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Artificial Intelligence (AI) in IoT Market Growth From $24.56 Billion In 2026 To $63.64 Billion By 2030 At A CAGR Of 26.9%
The artificial intelligence (AI) in iot market has experienced significant expansion recently. Its value is projected to rise from $19.38 billion in 2025 to $24.56 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 26.7%. This past growth can be attributed to the uptake of cloud computing, the proliferation of connected devices, advances in machine learning algorithms, the expansion of smart manufacturing, and increasing demand for automation.
The artificial intelligence (AI) in iot market is expected to witness significant expansion over the next few years. It is projected to achieve a size of $63.64 billion by 2030, progressing at a compound annual growth rate (CAGR) of 26.9%. This growth throughout the forecast period stems from the integration of AI with edge computing, the emergence of smart cities and infrastructure, the broadening of industrial iot networks, the demand for predictive maintenance solutions, and the advancements in autonomous transport and robotics. Prominent trends for the forecast period include edge AI integration, predictive maintenance solutions, real-time data analytics, AI-driven automation, and the development of smart sensors.
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Artificial Intelligence (AI) in IoT Market Development Factors: What’s Supporting Demand?
The growth of Artificial Intelligence (AI) in the IoT market is expected to be propelled by the ongoing expansion of 5G networks. This 5G network expansion entails the deployment of fifth-generation wireless cellular technology, which delivers superior upload and download speeds, more consistent connections, and greater capacity than previous networks. The acceleration of 5G expansion is due to major operators and governments globally intensifying network deployments and coverage throughout 2023. Artificial Intelligence (AI) in IoT aids 5G network expansion by facilitating intelligent device connectivity, real-time data processing, and automation at the edge, thereby fully utilizing 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 a primary driver for the growth of Artificial Intelligence (AI) in the IoT market.
Artificial Intelligence (AI) in IoT Market Breakdown By Product Type And Application
The artificial intelligence (AI) in iot market covered in this report is segmented –
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
Artificial Intelligence (AI) in IoT Market Transformation Trends: What Innovations Are Driving Change?
Leading companies in the artificial intelligence (AI) in IoT market are prioritizing the development of advanced solutions, including edge AI and sensor-integrated IoT platforms, to improve operational efficiency, cut costs, and enhance security throughout connected devices. Edge AI IoT platforms are defined as technological systems that combine smart sensors, machine learning models run directly on or near the device, and IoT connectivity to enable real-time analytics, anomaly detection, and automated decision-making without sole reliance on centralized cloud processing. For example, in December 2023, STMicroelectronics, a Switzerland-based semiconductor company, launched the ST Edge AI Suite. This integrated ecosystem of hardware, software tools, and developer libraries is designed to help industries like automotive, consumer electronics, and building automation incorporate AI capabilities into smart sensors, microcontrollers, and IoT-enabled devices. The suite provides support for low-power edge inference, streamlined toolchains, and seamless integration with IoT platforms to optimize both security and operational workflows.
Artificial Intelligence (AI) in IoT Market Company Landscape And Competitive Strategy
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.
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Artificial Intelligence (AI) in IoT Market Largest Region: Which Geography Holds The Biggest Share?
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 the artificial intelligence (AI) in iot market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
