AIoT Market to Explode by 2030: New Report

Bridging the Expertise Gap

The burgeoning adoption of AIoT presents a significant challenge: a growing demand for specialized professional services. Industries are increasingly recognizing the need for expert guidance in deploying, integrating, supporting, and training AIoT systems. This gap in internal expertise is driving a surge in outsourcing to specialized firms.

Themarketactivity research indicates that the professional services segment, encompassing deployment and integration, support and maintenance, as well as training and consulting, holds a substantial market share. This trend underscores the critical role of these services in planning, designing, and maintaining robust AIoT frameworks.

The Managed Services Advantage

The managed services segment is experiencing explosive growth, empowering businesses to streamline operations, enhance efficiency, and maintain a competitive edge in the dynamic AIoT landscape. By outsourcing managed services, organizations can alleviate the burden of managing complex AIoT ecosystems, freeing up internal resources to focus on core competencies.

This rapid growth is fueled by several factors:

• Increased demand for outsourced managed services: Businesses are increasingly recognizing the value of specialized expertise in managing the complexities of AIoT systems.
• Cost-effectiveness: Managed services often offer a more cost-effective solution compared to building and maintaining internal AIoT infrastructure.
• Scalability and flexibility: Managed services providers can readily scale services up or down based on fluctuating business needs.
• 24/7 support: Managed services typically offer round-the-clock support, ensuring uninterrupted operation of AIoT systems.

Themarketactivity analysis reveals that the managed services segment is poised to register the fastest CAGR in the AIoT market, driven by the growing adoption of AIoT across various industries.

Emerging Players

The managed services landscape is witnessing the emergence of new players, including integrated facility management consultancies and round-the-clock help desks. These emerging players are instrumental in meeting the evolving needs of AIoT customers by providing specialized services tailored to specific industry requirements.

For example, integrated facility management consultancies are leveraging their expertise in facility operations to offer comprehensive AIoT solutions, encompassing asset management, energy optimization, and predictive maintenance. Round-the-clock help desks are providing dedicated support for AIoT systems, ensuring swift resolution of technical issues and minimizing downtime.

Key Players and Competitive Landscape

Industry Titans

The AIoT market is dominated by industry giants with established expertise in hardware, software, and cloud computing. These players are leveraging their extensive resources and market presence to drive innovation and expand their AIoT offerings.

• IBM: Known for its enterprise-grade solutions, IBM is a leader in AIoT, offering a comprehensive suite of products and services, including Watson IoT, a cloud-based platform for managing and analyzing IoT data.
• Cisco: A networking giant, Cisco is expanding its AIoT portfolio through its Cisco Kinetic platform, focusing on industrial automation, smart cities, and connected infrastructure.
• Amazon Web Services (AWS): AWS, the leading cloud platform, is a major player in AIoT, providing a wide range of services, including AWS IoT Core, AWS Greengrass, and Amazon SageMaker, enabling developers to build and deploy AI-powered IoT applications.
• Google: With its expertise in AI and machine learning, Google is actively developing AIoT solutions through its Google Cloud Platform, offering services like Google Cloud IoT Core and Dialogflow.
• Microsoft: Microsoft is integrating AI into its Azure cloud platform, offering services like Azure IoT Hub and Azure Cognitive Services, enabling businesses to leverage AI for IoT data analytics and decision-making.
• Oracle: Oracle is providing AIoT solutions through its Oracle Cloud Infrastructure, focusing on industrial applications, connected vehicles, and smart cities.
• Hewlett Packard Enterprise (HPE): HPE offers a range of AIoT solutions, including its HPE Edgeline EL1000 Edge Converged System, designed for deploying AI at the edge.
• Intel: Intel is a key player in the AIoT hardware space, providing processors and chipsets optimized for AI and IoT applications.
• Hitachi: Hitachi is focusing on industrial AIoT solutions, leveraging its expertise in automation, robotics, and data analytics.
• SAP: SAP is integrating AI into its enterprise resource planning (ERP) and supply chain management (SCM) solutions, enabling businesses to optimize operations and improve decision-making.

Strategic Alliances and Acquisitions

Strategic alliances and acquisitions are playing a crucial role in shaping the AIoT market. These moves allow companies to leverage complementary technologies, expand their market reach, and accelerate innovation.

For instance, Themarketactivity has observed several notable acquisitions in the AIoT space, such as:

• Amazon’s acquisition of Ring: This acquisition strengthened Amazon’s position in the smart home market, enabling it to integrate Ring’s security cameras and smart doorbells with its Alexa voice assistant.
• Google’s acquisition of Nest Labs: This acquisition gave Google a foothold in the smart home market, with Nest’s smart thermostats, smoke detectors, and security cameras becoming part of Google’s ecosystem.
• IBM’s acquisition of Red Hat: This acquisition expanded IBM’s cloud capabilities and allowed it to offer AIoT solutions on Red Hat’s OpenShift platform.

These acquisitions demonstrate the ongoing consolidation in the AIoT market as companies seek to gain a competitive advantage.

Navigating the Competition

The AIoT market is characterized by intense competition, with established players vying for market share and new entrants challenging the status quo. This dynamic landscape presents both opportunities and challenges for businesses operating in this space.

Themarketactivity analysis reveals that key challenges include:

• Rapid technological advancements: The pace of innovation in AI and IoT is accelerating, requiring businesses to constantly adapt and evolve their offerings.
• Data security and privacy concerns: AIoT systems generate vast amounts of data, raising concerns about data security and privacy. Businesses need to implement robust security measures to protect sensitive information.
• Interoperability challenges: Different AIoT platforms and devices may not be compatible with each other, creating interoperability issues.

Despite these challenges, the AIoT market offers significant opportunities for businesses willing to embrace innovation and adapt to the evolving landscape.