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Europe Explainable AI Market Size, Share & Industry Analysis Report By Deployment (Cloud and On-premise), By Component (Solution and Services), By Application, By End-use, By Country and Growth Forecast, 2025 - 2032

Publisher Knowledge Based Value (KBV) Research
Published Jun 20, 2025
Length 213 Pages
SKU # KBV20172995

Description

The Europe Explainable AI Market would witness market growth of 19.9% CAGR during the forecast period (2025-2032).

The Germany market dominated the Europe Explainable AI Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $1,123.6 million by 2032. The UK market is exhibiting a CAGR of 18.9% during (2025 - 2032). Additionally, The France market would experience a CAGR of 20.9% during (2025 - 2032).

The adoption of XAI is growing steadily, driven by a combination of regulatory pressures, ethical imperatives, and the intrinsic need for transparency in high-stakes environments. Enterprises recognize that black-box AI models, while powerful, may expose organizations to risks ranging from biased decisions to regulatory penalties and reputational harm. Consequently, sectors such as healthcare, finance, and government have been at the forefront of XAI adoption, prioritizing models and platforms that enable interpretability.

Several key trends are shaping the XAI market, reflecting both technological progress and changing stakeholder expectations. One prominent trend is the integration of explainability features into AI development workflows. As organizations strive to operationalize AI at scale, there is a growing demand for integrated explainability, making it a core part of the model lifecycle—from data preparation to deployment and monitoring.

The United Kingdom has positioned itself as a pioneer in responsible and explainable AI, underpinned by forward-thinking government policy and a vibrant research community. The UK government’s “AI Sector Deal” and guidance from the Centre for Data Ethics and Innovation (CDEI) have highlighted the importance of explainability for trustworthy AI adoption in both public and private sectors. Top universities, such as Oxford, Cambridge, and University College London, along with organizations like The Alan Turing Institute, have become centers of excellence for XAI research and application, influencing industry standards and public policy.

Based on Deployment, the market is segmented into Cloud and On-premise. Based on Component, the market is segmented into Solution and Services. Based on Application, the market is segmented into Fraud & Anomaly Detection, Drug Discovery & Diagnostics, Predictive Maintenance, Supply Chain Management, and Identity, Access Management & Others. Based on End-use, the market is segmented into IT & Telecommunication, Healthcare, BFSI, Aerospace & Defense, Retail & E-commerce, Public Sector & Utilities, Automotive, and Other End-use. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.

List of Key Companies Profiled
  • Microsoft Corporation
  • IBM Corporation
  • Google LLC (Alphabet Inc.)
  • Salesforce, Inc.
  • Intel Corporation
  • NVIDIA Corporation
  • SAS Institute Inc.
  • Databricks, Inc.
  • Amazon Web Services, Inc.
  • SAP SE
Europe Explainable AI Market Report Segmentation

By Deployment
  • Cloud
  • On-premise
By Component
  • Solution
  • Services
By Application
  • Fraud & Anomaly Detection
  • Drug Discovery & Diagnostics
  • Predictive Maintenance
  • Supply Chain Management
  • Identity, Access Management & Others
By End-Use
  • IT & Telecommunication
  • Healthcare
  • BFSI
  • Aerospace & Defense
  • Retail & E-commerce
  • Public Sector & Utilities
  • Automotive
  • Other End-use
By Country
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe

Table of Contents

213 Pages
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Europe Explainable AI Market, by Deployment
1.4.2 Europe Explainable AI Market, by Component
1.4.3 Europe Explainable AI Market, by Application
1.4.4 Europe Explainable AI Market, by End-Use
1.4.5 Europe Explainable AI Market, by Country
1.5 Methodology for the research
Chapter 2. Market at a Glance
2.1 Key Highlights
Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges
Chapter 4. Competition Analysis - Global
4.1 KBV Cardinal Matrix
4.2 Recent Industry Wide Strategic Developments
4.2.1 Partnerships, Collaborations and Agreements
4.2.2 Product Launches and Product Expansions
4.2.3 Acquisition and Mergers
4.3 Market Share Analysis, 2024
4.4 Top Winning Strategies
4.4.1 Key Leading Strategies: Percentage Distribution (2021-2025)
4.4.2 Key Strategic Move: (Partnerships, Collaborations & Agreements: 2022, Dec – 2025, May) Leading Players
4.5 Porter Five Forces Analysis
Chapter 5. Value Chain Analysis of Explainable AI Market
5.1 Research and Development (R&D)
5.2 Technology Development and Integration
5.3 Data Acquisition and Management
5.4 Productization and Service Development
5.5 Regulatory Compliance and Ethics
5.6 Sales, Marketing, and Distribution
5.7 Customer Support and Feedback
Chapter 6. Key Costumer Criteria - Explainable AI Market
Chapter 7. Europe Explainable AI Market by Deployment
7.1 Europe Cloud Market by Country
7.2 Europe On-premise Market by Country
Chapter 8. Europe Explainable AI Market by Component
8.1 Europe Solution Market by Country
8.2 Europe Services Market by Country
Chapter 9. Europe Explainable AI Market by Application
9.1 Europe Fraud & Anomaly Detection Market by Country
9.2 Europe Drug Discovery & Diagnostics Market by Country
9.3 Europe Predictive Maintenance Market by Country
9.4 Europe Supply Chain Management Market by Country
9.5 Europe Identity, Access Management & Others Market by Country
Chapter 10. Europe Explainable AI Market by End-use
10.1 Europe IT & Telecommunication Market by Country
10.2 Europe Healthcare Market by Country
10.3 Europe BFSI Market by Country
10.4 Europe Aerospace & Defense Market by Country
10.5 Europe Retail & E-commerce Market by Country
10.6 Europe Public Sector & Utilities Market by Country
10.7 Europe Automotive Market by Country
10.8 Europe Other End-use Market by Country
Chapter 11. Europe Explainable AI Market by Country
11.1 Germany Explainable AI Market
11.1.1 Germany Explainable AI Market by Deployment
11.1.2 Germany Explainable AI Market by Component
11.1.3 Germany Explainable AI Market by Application
11.1.4 Germany Explainable AI Market by End-use
11.2 UK Explainable AI Market
11.2.1 UK Explainable AI Market by Deployment
11.2.2 UK Explainable AI Market by Component
11.2.3 UK Explainable AI Market by Application
11.2.4 UK Explainable AI Market by End-use
11.3 France Explainable AI Market
11.3.1 France Explainable AI Market by Deployment
11.3.2 France Explainable AI Market by Component
11.3.3 France Explainable AI Market by Application
11.3.4 France Explainable AI Market by End-use
11.4 Russia Explainable AI Market
11.4.1 Russia Explainable AI Market by Deployment
11.4.2 Russia Explainable AI Market by Component
11.4.3 Russia Explainable AI Market by Application
11.4.4 Russia Explainable AI Market by End-use
11.5 Spain Explainable AI Market
11.5.1 Spain Explainable AI Market by Deployment
11.5.2 Spain Explainable AI Market by Component
11.5.3 Spain Explainable AI Market by Application
11.5.4 Spain Explainable AI Market by End-use
11.6 Italy Explainable AI Market
11.6.1 Italy Explainable AI Market by Deployment
11.6.2 Italy Explainable AI Market by Component
11.6.3 Italy Explainable AI Market by Application
11.6.4 Italy Explainable AI Market by End-use
11.7 Rest of Europe Explainable AI Market
11.7.1 Rest of Europe Explainable AI Market by Deployment
11.7.2 Rest of Europe Explainable AI Market by Component
11.7.3 Rest of Europe Explainable AI Market by Application
11.7.4 Rest of Europe Explainable AI Market by End-use
Chapter 12. Company Profiles
12.1 Microsoft Corporation
12.1.1 Company Overview
12.1.2 Financial Analysis
12.1.3 Segmental and Regional Analysis
12.1.4 Research & Development Expenses
12.1.5 Recent strategies and developments:
12.1.5.1 Partnerships, Collaborations, and Agreements:
12.1.5.2 Product Launches and Product Expansions:
12.1.6 SWOT Analysis
12.2 IBM Corporation
12.2.1 Company Overview
12.2.2 Financial Analysis
12.2.3 Regional & Segmental Analysis
12.2.4 Research & Development Expenses
12.2.5 Recent strategies and developments:
12.2.5.1 Partnerships, Collaborations, and Agreements:
12.2.5.2 Product Launches and Product Expansions:
12.2.5.3 Acquisition and Mergers:
12.2.6 SWOT Analysis
12.3 Google LLC (Alphabet Inc.)
12.3.1 Company Overview
12.3.2 Financial Analysis
12.3.3 Segmental and Regional Analysis
12.3.4 Research & Development Expenses
12.3.5 Recent strategies and developments:
12.3.5.1 Partnerships, Collaborations, and Agreements:
12.3.6 SWOT Analysis
12.4 Salesforce, Inc.
12.4.1 Company Overview
12.4.2 Financial Analysis
12.4.3 Regional Analysis
12.4.4 Research & Development Expenses
12.4.5 SWOT Analysis
12.5 Intel Corporation
12.5.1 Company Overview
12.5.2 Financial Analysis
12.5.3 Segmental and Regional Analysis
12.5.4 Research & Development Expenses
12.5.5 Recent strategies and developments:
12.5.5.1 Partnerships, Collaborations, and Agreements:
12.5.6 SWOT Analysis
12.6 NVIDIA Corporation
12.6.1 Company Overview
12.6.2 Financial Analysis
12.6.3 Segmental and Regional Analysis
12.6.4 Research & Development Expenses
12.6.5 Recent strategies and developments:
12.6.5.1 Partnerships, Collaborations, and Agreements:
12.6.6 SWOT Analysis
12.7 SAS Institute, Inc.
12.7.1 Company Overview
12.7.2 Recent strategies and developments:
12.7.2.1 Partnerships, Collaborations, and Agreements:
12.7.3 SWOT Analysis
12.8 Databricks, Inc.
12.8.1 Company Overview
12.8.2 Recent strategies and developments:
12.8.2.1 Partnerships, Collaborations, and Agreements:
12.9 Amazon Web Services, Inc. (Amazon.com, Inc.)
12.9.1 Company Overview
12.9.2 Financial Analysis
12.9.3 Segmental and Regional Analysis
12.9.4 SWOT Analysis
12.10. SAP SE
12.10.1 Company Overview
12.10.2 Financial Analysis
12.10.3 Regional Analysis
12.10.4 Research & Development Expense
12.10.5 Recent strategies and developments:
12.10.5.1 Partnerships, Collaborations, and Agreements:
12.10.6 SWOT Analysis

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