Artificial Intelligence as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Report Covers AI As A Service Market Analysis and It is Segmented by Type of Cloud (public, Private, Hybrid), by Organization Size (small and Medium Enterprises, Large Enterprises), by End-User Industry (BFSI, Retail, Healthcare, IT and Telecommunications, Manufacturing, Energy), and by Geography (North America, Europe, Asia-Pacific, Latin America, The Middle East, and Africa). The Market Sizes and Forecasts are Provided in Terms of Value in USD for all the Above Segments.

Artificial Intelligence as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Artificial Intelligence as a Service (AIaaS) Market Size

AI-as-a-Service Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 20.64 Billion
Market Size (2030) USD 98.82 Billion
CAGR (2025 - 2030) 36.78 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

AI-as-a-Service Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Artificial Intelligence as a Service (AIaaS) Market Analysis

The AI-as-a-Service Market size is estimated at USD 20.64 billion in 2025, and is expected to reach USD 98.82 billion by 2030, at a CAGR of 36.78% during the forecast period (2025-2030).

With the increasing number of enterprises and competition, companies are rigorously trying to integrate artificial intelligence (AI) technology into their application, business, analytics, and services. Moreover, companies are trying to reduce their operational cost to increase profit margins, due to which Artificial Intelligence-as-a-Service (AIaaS) is gaining more prominence over the cloud. Notably, companies are more interested in cloud-based machine learning, which helps in experimenting with their offerings.

  • The rising trend of multi-cloud functioning and the growing need for cloud-based intelligence services are also increasing the demand for AI as a service. According to IBM, by 2021, 98% of the organization's plans will adopt multi-cloud architectures, with only 41% having a multi-cloud management strategy and just 38% having procedures and tools to operate a multi-cloud environment. This creates a massive opportunity for AI services.
  • Furthermore, the IBM AI adoption index 2022 states, " A tipping point has been reached in using artificial intelligence (AI) and its effects on businesses and society. The adoption rate of AI globally increased significantly and is at 35%, up four points from the previous year. And the usage of AI is nearly universal in several sectors and nations. 
  • Organizations worldwide are quickly gaining new advantages and efficiencies from AI thanks to new automation capabilities, improved usability and accessibility, and a more comprehensive range of tried-and-true use cases. Virtual assistants and other ready-made corporate solutions like IT incorporate AI into their operations. The fact that 44% of firms are working to integrate AI into current apps and processes supports the argument that accessibility is important.
  • 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 as a Service (AIaaS) Industry Overview

The artificial intelligence-as-a-service (AIaaS) market is highly fragmented, with the presence of major players like Microsoft Corporation, Google LLC, Amazon Web Services, Inc., IBM Corporation, and BigML Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain a sustainable competitive advantage.

In July 2022, IBM announced the acquisition of Databand.ai, a major provider of data observability software that assisted organizations in resolving data issues such as mistakes, pipeline failures, and low quality before they influenced their bottom line. The announcement expanded IBM's software portfolio across data, AI, and automation to cover the whole spectrum of observability. It assisted organizations in ensuring that trustworthy data was in the hands of the appropriate individuals at the right time.

In June 2022, Amazon launched "Code Whisperer,' a new service that used machine learning to generate code suggestions for software developers. It is the first addition to its cloud offering. This tool, currently in preview, is intended to help programmers write code faster and build training datasets for their artificial intelligence projects.

Artificial Intelligence as a Service (AIaaS) Market Leaders

  1. Microsoft Corporation

  2. Google LLC

  3. Amazon Web Services, Inc.

  4. IBM Corporation

  5. BigML Inc

  6. *Disclaimer: Major Players sorted in no particular order
AI-as-a-Service Market Concentration
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Artificial Intelligence as a Service (AIaaS) Market News

  • June 2024: Tata Consultancy Services Ltd (TCS) launched TCS AI WisdomNext, an AI platform from its newly established AI.Cloud division, enabling clients to adopt advanced technologies like generative AI (GenAI) affordably. This launch aligns with the broader trend of IT firms pivoting towards GenAI. Notably, TCS, headquartered in Mumbai, was the pioneer among Indian IT firms to consolidate its AI and cloud divisions into the unified entity, AI.Cloud.
  • May 2024: SK Telecom Co., a mobile carrier in South Korea, is launching tailored services that link prominent large language models (LLMs) with the systems of corporate clients. This move is part of SK Telecom's strategy to pivot towards AI-driven growth avenues, especially as its traditional telecom business reaches saturation. In the upcoming third quarter, SK Telecom will debut a corporate AI minutes service, allowing clients to select their preferred LLMs over a predetermined deep learning algorithm.

Artificial Intelligence as a Service (AIaaS) Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Bargaining Power of Suppliers
    • 4.2.2 Bargaining Power of Consumers
    • 4.2.3 Threat of New Entrants
    • 4.2.4 Intensity of Competitive Rivalry
    • 4.2.5 Threat of Substitute Products
  • 4.3 Industry Value Chain Analysis
  • 4.4 Assessment of Impact of COVID-19 on the Industry

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Increasing Demand for Predictive and Analytics Solutions
    • 5.1.2 Rising Demand for Enhancing Consumer Experience
  • 5.2 Market Challenges
    • 5.2.1 Risks Associated with Data Breaches and Hacks

6. MARKET SEGMENTATION

  • 6.1 By Deployment
    • 6.1.1 Public
    • 6.1.2 Private
    • 6.1.3 Hybrid
  • 6.2 By Organization Size
    • 6.2.1 Small and Medium Enterprise
    • 6.2.2 Large Enterprise
  • 6.3 By End-user Industry
    • 6.3.1 BFSI
    • 6.3.2 Retail
    • 6.3.3 Healthcare
    • 6.3.4 IT and Telecom
    • 6.3.5 Manufacturing
    • 6.3.6 Energy
    • 6.3.7 Other End-user Industries
  • 6.4 By Geography***
    • 6.4.1 North America
    • 6.4.2 Europe
    • 6.4.3 Asia
    • 6.4.4 Australia and New Zealand
    • 6.4.5 Latin America
    • 6.4.6 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Microsoft Corporation
    • 7.1.2 Google LLC
    • 7.1.3 Amazon Web Services, Inc.
    • 7.1.4 IBM Corporation
    • 7.1.5 BigML Inc
    • 7.1.6 DATAIKU SAS
    • 7.1.7 Salesforce.com Inc.
    • 7.1.8 SAS Institute Inc
    • 7.1.9 Oracle Corporation
    • 7.1.10 H2O.Ai Inc
    • 7.1.11 Craft.AI
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific' and Latin America and Middle East and Africa will be considered together as 'Rest of the World'
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Artificial Intelligence as a Service (AIaaS) Industry Segmentation

Artificial Intelligence-as-a-Service (AIaaS) accounts for a third-party offering to outsource artificial intelligence. It allows companies or end-users to experiment with AI for various purposes by limiting initial investment and lowering risk.

The artificial intelligence-as-a-service (AIaaS) market is segmented by type of cloud (public, private, hybrid), by organization size (small and medium enterprises, large enterprises), by end-user industry (BFSI, retail, healthcare, IT and telecommunications, manufacturing, energy), and by geography (North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Deployment Public
Private
Hybrid
By Organization Size Small and Medium Enterprise
Large Enterprise
By End-user Industry BFSI
Retail
Healthcare
IT and Telecom
Manufacturing
Energy
Other End-user Industries
By Geography*** North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Artificial Intelligence as a Service (AIaaS) Market Research FAQs

How big is the AI-as-a-Service Market?

The AI-as-a-Service Market size is expected to reach USD 20.64 billion in 2025 and grow at a CAGR of 36.78% to reach USD 98.82 billion by 2030.

What is the current AI-as-a-Service Market size?

In 2025, the AI-as-a-Service Market size is expected to reach USD 20.64 billion.

Who are the key players in AI-as-a-Service Market?

Microsoft Corporation, Google LLC, Amazon Web Services, Inc., IBM Corporation and BigML Inc are the major companies operating in the AI-as-a-Service Market.

Which is the fastest growing region in AI-as-a-Service Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in AI-as-a-Service Market?

In 2025, the North America accounts for the largest market share in AI-as-a-Service Market.

What years does this AI-as-a-Service Market cover, and what was the market size in 2024?

In 2024, the AI-as-a-Service Market size was estimated at USD 13.05 billion. The report covers the AI-as-a-Service Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the AI-as-a-Service Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Artificial Intelligence as a Service Industry Report

Statistics for the 2025 AI-as-a-Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. AI-as-a-Service analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.