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.
Free Valuable Insights: The Explainable AI Market is Predict to reach USD 22.20 Billion by 2032, at a CAGR of 20.4%
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
By Component
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
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
TABLE 1 North America Explainable AI Market, 2021 - 2024, USD Million
TABLE 2 North America Explainable AI Market, 2025 - 2032, USD Million
TABLE 3 Partnerships, Collaborations and Agreements– Explainable AI Market
TABLE 4 Product Launches And Product Expansions– Explainable AI Market
TABLE 5 Acquisition and Mergers– Explainable AI Market
TABLE 6 Key Costumer Criteria - Explainable AI Market
TABLE 7 North America Explainable AI Market by Deployment, 2021 - 2024, USD Million
TABLE 8 North America Explainable AI Market by Deployment, 2025 - 2032, USD Million
TABLE 9 North America Cloud Market by Region, 2021 - 2024, USD Million
TABLE 10 North America Cloud Market by Region, 2025 - 2032, USD Million
TABLE 11 North America On-premise Market by Region, 2021 - 2024, USD Million
TABLE 12 North America On-premise Market by Region, 2025 - 2032, USD Million
TABLE 13 Use Case 1: Explainable AI in Cloud Deployment
TABLE 14 Use Case 2: Explainable AI in On-Premise Deployment
TABLE 15 North America Explainable AI Market by Component, 2021 - 2024, USD Million
TABLE 16 North America Explainable AI Market by Component, 2025 - 2032, USD Million
TABLE 17 North America Solution Market by Country, 2021 - 2024, USD Million
TABLE 18 North America Solution Market by Country, 2025 - 2032, USD Million
TABLE 19 North America Services Market by Country, 2021 - 2024, USD Million
TABLE 20 North America Services Market by Country, 2025 - 2032, USD Million
TABLE 21 Use Case 3: Explainable AI Solutions
TABLE 22 Use Case 4: Explainable AI Services
TABLE 23 North America Explainable AI Market by Application, 2021 - 2024, USD Million
TABLE 24 North America Explainable AI Market by Application, 2025 - 2032, USD Million
TABLE 25 North America Fraud & Anomaly Detection Market by Country, 2021 - 2024, USD Million
TABLE 26 North America Fraud & Anomaly Detection Market by Country, 2025 - 2032, USD Million
TABLE 27 North America Drug Discovery & Diagnostics Market by Country, 2021 - 2024, USD Million
TABLE 28 North America Drug Discovery & Diagnostics Market by Country, 2025 - 2032, USD Million
TABLE 29 North America Predictive Maintenance Market by Country, 2021 - 2024, USD Million
TABLE 30 North America Predictive Maintenance Market by Country, 2025 - 2032, USD Million
TABLE 31 North America Supply Chain Management Market by Country, 2021 - 2024, USD Million
TABLE 32 North America Supply Chain Management Market by Country, 2025 - 2032, USD Million
TABLE 33 North America Identity, Access Management & Others Market by Country, 2021 - 2024, USD Million
TABLE 34 North America Identity, Access Management & Others Market by Country, 2025 - 2032, USD Million
TABLE 35 North America Explainable AI Market by End-use, 2021 - 2024, USD Million
TABLE 36 North America Explainable AI Market by End-use, 2025 - 2032, USD Million
TABLE 37 North America IT & Telecommunication Market by Country, 2021 - 2024, USD Million
TABLE 38 North America IT & Telecommunication Market by Country, 2025 - 2032, USD Million
TABLE 39 North America Healthcare Market by Country, 2021 - 2024, USD Million
TABLE 40 North America Healthcare Market by Country, 2025 - 2032, USD Million
TABLE 41 North America BFSI Market by Country, 2021 - 2024, USD Million
TABLE 42 North America BFSI Market by Country, 2025 - 2032, USD Million
TABLE 43 North America Aerospace & Defense Market by Country, 2021 - 2024, USD Million
TABLE 44 North America Aerospace & Defense Market by Country, 2025 - 2032, USD Million
TABLE 45 North America Retail & E-commerce Market by Country, 2021 - 2024, USD Million
TABLE 46 North America Retail & E-commerce Market by Country, 2025 - 2032, USD Million
TABLE 47 North America Public Sector & Utilities Market by Country, 2021 - 2024, USD Million
TABLE 48 North America Public Sector & Utilities Market by Country, 2025 - 2032, USD Million
TABLE 49 North America Automotive Market by Country, 2021 - 2024, USD Million
TABLE 50 North America Automotive Market by Country, 2025 - 2032, USD Million
TABLE 51 North America Other End-use Market by Country, 2021 - 2024, USD Million
TABLE 52 North America Other End-use Market by Country, 2025 - 2032, USD Million
TABLE 53 Use Case 5: Explainable AI for Fraud & Anomaly Detection
TABLE 54 Use Case 6: Explainable AI in Drug Discovery & Diagnostics
TABLE 55 Use Case 7: Explainable AI for Predictive Maintenance in Manufacturing
TABLE 56 Use Case 9: Explainable AI for Identity Access Management
TABLE 57 Use Case 10: Explainable AI – Other Applications
TABLE 58 North America Explainable AI Market by Country, 2021 - 2024, USD Million
TABLE 59 North America Explainable AI Market by Country, 2025 - 2032, USD Million
TABLE 60 US Explainable AI Market, 2021 - 2024, USD Million
TABLE 61 US Explainable AI Market, 2025 - 2032, USD Million
TABLE 62 US Explainable AI Market by Deployment, 2021 - 2024, USD Million
TABLE 63 US Explainable AI Market by Deployment, 2025 - 2032, USD Million
TABLE 64 US Explainable AI Market by Component, 2021 - 2024, USD Million
TABLE 65 US Explainable AI Market by Component, 2025 - 2032, USD Million
TABLE 66 US Explainable AI Market by Application, 2021 - 2024, USD Million
TABLE 67 US Explainable AI Market by Application, 2025 - 2032, USD Million
TABLE 68 US Explainable AI Market by End-use, 2021 - 2024, USD Million
TABLE 69 US Explainable AI Market by End-use, 2025 - 2032, USD Million
TABLE 70 Canada Explainable AI Market, 2021 - 2024, USD Million
TABLE 71 Canada Explainable AI Market, 2025 - 2032, USD Million
TABLE 72 Canada Explainable AI Market by Deployment, 2021 - 2024, USD Million
TABLE 73 Canada Explainable AI Market by Deployment, 2025 - 2032, USD Million
TABLE 74 Canada Explainable AI Market by Component, 2021 - 2024, USD Million
TABLE 75 Canada Explainable AI Market by Component, 2025 - 2032, USD Million
TABLE 76 Canada Explainable AI Market by Application, 2021 - 2024, USD Million
TABLE 77 Canada Explainable AI Market by Application, 2025 - 2032, USD Million
TABLE 78 Canada Explainable AI Market by End-use, 2021 - 2024, USD Million
TABLE 79 Canada Explainable AI Market by End-use, 2025 - 2032, USD Million
TABLE 80 Mexico Explainable AI Market, 2021 - 2024, USD Million
TABLE 81 Mexico Explainable AI Market, 2025 - 2032, USD Million
TABLE 82 Mexico Explainable AI Market by Deployment, 2021 - 2024, USD Million
TABLE 83 Mexico Explainable AI Market by Deployment, 2025 - 2032, USD Million
TABLE 84 Mexico Explainable AI Market by Component, 2021 - 2024, USD Million
TABLE 85 Mexico Explainable AI Market by Component, 2025 - 2032, USD Million
TABLE 86 Mexico Explainable AI Market by Application, 2021 - 2024, USD Million
TABLE 87 Mexico Explainable AI Market by Application, 2025 - 2032, USD Million
TABLE 88 Mexico Explainable AI Market by End-use, 2021 - 2024, USD Million
TABLE 89 Mexico Explainable AI Market by End-use, 2025 - 2032, USD Million
TABLE 90 Rest of North America Explainable AI Market, 2021 - 2024, USD Million
TABLE 91 Rest of North America Explainable AI Market, 2025 - 2032, USD Million
TABLE 92 Rest of North America Explainable AI Market by Deployment, 2021 - 2024, USD Million
TABLE 93 Rest of North America Explainable AI Market by Deployment, 2025 - 2032, USD Million
TABLE 94 Rest of North America Explainable AI Market by Component, 2021 - 2024, USD Million
TABLE 95 Rest of North America Explainable AI Market by Component, 2025 - 2032, USD Million
TABLE 96 Rest of North America Explainable AI Market by Application, 2021 - 2024, USD Million
TABLE 97 Rest of North America Explainable AI Market by Application, 2025 - 2032, USD Million
TABLE 98 Rest of North America Explainable AI Market by End-use, 2021 - 2024, USD Million
TABLE 99 Rest of North America Explainable AI Market by End-use, 2025 - 2032, USD Million
TABLE 100 Key Information – Microsoft Corporation
TABLE 101 Key Information – IBM Corporation
TABLE 102 Key Information – Google LLC
TABLE 103 Key Information – Salesforce, Inc.
TABLE 104 Key Information – Intel Corporation
TABLE 105 Key Information – NVIDIA Corporation
TABLE 106 Key Information – SAS Institute, Inc.
TABLE 107 Key Information – Databricks, Inc.
TABLE 108 Key Information – Amazon Web Services, Inc.
TABLE 109 Key Information – SAP SE
List of Figures
FIG 1 Methodology for the research
FIG 2 North America Explainable AI Market, 2021 - 2032, USD Million
FIG 3 Key Factors Impacting Explainable AI Market
FIG 4 KBV Cardinal Matrix
FIG 5 Market Share Analysis, 2024
FIG 6 Key Leading Strategies: Percentage Distribution (2021-2025)
FIG 7 Key Strategic Move: (Partnerships, Collaborations & Agreements: 2022, dec – 2025, may) Leading Players
FIG 8 Porter’s Five Forces Analysis – Explainable AI Market
FIG 9 Value Chain Analysis of Explainable AI Market
FIG 10 Key Costumer Criteria - Explainable AI Market
FIG 11 North America Explainable AI Market share by Deployment, 2024
FIG 12 North America Explainable AI Market share by Deployment, 2032
FIG 13 North America Explainable AI Market by Deployment, 2021 - 2032, USD Million
FIG 14 North America Explainable AI Market share by Component, 2024
FIG 15 North America Explainable AI Market share by Component, 2032
FIG 16 North America Explainable AI Market by Component, 2021 - 2032, USD Million
FIG 17 North America Explainable AI Market share by Application, 2024
FIG 18 North America Explainable AI Market share by Application, 2032
FIG 19 North America Explainable AI Market by Application, 2021 - 2032, USD Million
FIG 20 North America Explainable AI Market share by End-use, 2024
FIG 21 North America Explainable AI Market share by End-use, 2032
FIG 22 North America Explainable AI Market by End-use, 2021 - 2032, USD Million
FIG 23 North America Explainable AI Market share by Country, 2024
FIG 24 North America Explainable AI Market share by Country, 2032
FIG 25 North America Explainable AI Market by Country, 2021 - 2032, USD Million
FIG 26 Recent strategies and developments: Microsoft Corporation
FIG 27 SWOT Analysis: Microsoft Corporation
FIG 28 Recent strategies and developments: IBM Corporation
FIG 29 SWOT Analysis: IBM Corporation
FIG 30 SWOT Analysis: Google LLC
FIG 31 SWOT Analysis: Salesforce, Inc.
FIG 32 SWOT Analysis: Intel corporation
FIG 33 SWOT Analysis: NVIDIA Corporation
FIG 34 SWOT Analysis: SAS INSTITUTE, INC.
FIG 35 SWOT Analysis: Amazon Web Services, Inc.
FIG 36 SWOT Analysis: SAP SE