Artificial Intelligence (AI) in IoT Market Report 2026

Artificial Intelligence (AI) in IoT Market Overview

• Artificial Intelligence (AI) in IoT market size has reached to $19.38 billion in 2025 • Expected to grow to $63.64 billion in 2030 at a compound annual growth rate (CAGR) of 26.9% • Growth Driver: The Expansion of 5G Networks Fueling the Growth of the Artificial Intelligence (AI) in?IoT Market Due to Enhanced Connectivity and Low-Latency Capabilities • Market Trend: Innovations In Artificial Intelligence (AI) Technology Strengthen IoT Device Security And Operational Efficiency • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Artificial Intelligence (AI) in IoT Market?

Artificial intelligence of things (AIoT) refers to the combination of internet of things (IoT) infrastructure and artificial intelligence (AI) technology. It combines the capabilities of AI algorithms and models with the vast network of interconnected physical devices, sensors and systems that make up the IoT. It is used in the IoT to enhance the IoT's capabilities by enabling data analysis, predictive insights, automation and intelligent decision-making. The main types of components in artificial intelligence (AI) in IoT are software, platforms and services. Software is a collection of programs, data, or instructions used to operate computers and perform specific tasks. It includes various technologies such as machine learning, natural language processing, image processing, speech recognition, and end-users in energy and utilities, manufacturing, retail, transportation and mobility, banking, financial services, and insurance (BFSI).

What Is The Artificial Intelligence (AI) in IoT Market Growth Forecast?

The artificial intelligence (AI) in iot market size is expected to see exponential growth in the next few years. It will grow to $63.64 billion in 2030 at a compound annual growth rate (CAGR) of 26.9%. The growth in the forecast period can be attributed to integration of AI with edge computing, rise of smart cities and infrastructure, expansion of industrial iot networks, demand for predictive maintenance solutions, growth in autonomous transport and robotics. Major trends in the forecast period include edge AI integration, predictive maintenance solutions, real-time data analytics, ai-driven automation, smart sensor development.

Global Artificial Intelligence (AI) in IoT Market Segmentation

1) By Components: Software, Platforms, Services 2) By Technology: Machine Learning, Natural Language Processing, Image Processing, Speech Recognition 3) By-End-User: Energy And Utilities, Manufacturing, Retail, Transportation And Mobility, Banking Financial Services And Insurance (BFSI) Subsegments: 1) By Software: AI Analytics Software, Edge AI Software, Security Software 2) By Platforms: IoT Platforms With AI Capabilities, Cloud-Based AI Platforms, Device Management Platforms 3) By Services: Consulting Services, Integration Services, Support And Maintenance Services

What Is The Driver Of The Artificial Intelligence (AI) in IoT Market?

The expansion of 5G networks is expected to propel the growth of Artificial Intelligence (AI) in the IoT market going forward. 5G network expansion refers to the deployment and implementation of fifth-generation wireless cellular technology, which provides higher upload and download speeds, more consistent connections, and greater capacity than previous networks. The expansion of 5G is accelerating because major operators and governments worldwide are intensifying network deployments and coverage in 2023. Artificial Intelligence (AI) in IoT supports 5G network expansion by enabling intelligent device connectivity, real-time data processing, and automation at the edge, fully leveraging the high-speed, low-latency capabilities of 5G infrastructure. For instance, in December 2023, according to Germany’s Bundesnetzagentur, a federal network regulator, 5G coverage by at least one network operator increased to 90% of the country in October 2023, up from 79% a year earlier. Therefore, the expansion of 5G networks is driving the growth of Artificial Intelligence (AI) in the IoT market.

Key Players In The Global Artificial Intelligence (AI) in IoT Market

Major companies operating in the artificial intelligence (AI) in iot market are Amazon Inc.; Google LLC; Microsoft Corporation; Hitachi Ltd.; General Electric (GE); Intel Corporation; Accenture PLC; International Business Machines Corporation; Cisco Systems Inc.; Qualcomm Technologies Inc.; Oracle Corporation; Honeywell International Inc.; SAP SE; Fujitsu Limited; NVDIA Corporation; Texas Instruments Incorporated; STMicroelectronics; Infineon Technologies AG; Renesas Electronics Corporation; ARM Holdings; PTC Inc.; Softweb Solutions Inc.; SpaceTime Insight Inc.; CloudMinds Inc.

Global Artificial Intelligence (AI) in IoT Market Trends and Insights

Major companies operating in the artificial intelligence (AI) in IoT market are focusing on developing advanced solutions, such as edge AI and sensor integrated IoT platforms, to enhance operational efficiency, reduce costs, and improve security across connected devices. Edge AI IoT platforms refer to technological solutions that combine smart sensors, machine learning models running on or near the device, and IoT connectivity to provide real-time analytics, anomaly detection, and automated decision-making without relying solely on centralized cloud processing. For instance, in December 2023, STMicroelectronics, a Switzerland-based semiconductor company, launched the ST Edge AI Suite, an integrated ecosystem of hardware, software tools, and developer libraries designed to help industries such as automotive, consumer electronics, and building automation embed AI capabilities in smart sensors, microcontrollers, and IoT-enabled devices. The suite supports low-power edge inference, streamlined toolchains, and seamless integration with IoT platforms to optimize both security and operational workflows.

What Are Latest Mergers And Acquisitions In The Artificial Intelligence (AI) in IoT Market?

In June 2025, Nordic Semiconductor ASA, a Norway-based company specializing in ultra-low-power wireless connectivity solutions, acquired the intellectual property and core technology assets of Neuton.AI, Inc. Through this acquisition, Nordic Semiconductor ASA aims to enhance its edge AI/ML capabilities by integrating Neuton.AI, Inc.’s TinyML platform with its nRF54 Series ultra-low-power wireless SoCs, enabling always-on AI devices and strengthening its position in the AIoT market. Neuton.AI, Inc. is a U.S.-based company providing automated TinyML model generation and embedded AI solutions for resource-constrained edge devices.

Regional Insights

North America was the largest region in the artificial intelligence (AI) in IoT market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Artificial Intelligence (AI) in IoT Market?

The artificial intelligence (AI) in IoT market consists of revenues earned by entities by providing services such as data analytics and insights, predictive maintenance, enhanced security, optimized resource management, smart home automation, and edge computing. The market value includes the value of related goods sold by the service provider or included within the service offering. The face-swiping payment market also includes sales of sensors and actuators, edge computing devices, and remote monitoring and control devices. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Artificial Intelligence (AI) in IoT Market Report 2026?

The artificial intelligence (ai) in iot market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (ai) in iot industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.