PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1876467
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1876467
The global AIoT market is estimated to be worth USD 25.44 billion in 2025. It is projected to reach USD 81.04 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 26.1% during the forecast period. The AIoT market is primarily driven by the growing convergence of artificial intelligence and the Internet of Things, enabling real-time data analytics, predictive insights, and autonomous decision-making across industries. The rollout of 5G networks, advancements in edge computing, and the availability of low-cost sensors are accelerating AIoT adoption by enhancing speed, connectivity, and cost efficiency.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2020-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Billion) |
| Segments | Offering, Technology, Deployment Type, Vertical |
| Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
The expansion of smart city initiatives, industrial automation under Industry 4.0, and healthcare applications, including remote monitoring and predictive diagnostics, are further fueling market growth. Additionally, scalable cloud infrastructure supports the handling of massive data and AI-driven analytics, thereby strengthening the AIoT ecosystem. However, the market faces key restraints, including data security and privacy concerns, high implementation and integration costs, and a lack of standardization across IoT devices. The shortage of skilled professionals, regulatory complexities, and infrastructure limitations in developing regions further hinder large-scale deployment. Despite these challenges, technological advancements and cross-sector integration continue to position AIoT as a transformative enabler of intelligent, connected ecosystems worldwide.

"By service, the professional services segment is expected to hold the largest market size during the forecast period."
The professional services offered have been categorized into deployment and integration, support and maintenance, and training and consulting services. Several end-use organizations lack the capacity, and therefore, they hire other specialized firms to achieve the needed level of safety and/or protection. The implementation of AloT systems demands professional services, especially during and after the process. Some of the services are planning, designing, consulting, and upgrades. Organizations delivering these services include consultants, IoT specialists, AI specialists, and separate program management teams committed to developing and implementing mission-critical decision support systems, tools, services, and knowledge.
"By region, Asia Pacific is expected to have the highest growth rate during the forecast period."
The Asia Pacific market includes China, Japan, India, and other countries. These nations have focused heavily on developing innovative AloT technology. The region's expected high CAGR during the forecast period is due to its progressive and dynamic adoption of new technology solutions. The move toward commercializing IoT technology, along with the need for further developments to fully utilize it and to gain greater benefits from AloT platform solutions, is likely to boost their adoption in the region. Asia Pacific, with large economies like China, is expected to hold a significant share of the AloT market. The industries with the greatest potential for adopting AloT solutions, software, and services include mobility and transportation, energy and utilities, and healthcare and life sciences.
In-depth interviews have been conducted with chief executive officers (CEOs), Directors, and other executives from various key organizations operating in the AIoT market.
The major players in the AIoT market include IBM (US), Cisco (US), AWS (US), Google (US), Microsoft (US), Oracle (US), HPE (US), Intel (US), Hitachi (Japan), and SAP (Germany).
Research Coverage
The market report covered the AIoT market across segments. We estimated the market size and growth potential for many segments based on offering, technology, deployment type, vertical, and region. It contains a thorough competition analysis of the major market participants, information about their businesses, essential observations about their product offerings, current trends, and critical market strategies.
With information on the most accurate revenue estimates for the whole AIoT industry and its subsegments, the research will benefit market leaders and recent newcomers. Stakeholders will benefit from this report's enhanced understanding of the competitive environment, which will enable them to better position their companies and develop effective go-to-market strategies. The research provides insights into the primary market drivers, constraints, opportunities, and challenges, enabling players to grasp the industry's pulse.