management.


The industrial sector is experiencing a paradigm shift with the implementation of AI in IoT solutions for predictive maintenance, quality control, and operational optimization. Companies are increasingly deploying sophisticated sensor networks and AI-powered analytics platforms to monitor equipment performance, predict maintenance needs, and optimize production processes in real-time. The trend toward industrial automation is particularly evident in smart manufacturing initiatives, where AI-IoT solutions are being used to create digital twins, enable predictive maintenance, and facilitate real-time decision-making. This transformation is supported by the growing adoption of industrial IoT platforms that combine edge computing capabilities with advanced analytics to deliver actionable insights and improve operational efficiency.

Segment Analysis: By Component

Software Segment in AI in IoT Market

The software segment continues to dominate the AI in IoT market, commanding approximately 40% market share in 2024. This significant market position is driven by the increasing demand for sophisticated data management, network bandwidth management, real-time streaming analytics, remote monitoring, security, and edge AI solutions. Organizations across various industries are increasingly investing in AI-enabled IoT software solutions to enhance their operational efficiency, improve decision-making capabilities, and enable predictive maintenance. The software segment's prominence is further strengthened by the growing need for advanced security solutions to protect IoT ecosystems, as well as the rising adoption of edge computing AI solutions that help process data closer to the source, reducing latency and bandwidth usage.

Market Analysis of AI In IoT Market: Chart for By Component

Platform Segment in AI in IoT Market

The platform segment is emerging as the fastest-growing component in the AI in IoT market, with an expected growth rate of approximately 9% during 2024-2029. This rapid growth is attributed to the increasing demand for comprehensive IoT platform solutions that integrate application management, connectivity management, and device management capabilities. The platform segment's growth is being fueled by the rising need for scalable and flexible solutions that can handle the complexity of IoT deployments while providing seamless integration capabilities. Organizations are increasingly recognizing the value of IoT platforms in streamlining their digital transformation initiatives, managing large-scale IoT deployments, and enabling real-time monitoring and control of connected devices. The integration of embedded AI technologies within these platforms further enhances their capabilities, offering more intelligent and autonomous operations.

Remaining Segments in AI in IoT Market by Component

The services segment plays a crucial role in the AI in IoT market by providing essential support through managed and professional services. This segment encompasses a wide range of offerings including consulting, implementation, maintenance, and training services that help organizations maximize their IoT investments. Managed services providers are helping enterprises handle the complexity of IoT deployments, while professional services are enabling organizations to develop customized solutions aligned with their specific business requirements. The services segment is particularly important for organizations lacking internal expertise in IoT implementation and management, providing them with the necessary support to successfully deploy and maintain their IoT initiatives. The integration of embedded AI market solutions within these services can further enhance their effectiveness and efficiency.

Segment Analysis: By End-User Vertical

Manufacturing Segment in AI in IoT Market

The manufacturing sector continues to dominate the AI in IoT market, commanding approximately 27% of the total market share in 2024. This significant market position is driven by the sector's extensive adoption of sensors and connected devices, coupled with the enabling of machine-to-machine (M2M) communication, which has led to a massive increase in data points generated across manufacturing facilities. These data points range from basic metrics like process cycle times to advanced measurements such as material stress capabilities in automotive manufacturing. The integration of AI with IoT has become crucial for manufacturers seeking to achieve complete automated data management systems, enabling efficient monitoring and optimization of equipment performance, production quality control, and human-to-machine interaction. This technological convergence has significantly reduced product cycle times while enhancing manufacturing and supply chain operations efficiency.

Healthcare Segment in AI in IoT Market

The healthcare sector is emerging as the fastest-growing segment in the AI in IoT market, with a projected growth rate of approximately 10% during 2024-2029. This remarkable growth is driven by the sector's increasing adoption of IoT-connected technologies and robotics to deliver a new age of health support and treatment. Healthcare organizations are leveraging the combination of IoT sensor data and computer vision to enhance diagnostic accuracy, enable remote patient monitoring, reduce follow-up visits, minimize wait times, identify critical patients, and track medical equipment effectively. The emergence of various IoT devices and applications designed specifically for healthcare, including sensors and apps for telemedicine consultations and remote healthcare monitoring, is further accelerating this growth trajectory. The integration of edge AI market solutions is also playing a pivotal role in advancing healthcare IoT applications.

Remaining Segments in End-User Vertical

The other significant segments in the AI in IoT market include BFSI, IT & Telecom, Energy & Utilities, and various other end-user verticals. The BFSI sector leverages AI-based IoT solutions primarily for fraud detection, product development, insurance processing, and operations optimization. The IT & Telecom sector focuses on network optimization, predictive maintenance, and service quality enhancement through AI-IoT integration. The Energy & Utilities segment utilizes these technologies for smart grid management, predictive maintenance, and energy optimization. Other end-user verticals encompass transportation, retail, and government sectors, each implementing AI-IoT solutions to address their specific operational challenges and efficiency requirements.

AI In IoT Market Geography Segment Analysis

AI in IoT Market in North America

North America stands as a dominant force in the global AI in IoT market, commanding approximately 37% of the market share in 2024. The region's leadership position is attributed to its robust technological infrastructure and widespread adoption of AI and IoT technologies across various industries, particularly in the automotive, transportation, manufacturing, retail, and healthcare sectors. The United States and Canada demonstrate particularly high IoT device penetration rates, supported by their advanced digital ecosystems and strong innovation capabilities. The presence of major technology giants and their continuous investment in research and development has created a fertile ground for AIoT integration. The region's manufacturing sector has undergone significant digital transformation, enabling companies to better control energy usage, boost equipment resilience, reduce waste, and monitor product quality in real-time. The fast and secure 5G connectivity infrastructure further accelerates AI adoption in IoT devices, facilitating automated assembly, connected logistics, and flexible production capabilities. The region's strong focus on cybersecurity and data privacy measures has also contributed to building trust in smart connected systems, encouraging broader adoption across industries.

Market Analysis of AI In IoT Market: Forecasted Growth Rate by Region

AI in IoT Market in Europe

Europe has demonstrated remarkable progress in the AI in IoT market, experiencing a robust growth rate of approximately 7% during the period 2019-2024. The region's growth is driven by strong adoption across transportation, healthcare, housing and hospitality, manufacturing, and retail sectors. European countries, particularly Sweden, France, Italy, Germany, and Luxembourg, showcase high IoT penetration rates, with the automotive industry leading the adoption curve. The integration of AI in IoT is closely tied to the region's advancement in big data, machine learning, and 5G technologies. Healthcare has emerged as one of the fastest-growing markets for AI-integrated IoT solutions, particularly in applications for active and healthy aging. The region's strong focus on environmental sustainability and energy efficiency has led to increased implementation of smart IoT solutions in industrial operations. European manufacturers are increasingly leveraging AI-IoT solutions for predictive maintenance, process optimization, and quality control, supported by robust government initiatives and industry collaborations.

AI in IoT Market in Asia Pacific

The Asia Pacific region is poised for exceptional growth in the AI in IoT market, with a projected growth rate of approximately 10% during the period 2024-2029. The region encompasses both industrially developed and emerging economies, providing unique advantages in implementing industrial automation without the constraints of legacy systems. Manufacturing serves as a major growth driver, particularly in countries like China, Japan, and South Korea, where smart manufacturing initiatives are rapidly gaining traction. The adoption of industrial automation has been accelerated by the crucial role that IoT plays in new technology approaches for production, development, and logistics chains. India's emergence as a major market for IoT implementation, supported by government initiatives like Digital India and Smart Cities, has created substantial opportunities for AIoT integration. The region's strong focus on 5G infrastructure development, coupled with investments in various transformative technologies, positions it as a key market for future growth. The convergence of AI and IoT is particularly evident in sectors such as smart cities, industrial automation, and healthcare, where organizations are leveraging these technologies to achieve operational excellence and innovation.

AI in IoT Market in Latin America

Latin America represents an emerging market for AI in IoT solutions, with significant potential in the energy, healthcare, and transportation sectors. The region's IoT landscape is characterized by a combination of improved communication networks and offline services aimed at increasing productivity, reducing waste, and enhancing public service delivery. Enterprise IoT, particularly in smart manufacturing and smart building solutions, is driving market growth across the region. The healthcare sector has emerged as one of the fastest-adopting sectors for AI and IoT, particularly following recent digital transformation initiatives. The implementation of IoT and AI solutions has shown particular promise in areas such as remote patient monitoring, virtual consultations, intelligent diagnoses, and patient priority scheduling. The region's energy and utilities sector is increasingly embracing IoT solutions for monitoring renewable energy plants and optimizing operations, creating new opportunities for AI integration. Small and medium-sized businesses across Latin America are gradually adopting IoT technologies, supported by government initiatives promoting digital transformation.

AI in IoT Market in Middle East and Africa

The Middle East and Africa region is experiencing growing momentum in AI in IoT adoption, driven by both consumer and industrial applications. The increasing deployment of smart utilities, smart retail, and the emergence of smart cities are reshaping the regional market landscape. The Gulf Cooperation Council region is leading increased activity in IoT networking and related technologies, such as machine learning and 5G mobile platforms. The region's IoT applications are primarily centered around smart city solutions, as governments focus on improving urban living quality through major initiatives and purpose-built cities. Water treatment plants in the region are increasingly adopting AI and machine learning technology, leveraging intelligent sensor networks for infrastructure maintenance and optimization. The telecommunications sector is undergoing significant digital transformation, creating new opportunities for AI-IoT integration. Healthcare digitalization efforts are gaining traction, particularly in the GCC region, where organizations are exploring innovative solutions for healthcare delivery and management through AI-enabled IoT platforms.

AI in IoT Industry Overview

Top Companies in AI in IoT Market

The AI in IoT market features prominent technology leaders, including IBM, Microsoft, Google, AWS, Oracle, SAP, and Hitachi, alongside specialized players like PTC and SAS Institute. These companies are driving innovation through continuous enhancement of their IoT platforms with advanced AI capabilities, machine learning integration, and edge computing solutions. Strategic partnerships and collaborations have become increasingly common, particularly between hardware providers and software companies, to deliver end-to-end solutions. Companies are focusing on developing industry-specific solutions, especially for manufacturing, healthcare, and retail sectors, while expanding their geographical presence through local partnerships and innovation centers. The market is characterized by significant investments in research and development, with companies developing proprietary technologies while also ensuring interoperability and open standards to foster wider adoption.

Market Dominated by Tech Conglomerates and Specialists

The competitive landscape is primarily dominated by large technology conglomerates that leverage their existing cloud infrastructure and AI capabilities to provide comprehensive IoT solutions. These established players benefit from their extensive partner ecosystems, global reach, and ability to offer integrated solutions across the technology stack. The AIoT market shows moderate consolidation with a mix of global technology giants and specialized IoT solution providers, each carving out their niches in specific industries or technological capabilities. Merger and acquisition activities are primarily focused on acquiring specialized AI and IoT capabilities, with larger companies frequently acquiring innovative startups to enhance their technological offerings and expand their market presence.


The market exhibits a dynamic environment where partnerships and strategic alliances play a crucial role in expanding solution offerings and market reach. Companies are increasingly adopting platform-based approaches, allowing them to create ecosystems that support various applications and use cases across different industries. The competitive intensity is high, with companies differentiating themselves through industry-specific expertise, technological innovation, and service quality. Regional players are emerging, particularly in Asia-Pacific, focusing on local market needs and regulations while partnering with global players for technological capabilities.

Innovation and Adaptability Drive Market Success

Success in the AIoT industry increasingly depends on companies' ability to provide scalable, secure, and industry-specific solutions while maintaining technological leadership through continuous innovation. Incumbents are focusing on expanding their partner ecosystems, developing industry-specific solutions, and enhancing their platforms with advanced analytics and AI capabilities. The market shows high end-user concentration in sectors like manufacturing, healthcare, and retail, requiring vendors to develop deep domain expertise and customized solutions. Companies are also investing in edge computing capabilities and hybrid deployment models to address data privacy concerns and regulatory requirements.


For contenders looking to gain market share, success lies in identifying and focusing on specific industry verticals or technological niches where they can build competitive advantages. The risk of substitution remains low due to high switching costs and the complex nature of AI-IoT implementations, but companies must continue to innovate to maintain their market positions. Regulatory compliance, particularly around data privacy and security, is becoming increasingly important, with companies needing to invest in robust security frameworks and compliance mechanisms. The ability to provide seamless integration with existing systems, demonstrate clear ROI, and offer comprehensive support services is becoming crucial for market success. Additionally, leveraging IoT intelligence can significantly enhance operational efficiencies and decision-making processes.

AI in IoT Market Leaders

  1. Amazon Web Services Inc. (Amazon Inc.)

  2. IBM Corporation

  3. Autoplant Systems India Pvt. Ltd.

  4. SAP SE

  5. Google LLC (Alphabet Inc.)

  6. *Disclaimer: Major Players sorted in no particular order
AI In IoT Market Concentration
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AI in IoT Market News

  • September 2023 - BMW Group has extended a cloud computing and services partnership with Amazon Web Services (AWS) to deliver various IoT and AI capabilities to extend driver assistance (ADAS) features in new vehicles launching in 2025, with AWS collaboration draws on a "pre-existing" 'cloud data hub,' already on AWS; It will make further usage of cloud-based compute and storage, plus also IoT sensing and AI sense-making tools, including generative AI and machine learning.
  • March 2023 - Accenture announced that it was acquiring Flutura, a provider of data science and Internet of Things (IoT) services, for an undisclosed amount to expand the industrial AI services offered under the Applied Intelligence brand. 
  • January 2023 - Servify, a device management startup, acquired Jubi.ai, an engagement platform with AI capabilities. After the transaction, Jubi.ai will be a part of Servify. The Jubi.ai team will be a part of Servify's tech, product, and innovation teams. The firm is partnering with Servify at an optimal moment as more businesses aim to provide clients with AI-driven engagement solutions.

AI in IoT Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHT

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Assessment of the Impact of COVID-19 on the Industry

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Rising Big Data Volume
    • 5.1.2 Effective Management of Data Generated From IoT Devices to Gain Valuable Insights
  • 5.2 Market Restraints
    • 5.2.1 Data Security and Privacy Issues

6. MARKET SEGMENTATION

  • 6.1 By Component
    • 6.1.1 Platform
    • 6.1.1.1 Application Management
    • 6.1.1.2 Connectivity Management
    • 6.1.1.3 Device Management
    • 6.1.2 Services
    • 6.1.2.1 Managed Services
    • 6.1.2.2 Professional Services
    • 6.1.3 Software
    • 6.1.3.1 Data Management
    • 6.1.3.2 Network Bandwidth Management
    • 6.1.3.3 Real-time Streaming Analytics
    • 6.1.3.4 Remote Monitoring
    • 6.1.3.5 Security
    • 6.1.3.6 Edge Solution
  • 6.2 By End-user Vertical
    • 6.2.1 Banking, Financial Services, and Insurance (BFSI)
    • 6.2.2 IT and Telecom
    • 6.2.3 Energy and Utilities
    • 6.2.4 Healthcare
    • 6.2.5 Manufacturing
    • 6.2.6 Other End-user Verticals (Transport and Mobility, Government, and Retail)
  • 6.3 By Geography
    • 6.3.1 North America
    • 6.3.2 Europe
    • 6.3.3 Asia-Pacific
    • 6.3.4 Latin America
    • 6.3.5 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Amazon Web Services Inc. (Amazon Inc.)
    • 7.1.2 IBM Corporation
    • 7.1.3 Autoplant Systems India Pvt. Ltd
    • 7.1.4 SAP SE
    • 7.1.5 Google LLC (Alphabet Inc.)
    • 7.1.6 Microsoft Corporation
    • 7.1.7 Oracle Corporation
    • 7.1.8 Salesforce.com Inc.
    • 7.1.9 PTC Inc.
    • 7.1.10 SAS Institute Inc.
    • 7.1.11 General Electric Company
    • 7.1.12 Hitachi Ltd
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. FUTURE OF THE MARKET

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AI in IoT Industry Segmentation

The AI in IoT market is defined based on the revenues generated from the components used in various end-user verticals worldwide. The analysis is based on the market insights captured through secondary research and the primaries. The study also covers the major factors impacting the growth of the market in terms of drivers and restraints.

The scope of the study has been segmented based on the component (platform, software and services), by platform (application management, connectivity management, and device management), by software (data management, network bandwidth management, real-time streaming analytics, remote monitoring, security, and edge solution), by services (managed services, and professional services) and end-user vertical (banking, financial services, and insurance (BFSI), IT and telecom, energy and utilities, healthcare, manufacturing, and other end-user verticals) worldwide. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Platform Application Management
Connectivity Management
Device Management
Services Managed Services
Professional Services
Software Data Management
Network Bandwidth Management
Real-time Streaming Analytics
Remote Monitoring
Security
Edge Solution
By End-user Vertical Banking, Financial Services, and Insurance (BFSI)
IT and Telecom
Energy and Utilities
Healthcare
Manufacturing
Other End-user Verticals (Transport and Mobility, Government, and Retail)
By Geography North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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AI in IoT Market Research FAQs

How big is the AI In IoT Market?

The AI In IoT Market size is expected to reach USD 85.20 billion in 2025 and grow at a CAGR of 7.86% to reach USD 124.38 billion by 2030.

What is the current AI In IoT Market size?

In 2025, the AI In IoT Market size is expected to reach USD 85.20 billion.

Who are the key players in AI In IoT Market?

Amazon Web Services Inc. (Amazon Inc.), IBM Corporation, Autoplant Systems India Pvt. Ltd., SAP SE and Google LLC (Alphabet Inc.) are the major companies operating in the AI In IoT Market.

Which is the fastest growing region in AI In IoT Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in AI In IoT Market?

In 2025, the North America accounts for the largest market share in AI In IoT Market.

What years does this AI In IoT Market cover, and what was the market size in 2024?

In 2024, the AI In IoT Market size was estimated at USD 78.50 billion. The report covers the AI In IoT Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the AI In IoT Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

AI In IoT Market Research

Mordor Intelligence provides a comprehensive analysis of the AI in IoT market. We leverage our extensive expertise in IoT artificial intelligence research and consulting. Our detailed examination covers the convergence of artificial intelligence in internet of things, including crucial developments in edge AI and embedded AI technologies. The report offers in-depth insights into IoT analytics and machine learning for IoT applications, with a particular focus on smart IoT implementations and connected intelligence solutions. Our analysis encompasses the entire ecosystem of intelligent sensor networks and IoT cognitive computing.

Stakeholders gain valuable insights through our detailed report PDF, available for immediate download. It examines the evolving landscape of AIoT technologies and their implementation across industries. The report explores emerging trends in edge computing AI and smart connected systems, providing strategic intelligence for decision-makers. Our comprehensive coverage includes a detailed analysis of IoT intelligence applications, embedded AI developments, and advanced IoT analytics solutions. This enables businesses to make informed decisions in the rapidly evolving artificial intelligence of things landscape. The research methodology incorporates both primary and secondary data sources, ensuring robust and reliable market insights.