Mobile Artificial Intelligence Market - Forecast(2024 - 2030)

Mobile Artificial Intelligence Market Overview

The Mobile Artificial Intelligence Market size is estimated to reach $9.2 billion by 2027, growing at a CAGR of 19.8% during the forecast period 2022-2027. This is attributed to the growing adoption of internet of things and AI-powered mobile applications, increasing deployment of artificial intelligence technologies in varied industries, rising trend towards AI-chips and so on. AI enables mobile apps to assist in the development of unique applications for a wide range of industries and provide better user interaction with smart apps. AI-powered mobile apps help users in their daily activities like audio search, voice assistants, thus a large number of firms are implementing such solutions to improve their operations. Additionally, increasing deployment of AI-capable processors in mobile devices for applications such as cameras, real-time translations and image recognition and growing use of AI processors in various devices & smart speakers are some of the major factors set to transform the Mobile Artificial Intelligence industry outlook in the coming time. 

Mobile Artificial Intelligence Report Coverage

The “Mobile Artificial Intelligence Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Mobile Artificial Intelligence Market.

Key Takeaways

• Based on technology node, 10nm nodes segment is analyzed to grow at the highest rate in the Mobile Artificial Intelligence Market during the forecast period 2022-2027, owing to rising adoption of 10nm nodes in latest smartphones, high demand for power-efficient processors and so on.
• Mobile Artificial Intelligence for smartphone applications is analyzed to grow with the highest CAGR during 2022-2027, attributed to the growing utilization of advanced software or hardware to improve AI functionality within smartphones, rising use of Siri & Google Assistant and so on.
• North America dominated the Mobile Artificial Intelligence Market in 2021, attributed to the growing use of consumer electronics, increasing penetration of smartphones & mobile devices and so on. 
• Growing demand towards real-time voice assistants & image recognition technologies and increasing deployment of AI-capable processors in mobile devices for various applications are analyzed to significantly drive the growth of Mobile Artificial Intelligence industry during the forecast period 2022-2027.

Mobile Artificial Intelligence Market Value Share, by Region, 2021 (%)

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Mobile Artificial Intelligence Market Segment Analysis- by Technology Node

Based on technology node, 10nm nodes segment is analyzed to grow at the fastest rate of 20.1% in the Mobile Artificial Intelligence Market during the forecast period 2022-2027, owing to the growing adoption of 10nm technology nodes in latest smartphones, rising demand for power-efficient processors and so on. Deployment of 10 nm nodes help in improving performance and battery life of smartphones. With assistance in better performance or tasks in hybrid-cloud, high-performance computing (HPC), networking as well as smart edge applications, this is impacting its market growth. In July 2021, Intel launched third-generation 10nm Ice Lake-SP Xeon CPUs along with Intel's portfolio of Intel Optane persistent memory and storage, ethernet adapters, FPGAs and optimized software solutions. This assist devices in better performance, artificial intelligence operations and device security. It optimizes performance & workloads in hybrid-cloud, enable high-performance computing (HPC), ease in networking and in the utilization of edge applications. These factors can be considered crucial in transforming the Mobile Artificial Intelligence industry outlook for 10 nm technology node segment in the long run.

Mobile Artificial Intelligence Market Segment Analysis- by Application

Mobile Artificial Intelligence Market for smartphones is analyzed to grow with the highest CAGR of 21.4% during 2022-2027, attributed to growing utilization of advanced software & hardware to improve AI functionalities significant shift of consumers towards smart home products like Google Assistants & Siri and so on. Additionally, increasing adoption of AI for fast data processing, scene recognition, night camera shooting & user security along with growing deployment of AI processors in high-end smartphones for offering voice processing & image recognition features are some factors accelerating its market demands. Major OEMs including Intel and NVIDIA Corporation have already started investing in the development of smartphones with AI chipsets. In February 2020, Samsung unveiled the Galaxy S20, a new flagship device series with 5G and artificial intelligence camera technology. The Galaxy S20 series includes AI camera technologies along with secure processor, which prevents hardware-based attacks. AI has significantly increased the camera resolution & improved the image processing in the new phones. Such factors are analyzed to boost the growth of global Mobile Artificial Intelligence industry for smartphone applications in the coming time.

Mobile Artificial Intelligence Market Segment Analysis- by Geography

North America dominated the Mobile Artificial Intelligence Market with a share of 36% in 2021, attributed to growing use of consumer electronics, increasing penetration of smartphones & mobile devices and so on. Additionally, rising adoption of internet of things & artificial intelligence in varied sectors, growing use of smart speakers & voice assistant devices, rising smart home culture are boosting the demand of Mobile Artificial Intelligence in the region. According to a report published by Verizon Communications in 2020, the U.S. gaming traffic witnessed a 75% increase in March 2020 compared to 2019. Extensive growth in the U.S. gaming industry is accelerating the demand for 3D graphics, artificial intelligence chipsets and machine learning technologies in high-end gaming devices thereby boosting the growth of Mobile Artificial Intelligence. Furthermore, increasing use of AI technologies in home appliances & consumer electronics, increased utilization of cloud-based applications, high R&D activities from market players namely Apple Inc., Google LLC and many others are some of the major factors set to transform Mobile Artificial Intelligence industry outlook within North American markets.

Mobile Artificial Intelligence Market Drivers

Growing Demand towards Real-Time Voice Assistants and Image Recognition Technologies is Positively Impacting the Growth of Mobile Artificial Intelligence Industry:

Growing demand for real-time voice assistants and image recognition technologies is boosting the growth of the Mobile Artificial Intelligence Market. The real-time voice assistant technologies integrated with artificial intelligence are increasingly replacing search engines. Customers use them to experience smart home comfort and assistance with a variety of tasks. They are increasingly being used by technology providers and marketing firms to engage customers and provide more personalized experience. In October 2020, Apple launched a sophisticated smart speaker with excellent audio quality, for providing a smart home experience, comfort as well as convenience irrespective of any complications. These speakers included excellent sound quality and smart features provided by Siri to assist users in daily activities. Increasing popularity of such speakers and their integration with AI and IoT technologies, is propelling the demand for advanced AI for Real-Time Voice Assistants and Image Recognition Technologies. According to a report published by National Public Media in 2020, voice search in smartphones is becoming the preferred online search method. This revealed that 63% of Americans used voice-operated assistant devices such as smartphones, household appliance, laptop and TV in 2020, and is expected to have faster rate growth in the next five years. Such factors will help in propelling the growth of Mobile Artificial Intelligence Market size in the long run.

Increasing Deployment of AI-capable Processors in Mobile Devices for Various Applications is Boosting the Growth of Mobile Artificial Intelligence Market:

The growing use of AI-capable processors in mobile devices for a variety of applications is driving the growth of the Mobile Artificial Intelligence Market. Rapid advancements in machine learning and artificial intelligence including mobile technology have been impacting varied industries overtime. Machine learning and artificial intelligence (AI) in smartphones are improving their capabilities & performance. It facilitates the machines in learning by training & testing on large datasets. AI and machine learning combine to create an environment in which machines can learn rules and acquire information without pre-defined codes. Since connectivity in mobile devices experience high latency and network congestion issues for densely populated areas, on-device processors can help mobile equipment in data computing within real-time with minimum latency. This in turn help in catering to the market demands for AI based chipsets, processors and related components to serve mobile device applications. In October 2021, Google launched a smartphone with the first self-designed computer chip, named Pixel 6. Equipped with Tensor processor having artificial intelligence and machine learning capabilities, these chip outperforms previous models in terms of connectivity, performance and safety. According to a report published by Deloitte Global TMT India in 2022, India will have 1 billion smartphone users by 2026 accounting for more than 75% of the total subscribers. The report further stated that 5G enabled devices will account for 80% of all devices sold in 2026 in Indian markets. It estimated that the consumers will purchase 840 million 5G smartphones worth US$130 billion in the next five years. These factors will help in expanding the Mobile Artificial Intelligence Market size in the coming time. 

Mobile Artificial Intelligence Market Challenges

High Cost of AI devices are Restricting the Growth of Mobile Artificial Intelligence Market:

High costs associated with AI devices act as one of the major constraints adversely impacting the market growth of Mobile Artificial Intelligence. The cost of development and implementation of an AI device is extremely high as it requires consulting, testing and research. Installation of AI-devices require services of an expert, which further adds up to the implementation cost of an AI device. Additionally, industries are deploying special-purpose robots to perform tasks such as package delivery and office cleaning, which require high-end customization raising the costs. Adoption of such technologies is limited to the large enterprise due to technical constraints and the high cost of such devices. The need for energy-efficient hardware is another factor restricting the demand of AI devices. According to a report published by WebFX in 2020, AI software solutions can be of two types third-party AI software & custom AI solution. The price of a third-party AI software ranges from $0 and $40,000 per year and the custom AI solution can cost between $6000 and $300,000 per year. SMEs and the majority of the population cannot afford such high-cost AI devices and software due to the low budgets. These factors are impeding the growth of Mobile Artificial Intelligence Industry.

Mobile Artificial Intelligence Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Mobile Artificial Intelligence Market. The top 10 companies in the Mobile Artificial Intelligence Market are:

1. Apple Inc.
2. Google LLC
3. NVIDIA Corporation
4. Intel Corporation
5. Microsoft Corporation
6. IBM Corporation
7. Qualcomm Inc.
8. Samsung Electronics
9. Huawei Technologies Co., Ltd.
10. MediaTek Inc.

Recent Developments

• In May 2022, Intel Corporation uncovered Gaudi2, a new mobile chip designed for computer artificial intelligence. It is equipped with a second-generation processor from Habana Labs for software development. Using an AI algorithm, the chip makes a prediction or identifies an object. It helps in increasing the computation speed of a device and helps in their training & testing.
• In March 2022, Nvidia Corp launched new Mobile Artificial Intelligence chips and technologies to accelerate the processing of complex artificial intelligence algorithms. It will be at the core of AI infrastructure together with the H100 chip and the Grace CPU Superchip. It will reduce the computing times required in the training of some AI models.
• In November 2021, Qualcomm Technologies, Inc. launched the Snapdragon 8 Gen 1, a premium 5G mobile artificial intelligence platform. Equipped with advanced 5G technology with gaming, camera, Wi-Fi and Bluetooth features, this platform provides better connectivity, photograph, sound as well as security as compared to previous models.

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