AIoT Platforms Market

The AIoT Platforms Market size was reasonably estimated at $5.0 billion in 2023. Throughout the projection period, the AIoT Platforms Industry is anticipated to increase at a CAGR of 37.7% in between 2023-2028 to reach around $24.9 billion in 2028. The primary factor driving the growth of AIoT platforms is the increasing government spending and initiatives to establish AIoT platforms developments. Also the increasing demand for effective management of data generated from IoT devices to gain valuable insights, streamline the production process, and reduce downtime is to drive the growth of the AIoT platforms market.

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AIoT Platforms Market Dynamics

Driver: Edge-Computing-Powered Artificial Intelligence of Things

The idea of edge computing encourages the development of distributed system architectures with on-device data processing that are extremely effective, scalable, reliable, and well suited for low-latency use cases. Due to the enormous computing resources needed to conduct ML tasks, machine learning and deep learning were first restricted to the cloud platform. Emerging computationally demanding and resource-intensive AIoT applications can be effectively supported at the network edge by utilizing the innovative paradigm of edge intelligence. To achieve quick processing speed and low latency needed for intelligent IoT applications, edge computing is crucial.

Restraint: Security and compatibility issues

Security is a serious problem, since AIoT platforms require integration and exchange of data across numerous devices and networks. Every vulnerability or breach can have serious repercussions, including data loss, identity theft, and monetary losses. AIoT platforms make use of a range of hardware, software, and standards. This may result in compatibility problems that make it challenging to combine various systems. It may be challenging for enterprises to connect various systems together due to the absence of common standards for AI and IoT technology. This may prevent companies reluctant to invest in non-standard technology from adopting AIoT platforms.

Opportunity: Real-time operational decision-making

IoT devices collect significant amounts of data. AIoT technologies use this data for real-time decision-making. A simple example of this is a security camera system integrated with an alarm. A typical IoT camera would stream video data to a center where security personnel would watch the recording. An AIoT camera can detect trespassers and automatically activate a noise alarm to notify the security team. Thus, AIoT technology moves decision-making from human security personnel to the IoT device, enabling labor savings and improved compliance. For example, an automated system is better than security professionals who could fall asleep in front of the screen.

Challenge: Maintenance and update issues

Enterprises are adopting AI-based IoT solutions for predictive maintenance and enhanced customer experience. The vendors in the market must develop AI in IoT systems considering two important factors, namely maintenance and updates. An AI-based IoT system needs to be updated and maintained as per the changing business requirements to implement technological upgrades. As new components are added, the software also needs to be upgraded. The new system must be integrated with the existing as well as additional software. With an increase in the number of systems, the maintenance cost also increases. Maintaining and upgrading AI-based IoT systems is going to be a challenging task for companies offering solutions without any interruption.

AIoT Platforms Market Ecosystem

Prominent companies in this market include well-established, financially stable provider of AIoT platforms solutions and services. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks.

By professional services, Deployment and integration to hold the largest market size during the forecast period

Deployment and integration services are one of the major services as the data generated by AI-enhanced IoT devices needs to be merged with the current systems, necessitating the usage of the appropriate level of connectors and back-end integration abilities. Deployment and integration services begin with collecting customer requirements, and then deploying, integrating, testing, and rolling out the solutions. Many organizations have already deployed various AI-based solutions to manage their workflows and provide ease to their customers and employees. Deployment and integration service providers help these organizations develop a connected environment by integrating IoT devices and AI-based solutions with their existing IT infrastructure. Companies such as OSIsoft and PTC offer deployment and integrations services to organizations in the AIoT market.

By offering, the services segment is expected to register the fastest growth rate during the forecast period.

Factors such as increasing adoption of connected devices across organizations and evolution of high speed networking technologies have encouraged organizations in every industry sector to adopt AIoT solutions. However, the integration of new services and AI-based solutions into a company’s contemporary functioning system or infrastructure forces it to be acquainted with comprehensive detailed insights about services. Additionally, organizations need to have in-depth knowledge about the benefits that the new services would offer to their customers and employees. This knowledge is provided through a specific set of channelized services, offered by AIoT service providers.

North America is expected to hold the largest market size during the forecast period.

North America being one of the most technologically advanced regions, has frequently set the pace for IoT growth globally. Regarding IoT, the region excels at innovation and developing fresh approaches to common issues. Due to the increasing adoption of AIoT by the manufacturing and automotive industries and the presence of significant solution providers in this region, North America is anticipated to dominate the growth of the global artificial intelligence of things (AIoT) market.

Market Key Players:

The major players in the AIoT platforms market are IBM (US), Sharp Global (Japan), Google (US), AWS (US), Microsoft (US), Oracle (US), HPE (US), Cisco (US), Intel (US), Tencent Cloud (China), NXP (Netherlands), SAS (US), Hitachi (Japan), SAP (Germany), AxiomTek (Taiwan), Autoplant Systems India Pvt. Ltd. (India), Williot (Israel), Cognosos (US), Relayr (US), Terminus Group (China), Semifive (South Korea), Uptake (Chicago), Falkonry (US), and Sightmachine (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the AIoT platforms market.

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Scope of the Report

This research report categorizes the AIoT platforms market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Solutions
  • Device Management
  • Application Managemnet
  • Connectivity Management
• Services
  • Professional Services
    • Deployment and Integration
    • Support and Maintenance
    • Training and Consulting
  • Managed Services

Based on Vertical:

• BFSI
• Manufacturing
• Healthcare
• Energy & Utilties
• Retail
• Transportation & Logistics
• Other Verticals

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia and New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • Middle East
    • KSA
    • UAE
    • Rest of Middle East
  • Africa
    • South Africa
    • Egypt
    • Nigeria
    • Rest of Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In March 2022,  Cisco Meraki expanded its IoT portfolio by launching a smart automation button, MT30; a new indoor air quality sensor, MT14; and new MV analytics capabilities. Cisco Meraki addresses smart workspace requirements and the future needs of enterprises to protect places, people, and things.
• In June 2022, Intel collaborated with Vingroup to develop smart city solutions. Intel would explore opportunities for 5G-enabled smart city and smart building solutions, which could be applied to Vinhomes’ smart city projects, and deploy smart factory IoT solutions for VinES batteries manufacturing and VinFast EV manufacturing.
• In July 2021, IBM and Siemens announced a collaboration to integrate Siemens’ MindSphere IoT platform with IBM's Watson AI and Edge computing technologies. The collaboration is aimed at helping businesses improve their industrial operations and make better use of IoT data.

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