The global market for GenAI-powered smartphones is projected to witness explosive growth, with shipments forecasted to surpass 730 million units by 2028. Consumers want smarter devices that can anticipate their needs. GenAI smartphones are shaping the future of mobile technology.
Here are the key highlights in brief:
| GenAI Smartphone Growth: | Expected to grow 363.6% in 2024, with shipments reaching 234.2 million units, and surpassing 912 million units by 2028, capturing 70% of the market. |
| Market Share in 2024: | GenAI smartphones will represent 19% of the total smartphone market. |
| GenAI Definition: | Equipped with system-on-chip (SoC) and neural processing units (NPUs) performing at 30 TOPS or higher. |
| Opportunities | GenAI will drive significant upgrades, creating growth opportunities for vendors and app developers. |
| CAGR: | The compound annual growth rate (CAGR) from 2024-2028 is projected at 78.4%. |
| Mid-Range Adoption: | By 2026, mid-range devices will adopt GenAI, democratizing the technology |
| Cost Challenge: | Initially limited to premium models, GenAI features will become more affordable as competition grows. |
| Future Impact: | GenAI smartphones will revolutionize AI experiences on mobile devices, reshaping user interactions. |
A New Era for Smartphones
The smartphone industry is on the edge of a significant transformation. Shipments of generative AI (GenAI) smartphones are expected to soar by 363.6% in 2024, reaching 234.2 million units. According to a recent forecast from the International Data Corporation (IDC), this growth will represent 19% of the total smartphone market in the coming year.
What Are GenAI Smartphones?
GenAI smartphones are designed with advanced technology. They feature a system-on-a-chip (SoC) that enables efficient on-device GenAI processing. This is made possible through neural processing units (NPUs) that deliver performance of 30 tera operations per second (TOPS) or more, using the int-8 data format.
Opportunities Amid Challenges
Despite obstacles like longer smartphone replacement cycles and global economic uncertainties, GenAI features are set to drive upgrades. This opens up exciting opportunities for smartphone manufacturers and app developers. The strong growth seen in 2024 is projected to carry over into 2025, with shipments anticipated to increase by 73.1% year-over-year. By 2028, global shipments of GenAI smartphones are expected to reach 912 million units, translating to a remarkable compound annual growth rate (CAGR) of 78.4% from 2024 to 2028.
A Game-Changer for Accessibility
Nabila Popal, senior research director at IDC, emphasizes the unprecedented rise of GenAI in smartphones. “We expect market penetration to exceed 60% within three years,” she notes. The most significant changes are anticipated in 2026, when mid-range smartphones start adopting GenAI technology. This shift will make the technology accessible to a broader audience.
Exciting Future Developments
Initially, GenAI smartphones will be mainly present in flagship models. However, the future is bright. As more devices incorporate GenAI capabilities, users can expect increasingly personalized AI assistants. The smartphone market is poised for an exciting decade filled with innovation and evolution.
Continuous Growth Ahead
Anthony Scarsella, IDC’s research director for mobile phones, states, “GenAI smartphones are the next big thing.” He predicts triple-digit growth in 2024, followed by sustained double-digit growth in the subsequent years. While costs will initially confine GenAI chipsets to premium devices, they will gradually become more affordable as competition increases.
Conclusion
IDC’s report, “Worldwide Generative AI Smartphone Forecast, 2024–2028,” provides updated projections for GenAI smartphone shipments. The findings are based on data from IDC’s Mobile Phone Tracker and insights gathered from interviews with leading industry vendors.
