Austin, Oct. 21, 2025 (GLOBE NEWSWIRE) -- The On-Device AI Market Size was valued at USD 17.61 Billion in 2025E and is expected to reach USD 115.74 Billion by 2033 and grow at a CAGR of 26.57% over 2026-2033.
The growing need for real-time processing and improved data privacy is the main factor driving the On-Device AI Market growth globally. Contrary to the cloud, on-device AI enables devices to analyze data locally, lowering latency and reliance on the internet, which are the two factors that are crucial for applications in wearables, smartphones, and automotive systems.
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The U.S. On-Device AI Market size was USD 4.88 Billion in 2025E and is expected to reach USD 31.59 Billion by 2033, growing at a CAGR of 26.32% during 2026-2033.
The growing need for improved data privacy and real-time data processing is fueling the growth of the U.S. market. By enabling effective local data processing, advances in edge computing and AI technology lower latency and lessen reliance on cloud services.
Key Players:
- Apple Inc.
- Qualcomm Technologies, Inc.
- Google LLC (Alphabet)
- NVIDIA Corporation
- Intel Corporation
- Samsung Electronics Co. Ltd.
- Huawei Technologies Co., Ltd.
- MediaTek Inc.
- Arm Holdings
- Microsoft Corporation
- Baidu, Inc.
- Synaptics Inc.
- Broadcom Inc.
- Imagination Technologies
- CEVA, Inc.
- Xilinx (AMD)
- NXP Semiconductors
- STMicroelectronics
- Sony Corporation
- Infineon Technologies AG
On-Device AI Market Report Scope:
| Report Attributes | Details |
| Market Size in 2025E | USD 17.61 Billion |
| Market Size by 2033 | USD 115.74 Billion |
| CAGR | CAGR of 26.57% From 2026 to 2033 |
| Base Year | 2025E |
| Forecast Period | 2026-2033 |
| Historical Data | 2022-2024 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Component (Hardware, Software) • By Type (Smartphones & Tablets, Wearables, Smart Home Devices, Automotive, Others) • By Technology (Machine Learning, Natural Language Processing, Computer Vision, Speech Recognition) • By Vertical (Consumer Electronics, Automotive, Healthcare, Retail, Manufacturing, Security & Surveillance, Others) |
| Customization Scope | Available upon request |
| Pricing | Available upon request |
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Segmentation Analysis:
By Component, in 2025, Hardware Segment Dominated the Market with a Share of 60.40%, while Software is the Fastest-growing Segment with a CAGR of 31.04%
The hardware segment dominated the market due to the increasing penetration of various AI-enabled processors, sensors, and chipsets used in smartphones, wearables, automotive systems, industrial devices. Software remains the most rapidly growing segment due to increased demand for smart algorithms, AI frameworks, and applications that can operate efficiently on edge hardware.
By Type, in 2025, Smartphones & Tablets Led the Market with a Share of 56.70%, while Wearables is the Fastest-growing Segment with a CAGR of 25.24%
The Smartphones & Tablets held the largest share of the On Device AI Market due to the higher adoption and utilization of on-device AI-integrated functions & features, such as facial recognition, augmented reality, smart assistants, and camera enhancements. Wearables is the fastest-growing segment, driven by increasing adoption of artificial intelligence–based smartwatches, smart wearables for fitness monitoring, and various devices for healthcare monitoring.
By Technology: In 2025, Machine Learning led the market with a share of 48.20%, while Natural Language Processing is the fastest-growing segment with a CAGR of 26.40%
Machine Learning continues to lead the technology segment, due to its broad application in smartphones, wearables, automotive systems, and a variety of industrial devices. Natural Language Processing (NLP) is the quickest growing section as a result of growing adoption of voice assistants, chatbots, real-time translation, and speech recognition capabilities on gadgets.
By Vertical, in 2025, Consumer Electronics Held the Largest Share of 41.06%, while Automotive is the Fastest-growing Segment with a CAGR of 25.30%
The Consumer Electronics is the leading vertical segment in the On Device AI Market, largely due to the rapid adoption of AI-integrated smartphones, tablets, smart cameras, wearables, and smart home devices. Automotive vertical is the fastest-growing segment, driven by the ongoing rise in on-device artificial intelligence in advanced driver-assistance systems (ADAS), in-vehicle voice assistants, real-time navigation and autonomous driving solutions.
Regional Insights:
The On-Device AI Market in North America held the largest share 38.50% in 2025, due to it is early adopter of advanced AI technologies owing to strong R&D infrastructure, and high consumer awareness.
In 2025, Asia Pacific is the fastest-growing region in the On-Device AI Market, projected to expand at a CAGR of 27.83%, due to the increasing adoption rate of AI-powered devices such as smartphones, wearables and smart home devices by various industries within the region.
Recent Developments:
- In February 2025, Google launched Gemini 2.0 Flash, an on-device AI model offering multimodal input and text output, accessible via the Gemini API and Google AI Studio.
- In September 2025, Qualcomm unveiled the Snapdragon 8 Elite Gen 5 SoC, featuring a 37% faster Hexagon NPU, enhancing on-device AI capabilities in Android devices.
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Exclusive Sections of the Report (The USPs):
- EDGE EFFICIENCY & PERFORMANCE METRICS – helps you measure real-world AI execution capability at the device level by tracking inference latency, model size optimization, compute-per-watt scores, and power reduction per AI operation, indicating maturity of edge deployment.
- DATA LOCALIZATION & PRIVACY PROTECTION INDEX – helps you assess privacy resilience by quantifying the share of AI processing done locally vs cloud, reduction in sensitive data transmission, and number of devices compliant with GDPR/CCPA and similar frameworks.
- AI ACCURACY & USER FEATURE ADOPTION TRACKER – helps you evaluate effectiveness and consumer acceptance through benchmarks of model accuracy in key use-cases (vision/NLP), regional adoption rates of AI-based features (e.g., AI camera), and improvements in error rates over time.
- ECOSYSTEM CONNECTIVITY & API INTEGRATION SCORE – helps you understand platform stickiness by mapping the number of devices linked into AI ecosystems (smart homes, automotive), the adoption of AI APIs by app developers, and interoperability between heterogeneous AI platforms.
- COMPETITIVE LANDSCAPE – helps you gauge the competitive strength of leading on-device AI vendors backed by an analysis of chip capabilities, model compression strategies, OEM partnerships, AI integration depth, and recent product/technology launches.
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