Product Code: GVR-4-68040-074-5
Explainable AI Market Growth & Trends:
The global explainable AI market size is anticipated to reach USD 21.06 billion by 2030, registering a CAGR of 18.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. Explainable AI refers to the development of artificial intelligence (AI) systems that can provide understandable and transparent explanations for their decision-making processes. While AI models have achieved remarkable performance in various domains, their inherent complexity often makes it challenging to understand why and how they arrive at particular conclusions or predictions. Explainable AI aims to bridge this gap and enhance trust, accountability, and interpretability in AI systems. It is closely tied to broader growth and advancements in technology. As technology continues to evolve and improve, explainable AI enables the development and implementation of more sophisticated and transparent AI systems.
The exponential growth in computing power, driven by advancements in hardware and parallel processing, has facilitated the training and deployment of complex AI models. High-performance computing resources likesupercomputers and high-performance clusters enable the exploration of larger and more interpretable models, as well as the efficient analysis of their decision-making processes. Moreover, advancements in NLP have enabled the development of conversational interfaces and chatbot systems that can provide explanations in human-readable formats. NLP techniques, such as text generation and sentiment analysis, contribute to the development of intuitive and understandable explanations for AI decisions. These significant developments in technologies are fueling the explainable AI industry's growth.
The growing interest in explainable AI has led to the emergence of startups likeAlation,EXPAI, and Fiddler Labs focused on developing and commercializing explainability solutions. Venture capital firms and angel investors are actively investing in these startups to support their research, development, and market adoption. Startups often receive funding to refine their explainability algorithms, build user-friendly interfaces, and create scalable products for various industries.
Explainable AI Market Report Highlights:
- The solution segment accounted for the largest revenue share of 81.2 % in 2024. This strong share is driven by increased demand for AI tools and platforms that help organizations make AI decisions more transparent and understandable.
- The on-premises segment held the largest revenue share in 2024. Using on-premises explainable AI can provide several benefits, such as improved data security, reduced latency, and increased control over the AI system.
- The fraud and anomaly detection segment accounted for the largest revenue share in 2024, due to its critical role in enhancing security across various industries, especially in financial services.
- The IT & telecommunication sector accounted for the highest revenue share in 2024. The rollout of 5G and the Internet of Things (IoT) is enabling organizations and individuals to collect more real-world data in real time.
- North America dominated the explainable AI market with a share of 40.7% in 2024.
Table of Contents
Chapter 1. Methodology and Scope
- 1.1. Market Segmentation & Scope
- 1.2. Market Definition
- 1.3. Information Procurement
- 1.3.1. Purchased Database
- 1.3.2. GVR's Internal Database
- 1.3.3. Secondary Sources & Third-Party Perspectives
- 1.3.4. Primary Research
- 1.4. Information Analysis
- 1.4.1. Data Analysis Models
- 1.5. Market Formulation & Data Visualization
- 1.6. Data Validation & Publishing
Chapter 2. Executive Summary
- 2.1. Market Insights
- 2.2. Segmental Outlook
- 2.3. Competitive Outlook
Chapter 3. Explainable AI Market Variables, Trends & Scope
- 3.1. Global Explainable AI Market Outlook
- 3.2. Industry Value Chain Analysis
- 3.3. Market Dynamics
- 3.3.1. Market Driver Analysis
- 3.3.2. Market Restraint Analysis
- 3.3.3. Industry Challenges
- 3.4. Porter's Five Forces Analysis
- 3.4.1. Supplier Power
- 3.4.2. Buyer Power
- 3.4.3. Substitution Threat
- 3.4.4. Threat from New Entrant
- 3.4.5. Competitive Rivalry
- 3.5. PESTEL Analysis
- 3.5.1. Political Landscape
- 3.5.2. Economic Landscape
- 3.5.3. Social Landscape
- 3.5.4. Technological Landscape
- 3.5.5. Environmental Landscape
- 3.5.6. Legal Landscape
Chapter 4. Explainable AI Market: Component Estimates & Forecasts
- 4.1. Explainable AI Market: Component Movement Analysis, 2024 & 2030
- 4.1.1. Solution
- 4.1.1.1. Solution Market estimates and forecast, 2018 - 2030 (USD Million)
- 4.1.2. Services
- 4.1.2.1. Services Market estimates and forecast, 2018 - 2030 (USD Million)
Chapter 5. Explainable AI Market: Deployment Estimates & Forecasts
- 5.1. Explainable AI Market: Deployment Movement Analysis, 2024 & 2030
- 5.1.1. Cloud
- 5.1.1.1. Cloud Market estimates and forecast, 2018 - 2030 (USD Million)
- 5.1.2. On-premises
- 5.1.2.1. On-premises Market estimates and forecast, 2018 - 2030 (USD Million)
Chapter 6. Explainable AI Market: Application Outlook Estimates & Forecasts
- 6.1. Explainable AI Market: Application Movement Analysis, 2024 & 2030
- 6.1.1. Fraud and Anomaly Detection
- 6.1.1.1. Fraud and Anomaly Detection Explainable AI Market estimates and Forecasts, 2018 - 2030 (USD Million)
- 6.1.2. Drug Discovery & Diagnostics
- 6.1.2.1. Drug Discovery & Diagnostics Explainable AI Market estimates and Forecasts, 2018 - 2030 (USD Million)
- 6.1.3. Predictive Maintenance
- 6.1.3.1. Predictive Maintenance Explainable AI Market estimates and Forecasts, 2018 - 2030 (USD Million)
- 6.1.4. Supply Chain Management
- 6.1.4.1. Supply Chain Management Explainable AI Market estimates and Forecasts, 2018 - 2030 (USD Million)
- 6.1.5. Identity and Access Management
- 6.1.5.1. Identity and Access Management Explainable AI Market estimates and Forecasts, 2018 - 2030 (USD Million)
- 6.1.6. Others
- 6.1.6.1. Others Explainable AI Market estimates and Forecasts, 2018 - 2030 (USD Million)
Chapter 7. Explainable AI Market: End Use Outlook Estimates & Forecasts
- 7.1. Explainable AI Market: End Use Movement Analysis, 2024 & 2030
- 7.1.1. Healthcare
- 7.1.1.1. Healthcare Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.2. BFSI
- 7.1.2.1. BFSI Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.3. Aerospace & Defense
- 7.1.3.1. Aerospace & Defense Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.4. Retail and E-commerce
- 7.1.4.1. Retail and E-commerce Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.5. Public Sector & Utilities
- 7.1.5.1. Public Sector & Utilities Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.6. IT & Telecommunication
- 7.1.6.1. IT & Telecommunication Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.7. Automotive
- 7.1.7.1. Automotive Market estimates and forecast, 2018 - 2030 (USD Million)
- 7.1.8. Others
- 7.1.8.1. Others Market estimates and forecast, 2018 - 2030 (USD Million)
Chapter 8. Explainable AI Market: Regional Estimates & Trend Analysis
- 8.1. Explainable AI Market Share, By Region, 2024 & 2030 USD Million
- 8.2. North America
- 8.2.1. North America Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.2.1.1. North America Explainable AI Market Estimates and Forecasts, by Country, 2018 - 2030 (USD Million)
- 8.2.1.2. North America Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.2.1.3. North America Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.2.1.4. North America Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.2.1.5. North America Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.2.2. U.S.
- 8.2.2.1. U.S. Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.2.2.2. U.S. Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.2.2.3. U.S. Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.2.2.4. U.S. Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.2.2.5. U.S. Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.2.3. Canada
- 8.2.3.1. Canada Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.2.3.2. Canada Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.2.3.3. Canada Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.2.3.4. Canada Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.2.3.5. Canada Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.2.4. Mexico
- 8.2.4.1. Mexico Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.2.4.2. Mexico Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.2.4.3. Mexico Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.2.4.4. Mexico Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.2.4.5. Mexico Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.3. Europe
- 8.3.1. Europe Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.3.1.1. Europe Explainable AI Market Estimates and Forecasts, by Country, 2018 - 2030 (USD Million)
- 8.3.1.2. Europe Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.3.1.3. Europe Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.3.1.4. Europe Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.3.1.5. Europe Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.3.2. U.K.
- 8.3.2.1. U.K. Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.3.2.2. U.K. Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.3.2.3. U.K. Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.3.2.4. U.K. Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.3.2.5. U.K. Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.3.3. Germany
- 8.3.3.1. Germany Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.3.3.2. Germany Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.3.3.3. Germany Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.3.3.4. Germany Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.3.3.5. Germany Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.3.4. France
- 8.3.4.1. France Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.3.4.2. France Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.3.4.3. France Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.3.4.4. France Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.3.4.5. France Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.4. Asia Pacific
- 8.4.1. Asia Pacific Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.4.1.1. Asia Pacific Explainable AI Market Estimates and Forecasts, by Country, 2018 - 2030 (USD Million)
- 8.4.1.2. Asia Pacific Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.4.1.3. Asia Pacific Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.4.1.4. Asia Pacific Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.4.1.5. Asia Pacific Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.4.2. China
- 8.4.2.1. China Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.4.2.2. China Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.4.2.3. China Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.4.2.4. China Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.4.2.5. China Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.4.3. Japan
- 8.4.3.1. Japan Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.4.3.2. Japan Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.4.3.3. Japan Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.4.3.4. Japan Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.4.3.5. Japan Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.4.4. India
- 8.4.4.1. India Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.4.4.2. India Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.4.4.3. India Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.4.4.4. India Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.4.4.5. India Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.4.5. Australia
- 8.4.5.1. Australia Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.4.5.2. Australia Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.4.5.3. Australia Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.4.5.4. Australia Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.4.5.5. Australia Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.4.6. South Korea
- 8.4.6.1. South Korea Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.4.6.2. South Korea Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.4.6.3. South Korea Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.4.6.4. South Korea Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.4.6.5. South Korea Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.5. Latin America
- 8.5.1. Latin America Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.5.1.1. Latin America Explainable AI Market Estimates and Forecasts, by Country, 2018 - 2030 (USD Million)
- 8.5.1.2. Latin America Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.5.1.3. Latin America Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.5.1.4. Latin America Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.5.1.5. Latin America Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.5.2. Brazil
- 8.5.2.1. Brazil Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.5.2.2. Brazil Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.5.2.3. Brazil Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.5.2.4. Brazil Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.5.2.5. Brazil Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.6. Middle East and Africa
- 8.6.1. Middle East and Africa Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.6.1.1. Middle East and Africa Explainable AI Market Estimates and Forecasts, by Country, 2018 - 2030 (USD Million)
- 8.6.1.2. Middle East and Africa Explainable AI Market Estimates and Forecasts, by Component , 2018 - 2030 (USD Million)
- 8.6.1.3. Middle East and Africa Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.6.1.4. Middle East and Africa Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.6.1.5. Middle East and Africa Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.6.2. KSA
- 8.6.2.1. KSA Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.6.2.2. KSA Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.6.2.3. KSA Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.6.2.4. KSA Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.6.2.5. KSA Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.6.3. UAE
- 8.6.3.1. UAE Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.6.3.2. UAE Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.6.3.3. UAE Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.6.3.4. UAE Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.6.3.5. UAE Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
- 8.6.4. South Africa
- 8.6.4.1. South Africa Explainable AI Market Estimates and Forecasts, 2018 - 2030 (USD Million)
- 8.6.4.2. South Africa Explainable AI Market Estimates and Forecasts, by Component, 2018 - 2030 (USD Million)
- 8.6.4.3. South Africa Explainable AI Market Estimates and Forecasts, by Deployment, 2018 - 2030 (USD Million)
- 8.6.4.4. South Africa Explainable AI Market Estimates and Forecasts, by Application, 2018 - 2030 (USD Million)
- 8.6.4.5. South Africa Explainable AI Market Estimates and Forecasts, by End use, 2018 - 2030 (USD Million)
Chapter 9. Competitive Landscape
- 9.1. Recent Developments & Impact Analysis, By Key Market Participants
- 9.2. Vendor Landscape
- 9.2.1. Company categorization
- 9.2.2. List of Key Distributors and Channel Partners
- 9.2.3. List of Potential Customers/Listing
- 9.3. Competitive Dynamics
- 9.3.1. Competitive Benchmarking
- 9.3.2. Strategy Mapping
- 9.3.3. Heat Map Analysis
- 9.4. Company Profiles/Listing
- 9.4.1. Amelia US LLC
- 9.4.1.1. Participant's overview
- 9.4.1.2. Financial performance
- 9.4.1.3. Deployment benchmarking
- 9.4.1.4. Strategic initiatives
- 9.4.2. BuildGroup
- 9.4.2.1. Participant's overview
- 9.4.2.2. Financial performance
- 9.4.2.3. Deployment benchmarking
- 9.4.2.4. Strategic initiatives
- 9.4.3. DataRobot, Inc.
- 9.4.3.1. Participant's overview
- 9.4.3.2. Financial performance
- 9.4.3.3. Deployment benchmarking
- 9.4.3.4. Strategic initiatives
- 9.4.4. Ditto.ai
- 9.4.4.1. Participant's overview
- 9.4.4.2. Financial performance
- 9.4.4.3. Deployment benchmarking
- 9.4.4.4. Strategic initiatives
- 9.4.5. DarwinAI
- 9.4.5.1. Participant's overview
- 9.4.5.2. Financial performance
- 9.4.5.3. Deployment benchmarking
- 9.4.5.4. Strategic initiatives
- 9.4.6. Factmata
- 9.4.6.1. Participant's overview
- 9.4.6.2. Financial performance
- 9.4.6.3. Deployment benchmarking
- 9.4.6.4. Strategic initiatives
- 9.4.7. Google LLC
- 9.4.7.1. Participant's overview
- 9.4.7.2. Financial performance
- 9.4.7.3. Deployment benchmarking
- 9.4.7.4. Strategic initiatives
- 9.4.8. IBM Corporation
- 9.4.8.1. Participant's overview
- 9.4.8.2. Financial performance
- 9.4.8.3. Deployment benchmarking
- 9.4.8.4. Strategic initiatives
- 9.4.9. Kyndi
- 9.4.9.1. Participant's overview
- 9.4.9.2. Financial performance
- 9.4.9.3. Deployment benchmarking
- 9.4.9.4. Strategic initiatives
- 9.4.10. Microsoft
- 9.4.10.1. Participant's overview
- 9.4.10.2. Financial performance
- 9.4.10.3. Deployment benchmarking
- 9.4.10.4. Strategic initiatives