As per MRFR analysis, the India AI in IoT Market Size was estimated at 580.97 (USD Million) in 2023.The India AI in IoT Market is expected to grow from 850(USD Million) in 2024 to 25,400 (USD Million) by 2035. The India AI in IoT Market CAGR (growth rate) is expected to be around 36.185% during the forecast period (2025 - 2035)
Key India AI in IoT Market Trends Highlighted
Government programs and private sector investments focused at digital transformation are driving key trends in the India AI in IoT market. One major market driver is the "Digital India" project, which encourages the use of cutting-edge technologies like AI and IoT in a variety of industries, including smart cities, healthcare, and agriculture.
AI integration in IoT applications is being strengthened by the government's push for smart infrastructure in metropolitan areas, which will improve decision-making and efficiency. The use of AI-enabled IoT devices has increased recently, especially in industries like agritech.IoT devices with AI are being used by farmers more and more to track crop health and maximize resource use. In addition to increasing production, this change advances sustainability objectives as India seeks to lessen its environmental impact.
Additionally, the healthcare industry is using AI-powered IoT technologies for real-time health data analysis and remote patient monitoring. This is a huge potential opportunity because the pandemic has increased the demand for telemedicine and health tech solutions.Additionally, there is a great deal of opportunity for cooperation between technology providers and conventional businesses as more entrepreneurs enter the market and concentrate on developing cutting-edge AI-powered IoT solutions.
All things considered, the ongoing technical developments, government assistance, and the growing demand for automation and efficiency across industries will propel the expansion of the India AI in IoT market. In the upcoming years, the market will probably change to accept new opportunities and challenges as companies realize the benefits of these integrated technologies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India AI in IoT Market Drivers
Rising Adoption of Smart Devices
The increasing penetration of smart devices in India is a significant driver for the India AI in IoT Market. According to government statistics, the number of smart device users in India is expected to reach 600 million by 2025, up from approximately 340 million in 2020.This surge is primarily driven by a growing middle class, improved internet connectivity, and reduced device costs. Major companies such as Reliance Jio and Airtel are enhancing their 4G networks and pushing for 5G technologies, which are conducive to the growth of smart devices.
The adoption of AI technologies combined with IoT will inevitably strengthen operational efficiencies across various sectors, including agriculture, healthcare, and smart homes. Consequently, as smart devices become more ubiquitous, they will provide an ideal landscape for AI applications, creating unprecedented opportunities for the India AI in IoT Market.
Government Initiatives for Digital Transformation
The Indian Government has launched several initiatives aimed at fostering digital transformation, which directly bolsters the India AI in IoT Market. The Digital India campaign, for instance, aims to ensure that government services are made available to citizens electronically.According to official reports, the initiative has resulted in over 150 million people having access to digital services by 2023. These policies are designed to enhance technology adoption among businesses and consumers alike.
Initiatives such as Smart Cities Mission and Make in India also emphasize the importance of integrating Artificial Intelligence and IoT technologies to improve urban infrastructure. This governmental push enhances the competitive edge of organizations involved in AI and IoT, ultimately leading to market expansion.
Increasing Investments in Research and Development
Investments in Research and Development (R&D) by technology firms are rapidly increasing in India, propelling the growth of the India AI in IoT Market. As of 2023, it is reported that R&D spending by Indian technology firms has surged to 2.1% of the Gross Domestic Product (GDP), a notable increase from 1.6% in 2020.Established organizations like Tata Consultancy Services (TCS) and Infosys are significant contributors to this trend. They are actively investing in developing innovative AI-powered IoT solutions tailored for various industries.
This increase in funding not only accelerates the development of AI and IoT applications but also attracts global technology companies looking to enter the Indian market. The enhanced focus on R&D is expected to yield advanced products and services, driving further growth in the India AI in IoT Market.
Growing Need for Operational Efficiency
The heightened demand for operational efficiency across various sectors in India is propelling the growth of the India AI in IoT Market. According to recent studies, businesses that have implemented IoT solutions report an improvement in operational efficiency by an average of 30%.
This is particularly relevant for sectors such as manufacturing, logistics, and agriculture, where optimized processes can lead to significant cost reductions. Organizations like Larsen & Toubro and Mahindra & Mahindra are already leveraging AI-driven IoT solutions to enhance productivity, improve supply chain management, and reduce downtime.As more companies recognize the tangible benefits of utilizing AI and IoT for operational efficiency, the industry is poised for remarkable growth, further driving advancements in technology and creating a strong market presence.
AI in IoT Market Component Insights
The India AI in IoT Market has been witnessing significant growth, with the Component segment playing a crucial role in its advancement. This segment encompasses three critical areas: Platforms, Software Solutions, and Services, each contributing to the overall market dynamics in distinct ways.Platforms serve as the foundational backbone for Internet of Things (IoT) applications, providing the necessary infrastructure for the integration and management of various AI functionalities within IoT devices.In India, the increasing adoption of smart technologies across sectors such as healthcare, agriculture, and manufacturing underscores the importance of robust platforms that can handle vast amounts of data effectively.
Software Solutions, a vital part of this segment, are designed to enhance the performance of IoT devices by implementing advanced algorithms that enable automation, predictive analytics, and intelligent decision-making.The Indian government’s initiatives in digital innovation and smart cities demand a considerable upgrade in software solutions that not only improve operational efficiencies but also enhance user experiences.
The rise of machine learning and analytics software is indicative of a trend where companies seek to harness real-time data insights to drive strategic decisions, positioning themselves effectively in the competitive landscape.Services within the Component segment are integral as they facilitate the deployment, maintenance, and scaling of AI-driven IoT systems. Service providers in India are increasingly focusing on delivering customized solutions that cater to the unique needs of local industries, which fosters an ecosystem of innovation.
The collaboration between technology providers and businesses across verticals leads to rapid advancements, as companies experiment with innovative business models and integrated services for enhanced outcomes.Moreover, the significantly increasing trend of remote monitoring and asset management reflects a burgeoning demand for reliable support services that ensure systems are running optimally. Overall, the Component segment of the India AI in IoT Market is characterized by rapid technological advancements and a growing recognition of the benefits of AI integration into IoT devices.
As industries continue to adapt to the evolving landscape, the importance of Platforms, Software Solutions, and Services will become increasingly evident, driving investment and innovation within the sector. The focus on creating efficient, user-friendly, and scalable solutions aligns with India’s goal of becoming a global leader in technology, further propelling the growth trajectory of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in IoT Market Technologies Insights
The Technologies segment of the India AI in IoT Market plays a pivotal role in driving innovation and efficiency across various industries. As the adoption of AI technologies continues to grow, Machine Learning (ML) and Deep Learning have become vital components in harnessing the vast amounts of data generated by IoT devices.
ML algorithms enable predictive maintenance and data analysis, facilitating informed decision-making in sectors like manufacturing, transportation, and agriculture. Meanwhile, Natural Language Processing (NLP) enhances user interaction and communication by enabling machines to understand and process human language, making it crucial for customer service automation and smart device interaction.
The increasing demand for intelligent automation and real-time data analysis in India fuels the significance of these technologies, as businesses strive to optimize operations, reduce costs, and improve customer experiences.With government support for technology and innovation, the landscape for AI in IoT is set to expand, presenting ample opportunities for advancements and applications within these segments. The continued investment in research and development enhances the competitive edge of companies, significantly contributing to the overall growth of the India AI in IoT Market.
AI in IoT Market Vertical Insights
The India AI in IoT Market is witnessing significant growth driven by various verticals that encompass a wide range of industries. Manufacturing, being one of the key sectors, is increasingly adopting AI and IoT technologies to enhance production efficiency and predictive maintenance, leading the way for Industry 4.0.
The Energy and Utilities sector focuses on smart grid solutions and energy management, which is crucial for India’s renewable energy goals. Transportation and Mobility leverage AI for traffic management and autonomous vehicles, addressing urban congestion challenges in rapidly growing cities.The BFSI sector integrates AI for risk assessment and fraud detection, improving customer service and operational efficiency. Government and Defense utilize these technologies for smart city projects and national security frameworks, enhancing infrastructure.
The Retail industry embraces IoT for customer experience optimization and inventory management, which is particularly important for the evolving digital marketplace. Healthcare and Life Sciences are leveraging AI and IoT for telemedicine and remote patient monitoring, which has gained importance post-pandemic.The Telecom sector utilizes AI for network optimization and customer engagement, significantly contributing to the digital transformation of the nation. Other sectors are also gradually recognizing the transformative potential of AI and IoT, contributing to the expanding landscape of the India AI in IoT Market.
India AI in IoT Market Key Players and Competitive Insights
The India AI in IoT market is experiencing rapid growth, driven by the increasing adoption of artificial intelligence technologies across various sectors, including manufacturing, healthcare, smart cities, and agriculture.As businesses recognize the potential benefits of integrating AI and IoT, a competitive landscape is developing, characterized by innovative product offerings and strategic partnerships. Companies in this market are focusing on enhancing their capabilities to offer intelligent solutions that facilitate better decision-making, improve operational efficiency, and enable real-time analytics.
The bustling startup ecosystem in India is contributing to competition by introducing novel solutions, while established players are leveraging their expertise and resources to maintain market dominance. The interplay of these forces is making the India AI in IoT market a dynamic and rapidly evolving space, with firms striving to create a stronghold over technological advancements and customer loyalty.
Siemens has established a strong presence in the India AI in IoT market by leveraging its extensive experience in automation and digitalization. With a focus on smart infrastructure and manufacturing, Siemens is utilizing its advanced technologies to enable digitally connected solutions for Indian industries.The company's strength lies in its deep domain knowledge, which allows it to create customized solutions tailored to the specific needs of various sectors, including energy management, building technologies, and industrial automation.
Siemens has ben instrumental in pioneering initiatives that align with India's vision of a digitally empowered economy, further solidifying its reputation as a reliable partner for businesses aiming to leverage AI and IoT technologies. This commitment to innovation and customer engagement positions Siemens favorably in the competitive landscape.
Google has emerged as a significant player in the India AI in IoT market, capitalizing on its established technological infrastructure and expertise in artificial intelligence. The company is focused on providing a suite of AI-powered IoT solutions designed to optimize connectivity and data management for businesses across different sectors.
By integrating its key products such as Google Cloud and AI capabilities, Google offers robust platforms tailored to operationalize IoT applications efficiently. The company’s strengths in machine learning and data analytics allow it to enhance decision support systems for various industries.
Furthermore, Google's investments in partnerships and collaborations, coupled with a proactive approach to mergers and acquisitions, have bolstered its market presence in India. These strategic maneuvers enable Google to expand its technological offerings while fostering an ecosystem that encourages innovation in AI and IoT integration within the region.
Key Companies in the India AI in IoT Market Include
India AI in IoTMarket Developments
At SAP TechEd in September 2023, SAP revealed generative AI capabilities, enabling developers to use AI-driven solutions to improve business operations. AIShield, a security platform created to improve the security posture of AI/ML models during their creation and operation, was introduced by Bosch that same month.ABB launched the AI-Powered Startup Challenge in November 2023 with the goal of employing artificial intelligence to make drive and motor selection, commissioning, and troubleshooting easier. T-Systems, which offers industry-specific solutions to suit the growing demand for digital transformation, unveiled its IoT and edge computing solutions in India in November 2023.
As part of its AI for Industries plan to speed up digital transformation across several industries, Huawei announced the Pangu Models 3.0 and Ascend AI cloud service in 2023. Together with SK Telecom, Deutsche Telekom created AI voice models in 2023 with an emphasis on digital assistants for customer support.GE Digital maintained its dedication to AI-powered industrial solutions in India in 2023, improving operational effectiveness in a variety of sectors.Bosch.IO supported smart manufacturing ambitions in 2023 by offering IoT solutions with AI integration.
IBM actively pursued AI and IoT solutions in India in 2023, working with regional businesses to spur innovation. In order to meet the rising demand for AI applications, Intel kept offering AI hardware solutions in India in 2023.Microsoft made a €3.5 billion investment in AI infrastructure in India in 2023, which included a training program that was intended to reach 1.2 million individuals. Festo improved industrial processes in India in 2023 by contributing to AI-driven automation solutions.Amazon Web Services made a €7.8 billion investment in cloud services in India in 2023 in response to rising demand brought on by developments in artificial intelligence.
India AI in IoT Market Segmentation Insights
AI in IoT Market Component Outlook
AI in IoT Market Technologies Outlook
AI in IoT Market Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 580.97(USD Million) |
| MARKET SIZE 2024 | 850.0(USD Million) |
| MARKET SIZE 2035 | 25400.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 36.185% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Siemens, Google, Nvidia, Tata Consultancy Services, HCL Technologies, Amazon, Cisco, Samsung, Tech Mahindra, Wipro, Infosys, IBM, Qualcomm, Microsoft, Intel |
| SEGMENTS COVERED | Component, Technologies, Vertical |
| KEY MARKET OPPORTUNITIES | Smart city development initiatives, Industrial automation enhancement, Agricultural yield optimization, Healthcare monitoring solutions, Enhanced data analytics capabilities |
| KEY MARKET DYNAMICS | Growing demand for automation, Rising adoption of smart devices, Increasing government support, Enhanced data analytics capabilities, Accelerating urbanization and infrastructure development |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ):
The projected market size of the India AI In IoT Market for the year 2024 is valued at 850.0 USD Million.
The India AI In IoT Market is expected to exhibit a compound annual growth rate (CAGR) of 36.185% from 2025 to 2035.
By the year 2035, the overall market value of the India AI In IoT Market is expected to reach 25400.0 USD Million.
By 2035, the Platforms component of the India AI In IoT Market is expected to generate the highest revenue, valued at 10200.0 USD Million.
The Software Solutions segment is projected to reach a market size of 8400.0 USD Million by the year 2035.
Major players in the India AI In IoT Market include Siemens, Google, Nvidia, Tata Consultancy Services, and HCL Technologies.
The market size for Services in the India AI In IoT Market is expected to be valued at 230.0 USD Million in 2024.
The rapid adoption of advanced technologies and increased demand for automation are significant growth opportunities for the India AI In IoT Market.
All segments including Platforms, Software Solutions, and Services are anticipated to grow significantly, driven by technological advancements.
The market size for the Services segment is expected to reach 7200.0 USD Million by the year 2035.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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