The global AI development service market size was US$ 31.1 billion in 2021. The global AI development service market is forecast to grow to US$ 705.1 billion by 2030, registering a compound annual growth rate (CAGR) of 36.5 during the forecast period from 2022 to 2030. 

Factors Influencing the Market

The trending use of multi-cloud functioning is driving the growth of the industry. In addition, the rising demand for cloud-based intelligence services will propel the market growth during the forecast period. IBM estimates that around 98% of the organization's plan will adopt multi-cloud architectures by 2021. 

Companies are focusing on integrating artificial intelligence (AI) technology into their applications, businesses, analytics, and services in order to expand the business and make the task easy for employees. Thus, it will benefit the AI development service market. Furthermore, AI development services will also help businesses cut operating costs in order to enhance profit margins. All of this will contribute to the growth of the global AI development service market. 

Many government bodies, particularly in emerging economies, are investing highly due to the benefits of AI. In India, the Digital India initiative is expected to offer ample growth opportunities for the market. In addition, the firms are creating services for testing AI-based applications. In April 2019, Google Cloud Platform launched the AI Platform, a new end-to-end environment for teams to test, train, and deploy models. As a result, it will offer ample growth opportunities for the global AI development service market.

Impact of COVID-19 on AI Development Service Market

The sudden onset of COVID-19 has surged the growth of AI development services in the healthcare sector. AI development services are used to improve treatment and enhance accuracy and efficiency. AI can predict patient outcomes using a significant quantity of data available in electronic healthcare records. All of these factors are significantly contributing to the growth of the global AI development service industry. 

Regional Analysis

The Asia-Pacific AI development service market is forecast to hold dominance during the study period. The growth of the region is attributed to the rising number of investments in artificial intelligence. In addition, the presence of top tech giants in the region is forecast to benefit the Asia-Pacific AI development service market. Furthermore, emerging countries, such as India and Taiwan, are witnessing an increasing adoption of new AI-based services or models. As a result, it will further expand the potential scope of the studied market. 

Competitors in the Market

• International Business Machine Corporation
• Google
• Salesforce
• SAP SE
• Amazon Web Service, Inc.
• Fair Isaac Corporation
• Advanced Micro Devices
• Ayasdi AI LLC
• IBM Watson Health
• Zebra Medical Vision, Inc.
• Intel Corporation
• Enlitic, Inc.
• Baidu, Inc.
• Cyrcadia Health
• Atomwise, Inc.
• Other prominent players

Market Segmentation

The global AI development service market segmentation focuses on Deployment, Organization, End-User, and Region. 

Deployment

• Public
• Private
• Hybrid

Organization Size

• Small and Medium Enterprise
• Large Enterprise

End-user Industry

• BFSI
• Retail
• Healthcare
• IT and Telecom
• Manufacturing
• Energy
• Other End-user Industries

Based on region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America