Applied AI Service Market To Reach USD 1,878.80 Million By 2032, Driven By Surge In Intelligent Automation And Cross-Industry AI Adoption | SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) Applied AI Service Market is growing rapidly, driven by rising AI adoption, automation needs, and digital transformation across sectors.

Pune, May 08, 2025 (GLOBE NEWSWIRE) -- Applied AI Service Market Size Analysis:

“ The Applied AI Service Market was valued at USD 235.60 million in 2023 and is projected to reach approximately USD 1,878.80 million by 2032, expanding at a compound annual growth rate (CAGR) of 26.0% from 2024 to 2032. ”

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Major Players Analysis Listed in this Report are:

• Amazon Web Services (AWS) (Amazon SageMaker, AWS AI Services)
• Apple (Apple Siri, Core ML)
• Baidu (Baidu AI Cloud, ERNIE AI Model)
• Google (Alphabet Inc.) (Google Vertex AI, Google Cloud AI)
• IBM (IBM Watson, IBM AI OpenScale)
• Intel (Intel OpenVINO, Intel AI Analytics Toolkit)
• Meta (Meta AI, PyTorch)
• Microsoft (Azure AI, Microsoft Copilot)
• NVIDIA (NVIDIA AI Enterprise, NVIDIA TensorRT)
• OpenAI (ChatGPT, DALL·E)

Applied AI Service Market Report Scope:

Report Attributes	Details
Market Size in 2023	US$ 235.60 Million
Market Size by 2032	US$ 1878.80 Million
CAGR	CAGR of 26.0 % From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Regional Coverage	North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
Key Growth Drivers	Increasing Integration of AI-Driven Automation in Business Operations Fuels the Growth of the Applied AI Service Market

This remarkable expansion indicates the rise in need for AI-based services across sectors, as businesses seek to improve operational efficiency, automate processes, and gain data-driven insights. Technological advancements, high adoption of AI-based solutions in enterprise solutions, and the need for intelligent automation are the key factors responsible for the rapid growth of the market. The market for applied AI services is expected to witness strong growth over the forecast period, as organizations continue to incorporate AI into their digital transformation strategies.

In 2023, the U.S. Applied AI Service Market was valued at USD 54.27 million and is anticipated to reach USD 379.72 million by 2032, reflecting a strong CAGR of 24.17% during the forecast period from 2024 to 2032.

This trend highlights the rising popularity of AI-based solutions across a wide range of industries such as healthcare, finance, retail, and manufacturing. The growth of applied AI services is accelerating in the U.S. as businesses look for solutions to increase automation, efficiency, and use of data.

By Component, Hardware Segment Led the Applied AI Service Market, Software Segment Expected to Witness Fastest Growth

In 2023, the Hardware segment dominated the Applied AI Service Market, driven by rising investments in AI-specific processors, GPUs, TPUs, and edge devices. Companies like NVIDIA, Intel, and AMD are leading innovation to support deep learning and real-time analytics. AMD's EPYC processors, for example, are optimizing AI workloads in data centers and cloud environments.

The Software segment is projected to grow at the fastest rate in the Applied AI Service Market, as businesses increasingly adopt AI platforms, machine learning frameworks, and automation tools. AI software is being used across industries for predictive analytics, NLP, and intelligent automation, helping organizations enhance operational efficiency, decision-making, and digital transformation initiatives.

By Technology, Deep Learning Segment Dominated the Applied AI Service Market, Natural Language Processing Segment Poised for Fastest Growth

In 2023, the Deep Learning segment led the Applied AI Service Market with a 35% share of total revenue. This dominance is attributed to advanced image processing, pattern recognition, and automation capabilities. Neural networks and generative AI are already being disruptively transformative to industries from healthcare to finance. Deep learning adoption has been further accelerated in enterprises via Microsoft's Azure AI.

Natural Language Processing (NLP) is the fastest-growing segment in the Applied AI Service Market, expected to expand at a CAGR of 27.7% through 2032. NLP enables rapid translation, chatbots, sentiment analysis, and interaction like a real person. To smoothen operations and enhance user experience, industries like customer service, healthcare, and e-commerce are quickly incorporating NLP.

By Industry Vertical, Healthcare Sector Leads Applied AI Service Market, BFSI Segment Set to Record Fastest Growth

In 2023, the healthcare sector dominated the Applied AI Service Market, contributing 25% of total revenue. AI applications in diagnostics, predictive analytics, robotic surgeries and personalized treatment are driving the growth. Tech firms such as IBM Watson Health, Google DeepMind, and GE Healthcare are making huge investments over AI in order to transform medical decision-making and enhance patient outcomes

The BFSI sector is poised for the fastest growth in the Applied AI Service Market, projected to expand at a CAGR of 28.58% from 2024 to 2032. Financial services firms are using AI for fraud detection, automated underwriting, and robo-advisory, among others. Financial Services Based on Artificial Intelligence: Sector Innovations by Key Players, While Major Players Such as JPMorgan Chase, Mastercard, and IBM Lead the Way on Innovation.

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Applied AI Service Market Segmentation:

By Component

• Hardware
• Software

By Deployment

• On-premises
• Cloud

By Technology

• Machine Learning
• Deep Learning
• Natural Language Processing
• Others

By Industry Vertical

• Healthcare
• Retail
• BFSI
• Manufacturing
• Retail & e-commerce
• Transportation & Logistics
• Media & Entertainment
• Others

North America Dominated the Applied AI Service Market in 2023, Asia Pacific Poised for Fastest Growth

In 2023, North America led the Applied AI Service Market with a 38% share, due to well-established infrastructure, widespread adoption of AI and presence of large enterprises such as Google, Microsoft and IBM. We are seeing growth in AI being used for autonomous vehicles, healthcare and finance. Adding to that is a supportive regulatory environment, ethical AI frameworks and state-of-the-art platforms with features, such as Azure and a growing number of Google Cloud services, available in some regions.

Asia Pacific is expected to witness the fastest growth in the Applied AI Service Market, projected at a 30.2% CAGR through 2032. The region's momentum is fueled by accelerating digitalization, increased investments in AI, and innovative government initiatives, the region is on the move. AI is being adopted in different domains in the emerging economies and the deployment of intelligent technologies across industries in finance, manufacturing, healthcare and public infrastructure have accelerated.

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Applied AI Service Market Segmentation, By Component

8. Applied AI Service Market Segmentation, By Deployment

9. Applied AI Service Market Segmentation, By Industry Vertical

10. Applied AI Service Market Segmentation, By Technology

11. Regional Analysis

12. Company Profiles

13. Use Cases and Best Practices

14. Conclusion

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