Business

Consumer AI market set to soar to 1.5 trillion USD by 2035 amid rapid adoption

Thursday, 27 November 2025 7:49AM UTC

The consumer-facing AI products sector is projected to expand exponentially over the next decade, driven by innovative devices, infrastructure investments, and increasing consumer demand, transforming daily life and shaping the global economy.

The consumer-facing artificial intelligence (AI) products market is poised for a transformative decade, with projections indicating remarkable expansion from USD 118.7 billion in 2025 to a staggering USD 1.5 trillion by 2035. This growth trajectory, boasting a compound annual growth rate (CAGR) of 29%, illustrates a profound shift in how AI integrates into everyday consumer activities, including smart home automation, healthcare, entertainment, retail, and mobility.

Central to this surge is the escalating adoption of AI-powered devices such as virtual assistants, AI fitness wearables, and intelligent home systems. These technologies cater to consumers’ growing preference for personalised, intuitive devices capable of autonomous decision-making, thus enhancing convenience and everyday experiences. The Smart Home and IoT Devices segment leads the market with 38% share, driven by features like voice-controlled home automation, predictive energy management, and real-time security monitoring. Simultaneously, healthcare and wellness applications hold 28% of the market, supported by continuous health monitoring tools and medical-grade wearable devices as preventive health awareness rises globally. The regional landscape reveals China, India, and Germany as top growth hubs, propelled by heavy investments in AI, rapid digitalisation, and leading R&D initiatives.

Broader market analysis complements these findings, with global generative AI spending forecasted to reach $644 billion in 2025, a surge of over 76% from 2024, according to Gartner. This uptick is largely attributed to advances in foundational AI models and a scaling up of AI product demand. Meanwhile, AI-powered personal computers are rapidly gaining traction, forecasted to constitute 31% of the global PC market by the end of 2025 and anticipated to become standard by 2029, reflecting intensified enterprise and consumer demand.

The commercial dimension of AI adoption is further emphasised by insights from Dell Technologies, which has nearly doubled its long-term revenue growth expectations to 7-9%, driven by soaring sales of AI servers. This underscores the broader enterprise ecosystem’s reliance on AI infrastructure to support expanding AI applications across sectors.

Smartphone markets are also witnessing notable AI-driven growth. IDC has revised its 2024 global smartphone shipment forecast upward to 1.23 billion units, citing consumer enthusiasm for AI-enhanced devices, particularly premium models featuring advanced AI capabilities. This enthusiasm reflects a broader consumer electronics trend where AI integration is a major differentiator and growth catalyst.

The industry’s competitive field is dominated by tech giants such as Apple, Google, Amazon, Samsung, Microsoft, Meta, Sony, Tesla, Huawei, Xiaomi, and iRobot, all investing heavily in AI R&D, innovation, and ecosystem expansion. Each player focuses on niche strengths, Apple with its privacy-centric AI, Google with natural language processing leadership, and Amazon in smart home automation, for example.

Looking beyond consumer products, major forecasts indicate vast economic disruptions fueled by AI. NVIDIA projects up to $4 trillion in AI infrastructure spending by 2030, dubbing AI the advent of a new industrial revolution. PwC anticipates AI could add $15.7 trillion to the global economy by 2030, while McKinsey estimates generative AI alone could generate trillions in industry value. Gartner expects global AI expenditure to surpass $2 trillion by 2026. Despite some caution regarding market exuberance, industry leaders like NVIDIA’s CEO Jensen Huang remain confident in sustained AI investment momentum, highlighting ongoing demand for cutting-edge AI chips and infrastructure.

In summary, the consumer-facing AI products market is on track to redefine how people engage with technology in daily life across multiple dimensions, convenience, personalization, and automation. This growing ecosystem is mirrored and supported by robust enterprise adoption and significant infrastructure investment, suggesting that AI’s influence will deepen considerably throughout this decade, not just in consumer markets but across the global economy as a fundamental driver of innovation and growth.

📌 Reference Map:

^[1] (Future Market Insights) - Paragraphs 1, 2, 3, 4, 5, 6, 7, 8
^[2] (Gartner) - Paragraph 3
^[3] (IT Pro) - Paragraph 4
^[4] (Tom's Hardware) - Paragraph 5
^[5] (Reuters, IDC) - Paragraph 6
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Source: Noah Wire Services

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https://www.gartner.com/en/newsroom/press-releases/2025-03-31-gartner-forecasts-worldwide-genai-spending-to-reach-644-billion-in-2025 - Gartner forecasts that worldwide generative AI (GenAI) spending will total $644 billion in 2025, marking a 76.4% increase from 2024. This growth is driven by advancements in foundational models and the rising demand for AI products. Despite challenges in initial proof-of-concept projects, investments in enhancing GenAI models' size, performance, and reliability are expected to continue through 2025 and 2026. CIOs are anticipated to focus on commercial off-the-shelf solutions for more predictable implementation and business value, reducing in-house development efforts.
https://www.itpro.com/hardware/ai-pcs-will-become-the-norm-by-2029-as-enterprise-and-consumer-demand-surges - AI-powered PCs are projected to comprise 31% of the global PC market by the end of 2025, with shipments expected to reach over 77 million units. This trend is anticipated to continue, with AI PCs expected to command a 55% share of the overall PC market by 2026. Gartner predicts that by 2029, AI PCs will become standard. Despite temporary adoption slowdowns due to tariffs and economic uncertainty, demand—especially from enterprises—is accelerating, driven by the increasing integration of edge-based AI capabilities.
https://www.tomshardware.com/tech-industry/dell-doubles-long-term-growth-expectations-due-to-surging-ai-demands - Dell Technologies has nearly doubled its long-term growth outlook, citing increased demand for AI servers. The company now expects annual revenue growth of 7-9%, up from a prior range of 3-4%. Adjusted earnings per share are forecast to grow at least 15% annually over the same period. This surge is fueled by booming sales of AI servers, which are expected to hit a $20 billion run-rate by 202 ... Key clients include large cloud providers and AI-focused firms like CoreWeave and xAI.
https://www.reuters.com/technology/idc-raises-annual-global-smartphone-shipments-forecast-genai-optimism-2024-08-27/ - IDC has increased its forecast for global smartphone shipments for 2024 from a 4% growth to a 5.8% growth, predicting 1.23 billion units. This upward revision is attributed to the recovery in consumer electronics demand and the appeal of new artificial intelligence (AI) features in smartphones. AI capabilities in premium models are expected to distinguish them in the market, particularly in key regions like the U.S. and China. IDC also predicts a 344% surge in GenAI smartphones, capturing 18% of the market by the end of 2024.
https://www.reuters.com/business/major-analyst-enterprise-forecasts-ai-market-2025-11-13/ - Major technology firms and analysts forecast vast growth in the artificial intelligence (AI) market, although their projections vary widely depending on the assumptions and measurements used. NVIDIA predicts up to $4 trillion in AI infrastructure spending by 2030, calling AI a new industrial revolution. AMD anticipates its data center chip market to expand to $1 trillion by 2030, fueled largely by AI. Broadcom foresees a $60–90 billion revenue opportunity from AI custom chips by 2027. Salesforce projects the AI-driven 'digital labor revolution' will create a market worth between several trillion up to $12 trillion. McKinsey estimates generative AI could deliver $2.6–$4.4 trillion in value across industries. PwC suggests AI could add $15.7 trillion to the global economy by 2030, split between productivity gains and consumption impact. Morgan Stanley posits that full AI adoption by S&P 500 firms may generate $920 billion in annual net benefit and increase market capitalization by up to $16 trillion. Gartner forecasts global AI expenditure to hit $1.5 trillion in 2025 and surpass $2 trillion in 2026. These estimates reflect AI's transformative economic potential across sectors.
https://www.reuters.com/business/nvidia-ceo-says-ai-boom-far-over-2025-08-28/ - Nvidia CEO Jensen Huang dismissed concerns about a slowdown in the artificial intelligence (AI) chip market, projecting a multi-trillion-dollar opportunity over the next five years. Despite Nvidia issuing a third-quarter revenue forecast that met expectations but failed to impress investors, Huang emphasized that AI investment remains in its early stages, describing it as the start of a new industrial revolution. He predicted $3 to $4 trillion in AI infrastructure spending by 2030, driven largely by major tech firms and data center operators (hyperscalers). While some industry voices, including OpenAI’s Sam Altman, have warned of over-enthusiastic investor sentiment, Nvidia remains confident, citing strong ongoing demand for both its high-end Blackwell and earlier-generation Hopper chips. The company highlighted a $650 million purchase of its H20 chip by a non-Chinese customer as evidence of robust sales. Huang also noted Nvidia could capture $35 billion from a $60 billion data center build-out. Despite recent market fatigue in AI stocks, investors like Raymond James and Globalt Investments point to Nvidia’s performance as proof that the AI boom still has significant momentum.

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Notes: The narrative presents projections for the consumer-facing AI products market, indicating a significant expansion from USD 118.7 billion in 2025 to USD 1.5 trillion by 2035, with a compound annual growth rate (CAGR) of 29%. This aligns with Gartner's forecast of worldwide AI spending reaching nearly $1.5 trillion in 2025. ([gartner.com](https://www.gartner.com/en/newsroom/press-releases/2025-09-17-gartner-says-worldwide-ai-spending-will-total-1-point-5-trillion-in-2025?utm_source=openai)) The report also highlights the integration of AI into consumer devices, such as smartphones and PCs, which is expected to drive substantial growth. ([gartner.com](https://www.gartner.com/en/newsroom/press-releases/2025-09-17-gartner-says-worldwide-ai-spending-will-total-1-point-5-trillion-in-2025?utm_source=openai)) However, the specific figures and projections in the narrative do not appear to be directly sourced from publicly available reports, suggesting that the content may be original or exclusive. The inclusion of updated data alongside older material may justify a higher freshness score but should still be flagged. The narrative includes references to various sources, such as Gartner and IDC, which are reputable organizations. However, the specific figures and projections in the narrative do not appear to be directly sourced from publicly available reports, suggesting that the content may be original or exclusive. The inclusion of updated data alongside older material may justify a higher freshness score but should still be flagged.

Artificial Intelligence
Consumer Technology
Market Growth