Leading manufacturers of smartphones and wearables like Samsung, Apple, Huawei, Fitbit, etc., are using AI in smartphones and smart wearables to enhance customer experience. The smart wearable market is growing rapidly with an 8.3% YoY, and there were 27.9 million units of smart wearables shipped in 2018. AI is enhancing the capabilities of connected devices like smartphones and wearable by making them more efficient and intelligent. Technologies like machine vision, voice recognition, audio processing, and others are used in the new generation AI-enabled consumer electronics. 3% of smartphones sold in 2018 were AI-enabled and by the end of 2020, 35% smartphones are expected to be integrated with AI technologies. Technological progress in miniaturized electronics and mobile access to computational power are driving the growth of the wearable AI industry. According to our estimates, 85% of the AI wearables market is dominated by smartwatches and fitness bands in 2018 and by the end of 2023, the AI-enabled smartphones & wearables market is expected to witness ~30% CAGR.

Figure 1: Ecosystem Snapshot: AI in Smartphones and Wearables

Machine Learning, Computer vision, and Natural Language Processing (NLP) are expected to drive the penetration of AI in smartphone and wearable applications like virtual assistance, facial recognition, voice recognition, and others. AI-enabled smartwatches help in automating on/off settings, volume, fitness mode, and several other key parameters to ensure that viewers can operate them easily. These AI-enabled features have raised the global unit-share of smartwatches from 45 percent to 64 percent in the year 2018, which is expected to reach 70 percent by the end of the year 2019. Apple has launched its AI-enabled iPhone X, which has stimulating features like identifying images, performing searches based on photos clicked by users, and converting a person’s movement and voice into emojis in real time. Huawei has also launched AI-enabled devices which not only identify objects but can also auto-adjust the camera parameters to capture the best possible image. Samsung’s assistant software Bixby has a ‘Bixby Vision’ feature, which helps users identify an object/product and provides guidance for purchasing it at the best price and place.

Table 1: AI in Smartphones & Wearables: Segmentation

Components Products Technology Operating system Applications Micro Processors Smartphone & Tablet Predictive Maintenance/Self Diagnostics Android Predictive Maintenance/Self Diagnostics Memory Wearable Eyes glasses Machine learning iOS Fraud Reduction Storage smartwatches Deep learning Others Virtual Assistance FPGA Smart trackers NLP Network Operations & Monitoring Management GPU EarPods Computer Vision Security & Surveillance Camera HMD Predictive Analytics Sensors Others Others Connectivity IC Others Others

Global AI in Smartphone and Wearable Market

Artificial Intelligence (AI) has transformed the outlook of smartphone and wearables. Smartphones have been using AI for some time now. The combination of AI and 5G will facilitate the emergence of a new generation of devices. The latest smartphones and wearables have integrated cloud-based AI, along with built-in AI. The benefit of the on-device AI hardware is data privacy and security. Personal biometric data or other sensitive data can remain on the device and do not need to be sent over the internet for processing in the cloud. In terms of growth in Product, the smartwatch segment is driving the market with a CAGR of 15.0%, while the smartphone segment is well placed in terms of value. Key countries like China and the US are expected to drive maximum gains from AI in smartphones and wearables by the end of 2026. Revenue of the US in the consumer electronics segment amounts to US$74,316m in 2019, while the revenue generated in China amounts to US$128,240m in 2019. With the emergence of 5G network and AI, the US and China will double their revenue.

Figure 2: AI in Smartphone and Wearable Ecosystem: Market Statistics Glimpse

There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.

The major players operating in the Global AI in Smartphone and Wearable Market are as follows:

Table 2 AI in Smartphone and Wearable Ecosystem: Key Players

Company Ecosystem Positioning Total Revenue Industry Region Lenovo Product Manufacture $ 51.0 Billion Consumer Electronics Global Apple Product Manufacture $258.4 Billion Consumer Electronics Global Huawei Product Manufacture $105.1 Billion Consumer Electronics Global Xiaomi Product Manufacture $25.4 Billion Consumer Electronics Global Samsung Product Manufacture $211.2 Billion Consumer Electronics Global

Very few markets have interconnectivity with other markets like AI. Our Interconnectivity module focuses on the key nodes of heterogeneous markets in detail. Machine learning, Android/iOS, Sensors, Computer Vision, Smartphones markets are some of our key researched markets

Figure 3 –AI in Smartphone and Wearable Ecosystem Major Interconnectivities

Glance on Global AI in Smartphone and Wearable Market Trends:

Table 3: Global AI in Smartphone and Wearable Ecosystem: Key Trends

Trends Components Products Technology Operating System Impact on Market The machine learning-based trackers and smartwatches are used to predict the menstrual cycle of the women. That records the moods, PMS symptoms and takes the whole control on the health of women. These devices provide alerts of unknown health complications and length of periodic cycle by analyzing the fertility data. Wearable Machine learning 0.30% Voice enabled digital assistants to have created a disruption in the transportation & logistics industry, debuting in smartphones, workstations, smartwatches, vehicles and homes. Speech recognition embedded with natural language processing and machine learning has spread across several verticals such as transportation & logistics with the motive of bringing down the overall business costs, and improving efficiency Wearables NLP 0.40% Wearables in healthcare help gather patients' health data in real time with the help of IoT sensors attached with it. Sensor Wearable NLP 0.61% Trend 4 XX XX Trend 5 XX XX

Research Methodology

Figure 4 – Standard Research Methodology