According to a new report, published by KBV research, The Global AI API Market size is expected to reach $256.19 billion by 2031, rising at a market growth of 31.0% CAGR during the forecast period.
The shift toward cloud-based solutions has also played a significant role, as AI APIs are typically hosted on scalable cloud infrastructure, ensuring reliability and flexibility for users. This widespread adoption reflects a broader trend of organizations prioritizing AI as a strategic asset, integrating it into their core operations to drive growth and innovation.
The Generative AI APIs segment is experiencing a CAGR of 30.1 % during the forecast period. The rapid advancements in AI models, such as large language models (LLMs) and image generation tools, have fuelled the demand for generative AI APIs. Businesses increasingly leverage these APIs to enhance productivity, automate content creation, and improve customer engagement.
The Cloud-Based APIs segment led the maximum revenue in the Global AI API Market by Deployment in 2023, thereby, achieving a market value of $132.0 billion by 2031. This dominance can be attributed to the growing adoption of cloud computing, the increasing reliance on AI-driven applications, and the demand for seamless scalability. Organizations prefer cloud-based APIs due to their cost-effectiveness, ease of deployment, and accessibility, making them a preferred choice for enterprises across various industries.
The IT & Telecommunications segment is growing at a CAGR of 29.7 % during the forecast period. The increasing demand for AI-powered automation, network optimization, and predictive analytics in telecom operations has significantly contributed to this segment’s growth. AI APIs are widely used in IT infrastructure for cybersecurity, chatbot-based customer support, and intelligent network management, making them indispensable in the sector.
Full Report: https://www.kbvresearch.com/ai-api-market/
The North America region dominated the Global AI API Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $91.6 billion by 2031. The Europe region is anticipated to grow at a CAGR of 30.6% during (2024 - 2031). Additionally, The Asia Pacific region would witness a CAGR of 31.7% during (2024 - 2031).
By Application
By Deployment
By End Use
Unique Offerings 
