The market size in the 'Generative AI' segment of the artificial intelligence market in Australia was forecast to continuously increase between 2025 and 2031 by in total *** billion U.S. dollars (+****** percent). After the tenth consecutive increasing year, the market size is estimated to reach ** billion U.S. dollars and therefore a new peak in 2031. Notably, the market size of the 'Generative AI' segment of the artificial intelligence market was continuously increasing over the past years.Find further information concerning the number of AI tools users in the 'AI Tool Users' segment of the artificial intelligence market in Spain and the market size in the artificial intelligence market in the United States.The Statista Market Insights cover a broad range of additional markets.

Australia AI as a Service Market was valued at USD 429.66 Million in 2023 and is expected to reach USD 1270.74 Million by 2029 with a CAGR of 19.63% during the forecast period.

Market Size statistics on the Artificial Intelligence industry in Australia

The Australia AI market size was valued at USD 5.36 Million in 2024. The market is further projected to grow at a CAGR of 16.60% between 2025 and 2034, reaching a value of USD 24.90 Million by 2034.

The industry has seen surging growth in recent years. Strong AI investments in the mid- to late 2010s saw a raft of new companies enter the industry. Many of these companies have now entered commerciality and begun generating meaningful revenue. ChatGPT’s public release has also supported the industry, pushing AI’s capabilities into the public consciousness and encouraging companies to actively explore how they can integrate AI into their operations. Overall, industry revenue is expected to grow an annualised 15.6% over the five years through 2024-25, to reach $3.4 billion. Negative or extremely thin margins over the past decade have largely been a symptom of success. Strong investment growth in the 2010s drove up enterprise numbers, which led to average industry margins declining rapidly. AI firms have long development cycles and often take years to become commercial, relying largely on investment funding to support their operations. A glut of new companies has led to negative or extremely weak margins since 2013-14, but margins are set to start improving in 2024-25 as more AI companies enter the commercial phase of their development The industry’s demand base is expanding, driven by AI products’ increased accessibility and the excitement stoked by ChatGPT’s launch. Rapid AI technology advancements have also improved AI products’ functionality and applicability, creating a rapidly expanding total addressable market. These factors are forecast to support strong growth over the coming years, but a high interest rate environment, elevated inflation and economic uncertainty are projected to partially offset this growth. These economic headwinds may slow the investment funding that Australia’s AI industry is highly reliant on. Overall, industry revenue is projected to grow at an annualised 13.1% through the end of 2029-30, to reach $6.3 billion.

Australia Artificial Intelligence (AI) Optimised Data Center Market Report is Segmented by Data Center Type (CSP Data Centers, Colocation Data Centers, Others (Enterprise and Edge)), by Component (Hardware, Software Technology, Services - (Managed Services, Professional Services, Etc. ). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).

In Australia Healthcare AI Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision-making and business growth.

In 2023, the Australia AI CCTV Market reached a value of USD 541 million, and it is projected to surge to USD 2611.1 million by 2030

Australia Artificial Intelligence Market was valued at USD 3.06 Billion in 2023 and is expected to reach USD 8.89 Billion by 2029 with a CAGR of 19.27% during the forecast period.

In Australia AI Chipset Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision.

In an April 2025 conducted survey into attitudes toward artificial intelligence (AI) in Australia, around ** percent of respondents said they expected AI to have a positive impact on the job market in the next three to five years. In comparison, almost ** percent of those surveyed expected AI to have a negative impact on employment and job opportunities.

The Australia Generative AI market is expected to exceed USD 1.55 billion by 2030, driven by enterprise AI integration.

Australia Generative AI Market growth is driven by applications ranging from marketing and entertainment to healthcare and software development, generative AI is redefining content creation, personalization, and productivity.

According to a May 2023 survey conducted among marketing professionals in the United States, United Kingdom, and Australia, ** percent of respondents thought generative artificial intelligence (AI) would have a transformative impact on analyzing both market and performance data.

According to a survey on the influencer marketing industry in Australia that was conducted in February 2023, about ** percent of respondents claimed that they would use artificial intelligence or machine learning to identify the most effective influencers for a certain brand or campaign. The second most popular intention was locating and distributing relevant content.

In a survey conducted in 2021, ** percent of respondents stated that the United States was in the top three export destinations for artificial intelligence businesses in Australia. This was followed by the United Kingdom with ** percent of respondents stating it was a leading export destination.

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On-Device AI Market Size 2025-2029

The on-device AI market size is forecast to increase by USD 160.24 billion at a CAGR of 34.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for enhanced data privacy and security. With the rise of data breaches and privacy concerns, there is a strong push for AI solutions that can process data locally, without the need for cloud storage or transmission. Another key trend in the market is the emergence of on-device generative AI and small language models. Data security and privacy concerns are being addressed through secure data preprocessing and cloud integration. However, the market faces challenges related to power consumption and thermal management constraints.
Companies seeking to capitalize on the opportunities in the market must focus on developing efficient algorithms and hardware solutions to address these challenges. Additionally, collaboration between hardware and software companies will be crucial to create optimized ecosystems for on-device AI applications. Overall, the market presents significant opportunities for innovation and growth, as well as challenges that require strategic planning and collaboration. The integration of microcontrollers in smartphones and smart home devices is enabling edge computing and artificial intelligence capabilities. As AI models become more complex, they require significant computational resources, which can lead to increased power usage and heat generation.

What will be the Size of the On-Device AI Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the market, deployment automation plays a crucial role in streamlining the AI model deployment process. Regulatory compliance and maintenance requirements are key considerations, necessitating robust error handling mechanisms and power consumption analysis. With the integration of artificial intelligence, machine learning, and wireless connectivity, MCUs are becoming more powerful and versatile, enabling on-device AI and privacy protection. Data preprocessing techniques and hardware design considerations are essential for optimizing AI inference speed. Software development tools facilitate upgrades and algorithm selection, while scalability challenges and system integration aspects require careful planning.

Ethical considerations, data augmentation strategies, and security vulnerabilities are critical areas of focus for ensuring responsible AI implementation. Performance benchmarking and model accuracy metrics aid in model monitoring, and edge AI frameworks enable application development. Privacy concerns and device compatibility issues are ongoing challenges, necessitating ongoing innovation in AI technology. Context-aware computing and on-device anomaly detection are essential components of on-device AI, driving the need for real-time data processing and low-power AI algorithms.

How is this On-Device AI Industry segmented?

The on-device AI industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  Hardware
  Software
  Services


Technology

  7 nm
  10 nm
  20 to 28 nm


Application

  Smartphones
  Wearables
  Smart speakers


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The Hardware segment is estimated to witness significant growth during the forecast period. The market is witnessing significant advancements, with a focus on enhancing efficiency and preserving privacy. Context-aware computing and real-time data processing are becoming essential, leading to the adoption of on-device anomaly detection and real-time object recognition. Edge computing hardware, including GPUs and AI accelerator chips, enable real-time processing and deep learning inference. Neural network compression and privacy-preserving AI are crucial for implementing embedded machine learning models. FPGA-based acceleration and hardware acceleration units, such as Neural Processing Units (NPUs), are driving the market's growth. Low-power AI algorithms and power efficiency metrics are vital considerations for the development of on-device inference engines.

AI model versioning and over-the-air updates enable seamless integration and continuous improvement. Data security protocols and model lifecycle management are critical aspects of the market, addressing bandwidth constraints and ensuring secure model deployment. Distributed AI computing and e

Australia AI-Driven Combat Drones Market projected to witness strong growth over the forecast period from 2025 to 2031.

In Australia AI In Diagnostics Market, It is transforming the healthcare landscape by integrating artificial intelligence into diagnostic procedures to enhance accuracy, speed, and clinical decision-making.

The Australia and New Zealand Digital Transformation Market report segments the industry into By Type (Analytics, Artificial Intelligence and Machine Learning, Extended Reality (XR), IoT, and more), By End-User Industry (Manufacturing, Oil, Gas and Utilities, Retail & e-commerce, and more).