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Primary Catalyst Driving Artificial Intelligence (AI) in IoT Market Evolution in 2025: 5G Network Expansion Fuels Accelerated Growth of Artificial Intelligence (AI) in the Internet of Things (IoT) Market Driver
Artificial Intelligence AI in IoT Market
The increasing expansion of the 5G network is anticipated to strongly support and drive the growth of the artificial intelligence (AI) in the IoT market in the future. The term "5G network expansion" refers to the widespread installation and execution of the revolutionary fifth-generation cellular wireless technology, renowned for its superior upload and download rates, consistently reliable connections, and higher capacity compared to its predecessors. The IoT devices are set to greatly benefit from the higher speeds and lower-latency characteristics of the 5G technology, enhancing their connectivity and data transmission abilities and providing a strong backbone for launching AI-powered applications. For example, in June 2022, 5G Americas, a US-based telecom service provider, reported that worldwide 5G connections grew by 17% from Q4 2021, reaching 701 million in Q1 2022, and are projected to reach around 4.8 billion by 2026. Thus, this rapid expansion of the 5G network framework is propelling the growth of the AI in IoT market.
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How will the growth rate of the artificial intelligence (ai) in iot market shape industry trends by 2034?
The scale of the artificial intelligence (AI) in internet of things (iot) industry has seen monumental expansion in prior years. This is set to continue, ballooning from a value of $15.34 billion in 2024 to an even higher $19.49 billion in 2025. This surge represents a compound annual growth rate (CAGR) of 27.0%. Such positive growth during the historic period is due to the escalating need for data management, intensifying demands in key sectors, the proliferation of urbanization and industrialization, the rise in the number of iot devices, along with supportive regulation and incentives.
In the coming years, the artificial intelligence (AI) in IoT market is projected to experience remarkable growth, reaching a value of $50.86 billion by 2029, with a compound annual growth rate (CAGR) standing at 27.1%. The growth anticipated during this forecast period is linked to the expansion of the 5G network, heightened demand resulting from population increase, unique AI applications in different industries, and rising demand for robust vehicles, along with increasing end-user demand. The forecast period also highlights a significant trend of rising demand for AI in IoT within developing markets.
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What are the emerging trends shaping the future of the artificial intelligence (ai) in iot market?
Leading firms working in the field of artificial intelligence (AI) within the IoT sector are emphasizing the launch of unique solutions to augment their market earnings. As an example, Checkpoint Software Technologies Ltd., a software firm based in Israel, launched Check Point Quantum Titan in October 2022. This is the most recent addition to the Check Point Quantum cybersecurity platform. Designed to deliver superior, AI-powered network security and facilitate advanced threat prevention catered to on-premise, cloud, and IoT applications, it comprises of AI-tailored network security, advanced threat prevention, IoT security and ultra-scalable protections, all working in unison to thwart cyberattacks.
Which primary segments of the artificial intelligence (ai) in iot market are driving growth and industry transformations?
The artificial intelligence (AI) in iot market covered in this report is segmented -
1) By Components: Software, Platforms, Services
2) By Technology: Machine Learning, Natural Language Processing, Image Processing, Speech Recognition
3) By-End-User: Energy And Utilities, Manufacturing, Retail, Transportation And Mobility, Banking Financial Services And Insurance (BFSI)
Subsegments:
1) By Software: AI Analytics Software, Edge AI Software, Security Software
2) By Platforms: IoT Platforms With AI Capabilities, Cloud-Based AI Platforms, Device Management Platforms
3) By Services: Consulting Services, Integration Services, Support And Maintenance Services
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Which geographical regions are pioneering growth in the artificial intelligence (ai) in iot market?
North America was the largest region in the artificial intelligence (AI) in IoT market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in iot market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the artificial intelligence (ai) in iot market landscape?
Major companies operating in the artificial intelligence (AI) in IoT market report are Amazon Inc., Google LLC, Microsoft Corporation, Hitachi Ltd., General Electric (GE), Intel Corporation, accenture* PLC, International Business Machines Corporation, Cisco Systems Inc., Qualcomm Technologies Inc., Oracle Corporation, Honeywell International Inc., SAP SE, Fujitsu Limited, NVDIA Corporation, Salesforce Inc., Texas Instruments Incorporated, STMicroelectronics, Infineon Technologies AG, Renesas Electronics Corporation, ARM Holdings, PTC Inc., Softweb Solutions Inc., SpaceTime Insight Inc., CloudMinds Inc.
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What Is Covered In The Artificial Intelligence (AI) in IoT Global Market Report?
• Market Size Forecast: Examine the artificial intelligence (ai) in iot market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence (ai) in iot market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence (ai) in iot market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence (ai) in iot market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence (ai) in iot market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence (ai) in iot market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence (ai) in iot market.
• Competitive Landscape: Review strategic developments in the artificial intelligence (ai) in iot market, including expansions, agreements, and new product launches.
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