The Global Mobile Artificial Intelligence Market size is expected to reach $102.37 billion by 2031, rising at a market growth of 26.2% CAGR during the forecast period.
Incorporating AI in AR/VR applications enhances immersive experiences by improving spatial awareness, motion tracking, and virtual object interaction. AI-powered AR/VR is increasingly deployed in sectors like real estate for virtual property tours, healthcare for surgical simulations, and retail for personalized shopping experiences. As consumer and enterprise adoption of AR/VR solutions expands, the demand for AI-enabled devices in this segment is anticipated to grow rapidly. Thus, in 2023, the AR/VR segment procured 13% revenue share in the market.
The major strategies followed by the market participants are product launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2024, NVIDIA Corporation partnered with Verizon to combine AI with private 5G networks and mobile edge computing (MEC) to deliver real-time AI services. The collaboration aims to enhance industries through ultra-low latency, dedicated bandwidth, improved security, and scalable solutions for enterprise AI workloads. Additionally, In February, 2024, Nokia Corporation partnered with NVIDIA to revolutionize AI-ready radio access networks (RAN), combining Nokia’s anyRAN approach with NVIDIA’s Grace CPU and GPUs for Cloud RAN and AI-RAN solutions. This enhances energy-efficient, high-performance networks, driving innovation, flexibility, and operational efficiency in telecommunications through advanced AI-enabled telco services and infrastructure.
Additionally, the digital transformation of businesses across industries is another critical driver for the market. As companies digitize their operations, they increasingly invest in AI-driven technologies to improve productivity, enhance customer experience, and gain a competitive edge. AI is seen as a crucial enabler in the digital transformation journey, and its application in mobile devices is a natural extension of this broader trend. Thus, growing investments in digital transformation worldwide are driving the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
The mobile artificial intelligence (AI) market is highly competitive, driven by rapid advancements in AI chipsets, machine learning, and neural processing technologies. Companies are innovating to integrate AI into mobile devices, enhancing functionalities like image recognition, voice assistants, and real-time data processing. The market is characterized by intense rivalry, with players focusing on energy efficiency, processing power, and compatibility with evolving 5G and IoT technologies. Partnerships, R&D investments, and acquisitions are key strategies to gain a competitive edge.
Incorporating AI in AR/VR applications enhances immersive experiences by improving spatial awareness, motion tracking, and virtual object interaction. AI-powered AR/VR is increasingly deployed in sectors like real estate for virtual property tours, healthcare for surgical simulations, and retail for personalized shopping experiences. As consumer and enterprise adoption of AR/VR solutions expands, the demand for AI-enabled devices in this segment is anticipated to grow rapidly. Thus, in 2023, the AR/VR segment procured 13% revenue share in the market.
The major strategies followed by the market participants are product launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2024, NVIDIA Corporation partnered with Verizon to combine AI with private 5G networks and mobile edge computing (MEC) to deliver real-time AI services. The collaboration aims to enhance industries through ultra-low latency, dedicated bandwidth, improved security, and scalable solutions for enterprise AI workloads. Additionally, In February, 2024, Nokia Corporation partnered with NVIDIA to revolutionize AI-ready radio access networks (RAN), combining Nokia’s anyRAN approach with NVIDIA’s Grace CPU and GPUs for Cloud RAN and AI-RAN solutions. This enhances energy-efficient, high-performance networks, driving innovation, flexibility, and operational efficiency in telecommunications through advanced AI-enabled telco services and infrastructure.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Apple Inc., Google LLC, and Microsoft Corporation are the forerunners in the Mobile Artificial Intelligence Market. Companies such as Amazon Web Services, Inc., NVIDIA Corporation, and Huawei Technologies Co., Ltd. are some of the key innovators in Mobile Artificial Intelligence Market. In December, 2024, Google LLC unveiled Gemini 2.0, an advanced AI model that enhances multimodality, long context, and tool use. It allows AI agents to act on your behalf. Gemini 2.0 will power advanced features in Search, Deep Research, and more, transforming user experiences.
Market Growth Factors
The increasing demand for AI-powered applications drives significant growth in the market. Across multiple industries, including healthcare, finance, retail, and entertainment, mobile applications enhanced with artificial intelligence are essential for delivering better user experiences, improving operational efficiencies, and unlocking new business opportunities. In conclusion, rising demand for advanced AI-powered mobile applications across industries propels the market's growth.Additionally, the digital transformation of businesses across industries is another critical driver for the market. As companies digitize their operations, they increasingly invest in AI-driven technologies to improve productivity, enhance customer experience, and gain a competitive edge. AI is seen as a crucial enabler in the digital transformation journey, and its application in mobile devices is a natural extension of this broader trend. Thus, growing investments in digital transformation worldwide are driving the growth of the market.
Market Restraining Factors
One key restraint in the market is the high cost associated with developing and integrating AI technologies into mobile devices. AI requires significant computational power, specialized hardware, and advanced software algorithms, all contributing to the cost of developing AI-powered mobile applications and devices. In conclusion, the high costs of developing and integrating AI technologies into mobile devices are impeding the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Driving and Restraining Factors
Drivers- Rising Demand for Advanced AI-Powered Mobile Applications Across Industries
- Expanding Adoption of AI-Driven Personal Assistants in Smartphones
- Growing Investments in Digital Transformation Worldwide
- High Costs of Developing and Integrating AI Technologies into Mobile Devices
- Challenges Related to Data Privacy and Security Concerns
- Growth in Edge Computing Enhancing AI Applications in Mobile Devices
- Increasing Adoption of AI in Mobile-Based Smart City Applications
- Competition from Non-Mobile AI Platforms
- Challenges in Achieving Real-Time AI Processing on Mobile Devices
Technology Node Outlook
On the basis of technology node, the is segmented into 7 nm, 10 nm, 20-28 nm, and other technology node (12 nm and 14 nm). The 10 nm segment recorded 43% revenue share in the market in 2023. This dominance is attributed to its balance between power efficiency and performance, making it an ideal choice for mid-to-high-range mobile devices.
Application Outlook
Based on application, the market is categorized into smartphones, cameras, drones, automobile, robotics, AR/VR, and others. The robotics segment witnessed 16% revenue share in the market in 2023. AI-powered robotics solutions are increasingly used in industrial automation, healthcare, and home applications, driving the segment’s growth.Market Competition and Attributes
The mobile artificial intelligence (AI) market is highly competitive, driven by rapid advancements in AI chipsets, machine learning, and neural processing technologies. Companies are innovating to integrate AI into mobile devices, enhancing functionalities like image recognition, voice assistants, and real-time data processing. The market is characterized by intense rivalry, with players focusing on energy efficiency, processing power, and compatibility with evolving 5G and IoT technologies. Partnerships, R&D investments, and acquisitions are key strategies to gain a competitive edge.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 28% revenue share in the market in 2023. Factors such as increasing smartphone penetration, rising adoption of AI in consumer electronics, and government initiatives supporting AI development contribute significantly to the region’s growth.Recent Strategies Deployed in the Market
- Dec-2024: NVIDIA Corporation partnered with Verizon to combine AI with private 5G networks and mobile edge computing (MEC) to deliver real-time AI services. The collaboration aims to enhance industries through ultra-low latency, dedicated bandwidth, improved security, and scalable solutions for enterprise AI workloads.
- Dec-2024: Google LLC unveiled Gemini 2.0, an advanced AI model that enhances multimodality, long context, and tool use. It allows AI agents to act on your behalf. Gemini 2.0 will power advanced features in Search, Deep Research, and more, transforming user experiences.
- Nov-2024: Huawei Technologies Co., Ltd. launched 5G-AA solutions, integrating 5.5G and AI to enhance networks for diverse services. Key innovations include Sub-1 GHz Massive MIMO for coverage, Blade AAU X for simplified sub-6 GHz deployment, and U6GHz AAU for continuous 10 Gbps, empowering operators with advanced performance and autonomy.
- Oct-2024: Apple Inc. unveiled a free iOS 18 update that adds AI features to its iPhone 16 lineup. The update, available to U.S. users now and internationally next year, will enhance Siri, making it more conversational and capable.
- Sep-2024: NVIDIA Corporation unveiled its AI-RAN platform, AI Aerial, for AI-powered mobile network infrastructure, partnering with T-Mobile, Ericsson, and Nokia on an AI-RAN Innovation Center. Meanwhile, SoftBank and Intelsat plan a hybrid 5G network combining terrestrial and satellite connections for seamless global coverage, targeting commercial, mobile, maritime, and disaster solutions.
- Sep-2024: Apple Inc. unveiled the iPhone 16, designed for "Apple Intelligence," its new suite of AI features. With AI-powered capabilities like image editing and translation, the iPhone aims to boost sales and demonstrate.
- Aug-2024: Google LLC unveiled new Pixel smartphones featuring deeper AI integration, including a Pixel-exclusive screenshot search and the Gemini chatbot for in-app use. The company highlighted its progress in AI with live demos, marking the start of the "Gemini era".
List of Key Companies Profiled
- Nokia Corporation
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- IBM Corporation
- Microsoft Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Intel Corporation
- Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- NVIDIA Corporation
- Apple Inc.
- Google LLC (Alphabet Inc.)
Market Report Segmentation
By Application- Smartphones
- Robotics
- AR/VR
- Cameras
- Drones
- Automobile
- Other Application
- 10 nm
- 7 nm
- 20-28 nm
- Other Technology Node(12 nm and 14 nm)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Mobile Artificial Intelligence Market by Application
Chapter 6. Global Mobile Artificial Intelligence Market by Technology Node
Chapter 7. Global Mobile Artificial Intelligence Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Nokia Corporation
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
- IBM Corporation
- Microsoft Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Intel Corporation
- Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- NVIDIA Corporation
- Apple Inc.
- Google LLC (Alphabet Inc.)
Methodology
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