Convergence of AI and IoT—Market Opportunities and Challenges, 2019
Transformative Impact of Artificial Intelligence and Internet of Things will Enable New Levels of Prediction and Automation in IIoT Environments
02-Mar-2020
Global
Market Research
MF1D-01-00-00-00
IT04042-GL-MR_24094
$3,000.00
Special Price $2,250.00 save 25 %
The convergence of Internet of Things (IoT) and artificial intelligence (AI) has the potential to drive new revenues for vendors and adopters. Improved efficiency and cost optimization of organizational processes are core advantages that are made possible through the application of such solutions.
IoT-AI convergence can deliver new advantages in terms of process automation enablement. It also facilitates proactive approaches such as the ability to predict undesired conditions and situations that may occur in the environment in which the IoT solution is deployed. Organizations can benefit from the convergence of IoT and AI if they are data ready and security proofed and has a sound digital transformation strategy that embraces emerging technologies.
The vendor landscape features a combination of IoT providers and analytics participants and an emerging and lively world of start-ups offering IoT-AI platforms and solution suites at both cloud and edge levels. The manufacturing, oil and gas and mining industries appear to be the most receptive to the convergence of IoT and AI solutions. The energy industry is looking with interest at the convergence, with some early examples of adoption evident. There is also strong potential in healthcare and smart city applications.
This study will outline:
• The state of development of IoT
• An overview of Artificial Intelligence?
• Architecture and deployment scenarios
• Adoption levels
• Market landscape
The convergence of IoT and AI is in an early stage, but the pace of adoption will accelerate in the period 2019–2022. Designing and deploying IoT-AI-based solutions requires a ‘small deployment-test-scale’ approach, where AI specialists can play an important role.
After the machine-to-machine (M2M) period in which the objective was to monitor assets remotely for specific business purposes, IoT brought the objective of monitoring environments, controlling them, and acting on them using different sources of data. The next step is predicting the behavior of the environments through the behavior of their components (machines, humans, and objects). Predicting means prescribing changes to avoid undesired situations.
There are several areas of convergence occurring across the IoT arena that seek to solve the challenges experienced with the technology. Distributed Ledger Technology (often coined Blockchain) aims to secure IoT and create a network of trusted objects. 5G is the infrastructure enabler. Infrared (IR) looks at the interaction between humans and IoT environments. At the core of all this, there is AI, which enables a sophisticated level of data analysis, particularly predictive analysis.
Key Findings
IoT Device Adoption by Sector
Next Phase of IoT—Prediction
Convergence with Emerging Technologies
Artificial Intelligence as a Framework of Techniques
Process of Reasoning and Decision Making
Process of Learning and Machine Learning
Role of AI System in an IoT Environment
Real-time Action and Prediction Capability of an AI System
Architectural View of IoT-AI Convergence
Deployment Scenarios—Cloud-based AI-IoT Convergence Model
Deployment Scenarios—Edge-based AI-IoT Convergence Model
Deployment Scenarios—Hybrid AI-IoT Convergence Model
Adoption by Sector—Qualitative Assessment
Case Study—GE Capacitors and FogHorn
Case Study—CSOT Quality Control and IBM
Case Study—ENEL and C3.ai
Case Study—Infotainment Electronic Consoles Manufacturer and Bright Machines
Case Study—Oil Platform Operator and SparkCognition
Drivers for Adoption
Challenges of Adoption
Developing an AI Project—Process and Costs
IoT-AI Project Investment Assessment
IoT-AI Convergence—Complex Ecosystem
IoT Side of the Ecosystem
IoT-AI Side of the Ecosystem
Growth Opportunity 1—Empowering Digital Transformation in Industrial Sectors
Growth Opportunity 2—Empowering Digital Transformation in the Utility Sector
Growth Opportunity 3—Attention on Citizen-oriented Areas for a Mid-term Opportunity
Growth Opportunity 4—Developing a Global IoT-AI Strategy
Growth Opportunity 5—Innovation via Scouting and Acquisition
Strategic Imperatives for Success and Growth
Key Takeaways
Legal Disclaimer
List of Exhibits
The Frost & Sullivan Story
Value Proposition: Future of Your Company & Career
Global Perspective
Industry Convergence
360º Research Perspective
Implementation Excellence
Our Blue Ocean Strategy
Speak directly with our analytics experts for tailored recommendations.
Recent related IT Services and Applications research
04 Aug 2026 | Global | Frost Radar
Frost Radar: AI-Enhanced Advanced Driver Assistance Systems, 2026
This Frost Radar examines advanced driver assistance systems (ADAS), ADAS AI, and next-stage autonomous-driving technologies as a fast-evolving domain reshaping mobility and safety. As automakers, Tier I suppliers, chipmakers, AI software developers, and autonomous mobility companies improve percept...
29 Jul 2026 | Global | Technology Research
Next-Generation Chiplet and Advanced Packaging Architectures: Redefining Performance and Scalability in AI and HPC
This study focuses on how next-generation chiplet architectures, high-bandwidth memory (HBM), and advanced packaging technologies such as 2.5D/3D integration and fan-out wafer-level packaging are enabling the next wave of AI and high-performance computing (HPC) system architectures, rather than prov...
24 Jul 2026 | Global | Technology Research
Growth Opportunities in Artificial Intelligence, Agentic AI, Multi-modal AI, Machine Learning, Cloud Infrastructure, Sovereign Cloud, Data Integration, API Management, and Smart Home Technologies,
This edition of the IT, Computing and Communication Technology Opportunity Engine showcases 16 emerging technology innovators advancing intelligent automation, cloud-native infrastructure, connected ecosystems, enterprise integration, next-generation networking, and AI-powered digital transformation...
24 Jul 2026 | Global | Market Research
Top 10 Growth Opportunities in Cloud Infrastructure for 2026
The global cloud infrastructure market is entering a new phase of growth, shifting from a decade defined by scale expansion and generalized compute consumption toward a more complex environment shaped by infrastructure constraints, workload specialization, and evolving deployment requirements. While...
20 Jul 2026 | Global | Technology Research
Applications and Growth Opportunities for AI Governance Platforms
This report examines the growing importance of AI governance platforms in enabling responsible and scalable artificial intelligence adoption, with a focused analysis of their applications and opportunities across interoperability, data privacy, and digital ethics. As organizations increasingly deplo...
Purchase includes:
- Report download
- Growth Dialog™ with our experts
Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.
| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Adrian Drozd |
| Industries | Information Technology |
| WIP Number | MF1D-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9705-C1,9AA5-C1,9B07-C1 |