AI in IoT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The AI in IoT Market is Segmented By Component (Platform, Sevices, Softwares), End-user Industry (Banking, Financial Services, and Insurance, IT and Telecom, Energy and Utilities), and Geography.

Market Snapshot

Aiot
Study Period:

2018 - 2026

Base Year:

2020

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

27.3 %

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Market Overview

Artificial Intelligence (AI) in the IoT market is expected to grow at a CAGR of 27.3% during the forecast period (2021-2026). Both technologies, when blended, create intelligent machines that simulate rational behavior and supports in decision making with little or no human interference. The growing emphasis on effective management of data generated from IoT devices to gain valuable insights and real-time monitoring to curate an enhanced customer experience are the key growth drivers for the market.

  • Additionally, the majority of the companies are shifting to 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, with Amazon Echo, Amazon has introduced Web Services IoT, which is a managed cloud platform and lets devices connect securely access cloud applications and other devices. They have several partners, such as Fitbit, Uber, Spotify, and others.
  • The retail sector is leveraging cloud AI in IoT based services mainly to enhance their customer experience programs and develop more customer-oriented products. For instance, in a smart retail environment, a camera system equipped with computer vision capabilities can use facial recognition to identify customers when they walk through the door. If the system detects the majority of customers walking into the store are Millennials, it can push out product advertisements or in-store specials that appeal to that demographic, therefore driving up sales.
  • Lack of skilled workforce, along with growing concerns regarding data security, are some of the major factors restraining the studied market growth. 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.

Scope of the Report

IoT is enabling businesses across the globe to collect a tremendous amount of data from multiple sources. On the other hand, wrapping around the multitude of data coming from countless of IoT devices, makes it complex to collect, process, and analyze the data. The role of Artificial Intelligence in IoT is to automatically identify patterns and detect anomalies in the data that smart sensors and devices generate such as temperature, pressure, humidity, air quality, vibration, and sound and others with the help of technologies such as machine learning and Natural Language Processing (NLP).

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
Other Softwares (Security, Edge Solution)
By End user Vertical
Banking, Financial Services, and Insurance
IT and Telecom
Energy and Utilities
Healthcare
Manufacturing
Others (Transport & Mobility, Government, Retail)
Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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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. ​

aiot graph.png

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North America is Expected to Hold Major Share

  • 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. ​
aiot map.png

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Drivers

      1. 4.4.1 Rising Big Data Volume

      2. 4.4.2 Effective Management of Data Generated From IoT Devices to Gain Valuable Insights

    5. 4.5 Market Restraints

      1. 4.5.1 Lack of Skilled Workforce and Data Security Concerns

    6. 4.6 Assessment of Impact of Covid-19 on the Industry

    7. 4.7 Technology Evolution and Trends

      1. 4.7.1 Machine Learning and Deep Learning

      2. 4.7.2 Natural Language Processing

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Component

      1. 5.1.1 Platform**

        1. 5.1.1.1 Application Management

        2. 5.1.1.2 Connectivity Management

        3. 5.1.1.3 Device Management

      2. 5.1.2 Services**

        1. 5.1.2.1 Managed Services

        2. 5.1.2.2 Professional Services

      3. 5.1.3 Software**

        1. 5.1.3.1 Data Management

        2. 5.1.3.2 Network Bandwidth Management

        3. 5.1.3.3 Real-Time Streaming Analytics

        4. 5.1.3.4 Remote Monitoring

        5. 5.1.3.5 Other Softwares (Security, Edge Solution)

    2. 5.2 By End user Vertical

      1. 5.2.1 Banking, Financial Services, and Insurance

      2. 5.2.2 IT and Telecom

      3. 5.2.3 Energy and Utilities

      4. 5.2.4 Healthcare

      5. 5.2.5 Manufacturing

      6. 5.2.6 Others (Transport & Mobility, Government, Retail)

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Amazon Web Services

      2. 6.1.2 International Business Machines Corporation

      3. 6.1.3 Autoplant Systems India Pvt. Ltd.

      4. 6.1.4 SAP SE

      5. 6.1.5 Google LLC

      6. 6.1.6 Microsoft Corporation

      7. 6.1.7 Oracle Corporation

      8. 6.1.8 Salesforce.com, Inc.

      9. 6.1.9 PTC Inc.

      10. 6.1.10 SAS

      11. 6.1.11 General Electric

      12. 6.1.12 Hitachi ID Systems

  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
** Further Breakdown is for Qualitative Trends Only

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Frequently Asked Questions

The AI in IoT Market market is studied from 2018 - 2026.

The AI in IoT Market is growing at a CAGR of 27.3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

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