This report describes and explains the artificial intelligence (AI) in digital transformation market and covers 2020-2025, termed the historic period, and 2025-2030, 2035F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global artificial intelligence (AI) in digital transformation market reached a value of nearly $29.44 billion in 2025, having grown at a compound annual growth rate (CAGR) of 31.4% since 2020. The market is expected to grow from $29.44 billion in 2025 to $99.97 billion in 2030 at a rate of 27.7%. The market is then expected to grow at a CAGR of 26.3% from 2030 and reach $320.74 billion in 2035.
Growth in the historic period resulted from increase in cloud computing, government initiatives supporting ai adoption, increasing demand for personalized ai solutions and increasing internet penetration. Factors that negatively affected growth in the historic period were privacy concerns related to data collection and surveillance and limited availability of skilled personnel and technical expertise.
Going forward, demand of IoT and connected devices, adoption of digital twins and simulation technologies, growing adoption of automation and rising investment in AI startups will drive the growth. Factors that could hinder the growth of the artificial intelligence (AI) in digital transformation market in the future include tighter AI regulations, high initial investment and implementation costs and impact of trade war and tariff.
The artificial intelligence (AI) in digital transformation market is segmented by component into solution and services. The solution market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by component, accounting for 61.8% or $18.2 billion of the total in 2025. Going forward, the services segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by component, at a CAGR of 30.1% during 2025-2030.
The artificial intelligence (AI) in digital transformation market is segmented by deployment mode into cloud-based and on-premise. The cloud-based market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by deployment mode, accounting for 62.3% or $18.34 billion of the total in 2025. Going forward, the cloud-based segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by deployment mode, at a CAGR of 30.7% during 2025-2030.
The artificial intelligence (AI) in digital transformation market is segmented by technology into machine learning (ML), natural language processing (NLP), computer vision and other technologies. The machine learning (ML) market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by technology, accounting for 42.4% or $12.47 billion of the total in 2025. Going forward, the natural language processing (NLP) segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by technology, at a CAGR of 34.3% during 2025-2030.
The artificial intelligence (AI) in digital transformation market is segmented by industry vertical into banking financial services and insurance (BFSI), information technology (IT) and telecommunications, government and public sector, healthcare, manufacturing, retail and other end-use industries. The banking financial services and insurance (BFSI) market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by industry vertical, accounting for 25.5% or $7.51 billion of the total in 2025. Going forward, the healthcare segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by industry vertical, at a CAGR of 32.1% during 2025-2030.
North America was the largest region in the artificial intelligence (AI) in digital transformation market, accounting for 35.7% or $10.5 billion of the total in 2025. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence (AI) in digital transformation market will be Asia Pacific and Middle East where growth will be at CAGRs of 30.3% and 28.2% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 24.3% and 23.7% respectively.
The global artificial intelligence (AI) in digital transformation market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 8.22% of the total market in 2024. Microsoft Corporation was the largest competitor with a 1.33% share of the market, followed by Nvidia Corporation with 1.10%, Alphabet Inc. (Google LLC) with 0.97%, Amazon.com Inc. with 0.88%, International Business Machines Corporation with 0.74%, Accenture plc with 0.71%, Cisco Systems Inc. with 0.64%, Oracle Corporation with 0.63%, SAP SE with 0.62% and Dell Technologies Inc. with 0.60%.
The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by component will arise in the solution segment, which will gain $39.86 billion of global annual sales by 2030. The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by technology will arise in the machine learning (ML) segment, which will gain $29.24 billion of global annual sales by 2030. The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by deployment mode will arise in the cloud-based segment, which will gain $51.75 billion of global annual sales by 2030. The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by industry vertical will arise in the banking financial services and insurance (BFSI) segment, which will gain $17.16 billion of global annual sales by 2030. The artificial intelligence (AI) in digital transformation market size will gain the most in the USA at $18.53 billion.
Market-trend-based strategies for the artificial intelligence (AI) in digital transformation market include focus on advancing conversational AI platforms designed to automate and streamline high-volume enterprise hiring processes, focus on the deployment of localized AI computing platforms, focus on the development and launch of agentic enterprise platforms designed to elevate human productivity, focus on launching full-value-chain AI transformation platforms designed to enable enterprises to accelerate and scale AI adoption across the entire business lifecycle, focus on the launch of AI-first platforms designed to help enterprises achieve faster, more efficient, and more comprehensive transformation outcomes, focus on launching multi-agent AI platforms designed to accelerate client delivery, enhance service innovation, and streamline complex business processes and focus on the introduction of agentic AI platforms designed to automate complex tasks and enhance decision-making across multiple business domains.
Player-adopted strategies in the artificial intelligence (AI) in digital transformation market include focus on expanding its business capabilities through strategic innovation to expand its operational capabilities, focus on expanding its business capabilities through strategic investment to expand its operational capabilities and focus on expanding its manufacturing capabilities through strategic collaboration.
To take advantage of the opportunities, the analyst recommends the artificial intelligence (AI) in digital transformation companies to focus on conversational AI for scalable enterprise hiring, focus on localized AI computing at the edge, focus on agentic enterprise platforms for productivity growth, focus on full value chain AI transformation platforms, focus on AI-first enterprise transformation platforms, focus on multi-agent AI platforms for scalable service delivery, focus on scaling AI services for enterprise transformation, focus on natural language processing as the core AI growth engine, focus on cloud-based AI platforms for scalable growth, focus on healthcare AI adoption to capture the fastest growth, expand in emerging markets, continue to focus on developed markets, focus on agentic AI platforms for enterprise automation, focus on value-based and scalable pricing models, focus on business outcome-driven messaging, focus on trust credibility and adoption enablement and focus on BFSI-centric talent and stakeholder engagement.
This product will be delivered within 3-5 business days.
The global artificial intelligence (AI) in digital transformation market reached a value of nearly $29.44 billion in 2025, having grown at a compound annual growth rate (CAGR) of 31.4% since 2020. The market is expected to grow from $29.44 billion in 2025 to $99.97 billion in 2030 at a rate of 27.7%. The market is then expected to grow at a CAGR of 26.3% from 2030 and reach $320.74 billion in 2035.
Growth in the historic period resulted from increase in cloud computing, government initiatives supporting ai adoption, increasing demand for personalized ai solutions and increasing internet penetration. Factors that negatively affected growth in the historic period were privacy concerns related to data collection and surveillance and limited availability of skilled personnel and technical expertise.
Going forward, demand of IoT and connected devices, adoption of digital twins and simulation technologies, growing adoption of automation and rising investment in AI startups will drive the growth. Factors that could hinder the growth of the artificial intelligence (AI) in digital transformation market in the future include tighter AI regulations, high initial investment and implementation costs and impact of trade war and tariff.
The artificial intelligence (AI) in digital transformation market is segmented by component into solution and services. The solution market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by component, accounting for 61.8% or $18.2 billion of the total in 2025. Going forward, the services segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by component, at a CAGR of 30.1% during 2025-2030.
The artificial intelligence (AI) in digital transformation market is segmented by deployment mode into cloud-based and on-premise. The cloud-based market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by deployment mode, accounting for 62.3% or $18.34 billion of the total in 2025. Going forward, the cloud-based segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by deployment mode, at a CAGR of 30.7% during 2025-2030.
The artificial intelligence (AI) in digital transformation market is segmented by technology into machine learning (ML), natural language processing (NLP), computer vision and other technologies. The machine learning (ML) market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by technology, accounting for 42.4% or $12.47 billion of the total in 2025. Going forward, the natural language processing (NLP) segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by technology, at a CAGR of 34.3% during 2025-2030.
The artificial intelligence (AI) in digital transformation market is segmented by industry vertical into banking financial services and insurance (BFSI), information technology (IT) and telecommunications, government and public sector, healthcare, manufacturing, retail and other end-use industries. The banking financial services and insurance (BFSI) market was the largest segment of the artificial intelligence (AI) in digital transformation market segmented by industry vertical, accounting for 25.5% or $7.51 billion of the total in 2025. Going forward, the healthcare segment is expected to be the fastest-growing segment in the artificial intelligence (AI) in digital transformation market segmented by industry vertical, at a CAGR of 32.1% during 2025-2030.
North America was the largest region in the artificial intelligence (AI) in digital transformation market, accounting for 35.7% or $10.5 billion of the total in 2025. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence (AI) in digital transformation market will be Asia Pacific and Middle East where growth will be at CAGRs of 30.3% and 28.2% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 24.3% and 23.7% respectively.
The global artificial intelligence (AI) in digital transformation market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 8.22% of the total market in 2024. Microsoft Corporation was the largest competitor with a 1.33% share of the market, followed by Nvidia Corporation with 1.10%, Alphabet Inc. (Google LLC) with 0.97%, Amazon.com Inc. with 0.88%, International Business Machines Corporation with 0.74%, Accenture plc with 0.71%, Cisco Systems Inc. with 0.64%, Oracle Corporation with 0.63%, SAP SE with 0.62% and Dell Technologies Inc. with 0.60%.
The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by component will arise in the solution segment, which will gain $39.86 billion of global annual sales by 2030. The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by technology will arise in the machine learning (ML) segment, which will gain $29.24 billion of global annual sales by 2030. The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by deployment mode will arise in the cloud-based segment, which will gain $51.75 billion of global annual sales by 2030. The top opportunities in the artificial intelligence (AI) in digital transformation market segmented by industry vertical will arise in the banking financial services and insurance (BFSI) segment, which will gain $17.16 billion of global annual sales by 2030. The artificial intelligence (AI) in digital transformation market size will gain the most in the USA at $18.53 billion.
Market-trend-based strategies for the artificial intelligence (AI) in digital transformation market include focus on advancing conversational AI platforms designed to automate and streamline high-volume enterprise hiring processes, focus on the deployment of localized AI computing platforms, focus on the development and launch of agentic enterprise platforms designed to elevate human productivity, focus on launching full-value-chain AI transformation platforms designed to enable enterprises to accelerate and scale AI adoption across the entire business lifecycle, focus on the launch of AI-first platforms designed to help enterprises achieve faster, more efficient, and more comprehensive transformation outcomes, focus on launching multi-agent AI platforms designed to accelerate client delivery, enhance service innovation, and streamline complex business processes and focus on the introduction of agentic AI platforms designed to automate complex tasks and enhance decision-making across multiple business domains.
Player-adopted strategies in the artificial intelligence (AI) in digital transformation market include focus on expanding its business capabilities through strategic innovation to expand its operational capabilities, focus on expanding its business capabilities through strategic investment to expand its operational capabilities and focus on expanding its manufacturing capabilities through strategic collaboration.
To take advantage of the opportunities, the analyst recommends the artificial intelligence (AI) in digital transformation companies to focus on conversational AI for scalable enterprise hiring, focus on localized AI computing at the edge, focus on agentic enterprise platforms for productivity growth, focus on full value chain AI transformation platforms, focus on AI-first enterprise transformation platforms, focus on multi-agent AI platforms for scalable service delivery, focus on scaling AI services for enterprise transformation, focus on natural language processing as the core AI growth engine, focus on cloud-based AI platforms for scalable growth, focus on healthcare AI adoption to capture the fastest growth, expand in emerging markets, continue to focus on developed markets, focus on agentic AI platforms for enterprise automation, focus on value-based and scalable pricing models, focus on business outcome-driven messaging, focus on trust credibility and adoption enablement and focus on BFSI-centric talent and stakeholder engagement.
This product will be delivered within 3-5 business days.
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Global Artificial Intelligence (AI) in Digital Transformation Growth Analysis and Strategic Analysis Framework
9 Global Artificial Intelligence (AI) in Digital Transformation Market Segmentation
10 Artificial Intelligence (AI) in Digital Transformation Market, Regional and Country Analysis
11 Asia-Pacific Market
12 Western Europe Market
13 Eastern Europe Market
14 North America Market
15 South America Market
16 Middle East Market
17 Africa Market
18 Competitive Landscape and Company Profiles
19 Other Major and Innovative Companies
22 Key Mergers and Acquisitions
23 Recent Developments in Artificial Intelligence (AI) in Digital Transformation
24 Opportunities and Strategies
25 Artificial Intelligence (AI) in Digital Transformation Market, Conclusions and Recommendations
26 Appendix
Executive Summary
Artificial Intelligence (AI) In Digital Transformation Global Market Opportunities and Strategies to 2035 provides the strategists; marketers and senior management with the critical information they need to assess the global artificial intelligence (AI) in digital transformation as it emerges from the COVID-19 shut down.Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for artificial intelligence (AI) in digital transformation? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The artificial intelligence (AI) in digital transformation market global report answers all these questions and many more.The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market’s history and forecasts market growth by geography. It places the market within the context of the wider artificial intelligence (AI) in digital transformation market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics: Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by technology, be deployment mode and by industry vertical.
- Key Trends: Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis and Strategic Analysis Framework: Analysis on PESTEL, end use industries, market growth rate, global historic (2020-2025) and forecast (2025-2030, 2035F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Regional and Country Analysis: Historic (2020-2025) and forecast (2025-2030, 2035F) market values and growth and market share comparison by region and country.
- Market Segmentation: Contains the market values (2020-2025) (2025-2030, 2035F) and analysis for each segment by component, by technology, be deployment mode and by industry vertical in the market. Historic (2020-2025) and forecast (2020-2025) and (2020-2025) market values and growth and market share comparison by region market.
- Regional Market Size and Growth: Regional market size (2025), historic (2020-2025) and forecast (2025-2030, 2035F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape: Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major and Innovative Companies: Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking: Briefs on the financials comparison between major players in the market.
- Competitive Dashboard: Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions: Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments: Information on recent developments in the market covered in the report
- Market Opportunities and Strategies Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions and Recommendations This section includes recommendations for AI in digital transformation providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix: This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
1) By Component: Solution; Services
2) By Technology: Machine Learning (ML); Natural Language Processing (NLP); Computer Vision; Other Technologies
3) By Deployment Mode: Cloud-Based; On-Premise
4) By Industry Vertical: Banking Financial Services and Insurance (BFSI); Information Technology (IT) and Telecommunications; Government and Public Sector; Healthcare; Manufacturing; Retail; Other End-Use Industries
Companies Mentioned: Microsoft Corporation; Nvidia Corporation; Alphabet Inc. (Google LLC); Amazon.com Inc.; International Business Machines Corporation
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; artificial intelligence (AI) in digital transformation comparison.
Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
- Microsoft Corporation
- Nvidia Corporation
- Alphabet Inc. (Google LLC)
- Amazon.com Inc.
- International Business Machines Corporation
- Accenture plc
- Accenture plc
- Cisco Systems Inc.
- Oracle Corporation
- SAP SE
- Dell Technologies Inc.
- Huawei Technologies Co., Ltd.
- Fujitsu
- NEC Corporation
- Hitachi Vantara Corporation
- Digital China Group Co., Ltd.
- JD.com
- Tencent
- Baidu
- Sakura Internet
- Alibaba Group
- ZTE Corporation
- 4Paradigm
- Megvii
- Beijing Zhipu Huazhang Technology Co., Ltd
- RevComm Inc.
- NTT Group
- Preferred Networks
- PKSHA Technology
- KT Corporation
- Samsung SDS Co., Ltd.
- Deloitte
- Upstage Co., Ltd.
- ESTsoft
- Ant Group
- FPT Corporation
- CMC Corporation
- Infosys Limited
- Tata Consultancy Services Limited
- Wipro Limited
- HCLTech
- Digikala
- Snapp!
- Siemens
- ABB Group
- Capgemini
- PwC
- EY
- Hewlett Packard Enterprise Europe
- Deutsche Telekom AG
- Orange S.A
- Rossum
- Safetica
- Sotrender
- Netguru
- Comarch
- UiPath
- Druid AI
- Yandex
- ABBYY
- NtechLab
- Cognitive Technologies Group
- Valeo
- Cognitive Logic
- Syntropy
- Modus
- Kunaisoft
- Metric Arts
- Dell Technologies
- General Electric Company
- Intel Corporation
- Qualcomm Incorporated
- Salesforce, Inc.
- Kyndryl
- DXC Technology Company
- KPMG
- Adobe Inc
- VMware
- VMware LLC
- Hewlett Packard Enterprise
- Tetra Tech
- Stefanini
- Matera
- Globant
- Mercado Libre
- Neoris
- Everis
- Perficient Latin America
- G&L Group
- Kambista
- AI21 Labs
- AppsFlyer
- BeyondMinds
- Cortica
- NEOM Tech & Digital Company
- Sprints.ai
- DXwand
- Auxis
- Avec
- Synapse Analytics
- AIQode
- Innova
- Crown Interactive
- DataProphet
- Cortex Logic
- Aizonic
- IQbusiness
- Xineoh
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 373 |
| Published | May 2026 |
| Forecast Period | 2025 - 2035 |
| Estimated Market Value ( USD | $ 29.44 Billion |
| Forecasted Market Value ( USD | $ 320.74 Billion |
| Compound Annual Growth Rate | 27.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 108 |
