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Artificial Intelligence of Things (AIoT) fuses the power of artificial intelligence (AI) with the connectivity and data collection of the Internet of Things (IoT). By embedding AI into IoT devices, organizations gain enhanced data analytics, predictive capabilities, and autonomous decision-making enabling smarter operations across industrial, commercial, and consumer applications.
AIoT’s significance lies in its ability to drive real-time insights and automation at the edge, optimizing processes from manufacturing and healthcare to smart cities and logistics. Advances in edge computing, sensor technologies, and federated learning are boosting the performance, security, and scalability of AIoT solutions. As enterprises invest in digital transformation, AIoT is enabling predictive maintenance, energy efficiency, and improved user experiences, all while supporting robust cybersecurity frameworks.
According to BIS Research, the global AIoT market was valued at $18.36 billion in 2024 and is expected to reach an estimated $896.69 billion by 2034, reflecting sustained growth and innovation across all major regions.
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• Rising enterprise investments in digital transformation and smart automation
• Breakthroughs in AI and machine learning algorithms integrated with IoT devices
• Growing deployment of edge computing and 5G networks, enabling ultra-low latency and real-time analytics
• Rapid adoption of AIoT solutions in smart city infrastructure and industrial applications
• Data privacy and cybersecurity risks as the number of connected devices expands
• Complexity in integrating AIoT platforms with existing IT/OT systems
• High upfront costs and scalability hurdles, particularly in certain sectors and regions
• Regulatory and interoperability issues related to cross-border data flows and industry standards
• Hardware
• Software
• Services
• Machine Learning
• Natural Language Processing
• Computer Vision
• Context Aware Artificial Intelligence
• Video Surveillance
• Inventory Management
• Predictive Maintenance
• Supply Chain Management
• Others
• North America (U.S., Canada, Mexico)
• Europe (Germany, France, Italy, Spain, U.K., Rest-of-Europe)
• Asia-Pacific (China, Japan, South Korea, India, Rest-of-Asia-Pacific)
• Rest-of-the-World (South America, Middle East & Africa)
According to Principal Analyst, BIS Research:
“The artificial intelligence of things (AIoT) market is on the cusp of a breakthrough, as organizations tap into AI-driven insights at the edge for enhanced efficiency and smarter decision-making. Those who invest in secure, interoperable, and scalable AIoT systems will stay ahead in this fast-evolving landscape. Continuous innovation and strategic partnerships will be essential for market leadership as AI and IoT converge to redefine business models worldwide.”
Leading players include Google LLC, IBM, Microsoft, Oracle, AWS, Cisco, Salesforce Inc., SAP, Thingstel Tech Solutions India Pvt Ltd, Softweb Solutions Inc., and SAS Institute, Inc.
Machine learning, edge AI, computer vision, and natural language processing are at the forefront, supporting applications from predictive maintenance to real-time analytics in both industrial and consumer sectors.
BIS Research delivers expert-driven insights, in-depth segmentation, and tailored strategic guidance across the AI, IoT, and digital transformation sectors.
