U.S. On-Device AI Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Deployment (Cloud, On-premises), By Technology (On-Device AI, Natural Language Processing), By Device Type, By Vertical, And Segment Forecasts, 2025 - 2030

U.S. On-Device AI Market Size & Trends

The U.S. on-device AI market size was estimated at USD 5,824.7 million in 2024 and is projected to grow at a CAGR of 29.2% from 2025 to 2030. The rising concerns around privacy and data security largely drive the growth of the on-device AI market in the U.S. As awareness of data breaches and potential misuse continues to increase in the U.S., both consumers and businesses are opting for AI solutions that process data locally on devices instead of through cloud-based systems. This method helps safeguard sensitive information of consumers as well as of businesses such as personal preferences and biometric details by keeping it secured within the device. For instance, Apple’s Face ID, which shows and explains how on-device AI can provide strong data protection on the Apple devices while enabling advanced features for consumers and businesses who are using their products.

Another key factor driving the on-device AI market is the growing need for real-time processing. Applications like voice assistants, image recognition, and augmented reality depend on instant response times, which cloud-based AI often struggles to provide due to latency and network reliability issues. On-device AI addresses this challenge by enabling seamless performance even in areas with poor or no internet connectivity, thereby improving the overall user experience. Moreover, innovations in semiconductor technology such as dedicated AI chips and neural processing units (NPUs) have made it feasible to run advanced AI models directly on mobile and edge devices while minimizing power consumption.

The widespread adoption of IoT and smart devices in the U.S. is another major factor driving the growth of the on-device AI market. With an increasing number of connected devices in homes and workplaces, there is a rising demand for local data processing to minimize reliance on the cloud and enhance responsiveness. Additionally, U.S. consumers are placing greater focus on personalized experiences, which on-device AI enables by analyzing user behavior directly on the device. U.S. remains at the forefront of developing and implementing advanced on-device AI technologies to meet these demands.

U.S. On-Device AI Market Report Segmentation

This report forecasts revenue growth at U.S. and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. on-device AI market based on component, deployment, technology, device type, and vertical.

• Component Outlook (Revenue, USD Million, 2018 - 2030)
• Hardware
• Software
• Deployment Outlook (Revenue, USD Million, 2018 - 2030)
• Cloud
• On-premises
• Technology Outlook (Revenue, USD Million, 2018 - 2030)
• On-Device AI
• Natural Language Processing
• Computer Vision
• Speech Recognition
• Device Type Outlook (Revenue, USD Million, 2018 - 2030)
• Smartphones & Tablets
• Wearables
• Smart Home Devices
• Automotive
• Others
• Vertical Outlook (Revenue, USD Million, 2018 - 2030)
• Consumer Electronics
• Automotive
• Healthcare
• Retail
• Manufacturing
• Security & Surveillance
• Others