$81 Billion bound: AIoT’s path to explosive growth by 2030
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The convergence of artificial intelligence (AI) and the Internet of Things (IoT) — known as AIoT — is rapidly reshaping industries worldwide. A new report from MarketsandMarkets projects that the global AIoT market will grow from $25.44 billion in 2025 to $81.04 billion by 2030, representing a striking compound annual growth rate (CAGR) of 26.1%.
As we recently reported, the global IoT market is poised to reach $865 billion by 2030. For eeNews Europe readers, the IoT/AIoT trend highlights the growing importance of edge intelligence, data analytics, and automation. These technologies are redefining design and deployment strategies for connected devices across Europe’s industrial, healthcare, and manufacturing ecosystems.
Driving forces behind AIoT growth
According to the MarketsandMarkets report, the rise of smart cities, cloud computing, and AI-integrated edge systems is fueling AIoT adoption across multiple sectors. The report also notes that edge-based AIoT is expected to register the highest CAGR during the forecast period, as businesses seek to reduce latency and dependence on high-bandwidth connections.
At the core of this growth is the exponential surge in data generated by IoT devices. As billions of connected systems come online, organizations face mounting pressure to implement frameworks capable of processing, managing, and analyzing vast data flows in real time. AIoT is emerging as a key enabler, offering automation, personalization, and operational efficiency.
Platform dominance and edge innovation
The platforms segment currently represents the largest share of the AIoT market. These platforms provide the infrastructure necessary to develop and deploy AI-enhanced IoT solutions, encompassing device management, connectivity, and advanced analytics. IoT device management platforms oversee the entire life cycle of devices — from installation to maintenance — ensuring reliability and safety. Meanwhile, connectivity management and cloud platforms facilitate data transfer and provide flexible architectures for storage and analytics, driving faster, data-driven decision-making.
Edge-based AIoT implementations are also seeing significant traction. By processing data closer to where it is generated, edge systems can deliver near-real-time insights while easing bandwidth and latency constraints. These systems typically operate across three layers—collection terminals, connectivity, and edge layers—each enabling more efficient communication and computation.
Regional insights and industry impact
While Asia-Pacific leads in overall market share, North America holds the second-largest share due to strong technological innovation and cross-industry adoption. Sectors such as manufacturing, transportation, and healthcare are leading the charge. Manufacturers are increasingly turning to AIoT-powered predictive maintenance solutions and supply chain analytics, while the healthcare sector is leveraging AIoT for virtual patient care and personalized medicine.
As enterprises move toward smarter, more autonomous operations, AIoT’s role in shaping the next generation of connected systems will only expand, driving innovation from the factory floor to the smart city grid.
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