AI in IoT market seen growing to $91.7 billion by 2032

By AI, Created 7:31 AM UTC, June 01, 2026, /AGP/ – Allied Market Research says the AI in IoT market was worth $10.3 billion in 2022 and is projected to reach $91.7 billion by 2032, driven by automation, analytics and smart devices. The report points to manufacturing, North America and machine learning as current leaders, with Asia-Pacific and NLP expected to grow fastest.

Why it matters: - AI in IoT is moving connected devices from data collection to autonomous action, which can improve efficiency, reduce costs and speed up decisions across industries. - Allied Market Research projects the market will grow from $10.3 billion in 2022 to $91.7 billion by 2032, a 24.8% compound annual growth rate from 2023 to 2032. - The shift matters for manufacturers, healthcare providers, logistics firms, retailers and city planners that are using real-time automation and analytics to run operations.

What happened: - Allied Market Research published a new report on the AI in IoT market on June 1, 2026. - The report says artificial intelligence is increasingly being layered onto Internet of Things systems to enable intelligent automation, predictive analytics, better decision-making and real-time operational optimization. - The market was valued at $10.3 billion in 2022. - The market is projected to reach $91.7 billion by 2032. - The report says the market is growing as businesses adopt smart technologies to improve productivity and gain competitive advantages. - Download the PDF brochure.

The details: - AI-powered IoT systems can collect, process, analyze and act on data in real time with limited human intervention. - The technology is being used to monitor equipment, detect anomalies, predict maintenance needs, optimize energy use and automate workflows. - The report links market growth to machine learning, deep learning, natural language processing, computer vision and cloud computing. - The manufacturing sector accounted for the largest revenue share in 2022. - Healthcare, transportation, agriculture, retail and smart city applications are also driving demand. - By technology, machine learning and deep learning held the largest share in 2022 and are expected to remain the leading segment through the forecast period. - Natural language processing is expected to post the fastest growth through 2032 as voice assistants, chatbots and conversational interfaces spread. - By component, the platform segment generated the highest revenue in 2022. - The report says AI-enabled IoT platforms connect devices, manage data, deploy applications and support analytics across hardware, software and cloud services. - North America generated the highest revenue in 2022. - Asia-Pacific is projected to record the fastest growth through 2032. - The report lists Amazon Web Services, Google, Hitachi, IBM, Oracle, PTC, Salesforce, SAP, SAS Institute and Softweb Solutions among key companies. - The report also notes a 284-page purchase option and offers customization for the research.

Between the lines: - The report frames AI in IoT as a broader digital transformation play, not just a hardware upgrade. - Edge computing, 5G, digital twins and AI-driven cybersecurity are emerging as the next set of growth drivers. - That mix suggests the market is shifting toward faster, more secure and more localized decision-making at the device level. - The pandemic accelerated adoption of connected systems, remote monitoring and cloud-based services, which likely helped establish a higher baseline for current demand.

What’s next: - Growth is expected to continue as companies invest in smart infrastructure, edge analytics, cloud computing, 5G and intelligent devices. - Asia-Pacific’s manufacturing, smart city and healthcare investments should create new demand across the forecast period. - NLP and voice-based interfaces are likely to become more important as consumers and enterprises adopt hands-free and conversational control systems. - More information