|IDC predicted that there will be over 80 billion connected “things” creating and replicating more than 180 zettabytes annually by 2025. / Photo by: metamorworks via Shutterstock|
The Internet of Things (IoT) is gaining momentum and is buzzing in today’s technology-driven era. Several sectors and industries across the world are already realizing its worth. Forbes, a global media company focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle, reported that transportation and logistics, discrete manufacturing, and utility industries are expected to spend $40 billion each on IoT platforms, systems, and services by 2020.
In IoT Analytics’ “The Top 10 IoT Segments 2018” report, the top three IoT projects include smart cities (23 percent), connected industry (17 percent), and connected buildings (12 percent). Also, it has been predicted that the IoT market will grow at a Compound Annual Growth Rate (CAGR) between 7 and 15 percent – reaching $581 billion for ICT-based alone. These figures show that businesses and industries are trusting IoT to seamlessly exchange data between people and networks.
Research firm IDC predicted that there will be over 80 billion connected “things” creating and replicating more than 180 zettabytes annually by 2025. However, the main challenge today is that only a fraction of the data generated, collected, and stored end up being used to its full potential. IoT requires a robust technology platform, powered by artificial intelligence.
The convergence of AI and IoT can help in reaching the maximum potential of the data collected. They can lead to the creation of an industry-wide ecosystem in which data from connected devices can be shared and monetized by everyone. As Maciej Kranz, Vice President of Corporate Strategic Innovation at Cisco, said, “Without AI-powered analytics, IoT devices and the data they produce throughout the network would have limited value. Similarly, AI systems would struggle to be relevant in business settings without the IoT-generated data pouring in.”
The Global AI in IoT Market
By 2025, there will be more than 64 billion IoT devices – an increase of about 9 percent from 2017. All of these devices will work on generating huge amounts of data that need to be collected and analyzed for actionable results. Through AI algorithms, the data will be converted into results that will not only benefit the companies but also the users.
A recent report by Zion Market Research, a market research company, showed that AI in the global IoT market is expected to reach $19.9 billion by 2025 from $4 billion in 2018 – at a CAGR of over 25.89 percent between 2019 and 2025. One of the reasons for the rapid growth of AI in the IoT market is the rising demand by industrial sectors, enterprises, companies, and businesses that have already implemented or are in the process of implementing AI in IoT to efficiently manage work.
According to GlobeNewswire, an online site that provides press release distribution services globally, AI has secured its place in several sectors, significantly helping IoT particularly in product orientation, enhancing process flow by decreasing waste and removing defective products, identifying accuracy, and vision sensors. At the same time, there has been an increasing penetration of AI in the IoT-automotive sector. Reports show a rising demand for road safety and growing concerns for new infrastructure and devices.
During the forecast period, it is expected that manufacturing and energy and utilities will hold a significant market share. This is because of the growing need to track, diagnose, automate processes, and optimize inventory for enhanced customer experience in the manufacturing industry.
A new Gartner report “AI on the Edge: Fusing Artificial Intelligence and IoT Will Catalyze New Digital Value Creation” stated that the convergence of AI and IoT will become commonplace over the next few years. While AI will help in churning through huge amounts of data and delivering useful insights, Gartner warns that these technologies will force CIOs to change the way they think due to their complexity.
“Too often, CIOs tend to focus on technology first, with the goal of picking the "right" platform, applications and tools. But with IoT and AI still rapidly evolving, it is especially important to first define the business problem,” the report said.
Applications of AI in IoT
According to GeeksForGeeks, a computer science website for geeks, Kranz stated that the IoT is like the body, and AI, the brains. Both of them can create new value propositions, business models, revenue streams and services if successfully combined. Today, there are a lot of different applications across various industries for AI and IoT.
For instance, collaborative robots were invented to perform simple to tough tasks. Many industries are integrating smart sensors into their machinery to perform prognostic analysis and augment their efficiencies, powered by AI and IoT. This will help companies detect the vital threat areas, which can help eradicate machinery collapses and reduce costs.
Also, the technologies are of great help to smart homes. According to Cumulations, a mobile app development company, smart devices can interpret homeowners' instructions and make intelligent decisions accordingly through AI. This can make people’s lives easier and more comfortable since the devices can be controlled remotely.
Indeed, the strong intersection between AI and IoT can make devices more intelligent, helping more and more industries across the world. With multiple advances in AI, light-speed communications, and analytics, IoT is even more convenient.
|Smart devices can interpret homeowners' instructions and make intelligent decisions accordingly through AI. / Photo by: sutadimage via Shutterstock|