A new market for artificial intelligence (AI) and Internet of Things (IoT) convergence is fast emerging in some verticals, according to a new report.

IoT systems will become increasingly cognitive rather than rely solely on autonomic event-response logic, it says. This process will happen in connected devices themselves, in the critical edge environment, in the cloud, and at all points between.

Branding the new space ‘AIoT’, the report Artificial Intelligence in IoT Convergence: Technologies, Platforms, Applications and AIoT Services in Industry Verticals 2019-2024 makes a number of predictions.

Among these are that the global context-aware processing market will reach a value of $5.3 billion by 2024, while the market for AI embedded in IoT devices will reach $9.5 billion in North America alone on the same timescale, at a compound annual growth rate (CAGR) of 28 percent.

The total values of the Asia Pac and North American AI markets related to the IoT will hit $44.4 billion and $42.3 billion, respectively, over the next five years.

Among verticals, the global AI in manufacturing space will be worth $15.5 billion by 2024, with a CAGR of over 35 percent.

AIoT will be a significant driver of overall AI adoption, suggests the report, with connected consumer devices giving a push-start to the snowball effect.

Overall, IoT networks will evolve from a hub-and-spoke model to be more mesh-like in nature with endpoints, hubs, and gateways. However, this environment will be multi-vendor, necessitating strong and pervasive systems integration.

It is important to recognise that intelligence within the IoT technology market is “not inherent but rather must be carefully planned”, warns the report.

AIoT market elements will be found embedded within software programs, chipsets, and platforms as well as human-facing devices such as appliances, which may rely on a combination of local and cloud-based intelligence.