AIoT Market to Hit $1.32 Tn by 2032, Driven by Automation & Real-Time Analytics

AIoT integrates AI with IoT to enable intelligent automation, real-time insights, and enhanced decision-making across industries, driving global market growth.

WILMINGTON, DE, UNITED STATES, November 25, 2025 /EINPresswire.com/ -- According to a new report published by Artificial Intelligence Of Things (Aiot) Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component (Hardware, Software, Services), by Deployment (On-Premise, Cloud), by Industry Vertical (Retail, Agriculture, Logistics, BFSI, Automotive and Transport, Healthcare, Manufacturing, Others), by Application (Video Surveillance, Inventory Management, Predictive Maintenance, Supply Chain Management, Others), by End User (B2B, B2G, B2C): Global Opportunity Analysis and Industry Forecast, 2023 - 2032, The global artificial intelligence of things (AIoT) market was valued at $126.1 billion in 2023, and is projected to reach $1.32 trillion by 2032, growing at a CAGR of 30.2% from 2024 to 2032.

The Artificial Intelligence of Things (AIoT) market is rapidly evolving as organizations integrate advanced AI capabilities into IoT ecosystems to enhance automation, predictive analytics, and operational efficiency. With connected devices generating vast volumes of data, AIoT enables real-time intelligence that improves decision-making and unlocks greater business value.

Industries such as manufacturing, healthcare, transportation, retail, and energy are increasingly adopting AIoT solutions to streamline processes, reduce downtime, and improve customer experience. The rise of 5G, edge computing, and cloud platforms further accelerates adoption by supporting faster connectivity and more robust data processing capabilities.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲: https://www.alliedmarketresearch.com/request-sample/A180781

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬
One of the major drivers of the AIoT market is the increasing need for intelligent automation across industries. Businesses are shifting from basic IoT monitoring to predictive and autonomous systems powered by machine learning and advanced analytics.

The growth of connected devices globally is also fueling market expansion. As IoT adoption scales, enterprises require AI-enabled platforms to analyze the growing data volumes and derive meaningful insights. This creates strong demand for integrated AIoT solutions.

Technological advancements, including edge AI and 5G connectivity, play a crucial role in enhancing processing speed and supporting real-time applications. These innovations enable low-latency data processing, which is essential for sectors like autonomous vehicles, smart manufacturing, and digital health.

Cybersecurity concerns, however, remain a major challenge. With the integration of AI and IoT, the attack surface expands significantly, pushing vendors to incorporate advanced security frameworks and encryption technologies to ensure data protection.

Additionally, the high cost of deployment and the need for skilled professionals may hinder adoption among small and medium enterprises. Still, increasing investments, government initiatives, and the rise of AI-powered smart city projects are expected to create substantial new opportunities.

𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝘁𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁: https://www.alliedmarketresearch.com/connect-to-analyst/A180781

𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗰𝗮𝗹 𝗧𝗿𝗲𝗻𝗱𝘀
The AIoT (Artificial Intelligence of Things) market is rapidly evolving as AI capabilities are increasingly embedded into edge devices, enabling real-time data processing and decision-making directly at the device level. This shift toward Edge AI significantly reduces latency and reliance on cloud infrastructure, making it essential for applications such as autonomous vehicles, smart cities, and advanced industrial automation. As AI technologies mature, a strong convergence between AI and IoT platforms is emerging, offering integrated systems that support seamless AI model deployment across connected devices for functions like predictive maintenance, anomaly detection, and resource optimization.

With the expansion of interconnected IoT devices, cybersecurity has become a major priority within AIoT ecosystems. New trends emphasize AI-driven security mechanisms—including anomaly detection and behavioral analytics—to protect networks from unauthorized access and cyber threats. Privacy-focused techniques like federated learning and differential privacy are also gaining momentum, ensuring that sensitive IoT data is processed securely while maintaining user confidentiality.

AIoT adoption is accelerating across industries such as healthcare and urban infrastructure, where it is transforming operational efficiency and service quality. In healthcare, AIoT supports remote patient monitoring, predictive diagnostics, and personalized care through continuous data insights from wearables and medical sensors. In smart cities, AIoT applications drive intelligent traffic control, energy management, and environmental monitoring, contributing to improved sustainability and enhanced urban living experiences.

𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The AIoT market is segmented by component (hardware, software, services), technology (machine learning, NLP, computer vision), application (predictive maintenance, smart homes, asset management, security, automation), and industry verticals such as manufacturing, healthcare, retail, logistics, and energy. Software and services dominate due to rising demand for analytics, intelligent platforms, and cloud-based AIoT solutions.

On the basis of industry vertical, the manufacturing segment is expected to grow at the highest rate during the AIoT market forecast period and is projected to remain the fastest-expanding segment. This growth is driven by the rising adoption of automation, predictive maintenance, and smart manufacturing practices. AIoT-driven solutions in manufacturing integrate AI algorithms with IoT-connected equipment to monitor machine health, predict maintenance requirements, and optimize production workflows in real time, significantly boosting the segment’s contribution to the overall AIoT market size.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Regionally, North America accounted for the largest share in 2023, supported by advanced infrastructure, strong technological capabilities, and high investments in AIoT innovations. The region benefits from a robust ecosystem of AIoT vendors, research institutions, and technology hubs that accelerate development and deployment across multiple industries. However, Asia-Pacific is poised to register the highest growth throughout the forecast period, driven by rising digital transformation efforts. Increasing focus on Industry 4.0, smart city development, and connected infrastructure projects is creating strong demand for AIoT solutions across the region, further propelling the growth of the global artificial intelligence of things (AIoT) market.

𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆: https://www.alliedmarketresearch.com/purchase-enquiry/A180781

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
The market players of AIoT industry operating are Microsoft Corporation, SAP SE, Alphabet (Google Inc.), Bosch.IO GmbH, Williot, Hitachi, Ltd., International Business Machines Corporation, Siemens AG, GE Vernova, Terminus Group, Falkonry Inc and Amazon Web Services, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the AIoT market size globally.

𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• By component, the basic hardware segment accounted for the largest AIoT market share in 2023.
• By deployment mode, the cloud segment accounted for the largest artificial intelligence of things market share in 2023.
• By industry vertical, manufacturing segment accounted for the largest AIoT market share in 2023.
• By application, video surveillance segment accounted for the largest AIoT market share in 2023.
• According to the artificial intelligence of things market analysis, region-wise, North America generated the highest revenue in 2023.

𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆
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David Correa
Allied Market Research
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