Cloud AI Market Will Exceed US$739.46 Billion by 2031, Forecast by The Insight Partners

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the cloud AI market comprises a vast array of component, organization size, and end user, which are expected to register strength during the coming years.

/EIN News/ -- US & Canada, May 26, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the global cloud AI market is observing significant growth owing to the rising adoption of cloud computing, growing adoption of generative AI and machine learning among various industries, and an increase in the demand for big data.

The Cloud AI market is rapidly growing due to increased demand for scalable, intelligent solutions across industries. It integrates cloud computing with artificial intelligence, enabling real-time data processing, automation, and advanced analytics. Key sectors driving growth include healthcare, finance, retail, and manufacturing. The market is expected to expand significantly due to advancements in machine learning, NLP, and edge AI. Major players in the Cloud AI market include Google Cloud, Amazon Web Services (AWS), Microsoft Azure, IBM, Oracle, Salesforce, Alibaba Cloud, and SAP.

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Overview of Report Findings

1. Market Growth: The cloud AI market size was valued at US$ 83.78 billion in 2024 and is expected to reach US$ 739.46 billion by 2031; it is estimated to register a CAGR of 36.5% during 2025–2031. The cloud AI market has witnessed significant growth in recent years, driven by the rising adoption of cloud computing, the growing adoption of generative AI and machine learning among various industries, and the increase in the demand for big data. Cloud AI platforms offer a wide array of AI tools, including machine learning, natural language processing, and deep learning, which organizations can utilize to improve customer experiences, optimize processes, and develop new products and services. Key technological advancements are fueling the expansion of Cloud AI solutions. The shift toward more powerful AI models and frameworks, coupled with the availability of vast computing resources in the cloud, enables organizations to run complex AI models and process large volumes of data with ease.
   
2. Technological Innovations: Technological advancements are playing a pivotal role in driving the growth of the Cloud AI market. As AI technologies evolve, cloud platforms have become essential in enabling businesses to harness the full potential of these innovations, providing the necessary computational power, storage, and scalability. Moreover, the continuous improvement of machine learning algorithms, particularly in supervised and unsupervised learning, allows businesses to create more precise and effective models for a wide range of applications, from predictive analytics to customer service automation. Cloud AI platforms are able to integrate these advancements rapidly, making them accessible to organizations without requiring in-depth technical expertise or heavy infrastructure investments.
   
3. Rising Adoption Of Cloud Computing: The rising adoption of cloud computing is significantly driving the growth of the Cloud AI market. Cloud computing provides a robust and scalable infrastructure that is crucial for the development, deployment, and management of AI models. AI algorithms, particularly those used for machine learning (ML) and deep learning, require massive computational power and storage capacity to process vast amounts of data. Cloud platforms offer on-demand resources that make it possible for businesses to access the necessary computing power without the need for large upfront investments in physical hardware. Additionally, cloud computing fosters collaboration and ease of access. Cloud-based AI tools can be accessed from anywhere, allowing data scientists and AI developers to work remotely or across multiple locations. This boosts productivity and accelerates the deployment of AI-driven applications in various industries, from healthcare to finance to manufacturing.
   
4. Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific. Asia Pacific is expected to grow with the highest CAGR over the forecast period.
   
   

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Market Segmentation

• Based on component, the market is segmented into solutions and services. The solution segment dominated the market in 2024.
• Based on organization size, the cloud AI market is segmented into large enterprises and SMEs. The large enterprises segment dominated the market in 2024.
• Based on end users, the cloud AI market is segmented into BFSI, IT and telecom, healthcare, automotive, retail, government, and others. The BFSI segment dominated the market in 2024.
  
  

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Competitive Strategy and Development

• Key Players: Amazon Web Services Inc.; Microsoft Corporation; Google LLC; IBM Corporation; Intel Corporation; Nvidia Corporation; Cloudminds Technology; AIBrain LLC; Salesforce.com Inc. and Oracle Coproration are among the key players profiled in the cloud AI market report.
• Trending Topics: Machine Learning, Multi-Cloud, Natural Language Processing, among others

Global Headlines

• " Google Cloud announced new AI products, as well as initiatives and skills training for the United Kingdom at an exclusive "Gemini for the United Kingdom" event held at Google DeepMind's London headquarters. The event reinforced Google Cloud's long-term dedication to the UK, highlighted by its US$ 1 billion investment in a new data center, alongside ongoing initiatives to empower the nation's AI development."
• " HCLTech has launched a suite of Agentic AI solutions in collaboration with Google Cloud to help enterprises unlock efficiency and derive enhanced business value from their digital and technology landscapes. By collaborating with Google Cloud, HCLTech’s Agentic AI solutions leverage advanced cloud capabilities to help enterprises swiftly adapt to market changes and customer demands, ensuring competitiveness in fast-paced industries.."

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Conclusion

The cloud AI market is experiencing rapid growth, driven by the increasing demand for scalable, flexible, and cost-effective AI solutions across industries. Cloud computing provides businesses with the infrastructure necessary to leverage advanced AI technologies, from machine learning to deep learning, without the need for significant upfront investments. Technological advancements, such as more powerful AI models, the rise of edge computing, and innovations in cloud infrastructure, are further propelling the adoption of cloud AI, enabling organizations to streamline operations, enhance decision-making, and improve overall efficiency.

The report from The Insight Partners, therefore, provides several stakeholders—including cloud providers, AI technology providers, system integrators, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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