July 2025
The global AI-centric mobile processor market is witnessing rapid growth as smartphones and mobile devices adopt AI-enabled processors for intelligent imaging, voice, and data processing. The market growth is driven by increasing development of intelligent, energy-efficient, and high-performance mobile devices that leverage on-device AI capabilities.
AI-centric mobile processor is basically a system-on-a-chip, which is engineered and optimized to rapidly and effectively performs tasks related to AI/ML and deep learning straight on mobile devices along with specialized hardware that performs various AI tasks parallelly.
The AI-centric mobile processor market focuses on specialized processors designed to enhance artificial intelligence (AI) capabilities in mobile devices, including smartphones, tablets, and wearables. These processors integrate neural processing units (NPUs), GPUs, and CPUs to accelerate machine learning, natural language processing, computer vision, and real-time analytics. The market growth is driven by rising demand for edge AI, 5G connectivity, personalized user experiences, and energy-efficient mobile AI solutions.
The market is undergoing a critical technological shift driven by advancements in software and algorithmic frameworks. Platforms such as Apple’s Core ML and Google’s TensorFlow Lite are specifically optimized to execute machine learning models efficiently on mobile hardware, enabling robust AI capabilities across a wide range of applications. Techniques like quantization are being employed to compress models, allowing faster execution on resource-constrained mobile devices with minimal compromise on accuracy. Additionally, the adoption of federated learning, where AI models are trained directly on users' devices without transmitting raw data to the cloud, represents a major evolution in privacy-preserving AI and is emerging as a foundational enabler for the next generation of AI-centric mobile processors.
| Report Coverage | Details |
| Dominating Region | Asia Pacific |
| Fastest Growing Region | North America |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Processor Type, Technology Node, Functionality, Application, End user, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Concerns Over Thermal Stability
Mobile AI workloads are highly compute-intensive and must operate within strict power and thermal constraints due to the compact design of smartphones. Achieving higher performance often leads to increased power consumption, which can result in overheating and rapid battery drain. Moreover, the fast-paced evolution of AI algorithms may outpace current hardware capabilities, leading to compatibility challenges and the need for frequent upgrades.
Advances in Processors
The rapid advancement in processors, combined with the growing demand for on-device AI, is creating lucrative opportunities for market growth. Next-generation processors are enabling multimodal experiences by interpreting various forms of input data, such as text, images, and audio, in real time. To support generative AI models, specialized chips are being engineered to deliver sustained inference performance, while adhering to the strict power and thermal limitations inherent to smartphones.
| Region | Regulations | Its Goal |
| European Union |
EU AI Act GDPR |
Categorize AI by its risk level and make sure it's safe to use with higher transparency |
| United states | Export controls like AI diffusion Rule |
The U.S. is controlling advanced AI technologies sold to other countries for its national security and privacy of U.S. military |
| China | Data & Ethics Rules with Algorithm Regulations | Aiming to use technology for social stability while supporting its tech industry |
| India | Digital India Act (Proposed) | To update laws with digitalization and protect old users and support AI ethics |
What Made Neural Processing Units (NPUs) the Dominant Segment in the Market?
The neural processing units (NPUs) segment dominated the AI-centric mobile processor market with the largest share in 2024. This is mainly due to increased consumer demand for advanced AI features in mobile devices. This prompted chipmakers to integrate NPUs directly into mobile processors. NPUs enable massive parallel computations, significantly enhancing on-device AI performance and fueling market growth.
Meanwhile, the hybrid/integrated AI processors segment is expected to grow at the fastest CAGR during the forecast period. This is due to their ability to seamlessly integrate AI-specific compute units (such as NPUs or GPUs) with traditional CPUs on a single chip, enabling efficient and low-latency performance across diverse applications. These processors are capable of handling time-sensitive tasks such as real-time voice translation, voice commands, and augmented reality applications. Additionally, these processors reduce network latency, enabling faster and more responsive AI experiences for end users.
Why Did the 5nm Segment Lead the AI-Centric Mobile Processor Market?
The 5nm segment led the market while holding the largest share in 2024. This is primarily due to its ability to pack a higher number of transistors into a compact area, enabling the creation of smaller, lighter, and more powerful devices. It also enables the integration of more dedicated processing units on a single chip, resulting in improved performance, lower power consumption, extended battery life, and reduced heat dissipation.
The 3nm and below segment is expected to expand at the fastest CAGR during the foreseeable period. This is primarily due to the fact that smaller node sizes improve power efficiency and deliver higher performance, which is crucial for complex AI tasks on compact mobile devices. Shrinking the node sizes allows manufacturers to leverage the power of maximum transistors.
How Does the On-Device AI Processing Segment Dominate the AI-Centric Mobile Processor Market?
The on-device AI processing segment dominated the market, holding the largest share in 2024. The dominance of the segment is attributed to the increasing need for highly reliable and faster data processing for major applications. Unlike cloud-based models, on-device AI handles computation locally, eliminating reliance on internet connectivity and ensuring faster, more secure operations. It also enables offline functionality, enhances data privacy, and reduces latency, power consumption, and overall costs.
The edge AI processing segment is expected to grow at the fastest CAGR in the upcoming period. The growth of this segment is driven by its ability to offer superior privacy, lower latency, and improved bandwidth efficiency compared to traditional cloud-based AI. The rapid rollout of supporting technologies such as 5G networks and the proliferation of IoT devices are further accelerating demand for Edge AI solutions across industries.
Why Did the Smartphones Segment Lead the AI-Centric Mobile Processor Market?
The smartphones segment led the market in 2024. This is mainly due to the widespread adoption of smartphones and the increasing consumer demand for intelligent, real-time features. On-device AI capabilities allow smartphones to process data locally, enhancing speed, data privacy, and user experience without relying on cloud connectivity. Additionally, advancements in semiconductor technologies have enabled the integration of powerful AI processors within compact mobile form factors.
The wearables segment is expected to expand at the highest CAGR during the foreseeable period. The growth of the segment is driven by the increasing adoption of on-device AI for real-time health and fitness monitoring. Wearables have evolved beyond mere gadgets to become essential health companions, leveraging AI-based functionalities to provide personalized guidance and support.
How Does the Consumer Electronics Segment Hold the Largest Market Share in 2024?
The consumer electronics segment held the largest share of the AI-centric mobile processor market in 2024. This dominance is driven by the mass market for devices such as smartphones and other electronic gadgets, which create a strong economic engine for innovative AI applications. High consumer demand fuels the segment’s growth, as these devices offer advanced features like enhanced photo and video editing, real-time language translation, and biometric authentication.
The healthcare devices segment is expected to grow at the fastest rate during the forecast period. This growth is attributed to on-device AI processing, which enables more accurate diagnoses than traditional methods while eliminating the need to transfer large medical files to cloud platforms for analysis and interpretation. This capability is highly innovative, transforming fields such as pathology and radiology within the healthcare domain.
What Made Asia Pacific the Dominant Region in the AI-Centric Mobile Processor Market?
Asia Pacific registered dominance in the market by capturing the largest share in 2024. This leadership is driven by a convergence of factors, including the presence of major electronics manufacturing hubs and strong government support through investments and initiatives aimed at advancing AI technologies and their applications across various sectors. The region is home to leading semiconductor firms, including TSMC, which provides cutting-edge chips and the latest process nodes for tech leaders such as Apple and Qualcomm.
China is a major contributor to this growth, driven by continuously introducing innovative smartphones, tablets, and other electronic devices equipped with on-device AI features. Prominent local brands, such as Oppo, Xiaomi, and Vivo, collectively ship millions of devices annually. The rising consumer demand for AI-enabled smartphones at affordable prices further fuels the market's rapid expansion.
What Factors Support the Growth of the North America AI-Centric Mobile Processor Market?
North America is expected to experience the fastest growth during the foreseeable period of 2025-2034. This growth is primarily driven by the presence of tech leaders such as Apple, Qualcomm, and other companies that are actively integrating the latest AI features. Significant investments from both the private and government sectors, a supportive startup ecosystem, and strategic collaborations further bolster the market.
A digitally advanced infrastructure and a tech-savvy consumer base contribute to the high adoption rate of smartphones equipped with premium AI-based features. Innovation hubs like Silicon Valley foster a vibrant business environment, promoting the integration of emerging technologies into advanced chip architectures such as Tenstorrent’s RISC-V-based processors and Groq’s language processing units.
This stage involves manufacturing specialized chip blueprints in foundries, where raw silicon wafers are transformed into functioning chips using advanced photolithography and fabrication equipment.
Key players: TSMC, Samsung, Intel
Fabricated chips are then assembled, rigorously tested, and packaged in advanced facilities. Cutting-edge packaging technologies such as 2.5D and 3D stacking integrate multiple components like memory and processing units into a single package.
Key players: Amkor Technology, ASE Technology Holding, and Qualcomm
At this stage, AI-centric mobile processors are purchased by mobile device manufacturers and integrated into smartphones, tablets, and other mobile gadgets. This crucial phase enables AI capabilities to reach end users through their devices.
Key players: Samsung, Xiaomi, Vivo, Google
The AI-centric mobile processor market is poised for transformative growth, underpinned by the escalating integration of sophisticated on-device AI capabilities within mobile ecosystems. This market trajectory is catalyzed by burgeoning demand for enhanced computational efficiency, real-time data processing, and energy-optimized architectures tailored for next-generation smartphones, wearables, and IoT devices. The convergence of advanced semiconductor node miniaturization, heterogeneous computing architectures, including NPUs and hybrid processors, and progressive software frameworks, positions this market at the forefront of enabling pervasive AI adoption with minimized latency and maximized data privacy.
Strategic investments by leading chipset manufacturers and symbiotic collaborations with software developers are accelerating innovation cycles, facilitating rapid commercialization of AI-specific SoCs optimized for diverse AI workloads such as natural language processing, computer vision, and generative AI. Furthermore, regional dynamics, particularly the aggressive governmental incentives and manufacturing capacities in Asia-Pacific alongside North America’s innovation ecosystems, present unparalleled expansion avenues. With evolving consumer preferences toward smarter, energy-efficient, and context-aware mobile devices, the market embodies a high-growth frontier replete with opportunities in edge AI, federated learning integration, and novel neuromorphic computing paradigms, underscoring its critical role in shaping the future digital fabric.
By Processor Type
By Technology Node
By Functionality
By Application
By End user
By Region
For inquiries regarding discounts, bulk purchases, or customization requests, please contact us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
July 2025
July 2025
December 2024
May 2025