Artificial Intelligence of Things Market

The Global Artificial Intelligence of Things  market is segmented into different applications as follows; Smart Homes and Buildings, Industrial Automation, Healthcare, Transportation and Logistics and Retail and Consumer electronics. AIoT is changing the smart homes and buildings industry to automated controlling, energy efficiency and improved safety. It boosts the market growth by integrating AI in smart bulbs, fridges, doorbells, heating and cooling systems. Further, in the industrial automation field, AIoT is changing the process of production to optimal  production, predictive maintenance, and quality control.

In addition, it reduces the down-time of machines and trucking by incorporation of AI-powered sensors and machines to machine learning for real-time data analysis thus applying corrective measures. Additionally, in healthcare optimization, AIoT is monitoring the patients to the norm, diagnosing diseases and the state of the body and suggesting remedy and medication by wearable devices, AI-based medical imaging and remote monitoring systems. Moreover, in transportation and logistics optimization, AIoT is ensuring smart driving  by drones and auto-drive cars, fleet and traffic management.

The 'Component Type' segment plays a crucial role in the Artificial Intelligence of Things (AIoT) Market, shaping its overall functionality and value proposition. Sensors and actuators, as key components, are expected to account for a significant market share in 2024, driven by their ability to collect and process real-time data from the physical world. Edge devices and gateways serve as intermediaries between sensors and the cloud, facilitating data transmission and enabling local processing. Cloud platforms provide the infrastructure for data storage, analysis, and application development, supporting AI-powered insights and decision-making.

Software and analytics solutions empower AIoT systems with advanced capabilities, including machine learning algorithms, data visualization, and predictive analytics. Networking infrastructure ensures seamless connectivity and data exchange among various components, enabling efficient and reliable AIoT operations. The growth of each component type is influenced by factors such as technological advancements, industry-specific requirements, and the increasing adoption of AIoT solutions across diverse domains.

The Artificial Intelligence of Things (AIoT) Market segmentation by End User includes Consumers, Enterprises (SMEs and Large Enterprises), Government Agencies, Utilities, and Healthcare Providers. Among these segments, Consumers are expected to hold the largest market share in 2023, owing to the increasing adoption of AIoT devices such as smart home assistants, smart wearables, and smart TVs. Enterprises are also expected to contribute significantly to the market growth, driven by the adoption of AIoT for process automation, data analytics, and enhanced customer engagement. Government Agencies are leveraging AIoT for smart city initiatives, public safety, and surveillance.

Utilities are using AIoT for grid optimization, predictive maintenance, and demand forecasting. Healthcare Providers are utilizing AIoT for remote patient monitoring, personalized medicine, and improved patient outcomes.

The Artificial Intelligence of Things (AIoT) Market is segmented based on Deployment Model into On-Premise, Cloud-Based, and Hybrid. In 2023, the Cloud-Based segment held the largest market share, accounting for over 55% of the Global AIoT Market revenue, and is expected to continue its dominance throughout the forecast period. The growth of the Cloud-Based segment can be attributed to the increasing adoption of cloud computing services by enterprises, which offers benefits such as scalability, flexibility, and cost-effectiveness.

The On-Premise segment is also expected to witness significant growth during the forecast period, owing to the growing demand for data privacy and security among enterprises. The Hybrid segment is expected to grow at a steady pace, as it offers a combination of the benefits of both On-Premise and Cloud-Based deployment models.

The Analytics Type segment is a crucial aspect of the Artificial Intelligence of Things (AIoT) Market, offering valuable insights into market dynamics and growth opportunities. The segment comprises four main categories: Descriptive Analytics, Diagnostic Analytics, Predictive Analytics, and Prescriptive Analytics. Descriptive Analytics provides a real-time understanding of past and present performance, enabling businesses to monitor key metrics and identify trends. In 2023, the Global AIoT Market for Descriptive Analytics was valued at USD 10.23 billion and is projected to grow at a CAGR of 22.1% to reach USD 30.12 billion by 2032.

Diagnostic Analytics helps businesses identify the root causes of problems, allowing them to make informed decisions and improve operational efficiency. The market for Diagnostic Analytics in the Global AIoT industry was valued at USD 12.56 billion in 2023 and is expected to reach USD 37.23 billion by 2032, growing at a CAGR of 22.7%. Predictive Analytics leverages historical data and machine learning algorithms to forecast future events and trends. This segment held a market value of USD 15.43 billion in 2023 and is projected to expand to USD 46.18 billion by 2032, with a CAGR of 23.2%.

Prescriptive Analytics goes a step further by not only predicting future outcomes but also recommending actions to optimize performance. In 2023, the Global AIoT Market for Prescriptive Analytics was valued at USD 17.64 billion and is anticipated to grow at a CAGR of 24.1% to reach USD 52.97 billion by 2032. The growth of the Analytics Type segment is driven by the increasing demand for data-driven insights, the adoption of AI technologies, and the need for businesses to improve decision-making processes.