Explainable AI Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component, By Deployment, By Application, By End-use, By Region & Competition, 2021-2031F

Description

The Global Explainable AI Market will grow from USD 6.81 Billion in 2025 to USD 19.04 Billion by 2031 at a 18.69% CAGR. Explainable AI (XAI) defines a set of protocols and methods that enable human users to comprehend and validate the outputs generated by machine learning algorithms.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 6.81 Billion
Market Size 2031	USD 19.04 Billion
CAGR 2026-2031	18.69%
Fastest Growing Segment	Cloud
Largest Market	North America

Key Market Drivers

The implementation of stringent government regulations and compliance mandates acts as a primary catalyst for the Global Explainable AI Market. Governments worldwide are enforcing legal frameworks that require transparency in automated decision-making processes to prevent bias and ensure accountability. These legislative measures compel organizations to adopt explainable AI (XAI) solutions that can deconstruct complex model behaviors into interpretable audits for regulators.

Key Market Challenges

The primary challenge hampering the Global Explainable AI Market is the inherent trade-off between predictive accuracy and model interpretability, often described as the "black box" problem. As organizations strive for higher performance, they frequently deploy complex deep learning models that offer superior accuracy but lack transparent logic. This opacity creates substantial friction in regulated industries such as finance and healthcare, where stakeholders must validate decisions to meet strict compliance and liability standards.

Key Market Trends

Integration of Explainability into MLOps and LLMOps Workflows marks a pivotal shift in the market, moving interpretability from ad-hoc analysis to a continuous, embedded function within deployment pipelines. Enterprises are increasingly prioritizing real-time observability to manage the operational complexity of Large Language Models (LLMs), where tracing retrieval contexts and validating outputs are essential for maintaining reliability. This technical integration allows engineering teams to instantaneously diagnose hallucinations or drift, ensuring that model behavior aligns with intended logic during production scaling.

Key Market Players

International Business Machines Corporation
Microsoft Corporation
Google LLC
DataRobot Inc.
Amelia US LLC
Kyndi Inc.
Seldon Technologies Limited
Arthur.ai
Ditto.ai
NVIDIA Corporation

Report Scope:

In this report, the Global Explainable AI Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Explainable AI Market, By Component:

Solution
Services

Explainable AI Market, By Deployment:

Cloud
On-Premises

Explainable AI Market, By Application:

Fraud & Anomaly Detection
Drug Discovery & Diagnostics
Predictive Maintenance
Supply chain management
Identity and access management
Others

Explainable AI Market, By End-use:

Healthcare
BFSI
Aerospace & defense
Retail and e-commerce
Public sector & utilities
IT & telecommunication
Automotive
Others

Explainable AI Market, By Region:

North America
United States
Canada
Mexico
Europe
France
United Kingdom
Italy
Germany
Spain
Asia Pacific
China
India
Japan
Australia
South Korea
South America
Brazil
Argentina
Colombia
Middle East & Africa
South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Explainable AI Market.

Available Customizations:

Global Explainable AI Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Explainable AI Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Component (Solution, Services)
- 5.2.2. By Deployment (Cloud, On-Premises)
- 5.2.3. By Application (Fraud & Anomaly Detection, Drug Discovery & Diagnostics, Predictive Maintenance, Supply chain management, Identity and access management, Others)
- 5.2.4. By End-use (Healthcare, BFSI, Aerospace & defense, Retail and e-commerce, Public sector & utilities, IT & telecommunication, Automotive, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Explainable AI Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Component
- 6.2.2. By Deployment
- 6.2.3. By Application
- 6.2.4. By End-use
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Explainable AI Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Component
    - 6.3.1.2.2. By Deployment
    - 6.3.1.2.3. By Application
    - 6.3.1.2.4. By End-use
- 6.3.2. Canada Explainable AI Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Component
    - 6.3.2.2.2. By Deployment
    - 6.3.2.2.3. By Application
    - 6.3.2.2.4. By End-use
- 6.3.3. Mexico Explainable AI Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Component
    - 6.3.3.2.2. By Deployment
    - 6.3.3.2.3. By Application
    - 6.3.3.2.4. By End-use

7. Europe Explainable AI Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Component
- 7.2.2. By Deployment
- 7.2.3. By Application
- 7.2.4. By End-use
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Explainable AI Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Component
    - 7.3.1.2.2. By Deployment
    - 7.3.1.2.3. By Application
    - 7.3.1.2.4. By End-use
- 7.3.2. France Explainable AI Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Component
    - 7.3.2.2.2. By Deployment
    - 7.3.2.2.3. By Application
    - 7.3.2.2.4. By End-use
- 7.3.3. United Kingdom Explainable AI Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Component
    - 7.3.3.2.2. By Deployment
    - 7.3.3.2.3. By Application
    - 7.3.3.2.4. By End-use
- 7.3.4. Italy Explainable AI Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Component
    - 7.3.4.2.2. By Deployment
    - 7.3.4.2.3. By Application
    - 7.3.4.2.4. By End-use
- 7.3.5. Spain Explainable AI Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Component
    - 7.3.5.2.2. By Deployment
    - 7.3.5.2.3. By Application
    - 7.3.5.2.4. By End-use

8. Asia Pacific Explainable AI Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Component
- 8.2.2. By Deployment
- 8.2.3. By Application
- 8.2.4. By End-use
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Explainable AI Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Component
    - 8.3.1.2.2. By Deployment
    - 8.3.1.2.3. By Application
    - 8.3.1.2.4. By End-use
- 8.3.2. India Explainable AI Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Component
    - 8.3.2.2.2. By Deployment
    - 8.3.2.2.3. By Application
    - 8.3.2.2.4. By End-use
- 8.3.3. Japan Explainable AI Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Component
    - 8.3.3.2.2. By Deployment
    - 8.3.3.2.3. By Application
    - 8.3.3.2.4. By End-use
- 8.3.4. South Korea Explainable AI Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Component
    - 8.3.4.2.2. By Deployment
    - 8.3.4.2.3. By Application
    - 8.3.4.2.4. By End-use
- 8.3.5. Australia Explainable AI Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Component
    - 8.3.5.2.2. By Deployment
    - 8.3.5.2.3. By Application
    - 8.3.5.2.4. By End-use

9. Middle East & Africa Explainable AI Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Component
- 9.2.2. By Deployment
- 9.2.3. By Application
- 9.2.4. By End-use
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Explainable AI Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Component
    - 9.3.1.2.2. By Deployment
    - 9.3.1.2.3. By Application
    - 9.3.1.2.4. By End-use
- 9.3.2. UAE Explainable AI Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Component
    - 9.3.2.2.2. By Deployment
    - 9.3.2.2.3. By Application
    - 9.3.2.2.4. By End-use
- 9.3.3. South Africa Explainable AI Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Component
    - 9.3.3.2.2. By Deployment
    - 9.3.3.2.3. By Application
    - 9.3.3.2.4. By End-use

10. South America Explainable AI Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Component
- 10.2.2. By Deployment
- 10.2.3. By Application
- 10.2.4. By End-use
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Explainable AI Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Component
    - 10.3.1.2.2. By Deployment
    - 10.3.1.2.3. By Application
    - 10.3.1.2.4. By End-use
- 10.3.2. Colombia Explainable AI Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Component
    - 10.3.2.2.2. By Deployment
    - 10.3.2.2.3. By Application
    - 10.3.2.2.4. By End-use
- 10.3.3. Argentina Explainable AI Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Component
    - 10.3.3.2.2. By Deployment
    - 10.3.3.2.3. By Application
    - 10.3.3.2.4. By End-use

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Explainable AI Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. International Business Machines Corporation
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Microsoft Corporation
15.3. Google LLC
15.4. DataRobot Inc.
15.5. Amelia US LLC
15.6. Kyndi Inc.
15.7. Seldon Technologies Limited
15.8. Arthur.ai
15.9. Ditto.ai
15.10. NVIDIA Corporation