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North America 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 199 Pages
SKU # KBV20172994

Description

The North America Explainable AI Market would witness market growth of 19.6% CAGR during the forecast period (2025-2032).

The US market dominated the North America Explainable AI Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $6,148.4 million by 2032. The Canada market is experiencing a CAGR of 22.1% during (2025 - 2032). Additionally, The Mexico market would exhibit a CAGR of 21.6% during (2025 - 2032).

Explainable AI finds application across a wide array of sectors, each harnessing its potential to ensure more trustworthy and actionable AI-driven insights. In the healthcare industry, XAI is instrumental in supporting diagnostic systems, treatment recommendations, and drug discovery. Clinicians increasingly demand transparency in AI-generated diagnoses, which directly affect patient lives; XAI provides explanations for predictions, boosting confidence and regulatory compliance. For example, when an AI system recommends a specific cancer treatment, explainability helps clinicians understand the underlying factors influencing the decision, such as patient history or particular biomarkers.

In the financial services sector, XAI is pivotal for credit scoring, fraud detection, and algorithmic trading. Regulatory requirements, such as the European Union’s General Data Protection Regulation (GDPR), mandate clear explanations for automated decisions, especially those affecting consumers. Banks leverage XAI to provide customers with clear rationales for loan approvals or denials and to justify trading decisions, ensuring adherence to legal standards while maintaining customer trust.

The United States leads the explainable AI market, underpinned by its robust technology infrastructure, dynamic startup ecosystem, and significant government investment. Explainable AI has become a strategic priority, especially as artificial intelligence finds applications in high-stakes sectors such as healthcare, finance, public safety, and defense. Early initiatives, such as the Defense Advanced Research Projects Agency (DARPA) Explainable AI program, set the tone for the market, signaling federal commitment to transparency and trust in machine learning. U.S. federal agencies, including the National Institute of Standards and Technology (NIST), have developed frameworks and guidelines emphasizing explainability as an essential element of trustworthy AI. The commercial sector has responded in kind, with leading OEMs like IBM, Microsoft, and Google embedding XAI features in their cloud and analytics offerings.

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 U.S., Mexico, Canada, and Rest of North America.

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
North America 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
  • US
  • Canada
  • Mexico
  • Rest of North America

Table of Contents

199 Pages
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 North America Explainable AI Market, by Deployment
1.4.2 North America Explainable AI Market, by Component
1.4.3 North America Explainable AI Market, by Application
1.4.4 North America Explainable AI Market, by End-Use
1.4.5 North America 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. North America Explainable AI Market by Deployment
7.1 North America Cloud Market by Region
7.2 North America On-premise Market by Region
Chapter 8. North America Explainable AI Market by Component
8.1 North America Solution Market by Country
8.2 North America Services Market by Country
Chapter 9. North America Explainable AI Market by Application
9.1 North America Fraud & Anomaly Detection Market by Country
9.2 North America Drug Discovery & Diagnostics Market by Country
9.3 North America Predictive Maintenance Market by Country
9.4 North America Supply Chain Management Market by Country
9.5 North America Identity, Access Management & Others Market by Country
Chapter 10. North America Explainable AI Market by End-use
10.1 North America IT & Telecommunication Market by Country
10.2 North America Healthcare Market by Country
10.3 North America BFSI Market by Country
10.4 North America Aerospace & Defense Market by Country
10.5 North America Retail & E-commerce Market by Country
10.6 North America Public Sector & Utilities Market by Country
10.7 North America Automotive Market by Country
10.8 North America Other End-use Market by Country
Chapter 11. North America Explainable AI Market by Country
11.1 US Explainable AI Market
11.1.1 US Explainable AI Market by Deployment
11.1.2 US Explainable AI Market by Component
11.1.3 US Explainable AI Market by Application
11.1.4 US Explainable AI Market by End-use
11.2 Canada Explainable AI Market
11.2.1 Canada Explainable AI Market by Deployment
11.2.2 Canada Explainable AI Market by Component
11.2.3 Canada Explainable AI Market by Application
11.2.4 Canada Explainable AI Market by End-use
11.3 Mexico Explainable AI Market
11.3.1 Mexico Explainable AI Market by Deployment
11.3.2 Mexico Explainable AI Market by Component
11.3.3 Mexico Explainable AI Market by Application
11.3.4 Mexico Explainable AI Market by End-use
11.4 Rest of North America Explainable AI Market
11.4.1 Rest of North America Explainable AI Market by Deployment
11.4.2 Rest of North America Explainable AI Market by Component
11.4.3 Rest of North America Explainable AI Market by Application
11.4.4 Rest of North America 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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