AI Code Tools Market To Hit USD 37.34 Billion By 2032, Driven By Rising Demand For Automation Globally SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The U.S. AI Code Tools Market is set to expand from USD 1.51 billion in 2024 to USD 8.98 billion by 2032, at a CAGR of 25.06%, fueled by advanced technology adoption, strong R&D, skilled talent, and rising enterprise reliance on AI-powered coding platforms for productivity and efficiency.

Austin, Sept. 26, 2025 (GLOBE NEWSWIRE) -- The AI Code Tools Market Size was valued at USD 6.04 billion in 2024 and is expected to reach USD 37.34 billion by 2032 and grow at a CAGR of 25.62% over 2025-2032.

The growing demand for reliable and fast software delivery is one of the reasons propelling the AI Code Tools Market. Crucially, traditional coding methods are laborious, iterative, and prone to mistakes, which reduces productivity and delays projects. AI-based coding tools help developers by detecting bugs in real time, automating tedious coding jobs, and making intelligent code suggestions. It increases output, reduces development time, and enhances the quality of software products. Adoption of AI-assisted coding solutions is becoming the primary enabler for Modern Development Teams as enterprises accelerate their efforts at digital transformation.

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Key Players:

• Microsoft
• OpenAI
• Amazon Web Services (AWS)
• Google
• IBM
• Meta
• xAI
• JetBrains
• Replit
• Tabnine
• Sourcegraph
• Salesforce
• Datadog
• Lightning AI
• Moolya
• Qodo
• Anthropic
• Hugging Face
• Diffblue
• CodiumAI

AI Code Tools Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 6.04 Billion
Market Size by 2032	USD 37.34 Billion
CAGR	CAGR of 25.62% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Offering (Tools, Services) . By Deployment Model (On-Premises, Cloud) . By Technology (Machine Learning, Deep Learning, Natural Language Processing, Generative AI) . By Application (Data Science & Machine Learning, Cloud Services & DevOps, Web Development, Mobile App Development, Gaming Development, Embedded Systems, Others) . By Industry Vertical (BFSI, IT & Telecom, Healthcare, Manufacturing, Retail & E-Commerce, Government, Media & Entertainment, Others)
Customization Scope	Available upon request
Pricing	Available upon request

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Segmentation Analysis:

By Offering, in 2024, Tools Led the Market with Share 76.40%, while Services are the Fastest-growing Segment with a CAGR 22.24%

Tool segment dominates the AI Code Tools Market owing to high utilization of AI-powered coding platforms across enterprises and developers for code generation, debugging, and optimization. The fastest-growing component is the Services segment, as more and more enterprises explore their needs for support in AI integration, customization, training, and consulting.

By Deployment Model, in 2024, Cloud Led the Market 81.20%, while On-premises is the Fastest-growing Segment with a CAGR 22.87%

Cloud segment is largest and it is mainly attributed to its capability to scale on demand, flexibility and high ease of deployment globally. On-premises segment is growing fastest, due to organizations with stringent data privacy, security, and compliance mandates progressively acquiring AI code tools hosted on local infrastructure, thus stimulating demand for customized, secure, and enterprise-controlled deployment solutions.

By Technology, in 2024, Machine learning Led the Market with Share 55.60%, while Generative AI are the Fastest-growing Segment with a CAGR 24.80%

The Machine Learning (ML) Segment in the AI Code Tools Market is leading with its early deployments in intelligent code suggestions, debugging, and optimization for reliable and efficient code assistance for developers. The Generative AI category is the fastest-growing as it enables both technical and non-technical users, shortening development cycles, and supporting low code and no code adoption and that market is growing rapidly.

By Application, in 2024, Data Science & Machine Learning Led the Market with Share 35.20%, while Cloud services & DevOps is the Fastest-growing Segment with a CAGR 23.19%

The Data Science & Machine Learning segment held the largest share of the AI Code Tools Market as organizations are increasingly adopting AI-assisted coding tools due to the high volume and complexity of algorithms and models that need to be built, optimized, and deployed. The fastest-growing segment, Cloud Services & DevOps, is powered by increasing adoption of cloud-native development, CI/CD and automated infrastructure management which is complemented by AI code tools to increase productivity, collaboration, and rapid software delivery.

By Industry Vertical, in 2024, BFSI Dominated the Market with Share 22.10%, while Healthcare is the Fastest-growing Segment with a CAGR of 24.94%

The BFSI (Banking, Financial Services, and Insurance) segment is also dominating the segment of the AI code tools market, which is attributed to a high demand for secure, efficient, and error-free software solutions. Healthcare segment is the fastest-growing due to the growing adoption of AI-based tools for medical software development, predictive analysis, and digital health applications.

North America is the Dominating Region in the Market; Asia Pacific is Emerging as the Fastest Growing Region in the Market over 2025-2032

North America accounted for the largest share 36.40%, of the AI Code Tools Market growth, due to the early adoption of AI-powered development platforms and the high adoption of cloud-based and enterprise-grade coding solution. The Asia Pacific is the fastest-growing region with CAGR 22.92%, driven by growing digital transformation initiatives and advancements in AI technology, thereby influencing the software development process.

Recent Developments:

• In February 2025 , Google launched Gemini 2.0 Pro as an experimental model, offering enhanced capabilities for developers in AI Studio and Vertex AI.
• In January 2024 , Meta released Code Llama 70B, an open-source AI model fine-tuned for code generation, supporting various programming languages and enhancing developer productivity.

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Exclusive Sections of the Report (The USPs):

• Regulatory & Ethical Compliance Metrics – helps you evaluate enterprise concerns around compliance, data privacy, explainability, and responsible AI coding safeguards under global regulations.
• Talent & Workforce Impact – helps you understand how AI-assisted coding reshapes developer roles, training requirements, upskilling programs, and enterprise-level talent shortages.
• Productivity & Efficiency Gains – helps you quantify improvements in coding speed, bug detection accuracy, deployment timelines, and overall project efficiency from AI tool integration.
• Responsible Ai Adoption Trends – helps you track enterprise and vendor-level adoption of ethical AI coding practices, including bias detection frameworks and compliance-driven safeguards.
• Competitive Landscape & Vendor Compliance – helps you analyze how leading AI code tool providers position themselves in terms of GDPR/CCPA readiness, product capabilities, and enterprise trust-building.

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