Dublin, Sept. 12, 2023 (GLOBE NEWSWIRE) -- The "Explainable AI Market by Offering, by Deployment Mode, by Application, and by End-User Industry - Global Opportunity Analysis and Industry Forecast, 2023-2030" report has been added to ResearchAndMarkets.com's offering.
The Explainable AI (XAI) market has witnessed significant growth in recent years, with a projected CAGR of 21.5% from 2023 to 2030. In 2022, the market was valued at USD 5.10 billion and is expected to reach USD 24.58 billion by 2030.
This growth is attributed to various factors, including the impact of Industry 4.0, the need for transparency in AI algorithms, and the increasing adoption of deep learning and neural networks.
Industry 4.0 Driving Demand for Explainable AI
The convergence of advanced technologies and digital transformation, often referred to as Industry 4.0, is a driving force behind the demand for Explainable AI. This trend has led to the successful transformation of various industries by embracing digital technologies. The integration of AI and XAI methods with Industry 4.0 technologies enables accurate and high-quality applications, making organizations more agile and customer-focused.
Deep Learning and Neural Networks Adoption
The adoption of deep learning and neural networks for critical decision-making processes has created a need for understanding and explaining the mechanisms behind these models. This need has led to collaborations, such as the integration of AI capabilities by companies like Shopify and Google Cloud. This integration empowers retailers with advanced AI and search capabilities.
Challenges and Opportunities
Despite the growth prospects, challenges such as a lack of skilled individuals in data ethics and transparency pose a restraint. Regulatory requirements by government organizations, however, offer opportunities for the deployment of XAI solutions. These solutions help businesses comply with regulations and ensure transparency in AI-driven decision-making processes.
Segmentation Overview
The global XAI market is segmented based on offering, deployment mode, application, end-user industry, and region:
- Offering: Solutions and Services
- Deployment Mode: Cloud-based and On-premise
- Application: Medical, Industrial, Cyber Security, Financial Services, Customer Service, and others
- End-User Industry: BFSI, Healthcare & Biotechnology, Retail & E-commerce, Manufacturing, Telecommunications, Public Sector, Military & Defense, and others
Regional Dominance and Analysis
North America is expected to hold a dominant share in the XAI market due to regulations set by market giants like Google, Microsoft, and IBM. These regulations emphasize transparency and interpretability in AI algorithms, promoting the development and adoption of XAI solutions. The region's increasing focus on cybersecurity is also driving the growth of the XAI industry.
Key Market Players and Developments
Key players in the XAI industry include IBM Corporation, Alphabet Inc. (Google), Microsoft Corporation, Intel Corporation, SAS, C3 AI, Equifax, FICO, Salesforce, and H2O.ai. These companies are continuously innovating and introducing new solutions to enhance the interpretability and transparency of AI models.
Conclusion
The Explainable AI market is poised for significant growth driven by Industry 4.0, AI adoption, and the need for transparency. Despite challenges, the market offers immense opportunities for businesses and organizations to develop and adopt XAI solutions that comply with regulations and build trust among users. The segmentation and regional analysis provide a comprehensive understanding of the market dynamics, while key players continue to drive innovation in the XAI industry.
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