AI in Smartphone and Wearable Market

The global AI in Smartphone and Wearable Market is valued at USD 66.4 Billion in 2024 and is projected to reach a value of USD 704.3 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 34.3% between 2025 and 2035.

The growth of the AI in Smartphone and Wearable market is expected to accelerate with the expansion of 5G networks. The AI in Smartphone and Wearable market is primarily driven by increasing demand for faster data speeds, enhanced network reliability, autonomous vehicles, better connectivity for the Internet of Things (IoT), and the need to support emerging technologies like augmented reality (AR), virtual reality (VR).

Key Highlights

• Based on the Device Type, the Smartwatches category accounted for significant market share in AI in Smartphone and Wearable market industry for 54.30% in 2024
• In 2024, by Application, Health & Fitness category dominated the largest AI in Smartphone and Wearable market share.
• Based on the End User Industries, the Healthcare category accounted for significant market share in AI in Smartphone and Wearable market industry for 23.20% in 2024
• In 2024, by Distribution Channel, Online category dominated the largest AI in Smartphone and Wearable market share.
• In 2024, by Age Group, Adults (18-54) category dominated the largest AI in Smartphone and Wearable market share.
• North America dominated the AI in Smartphone and Wearable market industry with 39.20% AI in Smartphone and Wearable market share in 2024
• Asia Pacific region is anticipated to grow at the highest CAGR during the forecast period in AI in Smartphone and Wearable market industry

AI in Smartphone and Wearable Market Segmentation:

By Device Type:

• Smartwatches
  • Connectivity Type
    • Bluetooth
    • Cellular (LTE/4G/5G)
    • Wi-Fi
    • NFC
    • Operating System
      • Apple WatchOS
      • Google WearOS
      • Others (TizenOS, Fitbit OS)
    • Price Range
      • Low-End
      • Mid-Range
      • High-End
  • Fitness Trackers
    • Basic Trackers
    • Advanced Trackers (with GPS, Health Metrics)
  • Smart Glasses
    • Augmented Reality Glasses
    • Mixed Reality Glasses
  • Smart Clothing
    • Smart Shirts
    • Smart Shoes
    • Smart Jackets
  • Hearables
    • Wireless Earbuds
    • Fitness & Health-focused Earbuds
  • Smart Rings
    • Fitness and Health Monitoring
    • Payment Rings (NFC-enabled)
  • Smart Bands
    • Fitness Bands (Slimmer alternatives to Fitness Trackers)
    • Medical Alert Bands
  • Smart Patches
    • Health Monitoring (e.g., Glucose, Cardiac)
  • Smart Jewelry
    • Necklaces or Bracelets with Fitness/Health Tracking
  • Exoskeletons
    • Industrial Exoskeletons (Strength Assistance)
    • Medical Exoskeletons (Rehabilitation)
  • VR/AR Headsets
    • Virtual Reality (VR) Headsets
    • Augmented Reality (AR) Headsets
  • Others

By AI Technology:

• Machine Learning (ML)
• Natural Language Processing (NLP)
• Computer Vision
• AI-driven Sensors

By Application:

• Health & Fitness
• Personal Assistance
• Entertainment
• Smart Home Integration

By End User Industries:

• Healthcare
• Fitness & Sports
• Retail & Fashion
• Manufacturing & Industry
• Education
• Military & Defense
• Entertainment & Gaming

By Distribution Channel:

• Online
  • Brand Websites
  • E-commerce Platforms
  • Offline
    • Specialty Stores
    • Electronics Retailers

By Age Group:

• Children (5-12)
• Teens (13-17)
• Adults (18-54)
• Senior Citizens (55+)

AI Technology Overview

The AI Technology segment is divided into Machine learning (ML), Natural Language Processing (NLP), Computer Vision, AI-Driven Sensors.

• Machine Learning (ML): In smartphones, Machine Learning (ML) powers personalized experiences by learning user preferences, such as app usage patterns, to provide tailored recommendations and improve resource allocation for better performance. Furthermore, In wearables, Machine Learning (ML) facilitates advanced fitness and health tracking by analyzing data from sensors to deliver insights into activity levels, sleep quality, and heart rate patterns
• Natural Language Processing (NLP): In AI in Smartphone and Wearable market, it enhances user interactions by enabling devices to understand, interpret, and respond to human language. NLP powers voice assistants like Siri, Google Assistant, and Alexa, providing accurate voice recognition and natural responses for hands-free convenience
• Computer Visions: In smartphones, it powers advanced photography features such as object detection, scene recognition, and real-time image enhancement, allowing users to capture professional-quality photos effortlessly. Furthermore, In wearables, computer vision contributes to health monitoring by analyzing visual data from sensors for heart rate detection, posture correction, or gesture recognition

Application Overview

The Application segment is divided into Health & Fitness, Personal Assistance, Entertainment, and Smart Home integration. The Health & fitness segment held the dominant share in 2024, accounting largest market share for AI in Smartphone and Wearable industry.

• Health & Fitness: The Health & fitness segment growth can be attributed to the increasing adoption of AI-powered features in smartphones and wearables that enable advanced health monitoring and fitness tracking. This segment is driven by rising consumer awareness of personal health and wellness, coupled with the growing demand for personalized fitness solutions, has significantly boosted the adoption of AI in health & fitness
• Personal Assistance: The Personal Assistance is dominated segment for forecast period in AI in Smartphone and Wearable market industry. The segment is driven by the widespread adoption of AI-powered virtual assistants in smartphones and wearables, such as Siri, Google Assistant, and Alexa. The Virtual assistance with capabilities like voice recognition, natural language processing, and context-aware interactions, personal assistants have become indispensable tools for managing daily tasks, setting reminders, answering queries, and providing tailored updates on weather, news, and traffic

End User Industry Overview

The End User Industry segment is divided into Healthcare, Fitness & Sports, Retail & Fashion, Manufacturing & Industry, Education, Military & Defense, Entertainment & Gaming. The Healthcare segment held the dominant share in 2024, accounting for significant AI in Smartphone and Wearable industry share of 23.20%.

• Healthcare: The healthcare segment dominated the AI in Smartphone and Wearable market driven by the widespread adoption of AI-enabled smartphones and wearables that are transforming healthcare delivery and personal health management. Moreover, AI-driven health apps on smartphones provide personalized fitness plans, medication reminders, and mental health support, enhancing overall wellness
• Fitness & Sports: The Fitness & Sports is dominated segment for forecast period in AI in Smartphone and Wearable market industry. The segment is driven by consumers increasingly seek personalized solutions to monitor and improve their health and performance. The Fitness & Sports segment is dominated in AI in Smartphone and Wearable market due to fitness enthusiasts, athletes, and health-conscious individuals who rely on wearables for accurate metrics and performance tracking

AI in Smartphone and Wearable Market Regions and Countries:

North America

• U.S.
• Canada
• Mexico

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Nordic Countries
• Benelux Union
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• South-East Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Rest of Latin America

The Middle-East and Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of Middle-East Africa

Regional Overview

In 2024, the AI in Smartphone and Wearable market size of the North America is USD 26.02 Billion.

North America AI in Smartphone and Wearable industry report is driven by adoption of advanced technologies, consumer demand for innovative products, and robust investments in AI in Smartphone and Wearable market. Additionally, the region’s consumers have a higher disposable income compared to global averages, allowing them to invest in premium AI-enabled devices. The growing emphasis on health and personal fitness in AI in Smartphone and Wearable market industry, trends that have been significantly accelerated by the integration of AI in wearable devices.

U.S. AI in Smartphone and Wearable Market Analysis

In 2024, the U.S. led the North America AI in Smartphone and Wearable Market, driven by high consumer demand for advanced technology and innovation in the wearable tech space.The U.S. AI in Smartphone and Wearable market benefits from a strong presence of major tech companies such as Apple, Google, and Fitbit, which have been at the forefront of integrating artificial intelligence into smartphones and wearable devices.Additionally, the U.S. has a robust ecosystem of healthcare providers, fitness influencers, and mobile app developers, further propelling the use of AI in smartphones and wearables for improving health outcomes and enhancing user experience.

Asia Pacific AI in Smartphone and Wearable Market Analysis

The Asia Pacific AI in Smartphone and Wearable industry report is set for significant growth with over the forecast period fueled by factors such as rapid technological advancements, increasing disposable incomes, and a growing emphasis on health and fitness. The region also sees widespread use of AI-powered voice assistants, enhanced by AI capabilities to support a seamless user experience. Additionally, government initiatives, such as those promoting smart cities and digital health technologies, further boost the adoption in AI in Smartphone and Wearable market.

Based on the provided market data, Vantage Market Research offers customizations in the reports to meet the specific needs of clients.

AI in Smartphone and Wearable Market Trends

1. Increasing AI Integration in Devices: AI is becoming a standard feature in smartphones and wearables, enabling advanced functionalities such as voice recognition, facial recognition, and real-time health monitoring. Machine learning and data analytics are being incorporated to enhance user experiences, offering personalized recommendations, and improving device efficiency
2. Health and Fitness Focus: AI-powered wearables, such as smartwatches and fitness trackers, are in high demand due to their ability to monitor vital health metrics like heart rate, sleep patterns, stress levels, and physical activity. With an increasing focus on health and wellness, consumers are turning to these AI-driven devices to manage and improve their well-being
3. Enhanced User Experience with AI Assistants: Virtual assistants powered by AI, such as Apples Siri, Google Assistant, and Amazon Alexa, are playing a significant role in smartphones and wearables. These AI assistants are continuously improving, offering more accurate responses, better task automation, and seamless integration with other smart devices, enhancing the overall user experience

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Market Dynamics

Driver of AI in Smartphone and Wearable Market

Advancement in AI Technology

Advancements in AI technology are a significant driver in the AI-powered AI in Smartphone and Wearable market, enabling devices to offer increasingly sophisticated and personalized experiences. Machine learning algorithms allow wearables and smartphones to analyze vast amounts of data in real-time, providing users with tailored health insights, performance tracking, and predictive recommendations. Natural language processing (NLP) has improved voice recognition capabilities, making virtual assistants more intuitive and responsive. Furthermore, developments in computer vision, edge computing, and on-device AI processing enhance functionality by enabling features like facial recognition, gesture control, and real-time health monitoring without relying on cloud processing.These innovations have also led to more power-efficient devices, extending battery life while maintaining high performance.

Opportunity of AI in Smartphone and Wearable Market

Growing Demand for Enhanced User Experience

The integration of AI in smartphones and wearables has the potential to revolutionize the user experience creates an opportunity in AI in Smartphone and Wearable market. AI-powered features such as proactive assistance, personalized recommendations, and seamless interaction enhance the overall usability and convenience of these devices. By leveraging AI, manufacturers can create devices that adapt to individual preferences, anticipate needs, and provide a more intuitive and engaging experience. This focus on user experience will continue to drive the growth of the AI in Smartphone and Wearable Market Industry.

AI in Smartphone and Wearable Market Companies List:

• Amazon.com Inc
• Apple Inc
• Google LLC
• Samsung Electronics Co. Ltd.
• Microsoft Corporation
• Sony Group Corporation
• Lenovo Group Limited
• LG Corporation
• Intel Corporation
• Qualcomm incorporated
• Nokia Corporation
• TCL Technology Group Corp.

Competitive Landscape

The AI in Smartphone and Wearable market report is characterized by the presence of both established players and emerging companies, each strive for market share through product innovation, strategic partnerships, and geographic expansion. Industry giants like Amazon.com Inc, Apple Inc, Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Sony Group Corporation, Lenovo Group Limited, LG Corporation, Intel Corporation, Qualcomm incorporated, Nokia Corporation, TCL Technology Group Corp. Manufactures are emphasizing continuous product innovation, building integrated ecosystems, and focusing on health and wellness, with a growing emphasis on personalization and affordability to appeal to a wider consumer base.

Recent Market Developments

Noise acquires women’s wellness platform SocialBoat

• In May 2024, Leading smartwatch and connected lifestyle brand, Noise announced that it has acquired AI-powered women’s wellness platform SocialBoat for an undisclosed amount. This strategic move is part of Noise’s broader strategy to advance innovation in smart rings

Introducing Motorola’s Groundbreaking Wearable Smartphone with Integrated AI

• In November 2023, Motorola unveils a groundbreaking smartphone with a flexible display that can transform into a wearable bracelet, watch or tablet, powered by integrated AI for a highly personalized experience