IDC: It is expected that DeepSeek will significantly drive the growth of the terminal market and accelerate the market penetration of AI terminals.

IDC released a document stating that DeepSeek, as an AI application with breakthrough technology, has driven the intelligent upgrade of terminal devices through its open-source nature and efficient algorithm optimization, bringing new impetus to future terminal technology innovation and market growth. The impact of DeepSeek on the size of the terminal market will gradually play a significant role in driving growth over the next 2-5 years, with terminal manufacturers connecting to DeepSeek to enhance the intelligence level of their devices through natural language processing and multimodal reasoning capabilities, enabling smoother voice interactions and more intelligent automation control, and accelerating the implementation of AI terminal applications. IDC Observations and Key Points 1. The impact of DeepSeek on the size of the terminal market will gradually play a significant role in driving growth over the next 2-5 years IDC's latest data predicts that in the Chinese market, the compound annual growth rates of PC, tablet, and smartphone shipments over the next five years will reach 2.6%, 1.0%, and 1.3% respectively. With terminal manufacturers such as Huawei, Lenovo, Honor, OPPO, and vivo connecting to DeepSeek, the intelligence level of terminal devices will be enhanced through natural language processing and multimodal reasoning capabilities, enabling smoother voice interactions and more intelligent automation control, and accelerating the implementation of AI terminal applications. 2. DeepSeek facilitates the deployment of bottom-layer model standardization on the terminal side, promoting compatibility to drive the construction of the terminal-side AI ecosystem. DeepSeek, with its lightweight advantages, can better adapt to terminal devices with limited hardware resources compared to the cloud, reducing the storage and computational requirements of models, providing more possibilities for the standardization of bottom-layer models on terminal devices. Through model optimization, software-hardware coordination, cross-platform adaptation, and other technical means, DeepSeek significantly enhances the compatibility of terminal-side deployment. In addition, its lightweight versions can adapt to a variety of hardware from low-end to high-end chips, further promoting the construction of the terminal-side AI ecosystem. 3. DeepSeek will drive the scenario-based development of terminal devices, especially in mobile office, education, and gaming scenarios. As a powerful multimodal AI model, DeepSeek is having a profound impact on the office, education, and gaming scenarios in the terminal market. In the mobile office scenario, DeepSeek integrated into terminal devices significantly improves the intelligence level and efficiency of office software, including but not limited to grammar correction, document content generation, information organization, and meeting schedule management. In the education and learning scenario, DeepSeek, through the combination of terminal devices and software platforms, can help achieve personalized learning paths, automatic assignment grading, the creation of virtual labs, intelligent question bank management, and other functions. In the gaming scenario, DeepSeek's multimodal interactive capabilities can provide players with a richer gaming experience; it can also be used in the game development process to help developers quickly generate game content and optimize game design. 4. DeepSeek drives down the development costs of large models, accelerating the market penetration of AI terminals. DeepSeek's open-source nature and low-cost high-performance advantages significantly reduce the barriers for enterprises to enter the AI terminal field. Especially for small and medium-sized enterprises that do not need to form large technical teams or purchase high-end hardware, they can quickly connect to and apply DeepSeek models. More participating vendors entering the AI terminal field will facilitate more technological innovations in the market. In addition, the rise of DeepSeek has led to an overall reduction in the charging standards for AI models in the industry. This price decline not only reduces the development costs of terminal devices but also accelerates the popularization of AI technology. Pan Xuefei, Research Director of IDC China, believes that DeepSeek, with its support for multimodal interaction and efficient reasoning, can significantly drive the AI upgrade and market penetration of more intelligent terminal devices by reducing the development costs of large models and optimizing deployment technologies on the terminal side. Especially in home devices such as smartphones, smart speakers, and appliances, PCs, and smart glasses, with the advantages of lightweight and optimized terminal deployment, through multimodal interaction methods such as voice and image, DeepSeek provides users with a more natural interaction experience.