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Artificial Intelligence (AI) in IoT Market Valued At $24.56 Billion In 2026, Projected To Reach $63.64 Billion By 2030
The artificial intelligence (AI) in IoT market size has seen remarkable exponential growth in recent years. It is anticipated to increase from $19.38 billion in 2025 to $24.56 billion in 2026, at a compound annual growth rate (CAGR) of 26.7%. Factors contributing to its historical growth include the adoption of cloud computing, the widespread presence of connected devices, progress in machine learning algorithms, the expansion of smart manufacturing, and a growing demand for automation.
The artificial intelligence (AI) in IoT market is anticipated to experience substantial growth in the coming years. It is expected to reach $63.64 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 26.9%. This growth during the forecast period is attributed to the integration of AI with edge computing, the development of smart cities and infrastructure, the expansion of industrial IoT networks, the increasing demand for predictive maintenance solutions, and advancements in autonomous transport and robotics. Key trends anticipated during this period include edge AI integration, sophisticated predictive maintenance solutions, real-time data analytics, AI-driven automation, and the progression of smart sensor technology.
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Key Factor Propelling The Artificial Intelligence (AI) in IoT Market Forward
The increasing deployment of 5G networks is anticipated to stimulate the advancement of Artificial Intelligence (AI) within the IoT market in the future. This expansion involves the rollout and use of fifth-generation wireless cellular technology, offering enhanced upload and download speeds, more reliable connections, and increased capacity compared to earlier networks. The pace of 5G deployment is quickening due to major operators and governments globally boosting network rollouts and coverage during 2023. Artificial Intelligence (AI) in IoT facilitates 5G network growth by allowing smart device connections, real-time data handling, and edge automation, thereby fully utilizing the fast and low-latency features of 5G infrastructure. An example is seen in Germany, where, as reported by Germany’s Bundesnetzagentur, a federal network regulator, in December 2023, 5G coverage by at least one provider reached 90% of the nation in October 2023, an increase from 79% the previous year. Consequently, the ongoing expansion of 5G networks is fueling the progress of Artificial Intelligence (AI) in the IoT market.
Artificial Intelligence (AI) in IoT Market Segments And Subsegments Explained
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
Emerging Trends Transforming The Artificial Intelligence (AI) in IoT Market
Leading companies within the artificial intelligence (AI) in IoT market are prioritizing the creation of advanced solutions, including edge AI and sensor-integrated IoT platforms, aiming to boost operational efficiency, cut costs, and strengthen security for connected devices. Edge AI IoT platforms are defined as technological solutions that combine smart sensors, machine learning models operating on or near the device, and IoT connectivity to deliver real-time analytics, detect anomalies, and enable automated decision-making without relying exclusively on centralized cloud processing. For example, in December 2023, STMicroelectronics, a Switzerland-based semiconductor company, released the ST Edge AI Suite, a comprehensive ecosystem of hardware, software tools, and developer libraries, intended to assist industries such as automotive, consumer electronics, and building automation in embedding AI capabilities into smart sensors, microcontrollers, and IoT-enabled devices. This suite supports low-power edge inference, provides streamlined toolchains, and ensures seamless integration with IoT platforms to optimize both security and operational workflows.
Artificial Intelligence (AI) in IoT Market Key Players: Major Companies In The 2026 Report
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 By Region: Where Is Demand Strongest?
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.
