Mobile Artificial Intelligence Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Mobile Artificial Intelligence Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Over the next few years, the mobile artificial intelligence market is expected to register a CAGR of 28.65%. Virtual assistants and bots will become more widespread and intelligent in the near future, freeing employees from monotonous tasks like answering simple questions or performing routine tasks. As for the assistants, Amazon already introduced Alexa Shopping and more such virtual helpers, each programmed to do a specific range of tasks to make lives easier.

• The rise of cognitive computing and the growing number of AI applications drive the market. With technologies like AI and ML, cognitive computing systems can look at a huge amount of data, find insights, and use those insights to learn and improve. Cognitive solutions are being used by more and more industries and organizations to improve their operations, such as data volume, insight generation, action planning, and management, which increases productivity.
• Artificial intelligence (AI) has permeated and disrupted the IT industry across various end-user industries worldwide. AI leads to remarkable breakthroughs for businesses and their customers. With the influx of technological developments such as virtual assistance, self-driving cars, chatbots, etc., AI is expected to disrupt the way mobile devices are used. A machine that operates with a degree of autonomy needs to, in some sense, be able to understand its surroundings. ​
• The main things that are making the market grow are the rise of AI applications in many different end-user industries and the growing demand for cognitive computing and automation.Also, more and more people are using mobile devices in their daily lives, such as at work, in school, and for personal use. This makes it more important to automate these devices so they don't need human help.
• With digitization, the dependence on mobile devices is increasing BYOD trends in the workplace, stimulating an increase in the use of mobile devices. Also, the increased usage of mobile devices to make important decisions due to the increased dependency on these devices is further stimulating the need for AI in these devices to make automated decisions. ​
• Furthermore, the growth of connected devices due to IoT is augmenting the need for AI-assisted control of these devices. The market is also growing because more and more people want processors and chipsets in these devices that can handle AI.This is because putting AI into a mobile device is most important when it comes to integrating the technology into the chipsets.
• The rise of COVID-19 created huge opportunities for the growth of the mobile AI market worldwide. The increasing use of AI in health care and self-diagnosis systems boosted the market's demand.

• The market for smartphone AI processors is growing because more and more people want real-time voice processing and image recognition. Most AI processors have extra built-in neural processing units (NPUs) that can do cognitive tasks, work in parallel, and use little power. On-device AI uses AI-specific chipsets, and by 2022, all top-of-the-line smartphones should have them. Most new high-end smartphones include AI chips with a dedicated neural processing unit.
• AI is becoming the most important part of smartphones, and it can be used for a lot more than just digital assistants. With Edge-AI technology, many AI functions that used to be done on the back end can now be done on the phone itself. With each update, artificial intelligence (AI) and machine learning (ML) make hardware and software for mobile phones better. This affects marketers and customers and makes life easier for everyone.
• The features of the virtual assistant are steadily improving. Some speech recognition now provides a greater understanding than a human listener, even in crowded conditions. Over time, virtual assistants are likely to become a much more significant part of the user's phone interface, and AI will identify the natural human language the user provides. In the coming years, smartphone manufacturers are expected to implement even more advanced AI and ML to identify people as their facial features change, such as growing a beard or wearing glasses.
• Moreover, the growing penetration of cell phones worldwide is also helping the market grow. For example, the mobile penetration in North America had 321 million unique mobile subscribers. By 2025, the penetration rate will increase by 2% to 345 million individual mobile subscribers.

A growing number of mergers and partnerships between big tech companies also helped the market grow. Apple is the leading buyer of companies in the global artificial intelligence space. For instance, Apple acquired the most AI companies, defeating Accenture, Google, Microsoft, and Facebook. All of the other companies also had an increased number of AI acquisitions.

• North America is expected to make up a big part of the market in terms of demand since it is a good place for startups and SMEs to do business in terms of government regulations and compliance. Also, due to various developments made by these companies, the region is expected to lead in technology adoption and be home to major AI solution providers for mobile applications based in North America, hence driving the market to grow significantly in the forecast period.
• The U.S. government has decided to encourage federal investment in AI research and development (R&D) in partnership with industry, universities, international partners and allies, and other non-federal entities.This is to help AI technology make big leaps forward. Networking and Information Technology Research and Development (NITRD) is getting USD 9.6 billion for research and development in FY 2023, which is USD 1.8 billion more than what was asked for in FY 2022. According to the supplement, the rise is because the Department of Defense will release information about funding for AI research and development in FY 2023.
• AI is built into Google's core. The company successfully transitioned from a mobile-first to an AI-first world. AI is integrated into all Google apps we use daily, including Google search engines, Google Maps, Google Photos, YouTube, and Gmail Smart Reply. Google is driving AI through its technological offerings, such as TensorFlow and Cloud AutoML (to name a few), and assisting developers and SMBs in innovating through open-source projects.
• Artificial intelligence and the internet of things are becoming more common in many industries, and voice assistants and smart speakers are becoming more popular. This is increasing the need for mobile AI in the area.

In North America, the growth of the market is also due to the changing digital infrastructure in healthcare, a well-established healthcare sector, and more patients learning about the benefits of AI. In North America, the need for artificial intelligence in healthcare is likely to push several key players into the market.

The artificial intelligence (AI) market for mobile devices is very fragmented because there are many players in most parts of the world.Artificial intelligence consists of complex algorithms, which are increasing rapidly in the current market. Nowadays, several industries adopt artificial intelligence—algorithms that are easy to access for complex systems, creating intense competition in the market. Key players are Intel Corporation, Microsoft Corporation, Alphabet Inc. (Google LLC), etc.

In May 2022, Habana Labs, Intel's data center team that works on AI and deep learning processors, announced the release of Habana Gaudi2 and Habana GrecoT, its second-generation machine-learning processors for inference and training.These new chips fill a void in the market by giving clients high-efficiency and high-performance deep learning computing options for both training and inference deployments and data center workloads. They also make it easier for businesses of all sizes to start using AI.

In March 2022, Nvidia Corp. showed off new chips and technology that it says can speed up the processing of AI algorithms that are getting more complicated. The company released specifics of new graphic chips (GPU) that would be at the heart of AI infrastructure, including the H100 chip and a novel processor chipset called the Grace CPU Superchip, both of which are based on the technology of British chip maker Arm Ltd. It's Nvidia's first Arm-based semiconductor since its plan to buy Arm fell through last month.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support