1. Home
  2. > Advanced IT Market Trends
Cloud AI Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Cloud AI Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • September 2021
  • 136 pages
  • ID: 6155639
  • Format: PDF
  • Mordor Intelligence LLP


Table of Contents

Search Inside

The Cloud AI Market was valued at USD 5.2 billion in 2020 and is expected to reach USD 13.1 billion by 2026, registering a CAGR of 20.3%, during the period of 2021-2026. The global cloud AI market is expected to grow significantly over the forecast period, owing to an increasing adoption rate of cloud-based services and a growing demand for virtual assistants in these cloud platforms. The rising adoption of hybrid cloud is also developing opportunities for the cloud AI market.

Governments in countries, like the United Kingdom and Australia, are insisting on the higher usage of hybrid cloud solutions to improve the existing IT infrastructure. The governments also insist on simultaneously providing significant cost-benefit. The trend is expected to continue during the forecast period.
Critical sectors, like banking, are expected to adopt cloud-based deployment of these services increasingly. This is due to the IT sector’s continuing quest for optimized infrastructure, and the ability of solution builders to source application and infrastructure components from multiple providers to construct a hybrid cloud-based solution.
The growing investment in Infrastructure-as-a-Service (IaaS) market, especially by the SMEs, is also a significant factor for studied market growth. The companies are also increasing their investment in IaaS due to technological advancements, increasing digitalization, and the growing demand for Virtualization, storage, and analytics. Hence, the cloud AI vendors have a great opportunity to penetrate.
The rapid adoption of AI in industries, such as retail, automotive, and manufacturing, is projected to increase at a fast pace. As the cloud is also playing a significant role in all these sectors, cloud AI is also expected to penetrate exponentially in these areas.
In August 2020, Wiserfunding, a UK-based fintech company, announced its plan to introduce cloud-based AI-enhanced credit risk assessment tools in India. The company is planning to invest about USD 3- USD 5 million to develop customized and accurate credit risk models to determine the creditworthiness of potential borrowers with accuracy levels of above 80%.
The growing 5G adoption and mobile penetration are further expected to increase cloud computing and traffic. Hence, this factor is developing the scope for cloud AI services.
Amid the COVID-19 pandemic, Google Cloud AI partnered with the Harvard Global Health Institute. The partnership aims to develop a dashboard for the public forecasts of COVID-19. The dashboard is expected to provide 13-day projections for hospitalizations and death rates across all 50 states. Hence, the market is likely to grow.

Key Market Trends

Government to Hold Significant Share

Governments and large NGOs worldwide have been significantly spending their time and budget on pilot programs for various AI applications and investing in the same. Discussions with the experts in the field, on the future implications of the technology, have become routine.
INTERPOL World 2019, conducted in Singapore, concluded that to understand how AI could help improve healthcare in developing nations, the National Defense University in Washington DC spoke with generals and colonels to arrive at the same.
As of October 2019, Amazon Web Services has been training relevant government employees in India to create a cloud-first approach towards digital transformation and enhanced skill sets as a part of the initiatives by the Indian government to deploy AI and Machine Learning-driven Cloud models to make sense of the humongous sets of data.
The National Association of Software and Services Companies (NASSCOM) titled ‘Cloud – Next Wave of Growth in India’ as cloud providers as a compelling proposition for the Indian SMEs, enterprises, and government for their application in analytics, Artificial Intelligence, big data, IoT, etc.
Similarly, in February 2019, the US government launched the AI.gov., an American AI Initiative with applications, such as cloud and big data, smart robotics smart cars, and strategic technologies, to focus on the resources of the Federal government with an aim to develop AI to increase nation’s prosperity, improve quality of life for the American people and enhance national and economic security.
Governments across the world have been cautious in moving to new technologies. However, the potential benefits that the AI could unlock for their citizens could create a compelling platform to run at a brisk pace. The technical foundations of AI, such as low-cost cloud services, connected and sensing devices (the Internet of Things), machine-learning algorithms, and data analytics could create exciting opportunities for deploying these services in the governmental agencies.

North America Holds Major Share

North America is expected to dominate the global cloud AI market, owing to its status as one of the early adopters of the technology. The other factor is that most of the major players in the market are US-based. The cloud adoption among the regional end-user is also quite high. Hence, the investment in the studied market is too high. The region is also a key region dominating the global hybrid cloud and IaaS market.
Market players operating in the region are investing in innovating additional and unique features to their offering, mainly to gain a competitive advantage and expand their customer target base. This is also expected to bring advancement in the regional and global markets. This factor expands the market scope further.
For instance, US-based SoundHound Inc. offers Houndify, an independent AI platform that enables developers and business owners to deploy a conversational interface anywhere to retain control of their brand and users, while differentiating and innovating. The company recently added SoundHound music recognition technology to its Houndify voice AI platform. It also made a strategic partnership with Honda Motor Co. Ltd to accelerate development.
As organizations in the region increasingly migrate their processes and applications to the cloud, vendors operating in the market may have to offer next-level customer experience (CX) and performance and productivity to gain a competitive edge. Using a broadened set of analytics tools that incorporate technologies, such as AI, machine learning (ML), augmented reality (AR), and big data, companies, add intelligence to the available data.
In March 2019, US-based 8x8 Inc. integrated its 8x8 contact center with Google Cloud’s new contact center AI. This solution combines multiple AI products to enhance the customer service experience, as well as the productivity of contact centers.
Also, the Government of Canada has a “cloud-first” strategy, whereby cloud services are identified and evaluated as the principal delivery option when initiating information technology investments, initiatives, strategies, and projects. The cloud is also expected to allow the Government of Canada to harness private-sector providers’ innovation to make its information technology more agile.

Competitive Landscape

The cloud AI market is fragmented. The rapid adoption of AI in industries, such as retail, automotive, and manufacturing, is projected to increase fast. Overall, the competitive rivalry among existing competitors is high. The acquisitions and collaboration of large companies with startups are expected, which are focused on innovation. Some of the key developments in the market are:

In August 2020 - Google Cloud announced the expansion of its partnership with Best Buy in a multi-year agreement for Best Buy’s Enterprise Data Platform. The partnership is expected to deliver enhanced technological experience, by using AI, analytics to create more personalized shopping experiences for customers of the latter.
In July 2020 - the Global Health Drug Discovery Institute (GHDDI) launched a Free AI Virtual Screening Service for COVID-19. The service is powered by Alibaba Cloud and enables the facilitation of COVID-19 drug discovery effort by combining the capabilities of Alibaba Cloud’s high-performance computing (HPC) resources and GHDDI’s artificial intelligence (AI), thereby accelerating the computation process exponentially.
In April 2020 - Siemens announced the availability of its MindSphere on Alibaba Cloud. The successful deployment and operation are expected to foster the industrial Internet of Things (IoT) in China.

Reasons to Purchase this report:

The market estimate (ME) sheet in Excel format
3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Grace helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

Green Technology & Sustainability Market Research Report by Component, Technology, Application, Region - Cumulative Impact of COVID-19, Russia Ukraine Conflict, and High Inflation - Global Forecast 2023-2030

  • $ 3949
  • January 2023
  • 226 pages

Green Technology & Sustainability Market Research Report by Component (Services and Solution), Technology, Application, Region - Cumulative Impact of COVID-19, Russia Ukraine Conflict, and High Inflation ...

  • World
  • Russia
  • Marketing Research
  • Pollution Control
  • Industry analysis


Reportlinker.com © Copyright 2023. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on