Artificial Intelligence as a Service Market size was valued at USD 9.52 billion in 2023 and is set to cross USD 776.94 billion by the end of 2036, expanding at more than 40.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of artificial intelligence as a service is estimated at USD 12.59 billion.
The growth of the market can be attributed to the growing investment in AI technology, along with the rising revenue generated by the AI industry. For instance, it was observed that AI industry generated a revenue of around USD 325 billion in 2021. Moreover, increasing number of enterprises and competition, has led to the surge in integration of artificial intelligence (AI) technology in applications and services. Furthermore, the need for reduce operational cost is another major factor estimated to boost the adoption of artificial intelligence amongst the end-users. Meanwhile, AI is also gradually penetrating into everyday lives of the common people, in the form of digital assistants, making AI a necessity for the population, which is bound to increase the demand for AI assistance amongst businesses and institutions. Additionally, the growing adoption of cloud computing, and multi-cloud functioning, is projected to boost the market growth. For instance, cloud computing generated more than USD 390 billion revenue in 2021.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
40.3% |
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Base Year Market Size (2023) |
USD 9.52 billion |
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Forecast Year Market Size (2036) |
USD 776.94 billion |
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Regional Scope |
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The market is segmented by type into public cloud, private cloud, and hybrid cloud, out of which, the hybrid cloud segment is anticipated to hold the largest share in the global market over the forecast period on account of increasing demand for hybrid cloud as it is a combination of on-premise infrastructure, public, and private cloud computing services.
Our in-depth analysis of the global market includes the following segments
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By Type |
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By Organization Size |
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By End-User Industry
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On the basis of geographical analysis, the global artificial intelligence as a service market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific industry is poised to dominate majority revenue share by 2036, impelled by growing demand for AI-based services in the manufacturing, telecom, and healthcare sectors, along with rising adoption of advanced technologies.
North America Market Analysis
The market in the North America region is anticipated to gain the largest market share throughout the forecast period on the back of presence of major market players in the region, along with availability of advanced technology in the region.
October, 2021: SAS to collaborate with European Banking Federation to provide AI services for banks worldwide to enable AML and fight financial crime.
June, 2020: Wipro limited to collaborate with IBM Corporation to provide security across public or private cloud and on-premises IT environment.
Author Credits: Abhishek Verma
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