USD 12.67 billion
Artificial Intelligence As A Service Market Size, Share, and Growth Analysis
Artificial Intelligence As A Service Market By Technology (Machine Learning, Natural Language Processing), By Service Type (Software, Services), By Organization Size, By Deployment, By Vertical, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45I2071 |
Region:
Global |
Published Date: February, 2025
Pages:
197
|Tables:
59
|Figures:
78
Format -
Artificial Intelligence As A Service Market Insights
Artificial Intelligence As A Service Market size was valued at USD 12.67 billion in 2023 and is poised to grow from USD 17.36 billion in 2024 to USD 215.41 billion by 2032, growing at a CAGR of 37.0% during the forecast period (2025-2032).
Organizations around the world are rapidly driving new benefits and new capabilities from AI to new automation capabilities, improved usability and availability. Future opportunities lie in the development of more customizable AI solutions, improved data privacy, and integration with emerging technologies like the Internet of Things (IoT) and 5G.
Many government organizations, especially in emerging economies, also understand the benefits and power of AI; hence, they are extensively promoting AI-based infrastructure development. For instance, Niti Aayog in India launched a national program on AI, including R&D, with increased budget allocation for Digital India to promote AI, machine learning, 3D printing, and other technologies.
Artificial intelligence is concerned with the computer simulation of intelligent behavior. A third party provides artificial intelligence as a service (AIaaS) to the company. AIaaS provides a company with a comprehensive set of AI tools and services accessible through a cloud platform including automated voice, vision, and language recognition capabilities. These intelligent services enable a company to optimize its data and uncover new perspectives. AIaaS does not require any prior knowledge of how they work, allowing even those with no prior expertise with AI to use them.
US Artificial Intelligence As A Service Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Machine Learning
Fastest Growth
Natural Language Processing
Growth Rate
37.0% CAGR
Global Artificial Intelligence As A Service Market ($ Bn)
Country Share for North America Region (%)
To get more reports on the above market click here to Buy The Report
Artificial Intelligence As A Service Market Segments Analysis
Global Artificial Intelligence As A Service Market is segmented by Technology, Service Type, Organization Size, Deployment, Vertical and region. Based on Technology, the market is segmented into Machine Learning, Natural Language Processing, Computer Vision and Others. Based on Service Type, the market is segmented into Software and Services. Based on Organization Size, the market is segmented into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. Based on Deployment, the market is segmented into Public Cloud, Private Cloud and Hybrid Cloud. Based on Vertical, the market is segmented into BFSI, Healthcare, Retail, IT and Telecom, Manufacturing, Government, Energy and Utilities and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Technology
As per the global artificial intelligence as a service market forecast, the machine learning segment led the market with the largest revenue share of 40.7% in 2024, due to its ability to analyze vast datasets and deliver actionable insights, which has become crucial for businesses across sectors. Companies are increasingly leveraging ML algorithms for tasks like predictive analytics, recommendation systems, and fraud detection. The ease of integrating ML models with cloud-based platforms has further fueled its adoption, enabling businesses to deploy scalable, cost-effective solutions without the need for extensive infrastructure. In addition, advancements in automated machine learning (AutoML) have made it easier for companies to develop and deploy models, even with limited AI expertise.
The natural language processing segment is predicted to foresee a significant CAGR during the forecast period. Businesses are increasingly adopting NLP for customer service automation, sentiment analysis, and language translation, driven by the need to enhance user experiences and streamline operations. The rise of conversational AI, including chatbots and virtual assistants, has been a significant factor, as these tools rely on NLP to understand and respond to human language effectively. In addition, advancements in large language models (LLMs) have improved the accuracy and versatility of NLP solutions, making them more accessible to companies of all sizes. This surge in demand is propelling rapid market growth within the segment.
Analysis by Service Type
As per the global artificial intelligence as a service market analysis, the software segment accounted for the largest market revenue share of 77.6% in 2024. Companies are investing in AI software to enhance data analytics, automate business processes, and improve decision-making across sectors like healthcare, finance, retail, and manufacturing. The growth of cloud-based software platforms has made it easier for businesses to deploy AI tools without the need for extensive infrastructure, driving widespread adoption. In addition, advancements in AI software development, such as AutoML and pre-trained models, have simplified the integration and customization of AI solutions, enabling businesses to implement and scale AI capabilities quickly.
The services segment is predicted to foresee a significant CAGR during the forecast period. As businesses increasingly adopt AI, many lack the in-house expertise to implement and scale these technologies effectively. AI service providers offer critical consulting, integration, and maintenance services, helping companies navigate the complexities of AI deployment. In addition, the demand for custom AI solutions tailored to specific industry needs has led to a surge in professional services, including training, data management, and model tuning. This trend is further driven by the growing focus on AI ethics, data privacy, and compliance, where expert guidance is essential, fueling growth in the services segment.
Global Artificial Intelligence As A Service Market By Technology (%)
To get detailed analysis on other segments, Request For Free Sample Report
Artificial Intelligence As A Service Market Regional Insights
As per the artificial intelligence as a service market outlook, North America is dominating with the largest revenue share of 46.2% in 2024. North American companies are at the forefront of AI adoption, leveraging AIaaS solutions to enhance operational efficiency, drive innovation, and improve the customer experiences. The presence of major cloud service providers and AI startups fosters a competitive environment that accelerates the development and deployment of AI technologies. In addition, industries such as healthcare, finance, and retail are increasingly integrating AIaaS to streamline processes and gain insights from large datasets.
The market in the Asia Pacific region is anticipated to register at the fastest CAGR over the forecast period, driven by rapid industrialization and the increasing adoption of digital technologies across various sectors. Countries like China, India, and Japan are heavily investing in AI research and development, aiming to enhance productivity and innovation. The proliferation of startups and tech companies in APAC is accelerating the development and deployment of AIaaS solutions, making them more accessible to businesses of all sizes. The market in the Asia Pacific region is anticipated to register at the fastest CAGR over the forecast period, driven by rapid industrialization and the increasing adoption of digital technologies across various sectors. Countries like China, India, and Japan are heavily investing in AI research and development, aiming to enhance productivity and innovation.
Global Artificial Intelligence As A Service Market By Geography
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Artificial Intelligence As A Service Market Dynamics
Artificial Intelligence As A Service Market Drivers
Cloud-Based Solutions in AI Services Drive the Market Growth
-
A large amount of data is organized by the AI, so this helps to maintain standard records and get the data when necessary. The use of cloud computing solutions provides advantages such as a low amount of cost associated and also better dependability. The use of cloud computing in AI as a service also shows advantages to the organization as it removes the employment of the maintenance teams for IT. The growing demand for the services presented by various dealers in the form of payment. These payments help in the case of cost associates as the payment is made dependent on the use of the company. The above factors are anticipated to grow the market value for artificial intelligence as a service market.
Increasing Digital Transformation across Industries
-
As businesses around the world experience rapid digital transformation, the demand for AI-powered solutions to improve efficiency, automate processes, and improve decision-making. AIaaS providers play a key role in providing scalable on-demand solutions to meet evolving business needs. The increasing adoption of artificial intelligence as a service (AIaaS) is due to its cost-effectiveness. Companies can access advanced AI technologies without having to invest heavily in infrastructure or business expertise.
Artificial Intelligence As A Service Market Restraints
Lack of Skilled and Experienced Professionals
-
The lack of skilled and experienced professionals is anticipated to affect the global artificial intelligence as a service industry during the projected period. The artificial intelligence field is relatively new in the business arena. The rising digitization enabled AIaaS to emerge considerably. However, the skill development or experience required to fully benefit from the AIaaS solution is expected to take time and effort. The practical learning, training, and certifications program provided by the AIaaS platforms is expected to help the growth of skilled professionals in the field, helping to reduce the talent gap in the global market during the forecast period.
Data Privacy and Security Concerns
-
One of the main challenges in the adoption of artificial intelligence as a service (AIaaS) is the fear of data privacy and security. They face a serious risk of data breach and unauthorized access to this information that no longer requires comply with strict data protection regulations such as GDPR, HIPAA, and CCPA because companies rely on third-party cloud platforms to process and store sensitive data.
Request Free Customization of this report to help us to meet your business objectives.
Artificial Intelligence As A Service Market Competitive Landscape
The competitive landscape of the artificial intelligence as a service market is characterized by a host of global technology giants and emerging players, each vying for a major share in the rapidly expanding segment. These companies are focused on the strategic partnerships, acquisitions and ongoing innovations to enhance their service offerings and expand their customer base.
In April 2022, Ernst & Young Global Limited, a multinational professional service partnership headquartered in London, England, acquired Gensquared Inc. It acquired a company that uses a business-centric approach to help enterprises solve their most challenging data and analytics problems. The merger is intended to strengthen EY Canada's data, analytics, and AI practice, helping to increase resources and talent while expanding the company's range of data and technology service offerings.
Top Players in Artificial Intelligence As A Service Market
- Amazon Web Services (USA)
- IBM Corporation (USA)
- Microsoft Corporation (USA)
- Google LLC (USA)
- Salesforce (USA)
- Baidu, Inc. (China)
- Intel Corporation (USA)
- SAP SE (Germany)
- SAS Institute (USA)
- BigML (USA)
- Automation Anywhere, Inc. (USA)
- H2O.ai (USA)
- DataRobot (USA)
- Oracle Corporation (USA)
- Alibaba Cloud (China)
- Tencent Cloud (China)
- Infosys Limited (India)
- Wipro Limited (India)
- Tata Consultancy Services (TCS) (India)
Artificial Intelligence As A Service Market Recent Developments
- In October 2024, Singtel, the leading telecom group based in Singapore, launched RE:AI.
- In September 2024, Deloitte Touch Tohmatsu Limited, a British multinational management company, announced the release of AI Factory as a project.
- In September 2024 Salesforce, Inc. unveiled an AI-powered innovation for its Service Cloud, designed to optimize customer and business solutions. The company highlighted its efforts to expand its comprehensive AI-powered service cloud solutions, ensuring that customers, employees and HR professionals have access to critical information 24/7, and delivering faster and cost-effective case resolution study.
Artificial Intelligence As A Service Key Market Trends
- Rise of AI Microservices: The demand for advanced technological solutions such as artificial intelligence, machine learning, computer vision, and deep learning is rising across industries. As the implementation of AI solutions is on the rise, the demand for AI microservices is increasing among companies to meet specific requirements in operations. The AI microservices deliver tailored AI solutions to companies based on specific business needs.
- Increasing Demand for Predictive and Analytics Solutions: The increasing demand for predictive and analytics solutions would drive artificial intelligence as a service market. AIaaS refers to outsourcing artificial intelligence (AI) computational and analytical capabilities to third-party service providers offering AI solutions and tools over the Internet. Businesses across the various industries recognize the potential benefits of integrating AI into their operations with advancements in AI technology.
Artificial Intelligence As A Service Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, artificial intelligence as a service market is experiencing significant growth, driven by the increasing integration of AI technologies across various sectors. The global artificial intelligence as a service market trend is further fueled by the rising adoption of multi-cloud architectures and the demand for predictive and analytics solutions. As businesses strive to enhance efficiency, reduce the operational costs, and improve customer experiences, AIaaS offers a scalable and cost-effective solution by providing cloud-based AI capabilities.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 12.67 billion |
| Market size value in 2032 | USD 215.41 billion |
| Growth Rate | 37.0% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence As A Service Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence As A Service Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Artificial Intelligence As A Service Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence As A Service Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence As A Service Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence As A Service Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
USA (+1) 351-333-4748
