|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global Artificial Intelligence (AI) in the IoT market is expected to grow at a CAGR of 27.3% during the forecast period (2021-2026).
However, during the spread of Coronavirus, the ability for organizations to access scalable, dependable, and highly secure computing power whether for vital healthcare work, to help students continue learning, or to keep unprecedented numbers of employees online and productive from home are some of the critical factors owing to the growth of the market in this situation. Hospital networks, pharmaceutical companies, and research labs are using AI-enabled IoT devices to care for patients, explore treatments, and mitigate the impacts of COVID-19 in many other ways. All of the above factors have accelerated the growth rate of the market in the short run and are expected to augment it further in the long term.
- IoT technology is the keystone for various organizations to digitally transform, thus, empowering them to upgrade the existing processes by creating and tracking new business models. The retail industry is leveraging cloud AI in IoT-based services to augment their customer experience programs and generate more customer-oriented products.
- For instance, in a smart retail environment, a camera system outfitted with computer vision capabilities can use facial recognition to recognize customers when they walk through the door. Suppose the system detects the majority of customers walking into the store are Millennials. In that case, it can push out product advertisements or in-store specials that appeal to that demographic, therefore driving up sales.
- Due to intense competition in industrial IoT and market maturing, many legacy vendors in the infrastructure management space are offering software to gain a stronghold throughout the value chain. For instance, In February 2021, IBM and Red Hat announced a new collaboration to use a hybrid cloud designed to deliver an open, flexible, and more secure solution for manufacturers and plant operators that will drive real-time value from operations data from industrial IoT.
- Additionally, most companies are shifting to the cloud from on-premise AI, owing to faster delivery time with low latency and real-time tracking, which is likely to foster the studied market growth during the forecast period. For instance, Amazon Echo Amazon has introduced Web Services IoT, a managed cloud platform, and lets devices connect securely to cloud applications and other devices. They have several partners, such as Fitbit, Uber, Spotify, and others.
- However, lack of skilled workforce, along with growing concerns regarding data security, are some of the major factors restraining the studied market growth.
Scope of the Report
IoT is enabling businesses across the globe to collect a tremendous amount of data from multiple sources. The role of Artificial Intelligence in IoT is to automatically identify patterns and also detect anomalies. The study covers detailed segmentation by different types of components, providing its solutions to end-user market studies, such as Telecom & IT, BFSI, and others, along with geographical analysis.
|Banking, Financial Services, and Insurance|
|IT and Telecom|
|Energy and Utilities|
|Other End-user Verticals (Transport & Mobility, Government, Retail)|
|Middle East and Africa|
Key Market Trends
Manufacturing Industry is Expected to Witness Significant Growth
- Manufacturers are increasingly taking steps to achieve 100% automated data management systems. AI-enabled IoT applications for manufacturing can also efficiently deal with operations such as monitoring and optimizing equipment performance, production quality control, and human-to-machine interaction. Faster and efficient manufacturing and supply chain operations allow reducing product cycle time significantly.
- For instance, In June 2019, Microsoft and the BMW Group announced “a new community initiative” to enable faster, more cost-effective innovation in the manufacturing sector. The goal is to significantly accelerate the future Industrial IoT developments, shorten time to value, and drive production efficiencies while addressing common industrial challenges. The underlying platform will continue to evolve, along with manufacturing requirements, to incorporate innovations, including areas of analytics, artificial intelligence, and digital feedback loops.
- Moreover, With the high rate of adoption of sensors and connected devices and the enabling of M2M communication, there has been a massive increase in the data points that are generated in the manufacturing industry. These data points could be of various kinds, ranging from a metric describing the time taken for a material to pass through one process cycle or a more advanced one, such as the calculation of the material stress capability in the automotive industry.
- Various vendors in the market are also offering professional services specific to the manufacturing industry. IBM offers its IoT professional services under Watson, including consulting and boasts prominent clients in manufacturing space. For example, Mahindra & Mahindra Ltd, an automobile manufacturer in India, has adopted connected engineering solutions from IBM.
- Further, an India-based start-up, Lincode Labs, utilizes AI and Industrial IoT solutions to increase the profitability of manufacturers. The company helps manufacturers automate visual inspection and improve overall equipment effectiveness (OEE) by identifying product defects using computer vision and artificial intelligence with the help of deep learning.
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North America is Anticipated to Hold Major market Growth
- The growth in the region in AI in the IoT market is associated with an increase in the numbers of early adopters of the technology. Other factors influencing the growth of the market are the presence of most of the major players in the region, higher cloud adoption rate among the end-user, which is also driving the investment in the studied market. The market players in the area are even viewing strategic partnerships and collaborations among various significant players in the market as a lucrative path towards market expansion.
- In March 2019, US-based 8x8 Inc. integrated its 8x8 contact center with Google Cloud’s new contact center AI. This solution combines multiple AI products to enhance the customer service experience, as well as the productivity of contact centers.
- Moreover, 5G enabled IoT connections is expected to further raise the market demand in the United States. As per IoT Association, the United States leads in terms of smart home adoption, with the highest intelligent home device ratio per household and the most significant consumer propensity to own devices across two or three use cases (security, energy, and appliances).
- Additionally, the country expects billions of devices connected to the internet, devices, and sensors of the internet of things. With the onset of 5G networks, more bandwidth and faster internet speeds can be utilized by Google and Facebook, for instance, to develop more advanced services soon.
- Further, the adoption of intelligent robots across several end-user industries is driving the growth of the market studied. The North American region is amongst the advanced innovators and pioneers in adopting robotics and is one of the largest markets. The fundamental reason for the growth of the market is the increasing adoption of robots across numerous industries. The region also homes several robotics manufactures as well as companies that provide AI for robot manufacturers.
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The AI in IoT Market is highly competitive owing to the presence of a large number of players in the market operating in domestic as well as in the international market. The market appears to be fragmented. Owing to the increase in the applications of AI in the IoT market, major players in the market are adopting strategies like product innovation, partnership, mergers, and acquisitions. Some of the key developments are:
- June 2020 - Verizon and Microsoft formed a partnership to significantly accelerate time to market for IoT solutions. This partnership will provide all the critical components in the IoT value chain, such as connected devices, network/capability, cloud hosting, and artificial intelligence. As part of this partnership, Verizon’s 5G/LTE Network, ThingSpace IoT platform, and Critical Asset Sensor (CAS) devices have been integrated with Microsoft Azure to enable IoT Builders to create new IoT applications quickly and efficiently.
- March 2020 - Azure IoT Introduces seamless integration with Cisco IoT. This partnership between Cisco and Azure IoT is expected to simplify customer deployments significantly. It gives customers the ability to securely connect their assets and simply ingest and send IoT data to the cloud. Cisco IoT Gateways will now be pre-integrated to take advantage of the latest in cloud technology from Azure.
- March 2021 - IOTech, the edge software company, announced the launch of Edge XRT, its time-critical edge platform for Microsoft Azure Sphere. Designed and optimized for resource-constrained environments, Edge XRT delivers device connectivity and edge intelligence for microcontroller units (MCUs), gateways, and smart sensors at the IoT edge.
- February 2021 - Oracle has launched a range of solutions for the construction industry, using artificial intelligence (AI) to analyze project data. This suite of applications is designed to help users detect risks and make more informed project decisions.
Table of Contents
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 Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Impact of Assessment of COVID-19 on the market
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 Dependency on External Climate
6. MARKET SEGMENTATION
188.8.131.52 Application Management
184.108.40.206 Connectivity Management
220.127.116.11 Device Management
18.104.22.168 Managed Services
22.214.171.124 Professional Services
126.96.36.199 Data Management
188.8.131.52 Network Bandwidth Management
184.108.40.206 Real-Time Streaming Analytics
220.127.116.11 Remote Monitoring
18.104.22.168 Edge Solution
6.2 End-user Vertical
6.2.1 Banking, Financial Services, and Insurance
6.2.2 IT and Telecom
6.2.3 Energy and Utilities
6.2.6 Other End-user Verticals (Transport & Mobility, Government, Retail)
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Amazon Web Services
7.1.2 International Business Machines Corporation
7.1.3 Autoplant Systems India Pvt. Ltd.
7.1.4 SAP SE
7.1.5 Google LLC
7.1.6 Microsoft Corporation
7.1.7 Oracle Corporation
7.1.8 Salesforce.com, Inc.
7.1.9 PTC Inc.
7.1.11 General Electric
7.1.12 Hitachi ID Systems
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The AI in IoT Market market is studied from 2018 - 2026.
What is the growth rate of AI in IoT Market ?
The AI in IoT Market is growing at a CAGR of 27.3% over the next 5 years.
Which region has highest growth rate in AI in IoT Market ?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in AI in IoT Market ?
North America holds highest share in 2020.
Who are the key players in AI in IoT Market ?
Autoplant Systems India Pvt. Ltd., Google LLC, Amazon Web Services, International Business Machines Corporation, SAP SE are the major companies operating in AI in IoT Market .