The mobile artificial intelligence market was valued at USD 2.14 billion in 2019 and is expected to reach USD 9.68 billion by 2025, at a CAGR of 28.65% over the forecast period 2020 - 2025. Virtual assistants and bots will become more widespread and smart in the nearest future, freeing employees from monotonous work like answering simple questions or performing routine tasks. As for the assistants, Amazon already introduced Alexa Shopping and more of such virtual helpers, programmed to do a specific range of tasks to make lives easier.
- Increasing demand for AI-Capable Processors in mobile devices is driving the market as there are various applications which help users in their day to day activites such as camera image benefits, language translator, voice assistants, and user behaviours. Apple iPhone X uses an AI-based algorithm for its Face ID device unlocking system. Combined with Apple's elaborate hardware, the AI system works to identify the user's face for security.
- Rise of cognitive computing and the growing number of AI applications is driving the market. It is technologies like AI and ML that enable cognitive computing systems to analyze a tremendous volume of data and generate insights and use them as a learning experience to give optimized results. More and more industries and organizations are leveraging cognitive solutions to enhance their operations like data volume, insight generation, action planning and management, which increases productivity.
- Premium pricing of AI processors is restraining the market. AI platform charges for training the models and for getting predictions with the high cost of the AI chip, which increase the cost of processors.
Scope of the Report
The mobile artificial intelligence market is growing due to the advent of artificial intelligence technology and machine learning with the advancements in information and communications technology which have brought significant changes in global business operations. Increasing adoption of smartphones and tablets equipped with AI and cognitive computing applications are expected to drive the growth of the market.
Key Market Trends
Increasing Demand for Enterprise Applications is Driving the Market
- With the advent of new technologies such as smartphones, mobile apps, and IoT devices, operational tasks for organizations have become faster, easier and more efficient than ever with the impact of AI. AI products such as Apple's Siri, Amazon's Echo and Microsoft's Cortana enable human assistance and offer users flexibility and enhanced productivity.
- Messaging is already one of the most popular mobile activities. The typical mobile user in the U.S. spends nearly 10% of their device time engaged in messaging. App such as Mezi for travel are a good example. This app uses machine learning and NLP to figure out the preferences of users and offer recommendations for travel, fashion or gift ideas the users may like.
- The technology advancements in NLG and cloud solutions are helping the journalism industry. Leading media companies like Urbs Media are generating stories or articles based on data by using NLG robojournalism programs using AI. This increases the overall efficiency of the app functionalities and, which drives the market.
- Walmart has been testing the use of drones in its warehouses to check and flag missing items. According to the company, drones flying through the warehouse can do a full inventory check in a day through AI, that currently takes a month for people to do manually.
North America to Occupy the Largest Market Share
- The North America region is projected to have the most significant increase in demand, as it provides a suitable environment for startups and SMEs, in terms of government regulations and compliance. Mobile is the perfect platform for the implementation of AI applications.
- Additionally, in the United States, the companies, where employees are more than 100 in number, are adopting cloud-based applications. It was estimated that nearly 35% of SMBs in the country have already deployed cloud solutions. Due to this, an increase in the number of enterprises can be observed in the North American region, resulting in a high demand for the mobile artificial intelligence market.
- LG Electronics Inc. (LG) is poised to define the future of artificial intelligence (AI) for consumers and businesses in a new AI research lab in Canada. Under its five-year, multi-million-dollar research partnership with the University of Toronto, LG will build on its Open Platform-Open Partnership-Open Connectivity strategy to expand the AI ecosystem.
The mobile artificial intelligence (AI) market is highly fragmented due to presence of maximum players in most of the regions across the globe. Artificial intelligence consists of complex algorithms, which is increasing rapidly in the current market. Nowadays several industries adopted the Artificial Intelligence- algorithms which are easy to access the complex systems which is giving a high rivalry in the market. Key players are Intel Corporation, Microsoft Corporation, Alphabet Inc. (Google LLC), etc. Recent developments in the market are -
- May 2019 - Intel announced a collaboration with Microsoft and Asus to launch the world's first AI on PC Development Kit, delivering a brand-new laptop form factor featuring the latest AI software and hardware technologies to put developers at the cutting edge of AI application development.
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