New Jersey, US State: “The global Artificial Intelligence In Iot market in the Information Technology and Telecom category is projected to reach USD 110.7 billion by 2031, growing at a CAGR of 12.5% from 2025 to 2031. With rising industrial adoption and continuous innovation in Information Technology and Telecom applications, the market is estimated to hit USD 42.3 billion in 2024, highlighting strong growth potential throughout the forecast period.”
Artificial Intelligence in IoT Market Size & Forecast 2031
The artificial intelligence in IoT market is witnessing robust growth as businesses integrate AI-driven analytics into connected devices to enhance automation, efficiency, and decision-making. The convergence of AI and IoT enables predictive maintenance, real-time monitoring, and intelligent data processing across industries such as manufacturing, healthcare, smart cities, and logistics. The growing deployment of edge computing and advanced sensors supports low-latency data analysis and operational optimization. Organizations are increasingly investing in AI-enabled IoT platforms to improve asset utilization, enhance customer experiences, and streamline complex workflows with minimal human intervention.
By 2031, the artificial intelligence in IoT market is expected to achieve substantial expansion, fueled by advancements in machine learning, 5G connectivity, and cloud computing. North America currently leads the market with significant adoption in industrial automation, while Asia-Pacific is projected to record the fastest growth due to rising smart infrastructure initiatives. The integration of AI with IoT ecosystems is driving innovation in cybersecurity, energy management, and predictive analytics. Continuous technological progress and strategic partnerships among AI and IoT solution providers will further accelerate the market, transforming connected systems into intelligent, self-optimizing networks worldwide.
Key Players in the Artificial Intelligence In Iot Market
IBM
Microsoft
Google
Amazon Web Services
Cisco
Intel
Oracle
Siemens
SAP
Hewlett Packard Enterprise
Qualcomm
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Factors Supporting Growth of Artificial Intelligence In Iot Market in the Future:
1.Technological Advancements and Innovation:
The continuous evolution of technology is playing a vital role in driving the Artificial Intelligence In Iot market forward. Cutting-edge innovations are improving product functionality, enhancing performance, and reducing costs, making these solutions more accessible to a broader range of industries. Emerging technologies such as AI, IoT, advanced analytics, and automation are also enabling smarter and more efficient use cases, further expanding the scope of the market. These advancements are not only upgrading existing systems but are also creating entirely new application opportunities that will support long-term market expansion.
2. Expanding Applications Across End-Use Sectors:
The increasing integration of Artificial Intelligence In Iot solutions across diverse industries such as automotive, healthcare, consumer electronics, telecom, and industrial manufacturing is significantly boosting market demand. Each sector brings unique requirements, pushing companies to diversify their offerings and customize solutions. This cross-industry relevance ensures consistent demand growth, while rising digitalization and adoption of smart technologies amplify the market potential across both developed and developing regions.
3. Favorable Government Policies and Infrastructure Push:
Supportive initiatives by governments around the world, including funding programs, tax incentives, and policy frameworks, are providing a strong foundation for market development. Efforts to strengthen digital infrastructure, promote energy efficiency, and drive sustainable development are fueling demand for advanced Artificial Intelligence In Iot technologies. Moreover, public-private partnerships and national transformation agendas such as smart cities and Industry 4.0 are creating favorable conditions for rapid market expansion, especially in emerging economies
4. Increased Investment and Focus on Research & Development:
The Artificial Intelligence In Iot market is experiencing a surge in investment from both private and public entities, driven by the urgency to innovate and stay competitive. Companies are dedicating substantial resources to research and development to create next-generation products with higher efficiency, scalability, and environmental sustainability. Venture capital funding, mergers, acquisitions, and collaborations are also contributing to a dynamic ecosystem that fosters experimentation and accelerates commercialization of novel solutions, ensuring sustained market growth in the future.
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Key Segments Covered in Our Report: Artificial Intelligence In Iot Industry
Artificial Intelligence In Iot Market by Hardware
Sensors
Processors
Connectivity Modules
Gateways
Devices
Artificial Intelligence In Iot Market by Software
AI Platforms
Data Management Software
Analytics & Visualization Software
Security Software
Network Management Software
Artificial Intelligence In Iot Market by Services
Consulting Services
System Integration Services
Deployment & Maintenance Services
Managed Services
Training & Support Services
The Application segment showcases the industries and sectors that use Artificial Intelligence In Iot products for example Artificial Intelligence In Iot targeting healthcare and automotive industries etc. It also provides a perspective of the market rate of acceptance, usage of the products, and new applications that are paving the way for the future of the market.
Global Artificial Intelligence In Iot Market Regional Analysis
The Global Artificial Intelligence In Iot Market is examined in dimensions of regions, wherein each region has its own market growth, trends as well as dynamics. This section highlights on the detailed market performance, major shifts, and trends and underlying factors explaining growth in different places around the world.
North America: North America accounts for a large share of the Artificial Intelligence In Iot market which is a result of the developed technology, intense consumer market, and huge investments in the Artificial Intelligence In Iot industry. To add, the U.S. market also plays a crucial role as this economy is more concerned with innovation and was also one of the first to implement Artificial Intelligence In Iot products in its Artificial Intelligence In Iot sectors. The region is expected to see a gradual rise till 2031 and this is because of its reinforced infrastructure and existing regulation mechanisms.
Europe: Global has the fastest growing Artificial Intelligence In Iot market and is oriented around environmental protection, renewed efforts and environmental awareness. The market is dominated by countries like Germany, the UK, and France that have improved their technologies and have a strong industrial structure. Increased request for green solutions along with regulatory efforts are increasing demand in the market’s key areas such as Artificial Intelligence In Iot sectors.
Asia-Pacific: The growth potential in the Artificial Intelligence In Iot market is expected to be maximum for Asia-Pacific region. Increased maturation, urban migration as well as expanding middle class in China, India, and Japan and other developing economies are great constituents of market growth. Further, there is an increasing contribution to investments in the Artificial Intelligence In Iot sector which is increasing the demand for Artificial Intelligence In Iot regions-supplying throughout the area.
Rest of the World: Countries and areas like Latin America, Middle East & Africa have also been showing moderate Artificial Intelligence In Iot market growth. Although still developing, these markets are fueled by a fast increasing infrastructure, expending industrial activities and growing consumer demand for Artificial Intelligence In Iot goods. These regions pose great opportunities for the market players to tap into other sources of growth.
Frequently Asked Questions (FAQ) – Artificial Intelligence In Iot Market
Q1: What is the anticipated growth rate of the Global Artificial Intelligence In Iot Market?
A1: With a growth rate of CAGR of 12.5%, the Global Artificial Intelligence In Iot Market is anticipated to reach USD 110.7 billion by 2031. Industrial demand and innovation will lead it to reach USD 42.3 billion by 2024.
Q2: Which regions provide the highest growth opportunities for the Artificial Intelligence In Iot Market?
A2: Asia-Pacific is likely to provide the highest growth prospects based on speedy industrialization and infrastructure growth, followed by robust markets in Europe and North America.
Q3: Which are the primary drivers of market growth?
A3: The primary drivers are technology innovation, growing industrial applications, heightened government initiatives, and expanding use of Artificial Intelligence In Iot solutions in different industries.
Q4: What are the challenges faced by the Artificial Intelligence In Iot Market?
A4: The challenges are tight regulatory systems, high upfront capital expenditures, fragmentation of the market in the emerging markets, and geopolitical risks in some regions.
Q5: Which are the major players in the Global Artificial Intelligence In Iot Market?
A5: The market has a number of leading players with a focus on innovation, strategic alliances, and global expansion.
Q6: How does innovation influence the Artificial Intelligence In Iot Market?
A6: Market growth is driven by innovation, which enhances product efficiency, lowers costs, and facilitates new applications, making the overall market potential broader.
Q7: Which industries utilize Artificial Intelligence In Iot products mostly?
A7: Major industries include manufacturing, automotive, energy, electronics, and infrastructure, among others, where Artificial Intelligence In Iot solutions deliver operational efficiency and sustainability.
Q8: How is the market anticipated to change after 2031?
A8: Although projections beyond 2031 are uncertain, continued technological advancement and increasing industrial demand are expected to continue supporting long-run growth patterns.
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