AIoT Platform Market Research, 2032
The global aiot platform market was valued at $4.7 billion in 2022, and is projected to reach $129.2 billion by 2032, growing at a CAGR of 39.5% from 2023 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 and 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 the IoT is to allow these devices to share data with each other and interact with each other autonomously. On the other hand, artificial intelligence 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.
Factors such as growth 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, rise 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 and 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. However, data privacy & security concerns and lack of standardization in data formats, communication protocols, & network are expected to hamper the market growth.
The AIoT platform market is segmented into Offering, Solution Type, and Industry Vertical.
The AIoT platform market is segmented into offering, solution type, industry vertical, 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 manufacturing, BFSI, healthcare, retail, energy and utilities, transportation and logistics and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major market players operating in AIoT platform industry are Hewlett Packard Enterprise Development LP, Cisco Systems Inc., SAP SE, International Business Machines Corporation, SAS Institute Inc., Intel Corporation, Google LLC, Tencent Cloud, Microsoft Corporation and Oracle Corporation. 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 AIoT platform industry globally.
On the basis of offering, the global AIoT platform market size was dominated by the solution segment in 2022 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, 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 AIoT platform market share in 2022. 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 forecast period. 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 market in this region.
Top Impacting Factors
Surge in demand for automation
The surge 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 also 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 market.
Rise 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 likely 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, by being able to predict when equipment is likely to fail, companies can schedule maintenance during downtime or off-peak hours, reducing the impact on production and minimizing 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 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 market.
Technical capabilities:
AIoT platforms combine artificial intelligence and the internet of things to create powerful and intelligent systems. In addition, these platforms have a range of technological abilities that enable advanced data processing, analytics, automation, and connectivity. This is attributed to AIoT services that can collect data from various IoT devices such as sensors, cameras, wearables and more. Moreover, they integrate and aggregate this data from different sources to create a comprehensive view of the system. Furthermore, AIoT platforms can incorporate cognitive computing capabilities, allowing them to understand and interpret unstructured data, such as voice, image, and text inputs. As a result, it enables natural language processing, computer vision, and sentiment analysis. Key players in the market adopted various strategies such as expansion to strengthen their market position. For instance, in May 2023, Cincoze, launched an international exhibition of automation in North America. The theme of Cincoze’s exhibit is the diverse applications of AIoT. The booth has four areas: rugged embedded fanless computers, industrial panel PC and monitors. Such advancements in technological aspects fueled the AIoT platform market growth.
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 2022 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 forecast 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 market growth strategies.
AIoT Platform Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 129.2 billion |
 Growth Rate | CAGR of 39.5% |
 Forecast period | 2022 - 2032 |
 Report Pages | 427 |
 By Solution Type |
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 By Offering |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | Cisco Systems Inc., SAP SE, Microsoft Corporation, SAS Institute Inc., Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Oracle Corporation, Google LLC, Intel Corporation, tencent cloud |
Analyst Review
As the AIoT platform industry continues to evolve, CXOs 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. CXOs 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, CXOs 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, as well as the need for a strong ecosystem of partners and developers to build and integrate applications and services. CXOs 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, CXOs 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.
Expansion of AIoT applications in various industries such as healthcare, agriculture, and retail is the upcoming trends of AIoT platform market.
Increase in demand for predictive maintenance is the leading application of AIoT platform market
North America is the largest region in AIoT platform market.
The global AIoT platform market was valued at $4,731.81 million in 2022 and is projected to reach $1,29,208.89 million by 2032, registering a CAGR of 39.5% from 2023 to 2032.
The market players operating in the AIoT platform market are Hewlett Packard Enterprise Development LP, Cisco Systems Inc., SAP SE, International Business Machines Corporation, SAS Institute Inc., Intel Corporation, Google LLC, Tencent Cloud, Microsoft Corporation and Oracle Corporation. 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 AIoT platform market globally.
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