New forecasts for AIoT include AIoT device count and information for IoT applications and AI use cases for 196 countries, according to Transforma Insights.
AI and the IoT are arguably two of the most impactful and far-reaching technology developments of our time. Increasingly, these two technologies are deployed together and the term ‘AIoT’ has come to the fore.
IoT devices can generate significant amounts of potentially valuable data and AI can be applied to this data in many locations, including Cloud data centres, various network Edge locations, and on board the actual IoT devices themselves. All of these approaches have the potential to unlock significant value and new insights from IoT data.
Applying AI to IoT data on board source IoT devices (i.e. ‘AIoT’) can yield significant benefits, including improved performance, enhanced compliance, privacy and security and potentially reduced operational costs.
The potential for AIoT is significant. Transforma Insights forecasts that total AIoT connections will grow from 1.4 billion at the end of 2023 to 9.1 billion at the end of 2033. This is a more than 6-fold growth in 10 years, a CAGR of over 20%.
Overall AIoT represents a significant market with net additions growing from less than half a billion in 2023 to just over 900 million in 2033.
Transforma Insights forecasts a total of 39 billion IoT devices at the end of 2033, up from 16 billion at the end of 2023. 9% of IoT devices will have on board AI in 2023, rising to 23% in 2033. The rate of growth of AIoT penetration of IoT devices slows towards the end of the forecast period, primarily due to the AIoT penetration of key IoT applications reaching saturation.
Other highlights include:
- Rates of adoption of AIoT vary significantly for different IoT applications. By 2033, 77% of IoT AV Equipment will be AIoT (e.g. will have on-board AI capabilities), whilst a negligible proportion of inventory management and monitoring and building lighting IoT devices will qualify as AIoT. AI can play a significant role to support and enhance IoT applications such as these latter two IoT Application Groups, but will typically be deployed on Edge or Cloud infrastructure rather than on-board the devices themselves
- In 2033 the consumer sector will account for 80% of all AIoT devices. Of the enterprise segment in 2033, 50% of devices will be accounted for by ‘cross-vertical’ use cases such as generic office equipment and fleet vehicles, 21% by government, most prominently CCTV, 6% by health, and 5% for each of transport and finance
- The single biggest use case is (consumer) AV Equipment. Personal and home electronics, vehicle head units, security alarms, personal assistance robots, CCTV, HVAC and access control together will account for 78% of all AIoT devices in 2033
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