AI In IoT Market Size

AI in IoT Market Analysis

The AI In IoT Market size is estimated at USD 78.99 billion in 2024, and is expected to reach USD 115.31 billion by 2029, growing at a CAGR of 7.86% during the forecast period (2024-2029).

The need to efficiently process vast volumes of real-time data generated from IoT devices, the growing demand for performance management appliances, and the need to reduce downtime and maintenance costs are the primary factors driving the market's growth.

• IoT technology is essential for various organizations to digitally transform, thus, empowering them to upgrade the existing processes by creating and tracking new business models. More and more companies view IoT as an important element for business success, thus increasing its adoption. AI and IoT, both technologies, when combined, are creating intelligent machines that simulate rational behavior and support 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.
• The retail industry is leveraging cloud AI in IoT-based services to augment 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 most 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 sales.
• Furthermore, most companies are shifting to the cloud from on-premise AI, owing to faster delivery time with low latency and real-time tracking, 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. 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.
• However, the lack of a skilled workforce and growing concerns regarding data security are some major factors restraining the studied market growth. It is crucial to ensure that the data is secure and in safe hands because AI and IOT collect sensitive and essential data from their users or clients. But since users have no idea when someone would attempt to access our private and sensitive data, security is always a concern with technology and restricting the market growth.
• 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 market's growth rate in the short run and are expected to augment it further in the long term.