IoT, AIoT market scale estimated to see CAGR of 30% by 2026

Ninelu Tu, Taipei; Willis Ke, DIGITIMES Asia 0


The market scale for IoT and AIoT applications is expected to sustain a CAGR of over 30% to top US$80 billion by 2026, according to market estimates, thanks to concerted efforts by upstream and downstream players in related sectors.

The development of the IoT and AIoT segment covers diverse aspects including terminal devices, edge computing, networking, cloud and application services, and the growing demand for smart application solutions is not only providing business opportunities for system integrators but also driving related upstream and downstream players to join forces to serve clients in different application domains.

IoT and AIoT are both closely related to data computing and processing, and also have specific requirements for power consumption and cubic sizes. This has driven Intel to roll out processors dedicated to different IoT and AIoT applications, while Qualcomm, Nvidia and AMD have also developed cloud or embedded chips solutions catering to different application needs, according to industry sources.

Different hardware products are needed to form system solutions along with the incorporation of advanced processors into different smart applications such as smart factories, edge computers and IoT gateways that require multiple virtual machines in process automation, AI-based quality inspection, industrial vision, real-time collaborative robots, and automated logistics vehicles for warehousing and transportation, the sources said.

This is why Taiwan's IPC makers, including Advantech, Adlink Technology, Congatec, Aaeon Technology, Axiomtek, iBase Technology and NEXCOM International, have been keen to develop optimal embedded computing solutions and modules powered by dedicated processors from Intel and its peers, the sources reasoned.

Meanwhile, Microsoft Azure, Amazon Web Services (AWS) and Google have all been actively in incorporating AI and machine learning technology into their service solutions, inspiring more enterprises to adopt IoT and AIoT solutions, the sources added.