Artificial Intelligence (AI) in IoT Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The artificial intelligence (AI) in packaging market size has grown rapidly in recent years. It will grow from $2.62 billion in 2024 to $2.91 billion in 2025 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to cost reduction and efficiency improvement, consumer demand for personalization, supply chain optimization, quality control and assurance, increased awareness and education.

The artificial intelligence (AI) in packaging market size is expected to see rapid growth in the next few years. It will grow to $4.51 billion in 2029 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period can be attributed to sustainability requirements, integration with iot and industry 4.0, rising demand for e-commerce packaging solutions, increased focus on cybersecurity, global pandemic resilience. Major trends in the forecast period include collaboration and partnerships, continued technological advancements, technological advancements, smart packaging integration, predictive maintenance.

The rise of industrial IoT and automation operations is expected to drive the growth of artificial intelligence (AI) in the packaging market. The industrial Internet of Things (IIoT) involves integrating IoT technologies into industrial processes, while automation uses technology, control systems, and machinery to perform tasks with minimal human intervention. Incorporating AI in industrial automation for packaging enhances efficiency, adaptability, quality control, and system performance, supporting sustainability, energy efficiency, and the evolving demands of dynamic markets. The integration of IoT and AI in packaging has enabled smart systems that monitor and optimize packaging processes, reduce waste, and promote sustainability. For example, in April 2024, the International Federation of Robotics, a Germany-based industry association, reported a 12% increase in industrial robot installations, reaching 44,303 units in 2023. Consequently, industrial IoT and automation are fueling the growth of AI in the packaging market.

Prominent companies operating in the AI in packaging market are strategically focused on advancing technologies, such as on-demand packaging solutions, to cater to customers with enhanced features and gain a competitive edge. On-demand packaging solutions involve systems or services that provide customized and precisely sized packaging materials based on the specific requirements of a given product or shipment. For instance, in April 2022, DHL Supply Chain, a Germany-based contract logistics provider, introduced the OptiCarton system, an AI-based optimized packaging system. The system's distinctive feature lies in its capacity to optimize box filling from a predefined set of cartons. It can also suggest dividing an order into multiple consignments, improving cost-effectiveness and reducing the carbon footprint of individual shipments. In addition to addressing the existing shortage of cardboard boxes and packaging materials, the OptiCarton system, based on initial pilots, not only tackles this challenge but also provides customers with additional advantages, including potential shipping cost savings of up to 35%, with an average saving of 15%.

In August 2022, Esko, a Belgium-based provider of software and hardware for packaged goods, acquired Tilia Labs Inc. for an undisclosed amount. Through this acquisition, Esko aims to bolster its support for customers in the packaging, label, and wide format markets. Tilia Labs' suite of intelligent algorithms focused on sheet layout, estimation, and planning will complement Esko's existing software offerings. The collaboration between the two companies will concentrate on the development of next-generation integrated projects. Tilia Labs Inc. is a Canada-based provider of AI solutions for the packaging industry.

Major companies operating in the artificial intelligence (AI) in packaging market report are Amazon.com Inc., Microsoft Corporation, GE Digital, ABB Ltd., West Rock Company, International Paper Co, Georgia-Pacific, Amcor PLC, Berry Global, Tetra Pak, Stora Enso Oyj, DS Smith, Mondi Group, Ardagh Group, Sealed Air, Verallia, Metsä Board Oyj, Uflex Ltd., Universal Robots, Clarifai, SIG Combibloc, Otto Motors, Neurala, Packagex Inc., Greyscale AI.

North America was the largest region in the artificial intelligence (AI) in packaging market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI) in packaging market includes revenues earned by entities by providing AI consulting services, quality control services, supply chain optimization services, robotic packaging integration services, personalization services, and more. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Artificial intelligence (AI) applied to packaging involves the utilization of advanced computing technologies, specifically AI, to improve and optimize different facets of the packaging sector. AI systems have the capability to examine images for identifying defects or irregularities in packaging materials, ensuring the delivery of top-notch products to the market.

The key technologies encompassed within artificial intelligence (AI) in packaging comprise machine learning, computer vision, natural language processing (NLP), and predictive analytics. Machine learning (ML) involves the use of algorithms and statistical models that empower computer systems to enhance their performance on a specific task over time without explicit programming. It finds application in various areas, including quality inspection, data labeling, artificially intelligent engineering (AIE) of packaging, smart warehousing, AI-driven recycling systems, among others. These applications are utilized by diverse end users, such as the food industry, beverage industry, medical and pharmaceutical industry, cosmetic industry, consumer electronics industry, and others.

The artificial intelligence (AI) in packaging market research report is one of a series of new reports that provides artificial intelligence (AI) in packaging market statistics, including artificial intelligence (AI) in packaging industry global market size, regional shares, competitors with an artificial intelligence (AI) in packaging market share, detailed artificial intelligence (AI) in packaging market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in packaging industry. This artificial intelligence (AI) in packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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