Cloud AI Market Size (2024 - 2029)

Cloud Artificial Intelligence (AI) Market Analysis

The Cloud AI Market size is estimated at USD 67.56 billion in 2024, and is expected to reach USD 274.54 billion by 2029, growing at a CAGR of 32.37% during the forecast period (2024-2029).

The COVID-19 pandemic caused several organizations to accelerate their migrations to public cloud solutions since cloud service elasticity could meet unexpected spikes in service demand. Migrations to the cloud considerably helped companies reinvent how they conduct their businesses during COVID-19. The requirement for AI services has grown, and many cloud providers offer AI services. As a result, the cloud market recorded more growth significantly in the healthcare segment last year. Cloud AI technology was being used considerably to fight COVID-19.

• With the growing number of enterprises and competition among them, companies are rigorously trying to integrate artificial intelligence (AI) technology with their application, analytics, business, and services. Moreover, companies are engaged in reducing their operational costs to ascend profit margins, owing to which artificial over the cloud is becoming popular, which is, in turn, expected to fuel the market growth over the forecast period.
• The rising trend of multi-cloud functioning and the growing need for cloud-based intelligence services also increase the demand for AI cloud solutions. According to IBM, 98% of the organization's plan will adopt multi-cloud architectures by last year. Only 41% have a multi-cloud management strategy, and just 38% have procedures and tools to operate a multi-cloud environment. This is poised to create a massive opportunity for cloud AI services.
• The driving factors in the studied market include rising big data volume, increasing demand for virtual assistants, and growing adoption of cloud-based services and applications.
• According to Cisco Systems Inc, the volume of big data is poised to increase from 51 exabytes in 2016 to 403 exabytes in the last year, representing a growth rate of almost seven times. The volume is expected to increase gradually in the forecast period, increasing the impact of the driver in the forecast period as companies tend to adopt cloud AI solutions to arrive at insights from such data.
• The market for cloud computing platforms has benefited from the pandemic. Using cloud technologies has made it easier to do internet business as the economy slowly revives. The cloud is hastening the deployment of full-scale AI, which hastens the adoption of and spending on Cloud-AI.

Cloud Artificial Intelligence (AI) Industry Segmentation

An AI cloud comprises a shared infrastructure for AI use cases, simultaneously supporting several projects and AI workloads. The AI cloud pools various hardware and software resources to deliver AI software-as-a-service (SaaS) on cloud infrastructure, providing enterprises access to key AI capabilities. As such, the study tracks revenues accrued from off-the-shelf AI tools that are offered through cloud technologies. The study also considers revenues accrued from training, consulting, and system integration services for Cloud AI.

The study is segmented by type (Solution, Services), end-user industry (BFSI, Healthcare, Automotive, Retail, Government, and Education, among others), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided regarding value (USD billion) for all the above segments.