TLDR: The Artificial Intelligence of Things (AIoT) market is projected to experience substantial expansion, growing from USD 25.44 billion in 2025 to an estimated USD 81.04 billion by 2030, according to a new report by MarketsandMarketsâ„¢.
A recent analysis by MarketsandMarketsâ„¢ reveals a robust growth trajectory for the Artificial Intelligence of Things (AIoT) market. The market, which integrates artificial intelligence capabilities with Internet of Things (IoT) infrastructure, is forecasted to surge from a valuation of USD 25.44 billion in 2025 to an impressive USD 81.04 billion by the year 2030. This represents a Compound Annual Growth Rate (CAGR) of 26.1% over the five-year forecast period.
The report, published on November 7, 2025, highlights the increasing convergence of AI and IoT technologies as a key driver for this significant market expansion. The synergy between AI and IoT enables smarter, more autonomous, and efficient systems across various industries. AIoT solutions leverage data collected from IoT devices, applying AI algorithms to analyze, learn, and make intelligent decisions, thereby enhancing operational efficiency, predictive maintenance, and personalized user experiences.
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MarketsandMarketsâ„¢ provides comprehensive market sizing and forecasts, detailing the market’s evolution from 2020 to 2030. The substantial CAGR of 26.1% underscores the rapid adoption and growing demand for integrated AI and IoT solutions in sectors ranging from smart homes and cities to industrial automation, healthcare, and automotive. The report suggests that this growth is fueled by advancements in AI algorithms, increasing deployment of IoT devices, and the rising need for real-time data processing and intelligent automation.


