Product Code: ETC13272388 | Publication Date: Apr 2025 | Updated Date: Jul 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | Author: Dhaval Chaurasia | No. of Pages: 190 | No. of Figures: 80 | No. of Tables: 40 |
According to 6Wresearch internal database and industry insights, the Global Explainable AI Market was valued at USD 3.8 Billion in 2024 and is expected to reach USD 9.4 Billion by 2031, growing at a compound annual growth rate of 10.50% during the forecast period (2025-2031).
The Global Explainable AI Market is experiencing significant growth due to the increasing adoption of AI technologies across various industries such as healthcare, finance, and retail. Explainable AI, also known as XAI, is gaining traction as it provides transparency and interpretability in AI algorithms, addressing the black-box nature of traditional machine learning models. This market is driven by the need for regulatory compliance, ethical considerations, and the growing demand for trustworthy AI systems. Key players in the market are investing in research and development to enhance explainability techniques and tools, catering to the rising demand for interpretable AI solutions. North America holds a significant share in the market, followed by Europe and Asia Pacific, with the healthcare and banking sectors being major contributors to the market growth.
The Global Explainable AI Market is witnessing significant growth driven by the increasing adoption of AI technologies across various industries. The demand for transparency and interpretability in AI decision-making processes is fueling the need for explainable AI solutions. Industries such as healthcare, finance, and retail are leveraging explainable AI to improve decision-making, compliance, and customer trust. There is a growing opportunity for AI solution providers to develop and offer explainable AI tools that can provide insights into the inner workings of AI models. Additionally, regulations such as GDPR and ethical considerations are pushing organizations to adopt explainable AI to ensure accountability and fairness in AI-driven decisions. Overall, the Global Explainable AI Market is poised for continued growth as businesses prioritize transparency and trust in their AI applications.
The Global Explainable AI Market faces several challenges, including the complexity of developing algorithms that can provide transparent explanations for AI decision-making processes. Ensuring that these explanations are accurate, meaningful, and easily understandable by non-technical users is another hurdle. Additionally, balancing the need for transparency with the protection of proprietary algorithms and intellectual property presents a challenge for companies operating in this market. Furthermore, addressing the potential biases in AI models and ensuring fairness and accountability in decision-making processes remain key challenges. Overall, the Global Explainable AI Market must navigate these obstacles to build trust among users and stakeholders and drive widespread adoption of explainable AI technologies across various industries.
The Global Explainable AI Market is being primarily driven by the increasing adoption of AI technologies across various industries, coupled with the growing demand for transparency and trust in AI decision-making processes. Businesses are seeking to understand and interpret the decisions made by AI systems, leading to the need for explainable AI solutions. Regulatory requirements and ethical considerations are also fueling the demand for explainable AI, as organizations aim to comply with guidelines and ensure accountability for AI-driven decisions. Furthermore, the ability of explainable AI to enhance human-AI collaboration and improve overall decision-making processes is driving its adoption among enterprises looking to leverage AI technology effectively while maintaining control and understanding of the outcomes.
Government policies related to the Global Explainable AI Market focus on promoting transparency, accountability, and fairness in AI systems. Various countries have introduced regulations requiring companies to explain how their AI algorithms make decisions and ensure they do not discriminate against protected groups. For instance, the European Union`s General Data Protection Regulation (GDPR) includes provisions on the right to explanation for automated decision-making processes. In the United States, the Federal Trade Commission has issued guidelines on the use of AI to ensure consumer protection. Governments are increasingly recognizing the importance of explainable AI to build trust among users and mitigate potential risks associated with biased or opaque algorithms in various sectors such as healthcare, finance, and law enforcement.
The Global Explainable AI Market is expected to witness significant growth in the coming years as businesses and industries increasingly prioritize transparency and trust in AI systems. The demand for AI models that can provide clear explanations for their decisions is rising, driven by regulatory requirements, ethical considerations, and the need to enhance user understanding and acceptance. With advancements in machine learning interpretability techniques and the development of explainable AI frameworks, the market is poised for expansion across various sectors such as healthcare, finance, and cybersecurity. As organizations seek to leverage AI technologies while mitigating risks associated with bias and opacity, the Explainable AI Market is anticipated to experience substantial growth and adoption, presenting opportunities for vendors and service providers to cater to this evolving need for transparent and interpretable AI solutions.
In the Global Explainable AI Market, Asia is expected to witness significant growth due to the increasing adoption of AI technologies in countries like China, Japan, and India. North America is projected to maintain a strong position in the market, driven by the presence of key players and a high level of technological advancement. Europe is also anticipated to show considerable growth, with countries like the UK, Germany, and France investing heavily in AI research and development. The Middle East and Africa region is likely to experience moderate growth, primarily driven by the adoption of AI in sectors such as healthcare and finance. Latin America is expected to show steady growth as organizations in countries like Brazil and Mexico increasingly implement explainable AI solutions to enhance decision-making processes.
Global Explainable AI Market |
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Global Explainable AI Market Overview |
3.1 Global Regional Macro Economic Indicators |
3.2 Global Explainable AI Market Revenues & Volume, 2021 & 2031F |
3.3 Global Explainable AI Market - Industry Life Cycle |
3.4 Global Explainable AI Market - Porter's Five Forces |
3.5 Global Explainable AI Market Revenues & Volume Share, By Regions, 2021 & 2031F |
3.6 Global Explainable AI Market Revenues & Volume Share, By Component, 2021 & 2031F |
3.7 Global Explainable AI Market Revenues & Volume Share, By Application, 2021 & 2031F |
3.8 Global Explainable AI Market Revenues & Volume Share, By End Use, 2021 & 2031F |
4 Global Explainable AI Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Global Explainable AI Market Trends |
6 Global Explainable AI Market, 2021 - 2031 |
6.1 Global Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
6.1.1 Overview & Analysis |
6.1.2 Global Explainable AI Market, Revenues & Volume, By Solution, 2021 - 2031 |
6.1.3 Global Explainable AI Market, Revenues & Volume, By Services, 2021 - 2031 |
6.2 Global Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
6.2.1 Overview & Analysis |
6.2.2 Global Explainable AI Market, Revenues & Volume, By Fraud and Anomaly Detection, 2021 - 2031 |
6.2.3 Global Explainable AI Market, Revenues & Volume, By Drug Discovery and Diagnostics, 2021 - 2031 |
6.2.4 Global Explainable AI Market, Revenues & Volume, By Predictive Maintenance, 2021 - 2031 |
6.2.5 Global Explainable AI Market, Revenues & Volume, By Supply Chain Management, 2021 - 2031 |
6.2.6 Global Explainable AI Market, Revenues & Volume, By Identity and Access Management, 2021 - 2031 |
6.2.7 Global Explainable AI Market, Revenues & Volume, By Others, 2021 - 2031 |
6.3 Global Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
6.3.1 Overview & Analysis |
6.3.2 Global Explainable AI Market, Revenues & Volume, By Healthcare, 2021 - 2031 |
6.3.3 Global Explainable AI Market, Revenues & Volume, By BFSI, 2021 - 2031 |
6.3.4 Global Explainable AI Market, Revenues & Volume, By Aerospace and Defense, 2021 - 2031 |
6.3.5 Global Explainable AI Market, Revenues & Volume, By Retail and E-commerce, 2021 - 2031 |
6.3.6 Global Explainable AI Market, Revenues & Volume, By Public Sector and Utilities, 2021 - 2031 |
6.3.7 Global Explainable AI Market, Revenues & Volume, By IT and Telecommunication, 2021 - 2031 |
6.3.8 Global Explainable AI Market, Revenues & Volume, By Automotive, 2021 - 2031 |
6.3.9 Global Explainable AI Market, Revenues & Volume, By Others, 2021 - 2031 |
7 North America Explainable AI Market, Overview & Analysis |
7.1 North America Explainable AI Market Revenues & Volume, 2021 - 2031 |
7.2 North America Explainable AI Market, Revenues & Volume, By Countries, 2021 - 2031 |
7.2.1 United States (US) Explainable AI Market, Revenues & Volume, 2021 - 2031 |
7.2.2 Canada Explainable AI Market, Revenues & Volume, 2021 - 2031 |
7.2.3 Rest of North America Explainable AI Market, Revenues & Volume, 2021 - 2031 |
7.3 North America Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
7.4 North America Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
7.5 North America Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
8 Latin America (LATAM) Explainable AI Market, Overview & Analysis |
8.1 Latin America (LATAM) Explainable AI Market Revenues & Volume, 2021 - 2031 |
8.2 Latin America (LATAM) Explainable AI Market, Revenues & Volume, By Countries, 2021 - 2031 |
8.2.1 Brazil Explainable AI Market, Revenues & Volume, 2021 - 2031 |
8.2.2 Mexico Explainable AI Market, Revenues & Volume, 2021 - 2031 |
8.2.3 Argentina Explainable AI Market, Revenues & Volume, 2021 - 2031 |
8.2.4 Rest of LATAM Explainable AI Market, Revenues & Volume, 2021 - 2031 |
8.3 Latin America (LATAM) Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
8.4 Latin America (LATAM) Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
8.5 Latin America (LATAM) Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
9 Asia Explainable AI Market, Overview & Analysis |
9.1 Asia Explainable AI Market Revenues & Volume, 2021 - 2031 |
9.2 Asia Explainable AI Market, Revenues & Volume, By Countries, 2021 - 2031 |
9.2.1 India Explainable AI Market, Revenues & Volume, 2021 - 2031 |
9.2.2 China Explainable AI Market, Revenues & Volume, 2021 - 2031 |
9.2.3 Japan Explainable AI Market, Revenues & Volume, 2021 - 2031 |
9.2.4 Rest of Asia Explainable AI Market, Revenues & Volume, 2021 - 2031 |
9.3 Asia Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
9.4 Asia Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
9.5 Asia Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
10 Africa Explainable AI Market, Overview & Analysis |
10.1 Africa Explainable AI Market Revenues & Volume, 2021 - 2031 |
10.2 Africa Explainable AI Market, Revenues & Volume, By Countries, 2021 - 2031 |
10.2.1 South Africa Explainable AI Market, Revenues & Volume, 2021 - 2031 |
10.2.2 Egypt Explainable AI Market, Revenues & Volume, 2021 - 2031 |
10.2.3 Nigeria Explainable AI Market, Revenues & Volume, 2021 - 2031 |
10.2.4 Rest of Africa Explainable AI Market, Revenues & Volume, 2021 - 2031 |
10.3 Africa Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
10.4 Africa Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
10.5 Africa Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
11 Europe Explainable AI Market, Overview & Analysis |
11.1 Europe Explainable AI Market Revenues & Volume, 2021 - 2031 |
11.2 Europe Explainable AI Market, Revenues & Volume, By Countries, 2021 - 2031 |
11.2.1 United Kingdom Explainable AI Market, Revenues & Volume, 2021 - 2031 |
11.2.2 Germany Explainable AI Market, Revenues & Volume, 2021 - 2031 |
11.2.3 France Explainable AI Market, Revenues & Volume, 2021 - 2031 |
11.2.4 Rest of Europe Explainable AI Market, Revenues & Volume, 2021 - 2031 |
11.3 Europe Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
11.4 Europe Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
11.5 Europe Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
12 Middle East Explainable AI Market, Overview & Analysis |
12.1 Middle East Explainable AI Market Revenues & Volume, 2021 - 2031 |
12.2 Middle East Explainable AI Market, Revenues & Volume, By Countries, 2021 - 2031 |
12.2.1 Saudi Arabia Explainable AI Market, Revenues & Volume, 2021 - 2031 |
12.2.2 UAE Explainable AI Market, Revenues & Volume, 2021 - 2031 |
12.2.3 Turkey Explainable AI Market, Revenues & Volume, 2021 - 2031 |
12.3 Middle East Explainable AI Market, Revenues & Volume, By Component, 2021 - 2031 |
12.4 Middle East Explainable AI Market, Revenues & Volume, By Application, 2021 - 2031 |
12.5 Middle East Explainable AI Market, Revenues & Volume, By End Use, 2021 - 2031 |
13 Global Explainable AI Market Key Performance Indicators |
14 Global Explainable AI Market - Export/Import By Countries Assessment |
15 Global Explainable AI Market - Opportunity Assessment |
15.1 Global Explainable AI Market Opportunity Assessment, By Countries, 2021 & 2031F |
15.2 Global Explainable AI Market Opportunity Assessment, By Component, 2021 & 2031F |
15.3 Global Explainable AI Market Opportunity Assessment, By Application, 2021 & 2031F |
15.4 Global Explainable AI Market Opportunity Assessment, By End Use, 2021 & 2031F |
16 Global Explainable AI Market - Competitive Landscape |
16.1 Global Explainable AI Market Revenue Share, By Companies, 2024 |
16.2 Global Explainable AI Market Competitive Benchmarking, By Operating and Technical Parameters |
17 Top 10 Company Profiles |
18 Recommendations |
19 Disclaimer |