Explainable AI Market by Offering, Deployment, Application, End-Use

List of Tables

[186 Pages Report] The Explainable AI Market size was estimated at USD 7.02 billion in 2023 and expected to reach USD 8.42 billion in 2024, at a CAGR 20.24% to reach USD 25.52 billion by 2030.

Global Explainable AI Market

KEY MARKET STATISTICS
Base Year [2023]	USD 7.02 billion
Estimated Year [2024]	USD 8.42 billion
Forecast Year [2030]	USD 25.52 billion
CAGR (%)	20.24%

Explainable artificial intelligence (XAI) includes technologies that enable the interpretability and transparency of AI systems, allowing users to understand and trust the decision-making processes of complex algorithms. XAI is crucial, especially in applications where AI-driven decisions impact individuals or businesses. The growing need for accountability and ethical AI practices, particularly in sectors such as finance, healthcare, and law, is elevating the demand for explainable AI. Regulatory requirements emphasizing transparency and interpretability further contribute to the adoption of XAI solutions. Additionally, the increasing complexity of AI models and their applications heightens the demand for explainability, ensuring that decisions can be comprehended and validated. Striking the right balance between explainability and performance hinders the development and deployment of XAI systems. The integration of XAI in sectors, including healthcare for enhanced diagnostics and personalized treatment plans, fuels the market growth of the explainable AI market. Continuous innovations in the development of novel explainable artificial intelligence solutions by market vendors are expected to create opportunities for market growth.

Regional Insights

In the Americas, the explainable artificial intelligence (XAI) market is experiencing substantial growth, driven by a heightened awareness of the importance of transparent and interpretable AI systems. North America, in particular, plays a pivotal role in advancing the market, benefitting from a strong emphasis on technology innovation and regulatory frameworks. As the demand for trustworthy AI decision-making processes continues to rise, the Americas remain at the forefront of embracing and integrating explainable AI solutions, creating a dynamic landscape for innovation and adoption in the region. In the Asia-Pacific region, the explainable artificial intelligence (XAI) market is driven by a growing recognition of the need for transparent AI decision-making. Countries such as China and India are actively adopting XAI solutions across diverse industries, including finance, healthcare, and manufacturing. The region benefits from rapid technological advancements and an increasing focus on ethical AI practices. European countries, in particular, are adopting XAI solutions due to the presence of a strong regulatory framework and a commitment to transparency in AI decision-making processes. As the demand for interpretable AI systems continues to rise, EMEA remains a significant region in the advancement and integration of explainable AI solutions.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Explainable AI Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Explainable AI Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Explainable AI Market, highlighting leading vendors and their innovative profiles. These include Abzu ApS, Alphabet Inc., Alteryx, Inc., ArthurAI, Inc., C3.ai, Inc., DarwinAI, DataRobot, Inc., Equifax Inc., Fair Isaac Corporation, Fiddler Labs, Inc., H2O.ai, Inc., Intel Corporation, Intellico.ai s.r.l, International Business Machines Corporation, ISSQUARED Inc., Kyndi, Inc., Microsoft Corporation, Mphasis Limited, NVIDIA Corporation, Salesforce, Inc., SAS Institute Inc., Squirro Group, Temenos Headquarters SA, Tensor AI Solutions GmbH, Tredence Analytics Solutions Pvt. Ltd., and ZestFinance Inc..

Market Segmentation & Coverage

This research report categorizes the Explainable AI Market to forecast the revenues and analyze trends in each of the following sub-markets:

Offering
- Services
  - AI/ML Enabled Service
  - Consulting Services
  - Cutting Edge AI/ML Research
  - Data Engineering Services
  - Data Science Advisory Services
  - Training & Education Services
- Software
  - Automated Reporting Tools
  - Integrated Software
  - Interactive Visualization Platform
  - Standalone Software
Deployment
- Cloud-based
- On-premise
Application
- Drug Discovery & Diagnostics
- Fraud & Anomaly Detection
- Identity & Access Management
- Predictive Maintenance
- Supply Chain Management
End-Use
- Aerospace & Defense
- Automotive
- Banking, Financial Services, & Insurance (BFSI)
- Energy & Utilities
- Healthcare
- IT & Telecommunications
- Media & Entertainment
- Public Sector & Government
- Retail & eCommerce
Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam
- Europe, Middle East & Africa
  - Denmark
  - Egypt
  - Finland
  - France
  - Germany
  - Israel
  - Italy
  - Netherlands
  - Nigeria
  - Norway
  - Poland
  - Qatar
  - Russia
  - Saudi Arabia
  - South Africa
  - Spain
  - Sweden
  - Switzerland
  - Turkey
  - United Arab Emirates
  - United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Explainable AI Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Explainable AI Market?

3. What are the technology trends and regulatory frameworks in the Explainable AI Market?

4. What is the market share of the leading vendors in the Explainable AI Market?

5. Which modes and strategic moves are suitable for entering the Explainable AI Market?

Product Code: MRR-8265EDC497DC

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Limitations
1.7. Assumptions
1.8. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

4.1. Introduction
4.2. Explainable AI Market, by Region

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing need for transparency and interpretability in AI systems
  - 5.1.1.2. Growing adoption of AI across various industries worldwide
  - 5.1.1.3. Regulatory initiatives and guidelines emphasizing transparency and accountability
- 5.1.2. Restraints
  - 5.1.2.1. High cost of development of AI explainable solutions
- 5.1.3. Opportunities
  - 5.1.3.1. Continuous research & development to introduce novel AI explainable solutions
  - 5.1.3.2. Growing adoption of XAI that identifies and mitigates biases in AI models
- 5.1.4. Challenges
  - 5.1.4.1. Complexity in the integration of certain AI explainable solutions with AI systems
5.2. Market Segmentation Analysis
- 5.2.1. Offering: Advancements in integrated software solutions for high data processing allows clearer analytics and decision-making processes
- 5.2.2. Deployment: Growing preference for cloud-based explainable AI deployment due to its affordability and ease of access
- 5.2.3. Application: Expanding application of explainable AI in drug discovery and diagnostics for personalized treatment
- 5.2.4. End-Use: Emerging application of explainable AI in aerospace and defense sector enabling transparent decision making and risk analysis
5.3. Market Trend Analysis
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework

6. Explainable AI Market, by Offering

6.1. Introduction
6.2. Services
- 6.3.1. AI/ML Enabled Service
- 6.3.2. Consulting Services
- 6.3.3. Cutting Edge AI/ML Research
- 6.3.4. Data Engineering Services
- 6.3.5. Data Science Advisory Services
- 6.3.6. Training & Education Services
6.3. Software
- 6.4.1. Automated Reporting Tools
- 6.4.2. Integrated Software
- 6.4.3. Interactive Visualization Platform
- 6.4.4. Standalone Software

7. Explainable AI Market, by Deployment

7.1. Introduction
7.2. Cloud-based
7.3. On-premise

8. Explainable AI Market, by Application

8.1. Introduction
8.2. Drug Discovery & Diagnostics
8.3. Fraud & Anomaly Detection
8.4. Identity & Access Management
8.5. Predictive Maintenance
8.6. Supply Chain Management

9. Explainable AI Market, by End-Use

9.1. Introduction
9.2. Aerospace & Defense
9.3. Automotive
9.4. Banking, Financial Services, & Insurance (BFSI)
9.5. Energy & Utilities
9.6. Healthcare
9.7. IT & Telecommunications
9.8. Media & Entertainment
9.9. Public Sector & Government
9.10. Retail & eCommerce

10. Americas Explainable AI Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Explainable AI Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Explainable AI Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. FPNV Positioning Matrix
13.2. Market Share Analysis, By Key Player
13.3. Competitive Scenario Analysis, By Key Player
- 13.3.1. Agreement, Collaboration, & Partnership
  - 13.3.1.1. Fujitsu collaborates with Informa D&B to incorporate explainable AI technology for financial-commercial information industry
  - 13.3.1.2. Temenos to Offer Explainable AI on Oracle Cloud Infrastructure
- 13.3.2. New Product Launch & Enhancement
  - 13.3.2.1. GyanAI Launches the World's First Explainable Language Model and Research Engine

14. Competitive Portfolio

14.1. Key Company Profiles
- 14.1.1. Abzu ApS
- 14.1.2. Alphabet Inc.
- 14.1.3. Alteryx, Inc.
- 14.1.4. ArthurAI, Inc.
- 14.1.5. C3.ai, Inc.
- 14.1.6. DarwinAI
- 14.1.7. DataRobot, Inc.
- 14.1.8. Equifax Inc.
- 14.1.9. Fair Isaac Corporation
- 14.1.10. Fiddler Labs, Inc.
- 14.1.11. H2O.ai, Inc.
- 14.1.12. Intel Corporation
- 14.1.13. Intellico.ai s.r.l
- 14.1.14. International Business Machines Corporation
- 14.1.15. ISSQUARED Inc.
- 14.1.16. Kyndi, Inc.
- 14.1.17. Microsoft Corporation
- 14.1.18. Mphasis Limited
- 14.1.19. NVIDIA Corporation
- 14.1.20. Salesforce, Inc.
- 14.1.21. SAS Institute Inc.
- 14.1.22. Squirro Group
- 14.1.23. Temenos Headquarters SA
- 14.1.24. Tensor AI Solutions GmbH
- 14.1.25. Tredence Analytics Solutions Pvt. Ltd.
- 14.1.26. ZestFinance Inc.
14.2. Key Product Portfolio

15. Appendix

15.1. Discussion Guide
15.2. License & Pricing