GITNUXREPORT 2025

AI In The Iot Industry Statistics

AI in IoT market to reach $1.7 trillion by 2025, transforming industry globally.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

68% of IoT data is processed with AI or machine learning technologies

Statistic 2

82% of IoT developers believe AI will play a crucial role in future IoT solutions

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Over 87% of IoT companies are leveraging AI to optimize their operations

Statistic 4

AI enhances predictive maintenance in IoT devices, improving uptime by up to 30%

Statistic 5

In industrial IoT, AI reduces energy consumption by up to 25%

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63% of IoT data streams are analyzed in real-time using AI

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55% of IoT device manufacturers are integrating AI to improve product personalization

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The use of AI in IoT agriculture is increasing crop yields by up to 20%

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AI-enabled IoT devices in retail improve inventory accuracy by over 33%

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AI-driven IoT solutions are enabling smarter cities, reducing traffic congestion by up to 20%

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Over 60% of IoT-enabled vehicles use AI for autonomous driving features

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AI in IoT-based energy management systems can reduce overall energy costs by up to 20%

Statistic 13

The use of AI in industrial IoT drives a 22% efficiency increase in supply chain operations

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Nearly 50% of IoT solutions are utilizing AI to improve customer insights

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AI and IoT combined can improve predictive analytics accuracy to over 85%

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AI-driven analytics in IoT applications can increase operational efficiency by up to 30%

Statistic 17

80% of organizations implementing IoT solutions prioritize AI to enhance decision-making processes

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AI-powered IoT solutions are helping reduce waste in manufacturing by up to 25%

Statistic 19

AI enables IoT devices to perform self-diagnostics, reducing maintenance costs by 15%

Statistic 20

55% of enterprises see AI integration as a critical factor for IoT success

Statistic 21

In smart grid applications, AI reduces energy losses by up to 15%

Statistic 22

AI-driven IoT in logistics reduces delivery times by an average of 18%

Statistic 23

Machine learning algorithms in IoT devices contribute to an accuracy increase of over 90% in various applications

Statistic 24

The use of AI for data analysis in IoT reduces processing time by over 40%

Statistic 25

AI integration in IoT systems improves user experience scores by 25%

Statistic 26

48% of industrial IoT projects have integrated AI by 2023, showing rapid adoption in manufacturing

Statistic 27

AI can predict equipment failures with 96% accuracy in IoT-enabled factories, reducing unplanned downtime

Statistic 28

AI in IoT is enabling more personalized experiences in retail, increasing customer satisfaction scores by 15%

Statistic 29

AI helps IoT devices achieve 98% accuracy in facial recognition applications, especially in security sectors

Statistic 30

AI-powered anomaly detection in IoT reduces false positives by 75%, improving operational efficiency

Statistic 31

AI implementation in IoT healthcare devices improves diagnostic accuracy by up to 20%

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The retail sector using AI in IoT applications for smart shelf management reports a 30% reduction in stockouts

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Integration of AI in IoT for manufacturing reduces downtime by 35% on average

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The adoption of AI in IoT is expected to grow at a CAGR of 28.3% between 2021 and 2028

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AI-powered IoT platforms are growing at a CAGR of 38.5% through 2027

Statistic 36

The adoption of AI in IoT in the energy sector is projected to grow at a CAGR of 28%

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The global AI in IoT market size was valued at $4.3 billion in 2022 and is expected to grow exponentially

Statistic 38

AI-powered IoT healthcare applications are expected to save the industry over $150 billion annually by 2026

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65% of IoT data analysis now involves AI or machine learning algorithms

Statistic 40

The implementation of AI in IoT has created over 230,000 new jobs worldwide in the past three years

Statistic 41

72% of IoT vendors plan to increase their AI investment over the next two years

Statistic 42

Over 35% of IoT startups focus exclusively on AI-powered solutions, indicating strong industry growth

Statistic 43

Over 65% of IoT data is directed into AI-powered analytics platforms for strategic decision-making

Statistic 44

80% of new IoT product launches include AI features, demonstrating industry trend

Statistic 45

The AI in the IoT market is projected to reach $1.7 trillion by 2025

Statistic 46

By 2024, there will be over 75 billion connected devices worldwide, many integrated with AI

Statistic 47

The global smart home market, powered by AI and IoT, is expected to reach $135 billion by 2025

Statistic 48

The number of AI-enabled IoT endpoints is expected to reach 27 billion by 2025

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70% of IoT data is stored and processed in the cloud, with AI algorithms deployed for analysis

Statistic 50

The global market size for AI in IoT healthcare is expected to reach $45 billion by 2027

Statistic 51

The global spend on AI in IoT is expected to surpass $25 billion by 2025

Statistic 52

AI-driven security solutions in IoT devices are reducing cyber threats by over 40%

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AI reduces false alerts in IoT-security systems by up to 80%

Statistic 54

AI can detect anomalies in IoT data streams with 92% accuracy, significantly improving security

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Key Highlights

The AI in the IoT market is projected to reach $1.7 trillion by 2025
Over 87% of IoT companies are leveraging AI to optimize their operations
By 2024, there will be over 75 billion connected devices worldwide, many integrated with AI
68% of IoT data is processed with AI or machine learning technologies
AI enhances predictive maintenance in IoT devices, improving uptime by up to 30%
The adoption of AI in IoT is expected to grow at a CAGR of 28.3% between 2021 and 2028
AI-powered IoT healthcare applications are expected to save the industry over $150 billion annually by 2026
In industrial IoT, AI reduces energy consumption by up to 25%
63% of IoT data streams are analyzed in real-time using AI
AI-driven security solutions in IoT devices are reducing cyber threats by over 40%
The global smart home market, powered by AI and IoT, is expected to reach $135 billion by 2025
55% of IoT device manufacturers are integrating AI to improve product personalization
The use of AI in IoT agriculture is increasing crop yields by up to 20%

According to industry projections, the AI-powered IoT market is set to explode to over $1.7 trillion by 2025, transforming everything from healthcare to smart cities with rapid adoption and groundbreaking efficiencies.

AI Technologies and Integration Methods

68% of IoT data is processed with AI or machine learning technologies
82% of IoT developers believe AI will play a crucial role in future IoT solutions

AI Technologies and Integration Methods Interpretation

With 68% of IoT data already harnessing AI and 82% of developers predicting its pivotal role ahead, it's clear that artificial intelligence isn't just a helpful tool—it's the backbone of the Internet of Things' future evolution.

Application Areas and Use Cases

Over 87% of IoT companies are leveraging AI to optimize their operations
AI enhances predictive maintenance in IoT devices, improving uptime by up to 30%
In industrial IoT, AI reduces energy consumption by up to 25%
63% of IoT data streams are analyzed in real-time using AI
55% of IoT device manufacturers are integrating AI to improve product personalization
The use of AI in IoT agriculture is increasing crop yields by up to 20%
AI-enabled IoT devices in retail improve inventory accuracy by over 33%
AI-driven IoT solutions are enabling smarter cities, reducing traffic congestion by up to 20%
Over 60% of IoT-enabled vehicles use AI for autonomous driving features
AI in IoT-based energy management systems can reduce overall energy costs by up to 20%
The use of AI in industrial IoT drives a 22% efficiency increase in supply chain operations
Nearly 50% of IoT solutions are utilizing AI to improve customer insights
AI and IoT combined can improve predictive analytics accuracy to over 85%
AI-driven analytics in IoT applications can increase operational efficiency by up to 30%
80% of organizations implementing IoT solutions prioritize AI to enhance decision-making processes
AI-powered IoT solutions are helping reduce waste in manufacturing by up to 25%
AI enables IoT devices to perform self-diagnostics, reducing maintenance costs by 15%
55% of enterprises see AI integration as a critical factor for IoT success
In smart grid applications, AI reduces energy losses by up to 15%
AI-driven IoT in logistics reduces delivery times by an average of 18%
Machine learning algorithms in IoT devices contribute to an accuracy increase of over 90% in various applications
The use of AI for data analysis in IoT reduces processing time by over 40%
AI integration in IoT systems improves user experience scores by 25%
48% of industrial IoT projects have integrated AI by 2023, showing rapid adoption in manufacturing
AI can predict equipment failures with 96% accuracy in IoT-enabled factories, reducing unplanned downtime
AI in IoT is enabling more personalized experiences in retail, increasing customer satisfaction scores by 15%
AI helps IoT devices achieve 98% accuracy in facial recognition applications, especially in security sectors
AI-powered anomaly detection in IoT reduces false positives by 75%, improving operational efficiency
AI implementation in IoT healthcare devices improves diagnostic accuracy by up to 20%
The retail sector using AI in IoT applications for smart shelf management reports a 30% reduction in stockouts

Application Areas and Use Cases Interpretation

With over 87% of IoT companies harnessing AI to sharpen operations—boosting uptime, slashing energy consumption, and transforming everything from agriculture to autonomous vehicles—it's crystal clear that AI isn't just an upgrade; it's the connective tissue turning smart devices into truly intelligent systems that are rewriting the rules across industries.

Industrial and Sector-specific IoT Applications

Integration of AI in IoT for manufacturing reduces downtime by 35% on average

Industrial and Sector-specific IoT Applications Interpretation

Integrating AI into IoT for manufacturing isn't just a tech upgrade—it's a 35% reduction in downtime, proving that smart machines make smarter factories.

Market Growth

The adoption of AI in IoT is expected to grow at a CAGR of 28.3% between 2021 and 2028
AI-powered IoT platforms are growing at a CAGR of 38.5% through 2027
The adoption of AI in IoT in the energy sector is projected to grow at a CAGR of 28%
The global AI in IoT market size was valued at $4.3 billion in 2022 and is expected to grow exponentially

Market Growth Interpretation

With AI integration in IoT soaring at double-digit rates across industries—especially energy—the digital landscape is rapidly transforming into a smarter, more interconnected realm where data-driven decisions are not just an advantage but an inevitable reality.

Market Growth and Market Size

AI-powered IoT healthcare applications are expected to save the industry over $150 billion annually by 2026
65% of IoT data analysis now involves AI or machine learning algorithms
The implementation of AI in IoT has created over 230,000 new jobs worldwide in the past three years
72% of IoT vendors plan to increase their AI investment over the next two years
Over 35% of IoT startups focus exclusively on AI-powered solutions, indicating strong industry growth
Over 65% of IoT data is directed into AI-powered analytics platforms for strategic decision-making
80% of new IoT product launches include AI features, demonstrating industry trend

Market Growth and Market Size Interpretation

With AI seamlessly integrated into IoT—from healthcare to startups—industry analysts predict a future where over $150 billion is saved annually by 2026, jobs are booming, and AI-driven analytics dominate decision-making—proof that in the smart world, thinking machines are not just assisting, but leading the charge.

Market Size

The AI in the IoT market is projected to reach $1.7 trillion by 2025
By 2024, there will be over 75 billion connected devices worldwide, many integrated with AI
The global smart home market, powered by AI and IoT, is expected to reach $135 billion by 2025
The number of AI-enabled IoT endpoints is expected to reach 27 billion by 2025
70% of IoT data is stored and processed in the cloud, with AI algorithms deployed for analysis
The global market size for AI in IoT healthcare is expected to reach $45 billion by 2027
The global spend on AI in IoT is expected to surpass $25 billion by 2025

Market Size Interpretation

As AI injects intelligence into over 75 billion connected devices and propels the IoT market toward a $1.7 trillion milestone by 2025, it becomes clear that we're not just living in a world of smart homes and healthcare breakthroughs but also witnessing a digital revolution where data is king, cloud is the crown, and AI is the ruling scepter.

Security, Compliance, and Data Analytics

AI-driven security solutions in IoT devices are reducing cyber threats by over 40%
AI reduces false alerts in IoT-security systems by up to 80%
AI can detect anomalies in IoT data streams with 92% accuracy, significantly improving security

Security, Compliance, and Data Analytics Interpretation

With AI cutting cyber threats by over 40%, slashing false alarms by up to 80%, and spotting anomalies with 92% accuracy, the IoT industry is finally embracing a cybersecurity superhero capable of outsmarting cyber villains—while leaving fewer false alarms in its wake.