The global on-device AI market size is anticipated to reach USD 36.64 billion by 2030 and is expected to expand at a CAGR of 27.8% during the forecast period, according to a new report by Grand View Research, Inc. Market growth is attributed to the increasing demand for real-time data processing and low-latency performance across various industries.
As smart devices become more integral to daily life, users expect instantaneous responses and seamless interactions. On-device AI enables this by processing data locally, eliminating the need to transmit information to cloud servers. This enhances speed and responsiveness and significantly reduces bandwidth usage and power consumption, making it ideal for mobile and IoT applications.
The growing emphasis on data privacy and security is also expected to drive market growth. With rising concerns over how personal data is handled in cloud environments, on-device AI offers a compelling alternative by keeping sensitive information within the device. This approach aligns well with global regulatory trends, such as the EU’s GDPR and India’s push for data sovereignty, which encourage minimizing cloud dependency. Industries like healthcare and finance, where data confidentiality is paramount, are increasingly adopting on-device AI to ensure compliance and safeguard user trust.
Technological advancements in hardware have also played a pivotal role in accelerating market growth. Developing specialized AI chips, such as neural processing units (NPUs) and edge-optimized processors, has enabled devices to run complex AI algorithms efficiently and with minimal energy consumption. These innovations have broadened the scope of on-device AI applications, from autonomous vehicles and smart home systems to wearable health monitors and augmented reality platforms. As these technologies evolve, they are expected to unlock new capabilities and drive further adoption across consumer and industrial sectors.
Download a free sample PDF of the On-device AI Market Intelligence Study, published by Grand View Research.
Further key findings from the report suggest:
- By component, the hardware segment accounted for the largest revenue share of 60.4% in 2024.
- By deployment, the cloud segment dominated the market in 2024.
- Based on technology, the ML segment accounted for the largest market share in 2024.
- By device type, smartphones and tablets accounted for the largest market share in 2024.
- By vertical, consumer electronics accounted for the largest market share in 2024.
- North America on-device AI market dominated and accounted for a 35.1% share in 2024.
- The on-device AI market in the U.S. is rising due to the demand for AI-enabled smart devices.
List of Key Players in the On-device AI Market
- Apple Inc.
- Baidu, Inc.
- Amazon.com, Inc.
- Google LLC
- Microsoft
- Intel Corporation
- NVIDIA Corporation
- Qualcomm Technologies, Inc.
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