AI in IoT to grow at 6.2 percent CAGR
According to Future Market Insights, the global market for AI in IoT is currently estimated at US$ 6.2 billion for 2022 and is projected to reach US$ 142.4 billion by 2032. The market is expected to reach a CAGR of 6.2 percent during the forecast period from 2022 to 2032. This market is projected to grow steadily over the next few years as billions of devices, services, and systems connect to each other, which is expected to be primarily driven by the adoption of low-cost sensors that are able to convert physical data into digital content. Moreover, the growing demand for smart cities and IoT systems in developing regions has increased the value of AI in the IoT market.
IoT devices are constantly streaming voluminous data, and the need to analyze that data and reduce maintenance costs and downtime has led to the adoption of artificial intelligence in IoT market. In the retail industry, artificial intelligence will play a key role in enabling IoT-based services, with a primary focus on improving customer experience programs and developing products that are more customer-centric which will further propel market demand for AI in IoT in the market.
Key takeaways from the report include:
- The market for AI in IoT is currently valued at US$ 78 billion. It is expected to grow at a 6.2 percent CAGR from 2022 to 2032.
- ML and deep learning technologies are projected to grow at a CAGR of 5.7 percent during the forecast period for AI in IoT.
- The U.S. market is predicted to reach US$ 49 billion while growing at a CAGR of 5.8 percent during the forecast period.
- China is expected to reach a CAGR of 5.6 percent with a market value of US$ 10.2 Billion in 2032 during the forecast period.
- The Japanese market is expected to reach a market value of US$ 8.6 Billion by 2032.
In an effort to emerge as a recognized and profitable business, firms continue to adopt a strategy that includes new product launches, R&D, patents, approvals, events, product innovations, joint ventures, partnership agreements, digital marketing, collaborations, mergers and acquisitions.
For example, Mindtree acquired NxT Digital Business in May 2021 to offer analytical services to match the Industry 4.0 needs. Approximately 198 crores were valued at this acquisition, and completion is expected by July 31st, 2021. Using its low-power and compact SoC, the company aims to solve this issue while providing sufficient computing power for effective AI and biometrics.
JFrog, a company that helps developers manage software delivery updates continuously in June 2021, reached a major agreement to help the company expand its expertise and presence in an area that has become increasingly connected to DevOps, security. With the acquisition of Vdoo, the firm got a platform that utilizes artificial intelligence to detect and fix vulnerabilities in the software that is part of IoT systems and connected devices. The deal is estimated to be worth approximately $300 million in cash and stock.