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