Global Statistics Representing AI in IoT Market Scenario
The global AI in IoT market is expected to grow at a CAGR of 24.59% during the forecast period, 2019–2026.
Technologies such as Artificial Intelligence (AI) and Internet of Things (IoT) are embedded in networks to instigate innovative technology solutions. The improved intelligence performance of applications and devices aids the framing of better business decisions. The confluence of AI with IoT would provide several opportunities for the growth of the AI in IoT market during the forecast period, 2019–2026. For instance, in February 2019, Singtel unveiled plans to launch an AI-powered IoT network through Microsoft Azure. The platform will access Azure’s wide set of cloud services, including IoT Hub, IoT Edge, and relative machine learning and cognitive services to introduce cloud intelligence and analytics in smart devices.
Additionally, the penetration of smart devices such as smartphones, smart wearable, and others and connectivity would further foster the growth of the AI in IoT market. According to the Mobile Economy Report 2019 by GSMA, the number of IoT connections is expected to reach 25 billion by 2025.
Integration of AI in IoT to be Driven by the Need for Automation and a More Personalized Experience
AI and IoT evolve continuously. Machine learning and deep learning technologies are expected to drive the AI in IoT market on account of the demand for automation and personalized experience among organizations. For instance, in April 2017, ABB and IBM partnered in industrial AI solutions; this partnership collaborated ABB’s digital offering, and ABB AbilityTM, with IBM Watson Internet of Things cognitive capabilities, provisioning potential for customers in utilities, transport, industry, and infrastructure utilizing AI. Additionally, it aimed to assist organizations in improving the quality control, reducing downtime, increasing speed, and yield of industrial processes.
Introduction of AI & IoT to Transform the Retail Industry
The retail industry is witnessing considerable growth with technologies such as AI, IoT, BigData, and others connecting new customers and retaining existing ones while meeting the increasing demand for faster and highly efficient processes. Thus, retailers are focusing on embracing technologies that would provide customers the required assistance and convenience during their shopping experience. For instance, in April 2019, IBM introduced Smart Mirror technology to offer services to offline retailers over an interactive fitting room to connect retailers and customers digitally, thereby enhancing customers’ offline shopping experience. Such factors are resulted to drive the demand for AI in IoT market in the retail segment.
Investments and Collaborations to Propel the Market in North America and Europe
North America is slated to experience significant growth in the AI in IoT market on account of the growing investments in AI and IoT. These technologies are the prime focus areas for investments among enterprises for the sake of futuristic betterment of business operations. For instance, in March 2019, SAS announced a USD 1 billion investment in AI over the next few years, focusing on three main areas, namely R&D innovation, education initiatives, and expert services. Among the many customers using AI and machine learning from SAS, Volvo and Mack Trucks utilize AI solutions to analyze IoT data streaming from big rigs and then render predictive maintenance insights for fleets to keep on trucking. These, factors result to fuel the AI in IoT market in North American region.
Europe is expected to observe significant growth in the AI in IoT market with an observed inclination toward stretching the capabilities of IoT applications. For instance, in April 2019, Siemens Digital Industries Software announced a partnership with SAS to assist companies in delivering AI-embedded IoT analytics for edge and cloud-enabled solutions by applying SAS streaming analytics to fulfill demands for IoT analytics with AI and machine learning capabilities through Siemens’ MindSphere. This partnership would assist companies in increasing productivity and reducing operational risk through predictive or prescriptive maintenance and optimize asset performance management for customers in industries such as manufacturing, healthcare, energy and utilities, smart cities, transportation and automotive. Thus, impelling the growth of AI in IoT market in the European region
Since Europe is a hub for automobile manufacturers, technologies such as BigData, IoT, deep learning, and others offer ample potential for developing connected and automated driving (CAD) vehicle functions and services.
Increasing Penetration of Smartphones to Augment the Market in Asia-Pacific and LAMEA
Asia-Pacific is expected to witness considerable growth in the AI in IoT market during the forecast period, with companies seeking new avenues to transform lives and businesses utilizing AI and IoT in the technical landscape. For instance, in June 2019, ICICI Lombard partnered with Microsoft to develop ‘Insure’, India’s first AI-enabled car inspection feature on a mobile application. This deployment of artificial intelligence on smartphones will simplify the process of renewing and processing claims, along with increased efficiency and productivity.
LAMEA is expected to witness steady growth in the AI in IoT market during the forecast period, 2019–2026. According to the Mobile Economy 2019 Report by GSMA, the smartphone adoption rate in LA and MEA is expected to reach from 65% in 2018 to 79% by 2025 and 52% in 2018 to 74% by 2025, respectively.
Some of the prominent players in the global AI in IoT market are Google, Microsoft, IBM Corporation, Amazon Web Services, Inc, Oracle , SAP, GE, Salesforce, Hitachi, Uptake, SAS, Autoplant Systems Pvt Ltd., Kairos, Softweb Solutions, Arundo, C3 IoT, Anagog, Imagimob, and Thingstel.
AI in IoT Market Segmentation