Latest News- On-Device AI Market: Hardware is expected to lead the Component segment during 2025-2029

The On-Device AI Market is being driven by Growing demand for enhanced data privacy and security

The On-Device AI Market is expected to grow at a CAGR of 34.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 160236.4 million. The on-device AI market is witnessing a groundbreaking shift with the increasing adoption of generative artificial intelligence (GAI) capabilities directly on endpoint devices. Previously, on-device AI was primarily focused on discriminative tasks such as classification and recognition. However, the new trend involves running generative models, including Small Language Models (SLMs) and image diffusion models, locally to generate novel content, such as text, images, and code. This paradigm shift is driven by the business need to bring the creative potential of GAI into a more personal, private, and responsive context. This trend signifies a significant leap forward in the capabilities of on-device AI, offering numerous opportunities for businesses to innovate and enhance user experiences. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Hardware
  • Software
  • Services
• Technology
  • 7 nm
  • 10 nm
  • 20 to 28 nm
• Application
  • Smartphones
  • Wearables
  • Smart speakers
• Geography
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • South America
    • Brazil
  • Middle East

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing demand for enhanced data privacy and security
• Imperative for low latency and real-time responsiveness
• Advancements in and proliferation of ai-optimized silicon

However, the market also witnesses some limitations, which are as follows:

• Power consumption and thermal management constraints
• Complexity of AI model optimization and deployment
• High development and manufacturing costs

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Market Scope in On-Device AI Market Research Report

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Research Analysis Overview

The On-Device AI market encompasses AI model deployment, utilizing edge AI frameworks for optimal inference speed and power consumption analysis. Model accuracy metrics, data preprocessing techniques, and feature extraction methods are essential for effective model training pipelines. AI algorithm selection, data augmentation strategies, and performance benchmarking are crucial for system integration aspects. Hardware design considerations and software development tools address power efficiency and security vulnerabilities. Privacy concerns, regulatory compliance, and ethical considerations are paramount in application development. Device compatibility issues, scalability challenges, and deployment automation require careful consideration for maintenance requirements, upgrade procedures, and error handling mechanisms.

Market Research Overview

The on-device AI market represents a segment of the global application software industry, focusing on companies that develop and provide on-device inference engines, real-time data processing, and low-power AI algorithms for embedded machine learning. These solutions enable devices to perform AI tasks locally, enhancing functionality and reducing reliance on cloud infrastructure. Technavio's market analysis encompasses revenue generated by companies offering such innovative software solutions, contributing to the growth of the application software market within the IT software industry.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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