Market research firm Canalys has unveiled a report detailing the current market share of smartphones boasting significant AI capabilities and projecting its evolution in the coming years.
According to the report, 16% of smartphones shipped globally today already incorporate some form of AI features. This figure is anticipated to surge to an impressive 54% by 2028. The predicted yearly growth can be visualized in the image below.
Growth Projections
Industry analysts forecast that the market for AI-capable smartphones will grow at a compound annual growth rate of 63% from 2023 to 2028. The growth is expected to be fueled by consumer demand for advanced features like AI assistants and edge-to-edge processing.
Canalys predicts that this shift will initially be evident in flagship models. At present, technical limitations mean that on-device AI models can only run on high-end devices. However, as these models become more efficient, mid-range smartphones are also expected to benefit from AI capabilities over time.
Future Impact
The market research firm suggests that the transformative power of smartphones with generative AI capabilities marks the dawn of a new era for the smartphone industry. Over the next 3-5 years, AI integration is expected to significantly enhance the user experience. Sergio Buniac, President of Motorola and Senior Vice President of Lenovo Mobile Business, echoed this sentiment while discussing Motorola’s future in the smartphone market.
Industry Adoption
Companies like Google and Samsung have already embedded numerous AI-based features into their recent flagship models, although there is no specific 'AI phone' branding yet. Chinese smartphone manufacturers such as Huawei, Honor, Oppo, Xiaomi, and Vivo are also striving to incorporate as many AI features as possible into their premium products. Their strategies for integrating generative AI capabilities range from developing in-house chips to training AI models for specialized tasks.
