PUBLISHER: Roots Analysis | PRODUCT CODE: 1752107
PUBLISHER: Roots Analysis | PRODUCT CODE: 1752107
As per Roots Analysis, the global causal AI market size is estimated to grow from USD 63.37 million in the current year to USD 1,628.43 million by 2035, at a CAGR of 38.35% during the forecast period, till 2035.
The opportunity for causal AI market has been distributed across the following segments:
Type of Offering
Type of Deployment Mode
Type of Services
Type of Analytics
Type of Technology
Type of Component
Areas of Application
Type of Functionality
Type of Industry Vertical
Company Size
Geographical Regions
Causal AI signifies a significant breakthrough in the field of artificial intelligence and machine learning, focusing on the detection and application of cause-and-effect relationships within datasets. In contrast to the conventional AI models that primarily depend on correlation-based techniques to recognize patterns and make predictions, causal AI tackles situations where comprehending the fundamental causal mechanisms is crucial. By incorporating principles from causal inference, a statistical and philosophical field dedicated to uncovering causal relationships from data, causal AI improves the analytical capabilities of AI technologies.
The demand for causal AI is witnessing considerable surge driven by various factors. Further, the increasing use of virtual assistants and chatbots that can hold natural language conversations has heightened the appeal for causal AI applications. Moreover, the lower costs associated with hardware, cloud computing, and data storage have rendered AI technology more accessible to a broader spectrum of individuals and organizations. Notably, this financial accessibility has facilitated the development and integration of causal AI solutions, bringing these innovations closer to everyday users, thereby propelling the growth within this market, during the forecast period.
Based on type of offering, the global causal AI market is segmented services and software. According to our estimates, currently, services segment captures the majority share of the market. This can be attributed to the growing demand for consulting, integration, and continuous support as organizations aim to effectively implement causal AI solutions. However, the software segment is anticipated to grow at a relatively higher CAGR during the forecast period.
Based on type of deployment mode, the causal AI market is segmented into cloud, hybrid and on-premises. According to our estimates, currently, cloud segment captures the majority of the market. Further, this segment is expected to grow at a higher CAGR during the forecast period. This can be attributed to the benefits provided by cloud platforms, including scalability, accessibility, and reduced initial expenses relative to on-premises solutions.
The rising implementation of cloud technologies, coupled with the increasing demand for sophisticated analytics abilities across different sectors, is also driving market growth. Further, cloud-based solutions enable organizations to swiftly modify their resources according to demand, which is particularly advantageous for applications that need considerable computational power.
Based on type of service, the causal AI market is segmented into consulting, deployment & integration, support & maintenance, and training. According to our estimates, currently, consulting segment captures the majority share of the market. This can be attributed to the important role that consulting plays in helping organizations implement and make the most of causal AI technologies. Consulting services assist businesses in comprehending how to apply causal AI to enhance decision-making processes and improve operational efficiency.
However, the support and maintenance sector is anticipated to grow at a relatively higher CAGR during the forecast period. This growth is driven by the increasing need for continuous support and training as organizations adopt causal AI solutions and seek help in optimizing their implementation and ensuring successful integration with existing systems.
Based on type of analytics, the causal AI market is segmented into descriptive analytics, predictive analytics, and prescriptive analytics. According to our estimates, currently, predictive analytics segment captures the majority share of the market. This can be attributed to its extensive adoption by organizations to predict results based on past data and trends, making it a vital resource for decision-making across a range of industries.
In addition, the prescriptive analytics sector is projected to experience the highest CAGR during the forecast period. This is due to its capability to not only forecast results but also suggest actions to achieve intended outcomes. This feature is becoming increasingly important for companies looking to enhance their operations and strategies.
Based on type of technology, the causal AI market is segmented into computer vision, deep learning, machine learning, and natural language processing. According to our estimates, currently, machine learning segment captures the majority share of the market. This can be attributed to their capability to establish a foundation for various causal AI applications, which enables systems to learn from data and accurately discern cause-and-effect relationships.
Additionally, the natural language processing (NLP) sector is projected to experience the highest CAGR during the forecast period, owing to the rising demand for AI systems that can comprehend and interpret human language, facilitating more advanced interactions and insights from textual data.
Based on type of component, the causal AI market is segmented into algorithms, frameworks, libraries. According to our estimates, currently, algorithms segment captures the majority share of the market. This can be attributed to the fact that algorithms serve as the foundation of causal AI models, allowing for the identification and examination of cause-and-effect relationships in data.
Additionally, the frameworks segment is projected to experience the highest CAGR during the forecast period. This is likely to be driven by the rising demand for strong frameworks that support the development and implementation of causal AI applications, enabling organizations to utilize these technologies more efficiently and effectively.
Based on areas of application, the causal AI market is segmented into customer experience management, fraud detection, healthcare diagnostics, marketing optimization, predictive maintenance, risk management, and supply chain optimization. According to our estimates, currently, healthcare diagnostics segment captures the majority share of the market. This can be attributed to the rising need for advanced analytics in the healthcare sector to enhance patient outcomes and improve operational efficiency.
Additionally, the fraud detection segment is projected to experience the highest CAGR during the forecast period. This increase can be linked to the growing demand for stronger security measures in financial services and other industries, as organizations aim to utilize causal AI to better identify and mitigate fraudulent activities. As a result, there is a heightened interest in causal AI within both healthcare and finance.
Based on type of functionality, the causal AI market is segmented into causal discovery, causal inference, and counterfactual analysis. According to our estimates, currently, causal inference segment captures the majority share of the market. This can be attributed to the fact that it enables organizations to extract valuable insights about cause-and-effect relationships from data, which is crucial for making informed decisions across different industries.
Additionally, the growing awareness of its significance in improving decision-making processes, especially in areas such as marketing, healthcare, and operations, is significantly contributing to the growth of the market.
Based on types of industry vertical, the causal AI market is segmented into BFSI, financial services, healthcare, manufacturing, retail, transportation & logistics. According to our estimates, currently, healthcare segment captures the majority share of the market. This can be attributed to its capability to uncover causal connections among genetic, environmental, and lifestyle influences, as well as particular diseases, while offering valuable perspectives on intricate biological systems, disease pathways, and the effectiveness of treatments.
In addition, the manufacturing sector is projected to experience the highest CAGR during the forecast period. This surge can be linked to the rising implementation of causal AI in areas such as predictive maintenance, quality assurance, and supply chain optimization.
Based on company size, the causal AI market is segmented into large and small and medium enterprise. According to our estimates, currently, large enterprise segment captures the majority share of the market. However, the small and medium enterprise segment is expected to experience a comparatively higher growth rate during the forecast period. This growth can be attributed to their flexibility, innovation, emphasis on niche markets, and capability to adjust to evolving customer preferences and market dynamics.
Based on geographical regions, the causal AI market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently, North America captures the majority share of the market. This can be attributed to the presence of leading technology companies, academic institutions, and research organizations that are significantly contributing to advancements in causal AI and are engaged in pioneering research in AI algorithms, causal inference, and related fields..
The report on the causal AI market features insights on various sections, including: