In a noteworthy forecast, the share of Generative AI smartphones in the market is poised for substantial growth, set to double within the next year and potentially surpass 40% by 2027.
Rapid Growth Projected for Generative AI Smartphones
Counterpoint, a leading smartphone market tracker, detailed these projections in a report published on December 20. The report emphasizes that the pivotal year for Generative AI (GenAI) smartphones is anticipated to be 2024, with shipments expected to soar past 100 million.
The report projects a remarkable trajectory, with GenAI smartphone shipments reaching an impressive 522 million units by 2027, reflecting an extraordinary Compound Annual Growth Rate (CAGR) of 83%.
Peter Richardson, the Vice President and Research Director at Counterpoint, highlights the transformative impact of GenAI smartphones on the overall smartphone landscape. He said, “AI has been a feature of smartphones for the last few years. We now expect to see the emergence of smartphones optimised to run GenAI models in addition to the normal use of AI in smartphones.”
He also stated, “The likely use case of Gen-AI in smartphones will likely include the generation of more personalised content, smarter digital assistants, content recommendations, and more.”
As technology continues to advance, the integration of GenAI capabilities is expected to redefine the functionalities and user interactions of smartphones, marking a significant evolution in the realm of mobile devices.
Market Dynamics and Key Players in the GenAI Smartphone Landscape
The competitive landscape of GenAI smartphones is expected to be dynamic, with prominent players vying for dominance. According to Counterpoint’s insights, Samsung, the South Korean electronics giant, is positioned to be a frontrunner, likely capturing a substantial 50% market share over the next two years. Following closely behind are leading Chinese brands such as Xiaomi, Vivo, HONOR, and OPPO, contributing to the expanding presence of GenAI smartphones globally.
On the hardware front, Qualcomm is projected to play a pivotal role, securing over 80% of the GenAI smartphone market in the coming two years. This dominance is expected to be a result of Qualcomm’s technological prowess and innovation in enabling devices to efficiently run Generative AI models. In parallel, MediaTek is anticipated to make notable strides in catching up, showcasing the competitive nature of the market.
