Straits Research published report, “Artificial Intelligence As A Service Market Size & Outlook, 2026–2034”. According to the study, the market size is valued at USD 20.17 billion in 2025 and is projected to expand to USD 107.4 billion by 2034, registering a compound annual growth rate (CAGR) of 35.9%.

Market Dynamics

The Artificial Intelligence As A Service Market is spurred on by the growing usage of AI solutions in industries including BFSI, healthcare, retail, and manufacturing, as well as expanding demand for scalable, cloud-based AI platforms. Increasing enterprise digital transformation programs, along with real-time data processing needs and intelligent automation, are driving market growth in service, technology, and deployment categories.

Friendly regulatory policies, expansion of cloud infrastructure, and R&D initiatives on AI in the U.S., Europe, China, and India are major growth drivers. Investment in hybrid and edge AIaaS solutions and AI integration with business analytics and enterprise software are opening up new avenues for technology vendors and service providers.

Market Highlights

• Segmental Leadership: Machine Learning as a Service (MLaaS) holds the largest share namely 62%, while The Computer Vision as a Service (CVaaS) segment is anticipated to register the largest growth, posting a CAGR of about 39.2% during the forecast period.
• Technology Type Outlook: Hybrid segment is expected to witness the highest CAGR (36.8%) during the forecast period.
• Deployment Mode: Private Cloud segment leads with over 38.2% market share, widely adopted by enterprises for data security and compliance.
• End Use Industry Outlook: BFSI leads with over 38.2% revenue share the forecast period
• Regional Insights: North America dominates with over 36.25% share, driven by strong enterprise adoption, AI-focused investments, and supportive cloud infrastructure.