Explainable AI market to reach USD 33.20 billion by 2032, driven by demand for AI technology

From GlobeNewswire: 2025-03-21 10:00:00

The Explainable AI Market was valued at USD 6.82 billion in 2023, expected to reach USD 33.20 billion by 2032, growing at a CAGR of 19.29%. Major players include Microsoft, IBM, Google, Salesforce, NVIDIA, and AWS. The market is driven by increasing demand for personalized recommendations and advancements in AI technology.

The Solution segment dominated the market in 2023 due to increased adoption across industries for interpretable AI models. The Services segment is expected to register the fastest CAGR, driven by the demand for consulting, training, and support services to implement XAI.

On-Premises deployment dominates due to security and regulatory compliance, while Cloud deployment is expected to grow rapidly for scalable, cost-efficient AI solutions. Standalone Software leads in software type, while Automated Reporting Tools are growing fast for AI-powered insights.

Model-Agnostic Methods dominate the Explainable AI market for generating explanations across various AI models. Model-Specific Methods are growing fastest for tailor-made explainability techniques. Healthcare leads in end-use, while BFSI is expected to register the fastest growth for risk assessment, fraud detection, and compliance tools. Financial institutions are investing in XAI for transparency in credit scoring and investment decisions. Market segmentation includes components, deployments, software types, and end-uses like healthcare and retail. North America leads with 41% revenue share, while Asia-Pacific shows fastest growth due to AI adoption and government investments in XAI solutions.



Read more at GlobeNewswire: Explainable AI Market to USD 33.20 Billion by 2032| SNS