Enterprise AI Market Size and Share

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Enterprise AI Market Analysis by Mordor Intelligence

The enterprise AI market size is estimated at USD 97.2 billion in 2025 and is forecast to reach USD 229.3 billion by 2030, registering an 18.9% CAGR. Expansion is propelled by rapid adoption of generative AI, agentic systems that automate multi-step tasks, and rising demand for specialised silicon that cuts inference times. Enterprises increasingly view AI as a route to cost optimisation, with Microsoft’s AI portfolio alone running at a USD 13 billion annualised rate in fiscal 2025, a 175% year-on-year jump. Hardware suppliers mirror this momentum; NVIDIA posted USD 44.1 billion in Q1 FY2026 revenue despite export controls, underlining resilient demand for high-end GPUs. Cloud remains the primary deployment path, yet hybrid and edge rollouts are climbing fast as firms juggle data-sovereignty mandates with real-time use cases. Investment patterns hint at a maturing competitive environment: venture capital funding topped USD 100 billion in 2024, but deals are concentrating around fewer late-stage players, signalling future consolidation. 

Key Report Takeaways

  • By component, software and platforms led with 48% revenue share in 2024; hardware accelerators are advancing at a 23.11% CAGR through 2030. 
  • By deployment model, cloud accounted for 69% of the enterprise AI market share in 2024, while hybrid and edge configurations are expanding at 24.05% CAGR to 2030. 
  • By end-user industry, BFSI held 21.30% of the enterprise AI market size in 2024; healthcare is projected to grow at 22.17% CAGR to 2030. 
  • By geography, North America captured 41.50% revenue share in 2024; the Middle East and Africa region is forecast to rise at 21.70% CAGR through 2030.  

Segment Analysis

By Component: Hardware Accelerators Drive Infrastructure Transformation

Software and platforms accounted for 48% of the enterprise AI market in 2024, underscoring enterprise demand for pre-integrated capabilities. Hardware accelerators, however, are growing the fastest at 23.11% CAGR, indicating a pivot toward performance-centric infrastructure investments. The enterprise AI market size for hardware is projected to climb sharply as organisations run larger foundation models on-premises for privacy. NVIDIA’s data-center revenue hit USD 26.3 billion in Q2 FY2025, a 154% rise that highlights sustained capital allocation into GPUs. 

Uptake of custom ASICs illustrates a structural shift from general CPUs to matrix-optimised processors. Cloud vendors integrate these accelerators into hosted stacks, giving enterprises rapid scale-out without bearing depreciation. At the edge, power-efficient SoCs enable local inference for industrial vision and IoT gateways, broadening the enterprise AI market beyond core data centers. [2]NVIDIA Corporation, “NVIDIA Announces Financial Results for First Quarter Fiscal 2026,” nvidianews.nvidia.com

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Note: Segment shares of all individual segments available upon report purchase

By Organisation Size: SMEs Embrace Foundation Models

Large enterprises continue to dominate absolute spending, yet SMEs now access advanced AI through templated models and SaaS billing. Industry-specific foundation models slash the expertise threshold, enabling a café chain or boutique insurer to launch AI chatbots and demand forecasting with minimal coding. Consequently, the enterprise AI market records rising contribution from companies under 1,000 staff, aligning with venture-capital flows into SME-focused AI platforms. 

Cloud marketplaces package drag-and-drop pipelines while managed-service firms bundle data prep, fine-tuning, and monitoring. As AI agents automate back-office tasks, smaller firms capture productivity benefits previously reserved for global corporations, extending the enterprise AI industry’s reach into long-tail sectors. 

By Functional Area: Operations Lead Enterprise Transformation

Operational and supply-chain use cases outpace customer-service pilots in ROI. Firms deploying AI-augmented planning tools cite 61% revenue lift relative to peers, with decision times shrinking from days to minutes. Generative simulation models factor weather, port congestion, and commodity pricing to optimise inventory. The enterprise AI market size allocated to operations is therefore expanding as budgets shift from experimentation to production rollouts. 

In manufacturing, vision systems inspect every product in real time, and digital twins test process tweaks virtually before physical implementation. Finance teams employ anomaly-detection models for fraud, while HR groups apply AI matching to accelerate hiring. This functional breadth positions the enterprise AI market as a linchpin of enterprise-wide digitisation. 

By Technology: Foundation Models Reshape AI Landscape

Machine learning underpins most deployments, but foundation models are recasting the technology stack. These broad models offer a base that enterprises fine-tune with proprietary data, cutting development cycles. Natural-language interfaces unlock self-service analytics, and multimodal models merge text, vision, and audio for richer insights. As a result, the enterprise AI market observes heightened demand for compute and vector-database storage. 

Decision-intelligence layers synthesise predictions, constraints, and optimisation goals into recommended actions. Early adopters combine agentic AI with foundation models to create systems that plan, execute, and self-correct, pointing to further penetration across knowledge-worker tasks. 

By End-User Industry: Healthcare Emerges as Growth Leader

BFSI retained 21.30% 2024 share of the enterprise AI market, driven by fraud analytics and personalised banking. Healthcare is the fastest climber at 22.17% CAGR, spurred by AI-enabled image analysis and clinical-decision aids. The enterprise AI market size for healthcare applications is therefore projected to expand sharply through 2030. 

Hospitals pilot surgical-navigation systems that cut inpatient stays by 20%, while payers use AI to flag claim anomalies. Manufacturing remains a heavy investor in predictive maintenance, and retailers deploy recommendation engines to boost basket size. Energy operators monitor grid assets with AI to pre-empt faults, broadening cross-sector adoption. [3]Deloitte, “Harnessing gen AI in Financial Services: Why Pioneers Lead,” deloitte.com

Enterprise AI
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Note: Segment shares of all individual segments available upon report purchase

By Deployment Model: Hybrid Edge Configurations Gain Momentum

Cloud services commanded 69% enterprise AI market share in 2024, reflecting economies of scale and rich tooling. Yet hybrid and edge architectures are pacing the sector at 24.05% CAGR to 2030 as firms need low-latency inference and tighter data control. The enterprise AI market size for hybrid solutions is therefore expanding faster than for pure-cloud options. 

Manufacturers deploy edge devices to flag defects in milliseconds, cutting scrap rates and unplanned downtime. Federated learning spreads model training across local nodes, ensuring compliance with regional privacy laws while preserving global accuracy. These patterns suggest that future enterprise AI market growth will hinge on robust orchestration across cloud, edge, and on-prem environments. 

Geography Analysis

North America controlled 41.50% of 2024 enterprise AI market revenue, buoyed by hyperscaler capex exceeding USD 75 billion and a deep venture ecosystem. US policy now scrutinises cloud-AI partnerships for anticompetitive lock-ins, yet the innovation engine remains robust. Canada pursues a balanced governance blueprint that preserves research flexibility while safeguarding ethics, and Mexico leverages near-shoring to channel AI investment into manufacturing corridors. 

Europe adopts a platform of trust anchored by the EU AI Act, shaping solutions that foreground explainability. Germany’s strong industrial base fuels demand for AI-powered automation, while the UK positions itself as an AI testing sandbox under a pro-innovation stance. French and Italian initiatives combine ethical frameworks with incentives for startup creation, though compliance overhead can lengthen go-to-market cycles. 

Asia-Pacific records the fastest uplift in active deployments. China shows 83% generative-AI adoption, yet US firms lead in production-grade rollouts, underscoring maturity gaps. Japan and South Korea scale domestic semiconductor fabs to secure hardware supply, and India’s USD 19 billion AI funding wave accelerates startup momentum. Meanwhile, the Middle East and Africa enterprise AI market is forecast at 21.70% CAGR as sovereign wealth funds bankroll national AI hubs in Saudi Arabia and the UAE. Latin America crafts human-rights-oriented regulations, creating white spaces for responsible-AI platform vendors. 

Enterprise AI
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Competitive Landscape

Competition clusters around cloud hyperscale's, diversified enterprise-software players, and AI-native entrants. Microsoft, Amazon, and Google wield integrated stacks from silicon to SaaS, bundling AI into core productivity suites. Oracle and SAP embed large-language models into ERP and CRM workflows, defending installed bases. AI-first specialists such as OpenAI or Anthropic license foundation models to downstream developers, while chip makers vie for share of swelling inference workloads. 

Strategic moves skew toward acquisition. IBM’s USD 6.4 billion HashiCorp deal underscores hybrid-cloud orchestration, and ServiceNow spent USD 2.85 billion on Moveworks to embed conversational AI in workflow tools. Edge-focused startups attract attention where low-latency requirements hinder cloud exclusivity. Exclusive GPU supply agreements create high switching costs, prompting antitrust scrutiny. 

Industry structure is settling into a platform-plus-ecosystem paradigm: foundational model providers supply core capabilities, systems integrators tailor them, and a long tail of ISVs delivers vertical applications. Partnerships such as Microsoft joining Workday’s Agent Partner Network illustrate coopetition, where rivals interoperate to address multi-agent orchestration needs. [4]RCP Magazine, “Microsoft Joins Workday’s AI Agent Partner Network,” rcpmag.com

Enterprise AI Industry Leaders

  1. Microsoft Corporation

  2. Amazon Web Services, Inc.

  3. International Business Machines Corporation (IBM)

  4. Google LLC

  5. Oracle Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Enterprise AI Market Concentration
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Recent Industry Developments

  • June 2025: Microsoft joined Workday’s AI Agent Partner Network to integrate agents across workforce systems, with general availability slated for late 2025.
  • June 2025: Google Cloud and OpenAI announced a compute-capacity partnership that diversifies OpenAI beyond Azure and feeds a USD 500 billion multi-cloud infrastructure plan.
  • June 2025: IBM acquired Seek AI and launched the USD 500 million Watsonx AI Labs to co-create enterprise applications in security and customer service.
  • June 2025: S&P Global closed its purchase of TeraHelix to enhance cross-platform data modelling for AI workflows.

Table of Contents for Enterprise AI Industry Report

1. INTRODUCTION

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

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surging demand for automation and AI-based solutions
    • 4.2.2 Need to analyse exponentially growing enterprise data sets
    • 4.2.3 Rise of cloud-based AI-as-a-Service platforms
    • 4.2.4 Advances in specialised computing hardware (GPU, TPU, NPU)
    • 4.2.5 Industry-specific foundation models democratising AI for SMEs
    • 4.2.6 Net-Zero pledges driving AI-enabled carbon-optimisation tools
  • 4.3 Market Restraints
    • 4.3.1 Cultural and skills gap slowing enterprise adoption
    • 4.3.2 Data-sovereignty and privacy-regulation hurdles
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
    • 4.6.1 Model-Ops and Prompt-Ops evolution
    • 4.6.2 Edge inference acceleration
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Buyers
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry
  • 4.8 Assessment of the Impact of Macroeconomic Trends on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Software / Platform
    • 5.1.2 Services
    • 5.1.3 Hardware Accelerators
  • 5.2 By Organisation Size
    • 5.2.1 Large Enterprise (≥1 000 Employees)
    • 5.2.2 Mid-market (100-999)
    • 5.2.3 Small Enterprise (<100)
  • 5.3 By Functional Area
    • 5.3.1 Customer-facing (CX, marketing, sales)
    • 5.3.2 Operations and Supply-chain
    • 5.3.3 Finance and Risk
    • 5.3.4 HR and Talent
  • 5.4 By Technology
    • 5.4.1 Machine Learning / Foundation Models
    • 5.4.2 Natural-Language Processing
    • 5.4.3 Computer Vision
    • 5.4.4 Decision Intelligence / Optimisation
  • 5.5 By End-user Industry
    • 5.5.1 BFSI
    • 5.5.2 Manufacturing
    • 5.5.3 Automotive and Mobility
    • 5.5.4 IT and Telecom
    • 5.5.5 Media and Advertising
    • 5.5.6 Healthcare and Life-sciences
    • 5.5.7 Retail and e-Commerce
    • 5.5.8 Energy and Utilities
    • 5.5.9 Others
  • 5.6 By Deployment Model
    • 5.6.1 On-premise
    • 5.6.2 Cloud
    • 5.6.3 Hybrid / Edge
  • 5.7 By Geography
    • 5.7.1 North America
    • 5.7.1.1 United States
    • 5.7.1.2 Canada
    • 5.7.1.3 Mexico
    • 5.7.2 South America
    • 5.7.2.1 Brazil
    • 5.7.2.2 Argentina
    • 5.7.2.3 Rest of South America
    • 5.7.3 Europe
    • 5.7.3.1 United Kingdom
    • 5.7.3.2 Germany
    • 5.7.3.3 France
    • 5.7.3.4 Italy
    • 5.7.3.5 Rest of Europe
    • 5.7.4 Asia-Pacific
    • 5.7.4.1 China
    • 5.7.4.2 Japan
    • 5.7.4.3 India
    • 5.7.4.4 South Korea
    • 5.7.4.5 Rest of Asia-Pacific
    • 5.7.5 Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration and Share
  • 6.2 Strategic Developments
  • 6.3 Company Profiles (includes Global-level Overview, Market-level Presence, Core Segments, Financials, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.3.1 Microsoft Corporation
    • 6.3.2 IBM Corporation
    • 6.3.3 Amazon Web Services Inc.
    • 6.3.4 Google LLC
    • 6.3.5 Oracle Corporation
    • 6.3.6 Hewlett Packard Enterprise
    • 6.3.7 NVIDIA Corporation
    • 6.3.8 SAP SE
    • 6.3.9 Intel Corporation
    • 6.3.10 Wipro Limited
    • 6.3.11 NEC Corporation
    • 6.3.12 Accenture plc
    • 6.3.13 ServiceNow Inc.
    • 6.3.14 DataRobot Inc.
    • 6.3.15 UiPath Inc.
    • 6.3.16 C3.ai Inc.
    • 6.3.17 Palantir Technologies
    • 6.3.18 H2O.ai Inc.
    • 6.3.19 Sentient Technologies
    • 6.3.20 AiCure LLC

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Enterprise AI Market Report Scope

Enterprise AI is the combination of artificial intelligence, the ability of a machine to learn, interact, and understand in a very human form with software designed to meet organizational needs. In recent years, AI has moved on to become a key component for enterprise applications and has posed an essential factor for successful business strategies. 

The Enterprise AI Market is segmented by type (solution, service), by deployment (on-premise, cloud), by end-user industry (manufacturing, automotive, BFSI, IT and telecommunications, media and advertising), and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

By Component Software / Platform
Services
Hardware Accelerators
By Organisation Size Large Enterprise (≥1 000 Employees)
Mid-market (100-999)
Small Enterprise (<100)
By Functional Area Customer-facing (CX, marketing, sales)
Operations and Supply-chain
Finance and Risk
HR and Talent
By Technology Machine Learning / Foundation Models
Natural-Language Processing
Computer Vision
Decision Intelligence / Optimisation
By End-user Industry BFSI
Manufacturing
Automotive and Mobility
IT and Telecom
Media and Advertising
Healthcare and Life-sciences
Retail and e-Commerce
Energy and Utilities
Others
By Deployment Model On-premise
Cloud
Hybrid / Edge
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Middle East and Africa
By Component
Software / Platform
Services
Hardware Accelerators
By Organisation Size
Large Enterprise (≥1 000 Employees)
Mid-market (100-999)
Small Enterprise (<100)
By Functional Area
Customer-facing (CX, marketing, sales)
Operations and Supply-chain
Finance and Risk
HR and Talent
By Technology
Machine Learning / Foundation Models
Natural-Language Processing
Computer Vision
Decision Intelligence / Optimisation
By End-user Industry
BFSI
Manufacturing
Automotive and Mobility
IT and Telecom
Media and Advertising
Healthcare and Life-sciences
Retail and e-Commerce
Energy and Utilities
Others
By Deployment Model
On-premise
Cloud
Hybrid / Edge
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Middle East and Africa
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Key Questions Answered in the Report

What is the current size of the enterprise AI market?

The market was valued at USD 97.2 billion in 2025.

How fast is the enterprise AI market expected to grow?

It is projected to reach USD 229.3 billion by 2030, reflecting an 18.9% CAGR.

Which component segment is growing the quickest?

Hardware accelerators lead growth, expanding at a 23.11% CAGR through 2030 as demand for specialised AI chips rises.

Which deployment model is gaining momentum beyond public cloud?

Hybrid and edge configurations show the highest uptake, advancing at 24.05% CAGR because they balance low-latency processing with data-sovereignty needs.

Which end-user industry will see the fastest AI spending growth?

Healthcare is forecast to grow at 22.17% CAGR, driven by clinical decision support and medical-imaging applications.

What region offers the highest growth potential for enterprise AI?

The Middle East and Africa region is expected to record a 21.70% CAGR, fuelled by sovereign AI programmes and large infrastructure investments.

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