AI Platform Cloud Service Market Revenue to Attain USD 104.16 Bn by 2035

Published: 23 Feb 2026

Author: Precedence Research

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AI Platform Cloud Service Market Revenue and Trends 2026 to 2035

The global AI platform cloud service market revenue was valued at USD 13.80 billion in 2025 and is expected to attain around USD 104.16 billion by 2035, growing at a CAGR of 22.40% during forecast period. This market is experiencing unprecedented growth, driven by the rising investment in digital infrastructure and the growing need for real-time data analytics.

What are the Factors Contributing to the Growth of the AI Platform Cloud Service Market?

The increasing adoption of generative AI and the rapid expansion of Large Language Models (LLMs) are expected to drive market growth during the forecast period. The rise of generative AI and LLMs necessitates advanced, scalable cloud infrastructure for training and deployment, especially in enterprise AI-driven automation. The market is also driven by the rising adoption of AI and machine learning models for cost-effective, scalable infrastructure, eliminating the need for heavy upfront investment in on-premises hardware.

Segment Insights

• By component, the software segment held a dominant market share of approximately 70% in 2025. Cloud-based software enables organizations to get benefits from sophisticated advanced AI functionalities without lumpsum capital investment in hardware infrastructure, offering scalability, cost efficiency, and flexibility. 
• By deployment mode, the public cloud segment held the largest market share of nearly 70% in 2025 and is projected to grow at the fastest CAGR during the forecasted years, owing to its various benefits such as scalability, flexibility, and cost efficiency, without the need for high investments in on-premises infrastructure. Public cloud platforms provide access to GPUs and TPUs on a subscription basis, making them accessible to small and mid-sized enterprises (SMEs). 
• By application/technology, the machine learning and deep learning segment contributed the biggest market share of nearly 35% in 2025, owing to the need to analyze massive & complex datasets and the growing demand for scalable, pay-as-you-go infrastructure. Machine learning (ML) and deep learning are rapidly transforming data-intensive sectors like healthcare, finance, e-commerce, retail, and others.
• By organization size, the large enterprises segment accounted for the largest market share of approximately 65% in 2025. Large enterprises often deal with huge datasets that require training models. Large enterprises are increasingly focusing on AI technologies to increase their work efficiency.
• By vertical/end user, the BFSI segment led the market in 2025, with nearly 30%, driven by the rising need to handle sensitive financial data and the growing demand for advanced AI-powered fraud detection amid rising cybercrime risks. 

Regional Insights

North America dominates the global AI platform cloud service market. The region is home to major key players such as Microsoft Corporation, Amazon Web Services (AWS), Google LLC, IBM Corporation, Oracle Corporation, Snowflake Inc., NVIDIA Corporation, and others. Several companies across sectors are aggressively deploying AI-powered analytics and automation, driving demand for AI-as-a-Service. The region's dominance is primarily driven by the strong presence of prominent technology companies and major hyperscalers, a well-established cloud computing ecosystem, supportive government framework policies and initiatives, significant investment in AI research and development, and rising integration of AI/ML for automated migration.

On the other hand, Asia Pacific is a rapidly growing region in the AI platform cloud service market. This is mainly due to the widespread adoption of AI cloud platforms across various industrial verticals. The region's market growth is also attributed to the massive data generation, increasing investment in AI infrastructure, increasing adoption of Generative AI, and supportive government-backed AI initiatives.

AI Platform Cloud Service Market Coverage

Recent Development

• In May 2025, NVIDIA announced NVIDIA DGX Cloud Lepton, an AI platform with a compute marketplace that connects the world’s developers building agentic and physical AI applications with tens of thousands of GPUs, available from a global network of cloud providers. To meet the demand for AI, NVIDIA Cloud Partners (NCPs), including CoreWeave, Crusoe, Firmus, Foxconn, GMI Cloud, Lambda, Nebius, Nscale, Softbank Corp., and Yotta Data Services, offer NVIDIA Blackwell and other NVIDIA architecture GPUs on the DGX Cloud Lepton marketplace. (Source: https://nvidianews.nvidia.com.)

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