Press release
Comprehensive Artificial Intelligence Software As A Service (SaaS) Market Forecast 2025-2034: Growth Trends and Strategic Shifts
Artificial Intelligence Software As A Service (SaaS) Market
Artificial Intelligence Software As A Service (SaaS) Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market size of artificial intelligence software as a service (saas) has experienced significant expansion in the recent past. A growth from a market value of $251.7 billion in 2024 to a projection of $336.68 billion in 2025, with a compound annual growth rate (CAGR) of 33.8%, is expected. The profound growth observed during the historic period is a result of factors such as the increased access to big data, expansion in cloud computing infrastructure, the rising need for predictive analytics, the broadening landscape of the internet of things (iot), and the adoption of natural language processing (NLP).
Artificial Intelligence Software As A Service (SaaS) Market Size Forecast: What's the Projected Valuation by 2029?
The market size of artificial intelligence software as a service (SaaS) is slated for immense expansion in the forthcoming years, with projections pinpointing a worth of $1224.14 billion by 2029, growing at a compound annual growth rate (CAGR) of 38.1%. The burgeoning growth anticipated during the forecast period can be ascribed to enhancements in computing power, a boom in business intelligence functions, the proliferation of edge ai applications, the upswing in industry-specific ai solutions, and the focus on explainable ai within saas offerings. The key trends for the forecast period include the maturation of deep learning techniques, the creation of AI-empowered virtual helpers, progressions in machine learning algorithms, the development of industry 4.0 AI SaaS solutions, and the adaptation of continuous learning and growth in AI saas.
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What Are the Drivers Transforming the Artificial Intelligence Software As A Service (SaaS) Market?
The increasing acceptance of cloud-based solutions is anticipated to boost the growth of the artificial intelligence software as a service (SaaS) market in the future. A cloud-based solution involves the provision of on-demand access to a communal pool of adaptable applications and services, which can be rapidly deployed and delivered online with minimal administration. Artificial intelligence SaaS providers are able to serve a wider range of customers by taking advantage of cloud infrastructure. This removes the need for extensive hardware or on-site installations, reducing the entry barriers for businesses seeking to integrate AI into their processes. They can easily access AI capabilities via a subscription-based model. For example, the Office of Communications, a UK-based intergovernmental organization, reported in April 2023 that global end-user expenditure on public cloud services is projected to increase by 20.7% from 2022 to 2023, going up to £477.7 billion ($524.41 billion) in 2023 from £395.7 billion ($434.40 billion) in 2022. Hence, the growing adoption of cloud-based solutions fuels the artificial intelligence software as a service (SaaS) market.
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What Long-Term Trends Will Define the Future of the Artificial Intelligence Software As A Service (SaaS) Market?
Technological advancements are emerging as a prominent trend in the artificial intelligence software as a service (SaaS) sector. Big players in this market are launching state-of-the-art solutions to boost their market stance. In March 2023, for example, SmartSimple Software Inc., a Canada-based software company that specializes in developing and marketing a business process automation system hosted online, unveiled its SmartSimple Cloud +AI. This software, which facilitates AI help throughout the grant administration lifecycle, streamlines the process and further reduces the administrative workload. The software leverages the sturdy structure of SmartSimple Cloud to allow grantmakers to adopt AI throughout the grant process. The SmartSimple Cloud + AI assists grantmakers throughout the entire awarding process responding to both human and workflow-initiated queries. It seamlessly integrates into the SmartSimple Cloud environment, allowing users to interact with AI directly through the SmartSimple Cloud user interface.
Which Segments in the Artificial Intelligence Software As A Service (SaaS) Market Offer the Most Profit Potential?
The artificial intelligence software as a service (saas)market covered in this report is segmented -
1) By Deployment: Cloud-Based, On-Premise
2) By Organization Size: Large Enterprise, Small And Medium Enterprise
3) By Vertical: Banking, Financial Services, And Insurance (BFSI), Retail And E-Commerce, Healthcare And Life Sciences, IT( Information Technology ) And ITeS(Information Technology Enabled Services), Telecommunications, Government And Defense, Manufacturing, Energy And Utilities, Other Verticals
Subsegments:
1) By Cloud-Based: Public Cloud Solutions, Private Cloud Solutions, Hybrid Cloud Solutions
2) By On-Premise: Self-Hosted Solutions, Customizable On-Premise Deployments
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Which Firms Dominate the Artificial Intelligence Software As A Service (SaaS) Market by Market Share and Revenue in 2025?
Major companies operating in the artificial intelligence software as a service (SaaS) market include Amazon Web Services Inc., International Business Machines Corporation, SAP SE, Salesforce Inc., NVIDIA Corp., Rockwell Automation Inc., UiPath Inc., Automation Anywhere Inc., C3.ai Inc., DataRobot Inc., H2O Innovations Inc., Blue River Technology Inc., Freenome Inc., AlphaSense Inc., Grammarly Inc., People.ai Inc., HyperScience, Rebellion Defense Inc., DataVisor Inc., Mighty AI, Vic.ai Inc., Kneron Inc., Adarga, OpenAI Inc., Clarifai Inc.
Which Regions Offer the Highest Growth Potential in the Artificial Intelligence Software As A Service (SaaS) Market?
North America was the largest region in the artificial intelligence software as a service (SaaS) market in 2024. The regions covered in the artificial intelligence software as a service (SaaS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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