Artificial Intelligence in IoT Market

Artificial Intelligence in IoT Market Size & Growth (2022 - 2027)

Global AI in IoT market size will progress from $6.81 billion in 2020 to $20.2 billion in 2026, at a CAGR of 26.0% over the forecast period 2022 - 2027.

The artificial intelligence of the Internet of Things is a combination of connecting the device to the Internet and other connected devices and analyzing big data and delivering the required amount of data to the device, respectively. Due to the use of AI in IoT, the problems of data analysis and analysis are being solved in the best way that AI does. Also, the need to process large volumes of real-time data generated by the IoT device is expected to create new opportunities for artificial intelligence in the IoT market.

IoT enables companies around the world to collect large amounts of data from multiple sources. On the other hand, the coiling of the multitude of data coming from myriad IoT devices makes data collection, processing and analysis difficult. The role of artificial intelligence in IoT is to automatically identify patterns and detect anomalies in data generated by sensors and smart devices, such as temperature, pressure, humidity, air quality, vibration and sound and others that use technologies such as machine learning and natural language processing (NLP).

The two technologies, when combined, create intelligent machines that simulate rational behavior and support decision-making with little or no human interference.

The retail industry is leveraging artificial intelligence in the cloud in IoT-based services, primarily to improve its customer experience programs and develop more customer-centric products. For example, 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 that the majority of customers entering the store are Millennials, it can run product ads or special offers in the store that appeal to that demographic, thereby increasing sales.

Recent Developments:

• In October 2019, SAP SE and Verizon shook their hands to develop business solutions that implements Verizon's network and platform to integrate with SAP software and services, in particular, the SAP Leonardo Internet of Things (IoT) solution, services and SAP Edge analytics, IT and data management capabilities.
• Since March 2020, Azure IoT is fully integrated with Cisco IoT. This collaboration would improve customer deployments. It offers users the ability to connect their assets in a secured manner and easily send IoT data to the cloud. Cisco IoT gateways will now be pre-integrated to take advantage of the latest Azure cloud technology.

Impact of Covid-19 on AI in IoT Market

The COVID-19 pandemic has augmented IoT healthcare solutions to combat the rising call for high-quality services for virus protection. The COVID-19 has great impact on the healthcare ecosystem, starting from pharmaceutical companies, drug makers, vaccine developers, to health insurers and hospitals. Applications such as telemedicine include remote patient monitoring, and interactive medicine, as well as hospital monitoring, is expected to gain ground during this time.

With the increase in COVID-19 cases, IoT software solutions are facing great success. There are many IoT verticals such as manufacturing, transportation, travel hospitality, etc. where all operations are on hold. But organizations have changed their priorities, as organizations want to monitor the health and well-being of employees when they work from home. Such use cases have evolved in this COVID-19 pandemic. Some new use cases have been generated, as well as application areas where the demand for IoT software solutions has increased dramatically. The growth of software solutions will be deeply affected in verticals such as transportation, logistics, and manufacturing. As these are the main areas that contribute to the adoption of IoT software solutions, the disruption due to COVID-19 will have a major impact and greatly reduce the growth of the software solutions market.

Market Growth and Trends

Manufacturing industry expected to experience significant growth

• Manufacturers are taking more and more steps to achieve 100% automated data management systems. AI-enabled IoT applications for manufacturing can also effectively manage operations such as equipment performance monitoring and optimization, production quality control, and human-machine interaction. Faster, more efficient supply chain and manufacturing operations dramatically reduce product cycle time.
• For example, in June 2019, Microsoft and the BMW Group announced "a new community initiative" to enable faster and more profitable innovation in the manufacturing sector.
• Moreover, the increasing adoption of sensors and connected devices, there has been a surge in data points that are generated in the manufacturing sector.

Market Drivers and Restraints:

The need to process large volumes of real-time data efficiently that has been generated from IoT devices and to curb maintenance expenses and downtime are a few prominent factors promoting the expansion of the global artificial intelligence in the IoT Market. On the contrary, the high cost and the lack of consumer awareness are estimated to slow the boom in the artificial intelligence in the IoT market in future. Nonetheless, it is predicted that advancing technologies will create new opportunities for artificial intelligence in the IoT market.

The growing emphasis on efficient management of data generated from IoT devices to gain valuable insights and real-time monitoring to select improved customer experience are the main drivers of market growth.

ARTIFICIAL INTELLIGENCE IN IOT MARKET REPORT COVERAGE:

Artificial Intelligence in IoT Market segmentation:

Global artificial intelligence in the IoT market is segmented and sub-segmented into the following categories:

Artificial Intelligence in IoT Market - By Technology:

• Machine Learning
• Natural Language Processing
• Image Processing
• Speech Recognition

Artificial Intelligence in IoT Market - By Components:

• Software
• Platforms
• Services

Artificial Intelligence in IoT Market - By End-User:

• BFSI
• Energy and Utilities
• Manufacturing
• Retail
• Transportation and Mobility
• Others

Artificial Intelligence in IoT Market - By Region:

Geographically, the global market is divided into:

1. North America
2. Europe
3. Asia-Pacific (APAC)
4. Middle East and Africa (MEA)
5. Latin America.

Among these, North America and Europe are dominating with a notable share, followed by the Asia Pacific.

Key players in the market

The main providers in the global AI in IoT market are Google (United States), Microsoft (United States), IBM (United States), AWS (United States), Oracle (United States), SAP (Germany), PTC (United States), GE (United States), Salesforce (United States), Hitachi (Japan), Uptake (United States), SAS (United States), Autoplant Systems Pvt Ltd. (India), Kairos (United States), Softweb Solutions (United States), Arundo (United States), C3 IoT (United States)), Anagog (Israel), Imagimob (Sweden) and Thingstel (India).