Technavio’s data reveals that the APAC AI in mobile apps market is expected to grow by USD 23.43 billion at a CAGR of 26.3% from 2024 to 2029. “In the dynamic and innovative landscape of mobile apps in the Asia Pacific (APAC) region, Artificial Intelligence (AI) is increasingly becoming a game-changer,” the report noted.
Market drivers
The convergence of advanced 5G network infrastructure and sophisticated smartphone hardware will drive the market growth in the forecast period.
5G networks in APAC offer faster download speeds, ultra-low latency and high bandwidth, essential for real-time AI applications.
Businesses are increasingly adopting generative AI for hyper-personalisation and enhanced user engagement. These advanced technologies help boost engagement and improve operational efficiency by offering personalised, intelligent services.
Moreover, there is strategic government support and investment in national AI ecosystems in the region, further contributing to market growth.
Market challenges
Regulatory fragmentation and data privacy concerns pose significant operational and compliance risks, especially for small to medium-sized enterprises and startups, potentially hindering market expansion and innovation.
“This fragmentation poses operational and compliance challenges, particularly for small to medium-sized enterprises and startups with limited legal resources. Companies in the region grapple with regulations covering data collection, processing, cross-border data transfer, and user consent. The lack of harmonisation necessitates a nuanced understanding of local regulations and significant investment in legal expertise,” the report noted.
Technical infrastructure disparities and talent shortages remain key challenges, potentially limiting the pace of AI adoption and requiring strategic investments in workforce development and infrastructure upgrades.
