AIoT Platform Market Research, 2032
The global AIoT platform market was valued at $27.7 billion in 2023, and is projected to reach $424 billion by 2032, growing at a CAGR of 35.8% from 2024 to 2032.An AIoT (artificial intelligence of things) platform contains a combination of artificial intelligence (AI) technologies and the Internet of Things (IoT) infrastructure. The main aim of an AIoT platform is to create more efficient IoT operations, improve human-machine interactions, and enhance data management & analytics. The internet of things is a network of devices that are interconnected and can communicate with each other. These devices can include anything from smartphones and smart home appliances to industrial equipment. The aim of IoT is to allow these devices to share data with each other and interact with each other autonomously. On the other hand, AI is the simulation of human intelligence processes by machines, especially computer systems, and is typically used in natural language processing (NLP), speech recognition, and machine vision.
The combination of AI and AIoT has the potential to create several benefits for businesses and consumers alike. An AIoT platform can help to improve efficiency and productivity for businesses, as well as reduce costs. Moreover, it can provide enhanced convenience and a better user experience for consumers. In addition, the use of AI in conjunction with IoT can help to improve data management and analytics, as well as provide businesses with a better understanding of their products. Such factors are expected to provide lucrative opportunities for market growth during the forecast period.
Factors such as surge in digitalization, rise in need for intelligent transportation systems, and increase in adoption of advanced technologies positively impact the growth of the market. In addition, surge in adoption of IoT devices, advancements in AI technology, and growth in demand for automation are expected to fuel the growth of the market during the forecast period. Furthermore, expansion of AIoT applications in various industries, such as healthcare, agriculture, and retail, are expected to provide lucrative growth opportunities for the market in the upcoming years. Moreover, development of edge computing technology to enable real-time processing of data & to reduce latency and adoption of cloud computing to enable scalability, flexibility, and cost-effectiveness of AIoT systems are anticipated to create lucrative opportunities for the market growth. Moreover, integration of AIoT with blockchain technology enhances security and transparency, which positively impacts the growth of the market. However, data privacy & security concerns and lack of standardization in data formats, communication protocols, & network are expected to hamper the market growth. In addition, high cost of implementation and maintenance of AIoT solutions can deter small and medium-sized enterprises (SMEs) from adopting these technologies. Furthermore, growth of smart cities and infrastructure, which creates opportunities for AIoT solutions to optimize resource management, reduces energy consumption and improves quality of life. Moreover, the emergence of 5G networks, which enables faster data transmission and supports the deployment of AIoT applications at scale, is expected to offer remunerative opportunities for the expansion of the global market during the forecast period.
Key Takeaways
- By offering, the solution segment led the AIoT platform market size in terms of revenue in 2023.
- By industry vertical, the manufacturing segment led the AIoT platform market size in terms of revenue in 2023.
- By solution type, the device management segment led the AIoT platform market in terms of revenue in 2023.
- By end user, the B2B segment led the AIoT platform market in terms of revenue in 2023.
- By region, North America generated the highest revenue in 2023.
Top Impacting Factors
Surge in demand for automation:
The rise in demand for automation in artificial intelligence of things (AIoT) is driven by the need for intelligent systems that can operate and make decisions independently without human intervention. This is further attributed to AIoT platform and services that are being used to automate industrial processes, such as manufacturing, by integrating AI algorithms with sensors, robots, and other devices. As a result, this enables machines to operate autonomously, reducing the need for human intervention and improving efficiency. Moreover, automation in AIoT increases efficiency, reduces costs, and improves accuracy. Thus, by automating routine tasks, such as data collection and analysis, companies can free up valuable time and resources to focus on more complex tasks. Automation with AIoT helps to reduce the risk of human error and improves the reliability of data analysis. Therefore, demand for automation in AIoT increases as more devices become connected to the internet and the amount of data generated continues to increase. As a result, key players in the market adopted strategies such as partnership and collaboration to strengthen their market position. For instance, in May 2022, Advantech partnered with Hivecell for continued artificial intelligence of things (AIoT) development. The partnership of Advantech and Hivecell simplifies common customer challenges in digital transformation by making IoT data more attainable, scalable, and manageable. Such collaborations and partnership boost the growth of AIoT platform market.
Increase in demand for predictive maintenance:
Rise in demand for AIoT in predictive maintenance service has increased. This is attributed to the use of data and analytics to predict when a piece of equipment is expected to fail, allowing companies to take proactive measures to prevent downtime and reduce maintenance costs. In addition, the use of predictive maintenance in AIoT is particularly important for organizations that rely heavily on equipment or machinery, such as manufacturing or transportation companies. Thus, by leveraging data from IoT devices and applying machine learning algorithms, companies gain insights into the health and performance of their equipment in real-time, allowing them to identify potential issues before they occur. Moreover, with the help of predictive maintenance technology, organizations can schedule maintenance during downtime hours, that can help to reduce the impact on production and minimize the risk of accidents. As a result, key players in the market adopted strategies such as product development, partnership, and collaboration to enhance their services in AIoT platform market. For instance, in February 2023, BrainChip Holdings Ltd., producer of ultra-low power, fully digital, event-based, neuromorphic AI IP, partnered with AI Labs to provide predictive maintenance through AIoT and to collaborate on next-generation application development leveraging the Minsky AI Engine. Such partnerships and developments have fueled the growth of AIoT platform market.
Segment Review
The AIoT platform market is segmented into offering, solution type, industry vertical, end-user, and region. By offering, it is bifurcated into solution and services. By solution type, it is divided into device management, application management, and connectivity management. By industry vertical, the market is classified into BFSI, manufacturing, healthcare, retail, energy & utilities, transportation & logistics, and others. By end user, the market is classified into B2B, B2G and B2C. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of offering, the global AIoT platform market share was dominated by the solution segment in 2023 and is expected to maintain its dominance in the upcoming years. Owing to advances in technologies enabling AIoT platform to transform industries globally, from BFSI, to manufacturing, healthcare, and others. However, the services segment is expected to witness the highest growth in AIoT platform market forecast period, as AIoT platform services reduce the time and costs associated with optimizing systems in the initial phase of deployment.
By region, North America dominated the market share in 2023 for the artificial intelligence of things platform market. The increasing investment in advanced technologies such as cloud-based services, AI, ML, business analytics solution and IoT to improve businesses and the customer experience are anticipated to propel the growth of the AIoT platform market. However, Asia-Pacific is expected to exhibit the highest growth during the AIoT platform market forecast. This is attributed to the increase in penetration of digitalization and higher adoption of advanced technology are expected to provide lucrative growth opportunities for the AIoT platform industry in this region.
Competition Analysis:
The market players operating in the AIoT platform industry are Cisco Systems Inc., SAS Institute Inc., International Business Machines Corporation (IBM), Google LLC, Intel Corporation, SAP SE, Microsoft Corporation, Hewlett Packard Enterprise Development LP, Oracle Corporation, Tencent Cloud, Amazon Web Services Inc., NXP Semiconductors, Axiomtek Co., Ltd., Williot and Sharp Corporation (SHARP). These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the artificial intelligence of things platform market.
Key Strategies/Development:
- In January 2023 - Microsoft and OpenAI extended partnership to accelerate AI and IoT breakthroughs to ensure OpenAI’s AI Alignment and Microsoft’s Responsible AI standard to establish an advancing framework for the safe deployment of our own AI technologies.
- In July 2022 - SAP SE acquired Askdata, a startup focused on search-driven analytics. With the acquisition of Askdata, SAP strengthens its ability to help organizations take better-informed decisions by leveraging AI and IoT-driven natural language searches. Users are empowered to search, interact and collaborate on live data to maximize business insight.
- In June 2021 - Cisco launched a new portfolio of catalyst industrial routers to extend the power of the enterprise network to the edge with the flexibility, security and scalability needed for AI and IoT success. Featuring 5G capabilities, the portfolio enables organizations to run connected operations at scale with a choice of management tools suited for both IT and operations.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the aiot platform market analysis from 2023 to 2032 to identify the prevailing aiot platform market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the aiot platform market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global aiot platform market trends, key players, market segments, application areas, and AIoT platform market growth strategies.
AIoT Platform Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 424 billion |
 Growth Rate | CAGR of 35.8% |
 Forecast period | 2023 - 2032 |
 Report Pages | 396 |
 By Offering |
|
 By Solution Type |
|
 By Industry Vertical |
|
 By End User |
|
 By Region |
|
 Key Market Players | Hewlett Packard Enterprise Development LP, Tencent Cloud, Sharp Corporation (SHARP), Cisco Systems Inc., Google LLC, Oracle Corporation, International Business Machines Corporation (IBM), Axiomtek Co., Ltd., SAP SE, Microsoft Corporation, SAS Institute Inc., NXP Semiconductors, Intel Corporation, Amazon Web Services Inc., Williot |
Analyst Review
As the AIoT platform industry continues to evolve, organizations evaluate the opportunities and challenges regarding this emerging technology. The AIoT platform market has grown rapidly in response to the massive amounts of data generated by Internet of Things (IoT) devices and the need for AI-powered analytics & decision-making. Businesses consider the benefits that AIoT platforms can offer, such as the ability to provide a unified and scalable solution for managing and processing data from a vast array of IoT devices, enabling real-time insights and decision-making. In addition, AIoT platforms can help organizations optimize their operations, reduce costs, and improve customer experience by automating routine tasks and providing personalized services. Such factors are expected to provide lucrative opportunities for market growth during the forecast period.
Furthermore, AIoT platforms enable innovation and collaboration by providing an open and modular architecture that allows developers and partners to build and integrate new applications and services. However, industries recognize the challenges associated with the AIoT platform. One significant challenge is the industry's fragmentation, with multiple vendors offering different solutions and technologies, which can make it challenging for organizations to select the right platform for their needs. In addition, AIoT platforms require significant investment in infrastructure, data analytics capabilities, and talent, which can be a barrier to entry for small and medium-sized enterprises (SMEs). Furthermore, ethical and regulatory concerns related to data privacy and security must be addressed. Moreover, businesses must evaluate the platform on the basis of their organization's specific needs and requirements, including factors such as scalability, reliability, and security.
By addressing these challenges, top leaders can unlock the full potential of AIoT platforms to transform their operations, create value, and gain a competitive advantage in their industry. For instance, in July 2021, Microsoft Corporation and NEC Corporation expanded their collaboration. Both companies are utilizing Microsoft Azure and Microsoft 365, as well as NEC's network and IT expertise, including 5G technologies, along with other AI and IoT solutions to support enterprise customers and the public sector in various markets and industries, in order to expedite their cloud adoption and digital transformation initiatives.
Surge in digitalization, and rise in need for intelligent transportation systems positively impact the growth of the market.
The North America is the largest market for the AIoT Platform.
AIoT Platform Market is expected to reach $424 billion, Globally, by 2032.
The key growth strategies for AIoT Platform Market include product portfolio expansion, acquisition, partnership, merger, collaboration and others.
The market players operating in the AIoT platform market are Cisco Systems Inc., SAS Institute Inc., International Business Machines Corporation (IBM), Google LLC, Intel Corporation, SAP SE, Microsoft Corporation, Hewlett Packard Enterprise Development LP, Oracle Corporation, and others.
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