On-device AI Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Deployment (Cloud, On-premise), By Technology (NLP, Computer Vision), By Device Type, By Vertical, By Regions, And Segment Forecasts, 2025 - 2030

On-device AI Market Summary

By allowing devices to handle data locally, on-device AI reduces the dependence on cloud infrastructure. The rise in IoT, smart home devices, and mobile applications has increased the need for immediate processing capabilities, enhancing user experience while safeguarding personal data and reducing power usage.

On-device AI meets the need for advancements by enabling immediate responses, thereby enhancing user experience across a range of applications. By handling data locally, it also minimizes the risk of transmitting sensitive information over networks. Handling sensitive data is an essential factor in sectors like healthcare and finance, where data privacy is critical. For instance, according to Health World Economic Times, Meri Life Sciences has introduced on-device AI known as ‘Robotic-assisted surgery platforms’ that use AI to guide the surgeons with real-time 3D visualization, feedback, and predictive correction.

Recent advancements in semiconductor technology, particularly the development of specialized AI chips and neural processing units (NPUs), have enabled complex AI algorithms to run directly on devices, significantly enhancing performance and energy efficiency. The rise of NPUs and increasingly compact AI models has also made it possible to embed advanced AI capabilities into consumer electronics and dedicated hardware. These innovations are crucial for achieving high-performance computing with minimal power usage. As AI continues to evolve rapidly, we are nearing a pivotal transition toward on-device AI, where processing occurs locally on devices like smartphones and personal computers.

Component Insights

The hardware segment accounted for the largest revenue share of 60.4% in 2024. The segment is driven by the demand for high-performance processing units capable of running AI algorithms directly on devices. This growth is largely driven by the widespread adoption of IoT devices, smartphones, and advanced AI hardware such as neural processing units (NPUs), application-specific integrated circuits (ASICs), and graphics processing units (GPUs). These components play an important role in executing complex AI functions like image recognition, natural language processing, and real-time decision-making. For instance, in March 2025, according to the survey "Empowering Edge Intelligence" underscores the pivotal impact of advanced hardware in driving on-device AI. Utilizing specialized processors and hardware accelerators, edge devices can now execute advanced AI models locally, allowing for real-time data processing with enhanced privacy and improved efficiency. This advancement is setting the stage for more intelligent, responsive, and secure edge technologies across various sectors.

The software segment is expected to witness a CAGR of 29.2% from 2025 to 2030.The segment is driven by its essential role in powering AI functionality through algorithms, On-Device AI models, operating systems, and platforms. Software advancements enable efficient AI processing on resource-constrained devices, making adoption feasible across industries. The growing demand for real-time tasks like image recognition, speech processing, and analytics is driving this growth. Additionally, new tools for developing and deploying lightweight AI models on devices have increased innovation. As software continues to evolve, it supports different applications in industries such as automotive, healthcare, and manufacturing.

Deployment Insights

The cloud segment dominated the market in 2024, driven by more enterprises adopting cloud-based solutions for their scalability, flexibility, and ease of managing AI models. Hybrid approaches, which blend cloud and edge processing, offer the advantages of both enabling real-time inference on devices while using the cloud’s powerful infrastructure for training and updates. This demands overall performance by supporting complex analytics and real-time processing. Improvements in cloud security and privacy are also making it a more trustworthy option for sensitive applications, further contributing to its rising adoption in the on-device AI ecosystem.

The on-premises segment is projected to hold the fastest CAGR over the forecast period. The market is driven by the need for strong data security, privacy, and compliance with regulations like HIPAA and GDPR. It gives organizations full control over their infrastructure, allowing for customized AI operations without depending on third-party cloud services. This model also reduces latency, making it ideal for real-time applications in sectors like healthcare and automotive. It offers predictability and avoids ongoing cloud fees. Additionally, it ensures compliance with data sovereignty laws, making it a trusted option for security-focused enterprises.

Technology Insights

The ML segment accounted for the largest market share in 2024. The segment is driven by the use of statistical techniques to constantly learn and improve from its experiences and large datasets available without being explicitly programmed. On-Device AI devices update their decision-making based on the latest information available. Advancements in technology and the generation of huge amounts of data mean that on-device AI algorithms can use their information to improve their capabilities. The rising demand is also due to the ML-based AI capabilities, suitable for complex and changing environments.

The computer vision segment is projected to grow significantly over the forecast period. The advances in AI and On-Device AI that enable efficient visual data analysis directly on devices are rising the demand. The increasing need for real-time processing and automation across industries like healthcare, automotive, and retail is boosting demand. The growth of IoT and smart devices, combined with rising concerns over data privacy, supports on-device processing for secure applications like facial and gesture recognition. Enhanced hardware capabilities and accessible frameworks such as OpenCV and TensorFlow.js further raise adoption and innovation in this segment.

Device Type Insights

Smartphones and tablets accounted for the largest market share in 2024. The segment is driven by the growing global use of smartphones and the expanding adoption of AI-powered applications in fields such as photography, augmented reality, and automotive infotainment systems. The market is also anticipated by the need to improve user experience, protect data privacy, and minimize latency. Users now expect fast, context-aware interactions, which AI enables through features like real-time facial recognition, noise suppression, predictive text, and customized content delivery. For instance, in October 2024, OPPO became the first company to implement the Mixture of Experts (MoE) AI architecture directly on-device, marking in mobile AI innovation. This advancement boosts processing speeds, enhances energy efficiency, and improves privacy by handling more tasks locally. OPPO’s MoE-enabled devices pave the way for smarter, faster, and more accessible AI smartphone experiences for users worldwide.

The wearables segment is projected to grow significantly over the forecast period. The wearables segment in the on-device AI market is growing quickly, driven by increasing demand for smartwatches, fitness trackers, and smart eyewear, especially as health awareness rises. AI and advanced sensors enable real-time, on-device processing for personalized health tracking while maintaining data privacy. Seamless integration with smartphones and IoT ecosystems boosts functionality and connectivity. The expansion of healthcare uses like remote monitoring and elderly care is also accelerating adoption. Continued advancements in miniaturization and low-power AI chips are making wearables more efficient and capable, supporting emerging applications such as AI assistants and augmented reality.

Vertical Insights

Consumer electronics accounted for the largest market share in 2024. The segment is driven by the demand for consumer electronics like smartphones, wearables, and smart home devices for real-time processing and low-latency performance without relying on the cloud, enabling real-time responses and smooth user interactions. Smartphones, with regular connectivity and high-performance processors, are an increasing factor in the adoption of on-device AI in the consumer electronics market. Moreover, the desire for personalized and seamless user interactions, especially on smartphones, is accelerating this trend.

The automotive segment is projected to grow significantly over the forecast period. The market is rising as there is a growing demand for improved user experience and convenience features, including human-machine interfaces that manage entertainment, lighting, and climate controls. The increasing use of AI-powered advanced driver assistance systems (ADAS) is enhancing vehicle safety through real-time hazard detection and driver monitoring. Furthermore, the shift to software-defined vehicles and the implementation of AI-driven predictive maintenance are improving efficiency and enabling greater personalization. For instance, in May 2025, Snowflake announced its expansion of the automotive industry with its AI-driven Data Cloud, supporting companies like CarMax, Nissan, and Cox Automotive. It enables real-time insights, data integration, and advanced analytics to boost connected vehicle innovation and manufacturing efficiency.

Regional Insights

North America on-device AI market dominated and accounted for a 35.1% share in 2024. The market is growing as the digital landscape undergoes quick transformation, with On-Device AI playing a central role. By leveraging the computing power of devices such as smartphones, tablets, and IoT gadgets, it processes data locally, minimizing dependence on cloud services. Growing demand in the region is increased by the need for enhanced privacy, real-time data processing, and progress in technologies.

U.S. On-Device AI Market Trends

The on-device AI market in the U.S. is rising due to the demand for AI-enabled smart devices. These devices are required by consumer demand for enhanced privacy, security, and more seamless user experiences. One of the key benefits of on-device AI is its ability to minimize data transfer to the cloud, thereby strengthening privacy. It also enables advanced features such as image recognition, language translation, and virtual assistants to function effectively even in areas with limited or no internet connectivity.

Europe On-Device AI Market Trends

The On-device AI market in Europe is driven by strong government support and privacy-focused regulations. For instance, in June 2024, the EU introduced the world’s first comprehensive AI regulation, which is the Artificial Intelligence Act. While the full law takes effect 24 months after adoption, some provisions begin earlier: bans on high-risk AI systems started on February 2, 2025; codes of practice take effect nine months post-adoption; and transparency rules for general-purpose AI apply after 12 months. Advances in IoT, sensors, and 5G are making devices smarter and more affordable. Additionally, a regional AI talent gap is boosting demand for specialized software services, further driving growth.

Asia Pacific On-Device AI Market Trends

The on-device AI market in the Asia-Pacific region is experiencing the fastest growth due to factors such as processing data locally on devices, which raises the demand for privacy, speed, and efficiency, crucial for the region's dynamic and diverse markets. APAC also benefits from strong software development expertise, a growing pool of skilled tech talent, and an active start-up environment centered around AI innovation. Moreover, the increasing demand for smartphones and the demand for advanced AI features like voice recognition, smart imaging, and real-time translation are further driving the adoption of on-device AI in the region.

Key On-Device AI Company Insights

Key players operating in the on-device AI market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth.

Recent Developments

• In March 2025, Arm and Stability AI collaborated to enhance on-device text-to-audio generation by optimizing Stability AI's "Stable Audio Open" model for Arm CPUs. Utilizing Arm's KleidiAI technology, they achieved a 30-fold increase in processing speed, reducing audio generation time from 240 seconds to under 8 seconds for an 11-second clip on Armv9 CPUs. This advancement enables smartphones to produce high-quality, custom audio clips entirely offline, without the need for internet connectivity. By running the model efficiently on-device, this breakthrough makes advanced audio AI accessible to billions of users worldwide, transforming mobile AI capabilities and empowering creators, businesses, and consumers alike.

• In June 2024, at WWDC, Apple launched Apple Intelligence, a personal AI system built into iOS 18, iPadOS 18, and macOS Sequoia. This system blends on-device processing with server-based generative models to help users with tasks such as text editing, summarizing notifications, generating images, and interacting with apps—all with a strong emphasis on privacy. Powered by Apple silicon, Apple Intelligence enables the understanding and generation of language and visuals, performs actions across apps, and uses personal context to streamline and enhance daily activities.

On-Device AI Market Report Scope

Global On-Device AI Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global on-device AI market report based on component, deployment, technology, device type, vertical, and regions.

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • Cloud

  • On-premises

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • On-Device AI

  • Natural Language Processing

  • Computer Vision

  • Speech Recognition

• Device Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Smartphones & Tablets

  • Wearables

  • Smart Home Devices

  • Automotive

  • Others

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • Consumer Electronics

  • Automotive

  • Healthcare

  • Retail

  • Manufacturing

  • Security & Surveillance

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • KSA

    • UAE

    • South Africa