Mobile Artificial Intelligence (AI) Market Size - By Technology Node, By Application, Share, Growth Forecast, 2025 - 2034

Mobile Artificial Intelligence Market Size

The global mobile artificial intelligence market size was valued at USD 19.5 billion in 2024 and is projected to grow at a CAGR of 25.1% between 2025 and 2034. The rise of augmented reality (AR) and virtual reality (VR) technologies for creating immersive and interactive experiences in education, gaming, and training is predicted to drive industry growth. Additionally, the global proliferation of smartphones has led mobile device manufacturers to develop AI-specific chipsets, enhancing AI processing, efficiency, and performance for diverse applications.
 

According to Zippia, approximately 270 million people in the U.S. owned smartphones in 2023. Growing support from regulatory bodies and industry groups in establishing guidelines for responsible AI usage also plays a significant role in industry expansion. Furthermore, the increasing adoption of mobile AI for smartphone photography, offering features like image enhancement, computational photography, and object recognition, is set to boost market growth by improving photo and video quality.
 

For instance, according to GMI, VR in Gaming Market size was valued at USD 4.59 billion in 2023 and is anticipated to grow at a CAGR of over 30% between 2024 and 2032, propelled by continuous advancements in mobile technology and hardware, enhancing immersion and realism for gamers.
 

Another growth drive of the mobile artificial intelligence industry is the increasing integration of AI-powered features in smartphones and other mobile devices. AI chipsets are being developed to enhance performance, efficiency, and real-time processing for applications like voice assistants, facial recognition, and augmented reality. The rising demand for mobile AI in sectors such as gaming, education, and healthcare further fuels market expansion.
 

Smartphone photography, powered by AI algorithms for features like image enhancement and object recognition, has also gained significant traction. Additionally, the global proliferation of smartphones and 5G technology has enabled better connectivity and AI adoption. Support from regulatory bodies for responsible AI practices further encourages market growth.
 

Mobile Artificial Intelligence Market Trends

A key trend in the mobile artificial intelligence (AI) industry is the increasing integration of AI-specific chipsets in smartphones, enabling advanced features like real-time language translation, enhanced photography, and personalized user experiences. AR and VR applications for gaming, education, and training are driving demand for AI-enhanced mobile devices. Edge AI, which processes data locally on devices rather than relying on cloud computing, is gaining popularity for faster response times and improved privacy.
 

AI-powered virtual assistants, like Siri and Alexa, are becoming more intuitive and widely adopted. Additionally, smartphone manufacturers are focusing on energy-efficient AI chipsets to enhance battery performance. The trend toward AI in 5G-enabled devices is further fueling innovation.
 

For instance, the introduction of MediaTek's Dimensity 9300 and Qualcomm's Snapdragon 8 Gen 3 chipsets. These AI-specific processors, estimated to power premium smartphones like the Samsung Galaxy S24 and OnePlus 12, allow tasks such as natural language processing and image enhancements to run directly on devices. This shift from cloud-based AI to on-device processing improves efficiency, reduces latency, and enhances privacy, marking a significant trend in the mobile AI landscape?.
 

One challenge in the mobile artificial intelligence industry is addressing data privacy and security concerns. As AI-enabled mobile devices process sensitive user data, ensuring robust on-device security becomes critical. The risk of data breaches and unauthorized access can hinder consumer trust and adoption. Additionally, regulatory compliance with global and regional data protection laws, such as GDPR or CCPA, increases complexity for manufacturers. Overcoming these issues requires significant investment in advanced encryption and privacy-preserving technologies, making it a key hurdle for market players. ?
 

Mobile Artificial Intelligence Market Analysis

Based on the technology node, the market is segmented into 7 nm, 10 nm, 20-28 nm and Others. The 10nm segment accounted for 40% of the market share in 2024 and will exceed USD 65 billion by 2034. The 10 nm technology node dominates the market due to its balance between performance, efficiency, and manufacturing costs. It enables high transistor density, improving the performance of AI and mobile processors while consuming less power.
 

This node is widely adopted because it supports advanced features like AI processing, 5G, and high-resolution displays in smartphones. Additionally, it bridges the gap between older nodes and cutting-edge technologies, providing a reliable, scalable solution. Its widespread adoption by leading chipmakers ensures a strong ecosystem and ongoing innovation.
 

Based on the application, the mobile artificial intelligence market is divided into smartphones, cameras, drones, automobiles, robotics, AR/VR, and Others. The smartphone segment held over 30% of the market share in 2024. The smartphone segment dominates the market due to the rapid global penetration of smartphones and their integration with AI-powered features like voice assistants, photography enhancements, and personalized user experiences.
 

With advancements in 5G technology, smartphones require powerful AI chipsets to support high-speed data, AR/VR applications, and real-time processing. Additionally, increasing consumer demand for smarter devices and mobile AI capabilities in daily tasks fuels this growth. Manufacturers focus heavily on developing AI-centric hardware and software for smartphones, driving innovation and making them the leading application segment in mobile AI.
 

U.S. mobile artificial intelligence market accounted for 70% share in 2024, in North America and is poised to exceed USD 35 billion by 2034. The U.S. is home to many of the world's leading technology companies such as Apple, Google, Microsoft, and Qualcomm. These companies are heavily invested in mobile AI technologies, driving advancements in areas like voice recognition (Siri, Google Assistant), AI-powered photography (e.g., Google Pixel's camera), and smart assistants.
 

Their large R&D budgets accelerate the development and adoption of AI technologies in mobile devices. Furthermore, The U.S. has a large pool of AI talent, supported by top universities (e.g., Stanford, MIT, and UC Berkeley) that produce cutting-edge research and highly skilled professionals. This talent attracts both startups and established companies that focus on mobile AI innovations, enabling a thriving ecosystem for AI advancements.
 

The European mobile AI market is growing steadily, driven by advancements in AI technologies and increasing demand for mobile AI applications in areas like automation, customer experience, and smart devices. Strong regulatory frameworks, such as the EU's General Data Protection Regulation (GDPR), ensure that data privacy is prioritized, fostering consumer trust in mobile AI solutions. Key players like SAP, Nokia, and Deutsche Telekom are driving the adoption of AI in mobile services.
 

However, market growth is somewhat hindered by the slower adoption of cutting-edge technologies in comparison to the U.S. and China. Additionally, the European Union is focusing on fostering AI innovation through initiatives like Horizon Europe. Increasing urbanization and smart city developments are boosting demand for AI-driven mobile applications in transport, healthcare, and security.
 

The APAC region is experiencing rapid growth in the mobile AI market, led by China, Japan, and South Korea, with a surge in AI research, development, and mobile applications. Countries like China are accelerating the deployment of mobile AI technologies, particularly in mobile payments, voice assistants, and AI-powered smartphones, making it one of the world's largest markets. The rise of 5G networks in APAC further fuels mobile AI growth by enabling faster data processing and enhanced AI capabilities.
 

The region also benefits from a large and tech-savvy population that is quick to adopt innovative mobile technologies. Additionally, government policies in countries like Japan and South Korea support AI and mobile tech innovation, creating a favorable environment for the growth of AI in mobile applications. However, challenges remain in terms of data privacy concerns and regulatory issues in certain countries. ?
 

Mobile Artificial Intelligence Market Share

Google LLC, Qualcomm Inc, and Mediatek collectively held a substantial market share of over 17% in the mobile artificial intelligence industry in 2024. Google LLC, Qualcomm Inc., and MediaTek dominate the mobile AI market due to their continuous innovation and leadership in AI-integrated mobile technologies. Google drives AI advancements through its Android operating system, Google Assistant, and AI-driven features in devices like Pixel smartphones. Qualcomm is a leader in mobile processors with its Snapdragon chips, which integrate AI capabilities for enhanced performance in smartphones, IoT, and other devices.
 

MediaTek is renowned for its powerful AI-enhanced chipsets, offering efficient mobile AI solutions, especially in mid-range smartphones. These companies leverage extensive R&D, strategic partnerships, and large-scale deployments to shape the mobile AI ecosystem.
 

Mobile Artificial Intelligence Market Companies

Major players operating in the mobile artificial intelligence industry are:

• AWS
• Google
• Huawei (Hisilicon)
• IBM
• Intel
• Mediatek
• Microsoft
• Nvidia
• Qualcomm
   

Mobile Artificial Intelligence Industry News

• In October 2024, MediaTek unveiled its Dimensity 9400 flagship mobile processor on October 9, 2024, designed for edge-AI and gaming applications. Built on TSMC's second-generation 3nm process, the chipset promises up to 40% better power efficiency than its predecessor. Featuring a powerful 8-core design, the Dimensity 9400 offers 35% faster single-core and 28% faster multi-core performance compared to the Dimensity 9300. It also integrates an 8th Gen NPU for on-device LoRA training, AI video generation, and faster LLM prompt performance. The chipset is paired with a 12-core Arm Immortalis-G925 GPU, delivering significant performance boosts in ray tracing and power efficiency. Smartphones powered by the Dimensity 9400 are expected to launch in Q4 of 2024.
   
• In August 2023, Microsoft joined forces with healthcare software company Epic for expanding AI collaboration for accelerating generative AI’s impact in healthcare for addressing the most pressing needs of the industry.?
   

The mobile artificial intelligence (AI) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, By Technology Node

• 7nm
• 10nm
• 20-28nm
• Others

Market, By Application

• Smartphones
• Cameras
• Drones
• Automobile
• Robotics
• AR/VR
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa