AI Notebook Penetration Rate to Reach 20% by 2025, Predicts TrendForce

According to a recent report by TrendForce, the penetration rate of artificial intelligence notebooks is set to surge 20.4% by 2025, driven by the increasing demand for smarter, more efficient devices capable of handling complex tasks, enhancing user experiences, and boosting productivity.

The annual shipment of AI notebooks is forecasted to reach 173.45 million units in 2024, marking a year-over-year growth rate of 3.6%. Despite the current geopolitical challenges and high interest rates affecting the global notebook market, the sector is poised for significant growth due to the introduction of advanced AI models and improving economic conditions.

In the second half of 2024, new AI notebook models with sophisticated configurations are expected to hit the market. Initially priced between $1,099 and $1,699, these devices might face slow adoption due to their high cost amid an unstable economy. However, as AI applications mature, the demand for these high-performance notebooks is predicted to rise sharply.

The transition to AI notebooks is facilitated by advancements in AI chipsets from leading tech companies. Intel's Lunar Lake and AMD's Strix Point, unveiled at COMPUTEX, along with Qualcomm's Snapdragon X Elite, are setting new standards for AI PCs. These models offer substantial computational power and are capable of running smaller language models and generative AI applications, bridging the gap between cloud AI infrastructure and edge AI.

Windows on Arm (WoA) is expected to play a crucial role in the future development of AI notebooks. This platform is based on the Arm architecture and supports power conservation needs for mobile devices which offers better energy efficiency and performance. AI notebooks running on Qualcomm’s Snapdragon Elite and Plus, as well as the upcoming Arm chip co-developed by MediaTek and NVIDIA, are anticipated to significantly impact the market.

The rise of AI notebooks will drive an increase in average notebook DRAM capacity. TrendForce projects that the average NB DRAM capacity will grow from 10.5 GB in 2023 to 11.8 GB in 2024, with further increases expected in 2025 as more AI notebooks are equipped with at least 16 GB of DRAM. This trend will likely accelerate the adoption of power-efficient, high-frequency memory solutions such as LPDDR over traditional DDR memory.