The on-device AI market in Italy is witnessing gradual traction, supported by the growing adoption of smart home devices, advanced automotive technologies, and industrial automation. A primary driver is Italy's push toward digital transformation across key sectors such as manufacturing and healthcare, where edge computing enhances real-time decision-making and data privacy. However, limited domestic semiconductor production and dependence on imported AI-capable chips act as a restraint. A significant trend in Italy is the integration of AI into embedded systems for smart appliances and wearable devices, aligning with consumer demand for privacy-preserving and latency-free applications. Moreover, government initiatives promoting Industry 4.0 and AI adoption in SMEs are opening new opportunities for local innovation. Despite moderate infrastructure growth, Italy’s on-device AI market is anticipated to grow at a CAGR of approximately 17.8% from 2023 to 2030.
TABLE - Italy On-device AI Market Size & Forecast By Component 2021-2033
| Component | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | CAGR (2024-2033) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Hardware | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Software | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Services | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Total | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX |
Source: Company Publications, Primary Interviews, and SR Analysis
TABLE - Italy On-device AI Market Size & Forecast By Application 2021-2033
| Application | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | CAGR (2024-2033) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Smartphones & Consumer Devices | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Automotive & Transportation | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Industrial IoT | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Healthcare | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Smart Home Devices | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX | XX |
| Total | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX | XXX |
Source: Company Publications, Primary Interviews, and SR Analysis