Explainable AI Market Analysis by Component, Deployment, Application, End-User, Enterprise and Region - Global Industry to Register 18.93% CAGR During 2025-2035 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Explainable AI Market, Till 2035: Distribution by Type of Component, Type of Deployment, Type of Application, End-User, Type of Enterprise and Geographical Regions: Industry Trends and Global Forecasts" has been added to ResearchAndMarkets.com's offering.

The global market for explainable AI (XAI) is projected to surge from USD 8.01 million in the current year to USD 53.92 million by 2035, boasting a compound annual growth rate (CAGR) of 18.93% during the forecast period. The number of AI users has more than doubled since 2020, now reaching approximately 300 million worldwide.

The increased adoption of XAI signifies a pivotal development in combining explainable computing with transparency in AI systems. XAI is set to revolutionize several sectors by using techniques that enhance the interpretability of AI algorithms, allowing stakeholders to comprehend decision-making processes thoroughly. A prime example is healthcare, where model-agnostic approaches and interactive visualizations accelerate drug discovery processes.

In various industries like finance, healthcare, energy, and manufacturing, XAI is reshaping operations by delivering deeper insights and effective solutions to significant challenges. The burgeoning utilization of AI is driven by enhanced internet accessibility and rising public awareness. Furthermore, natural language processing and interpretable machine learning are vital in unlocking the full potential of the XAI market, contributing to better energy efficiency and expedited responses. SHAP and LIME techniques are improving the interpretability of complex AI models, fostering greater trust in AI systems and enhancing decision-making processes across diverse sectors.

The explainable AI market is segmented across several key categories. By component, it includes software and services, with software currently capturing the dominant share due to heightened demand for transparency and accountability in AI systems. By deployment type, the market covers cloud and on-premise solutions. At present, the cloud computing segment leads due to its flexibility and scalability, although on-premise solutions offer data control and customization, supporting a higher growth rate during the forecast period.

With regards to applications, the XAI market spans drug discovery & diagnostics, fraud detection, identity and access management, predictive maintenance, and supply chain management. Fraud detection currently holds a significant market share, driven by the necessity for transparency in automated decision-making, particularly within cybersecurity. However, drug discovery and diagnostics are forecast to register a higher CAGR, fueled by the demand for AI-enhanced diagnostic precision and personalized medicine.

In terms of end-users, the market encompasses sectors such as aerospace & defense, automotive, healthcare, IT & telecommunication, public sector & utilities, and retail and e-commerce. The IT & telecommunication sector currently dominates due to the substantial data influx vital for training AI models, yet aerospace & defense are anticipated to grow rapidly, driven by the need for accountability in national security decisions.

The market distinguishes between large and small and medium enterprises, with large enterprises capturing the majority share due to their resource capabilities and potential for technological investments. Geographically, North America presently accounts for the bulk of the market share, but the Asia-Pacific region, spearheaded by China and India, is expected to experience rapid growth due to substantial investments and governmental initiatives in XAI development.

The comprehensive report offers extensive insights into the market size, opportunity analysis, competitive landscape, and company profiles. Moreover, it explores ongoing megatrends, patent analysis, and recent developments, supported by Porter's Five Forces, SWOT, and value chain analyses. Buyers will gain valuable insights into key drivers, barriers, and opportunities available, facilitating strategic decisions in leveraging market growth prospects. Additionally, complimentary Excel data packs, content customization options, and detailed walkthroughs are offered as additional benefits for stakeholders engaging with this market insight report.

Key Attributes

Report Attribute	Details
No. of Pages	168
Forecast Period	2025-2035
Estimated Market Value (USD) in 2025	$8.01 Million
Forecasted Market Value (USD) by 2035	$53.92 Million
Compound Annual Growth Rate	18.9%
Regions Covered	Global

A selection of companies mentioned in this report includes, but is not limited to:

• Alteryx
• Amelia
• Arthur.ai
• AWS
• BuildGroup
• DarwinAI
• DataRobot
• Ditto.ai
• Factmata
• Google
• IBM
• Kyndi
• Microsoft
• Mphasis
• NVIDIA

For more information about this report visit https://www.researchandmarkets.com/r/q1v766

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