Asia Pacific Artificial Intelligence Market
Asia Pacific Artificial Intelligence (AI) Market by Infrastructure (Compute, Memory, Networking, Storage), Software (Conversational Assistants, No Code/Low Code, BI & Analytics, Developer Platforms), Technology (ML, NLP, Generative AI) - Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The artificial intelligence (AI) market in the Asia Pacific is estimated at USD 102.59 billion in 2025 and is anticipated to reach USD 815.98 billion by 2032, growing at a CAGR of 34.5% between 2025 and 2032. The region is widely recognized as a hub for AI innovation. The primary demand emanates from enterprises seeking agentic AI and generative AI to facilitate autonomous workflows. Southeast Asia's digital landscape and its tech-enthusiastic population are pivotal drivers of AI-enabled economic growth, with increasing demand for AI in enhancing business productivity, customer experience, and supply chain efficiency. Key sectors such as manufacturing, retail & eCommerce, healthcare, and finance are experiencing the highest demand for AI across the region.
KEY TAKEAWAYS
-
By CountryBy country, India is expected to witness the highest CAGR of 38.9% during the forecast period.
-
By TechnologyBy technology, the machine learning segment is expected to dominate with a market size of USD 38.07 billion in 2025.
-
By Business FunctionBy business function, the operations & supply chain segment is projected to grow at the highest CAGR of 36.2% during the forecast period.
-
By Enterprise End UserBy enterprise end user, the software & technology providers segment is expected to dominate, with a market size of USD 16.83 billion in 2025.
-
Competitive Landscape - Key PlayersBaidu, Alibaba Cloud, Huawei, NVIDIA, and SenseTime were identified as some of the star players in the Asia Pacific artificial intelligence (AI) market, given their strong market share and product footprint.
-
Competitive Landscape - Startups/SMEsAppier, Yellow.ai, H2O.ai, Cinnamon AI, among others, have distinguished themselves among startups and SMEs by securing strong footholds in the Asia Pacific artificial intelligence (AI), underscoring their potential as emerging market leaders.
Consumer demand within the eCommerce, gaming, and services sectors drives advancements in AI-led personalization. China, India, and Singapore are prioritizing sovereign AI initiatives to develop local data centers and employ regionally trained language models, thereby ensuring data privacy and cultural as well as linguistic relevance. NVIDIA reports strong demand for AI chips, especially from China, which prompts considerations for expanding production capacity to satisfy regional requirements. The adoption of generative AI is experiencing significant growth in customer-facing applications and content creation. Furthermore, competitive pressures and substantial IT budgets are accelerating the widespread adoption of AI technologies across the Asia Pacific region.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The AI market in the Asia Pacific region is driven by the shift from experimentation to ROI-focused AI and by the rapid adoption of generative AI and agentic AI. China is investing heavily in AI data centers, local AI chips, and industrial AI. India is seeing strong adoption of generative AI tools across BFSI, FMCG, and IT services. Singapore is driving the development of sovereign AI and trusted governance, while Australia is expanding AI across public services, energy, and healthcare. AI vendors are seeing notable demand for genAI tools that generate real-time original content, including text, images, code, and video.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
-
Explosive Growth of Digital Payments, E-Commerce, and Super Apps Fueling AI at Scale across Asia Pacific
-
Hyper-Scale Adoption of Mobile-First AI Experiences Across Commerce, Payments, and On-Demand Platforms
Level
-
Fragmented Data Localization Laws Across China, India, ASEAN, and Australia Increasing Compliance Costs
-
Uneven AI Compute Infrastructure and Cloud Maturity Between Developed and Emerging Economies
Level
-
Enterprise AI Expansion Across Smart Manufacturing, FinTech, HealthTech, and GovTech in Emerging Asian countries
-
Scaled Deployment of Multilingual Large Language Models and Speech AI Optimized for High-Diversity Linguistic Environments
Level
-
Rising Exposure to AI Governance Gaps, Deepfake Misuse, Cyber Threats, and Algorithmic Bias Across High-Volume Digital Ecosystems in the region
-
Critical Shortage of Advanced AI Engineers and Model Training Talent Across High-Growth Economies
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Explosive Growth of Digital Payments, E-Commerce, and Super Apps Fueling AI at Scale across Asia Pacific
AI is used for fraud scoring, AML, credit risk assessment, and identity verification across digital payment platforms such as UPI (India), Alipay, WeChat Pay (China), and GrabPay and GCash (Southeast Asia), supporting continuous model training. eCommerce platforms also rely on AI for recommendations, search, demand forecasting, and logistics. Alibaba, JD.com, Shopee, Lazada, and Flipkart deploy GenAI for content creation, seller support, and customer engagement. Super apps integrate payments, commerce, mobility, and services into a single ecosystem. Platforms such as Grab, Gojek, Meituan, Kakao, and Line use AI to orchestrate cross-service journeys.
Restraint: Fragmented Data Localization Laws across China, India, ASEAN, and Australia Increasing Compliance Costs
Differences in cross-border data transfer regulations, sector-specific data protection laws, and cloud governance frameworks are amplifying legal complexity and increasing infrastructure costs associated with AI deployment. These regulatory discrepancies constrain centralized model training and impede regional AI integration, thereby complicating the implementation of multi-country AI strategies. Nations such as China, Australia, and Singapore adhere to unique rules concerning data storage, transfer, and processing, consequently posing compliance challenges for AI and Generative AI vendors operating internationally.
Opportunity: Enterprise AI Expansion Across Smart Manufacturing, FinTech, HealthTech, and GovTech in Emerging Asian countries
The smart manufacturing, FinTech, HealthTech, and GovTech sectors are transitioning from pilot initiatives to wide-scale adoption of artificial intelligence. China, Japan, South Korea, and Vietnam are integrating edge AI within manufacturing facilities to facilitate predictive maintenance, quality inspection, robotics, and digital twins for real-time decision-making. The expansion of AI utilization in FinTech is notable, alongside a surge in AI demand within HealthTech sectors for diagnostics, medical imaging, and hospital management.
Challenge: Rising Exposure to AI Governance Gaps, Deepfake Misuse, Cyber Threats, and Algorithmic Bias Across High-volume Digital Ecosystems in the region
As AI expands across extensive digital platforms and consumer applications, governance and security risks are escalating. The deployment of generative AI increases apprehensions regarding data misuse, bias, fraud, and transparency deficiency. Inconsistent security preparedness further renders organizations vulnerable to misuse and cyber breaches, thereby generating trust, regulatory, and reputational risks for enterprises implementing AI throughout the region.
ASIA PACIFIC ARTIFICIAL INTELLIGENCE MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
-market-vodafone.svg) |
Vodafone partnered with IBM to enhance digital customer engagement using AI. IBM implemented Watson Assistant to power TOBi, a scalable, conversational, multilingual AI tool trained with domain-specific data and machine learning. | Watson Assistant enabled TOBi to handle over 50% of queries, reduce operational costs, and wait times. It improved customer satisfaction and provided a scalable multilingual AI assistant operating across multiple platforms with continuous improvement capabilities. |
-market-perplexity.svg) |
Perplexity AI collaborated with NVIDIA to enhance the efficiency and quality of its models. To optimize large language model performance while managing infrastructure costs, NVIDIA helped integrate the NeMo framework and optimized the inference stack for efficient LLM deployment. | NVIDIA enabled Perplexity AI to achieve 3x faster inference speeds, lower compute and energy costs. Improved model accuracy and scalability, faster iteration and deployment cycles. Reduced engineering overhead while streamlining workflows. |
-market-notion.svg) |
Notion partnered with OpenAI to embed generative AI into its productivity platform. OpenAI's large language models were integrated to power Notion AI, providing features such as auto-summarization, idea generation, content expansion, and translation. | OpenAI integration enhanced user productivity and creativity, enabling faster content creation and summarization. It provided seamless AI integration within workflows and increased platform stickiness and user satisfaction. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The artificial intelligence (AI) ecosystem in the Asia Pacific region consists of a comprehensive network of global and regional entities that provide a wide array of AI technologies and platforms to facilitate both enterprise and consumer applications. These entities offer complete AI capabilities, including MLOps, model training and deployment services, AI-optimized cloud infrastructure, GPU computing, and edge AI, all aimed at enabling scalable, real-time intelligence. Notable global participants with regional offices include NVIDIA, Microsoft, Google, AWS, IBM, AMD, Oracle, Intel, Qualcomm, and Meta. Additionally, regional organizations such as Baidu, Alibaba Cloud, Huawei, Tencent, SenseTime, DataRobot, and H2O.ai are also prominent within the ecosystem.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Asia Pacific Artificial Intelligence (AI) Market, By Offering
AI infrastructure is expected to lead the market in 2025. Rapid growth in generative and agentic AI workloads is expected to drive AI demand. Investment in GPUs, demand for AI accelerators, and storage to support large-scale AI model training and inference are rising. Hyperscalers such as AWS, Microsoft, Google, Alibaba Cloud, and Tencent Cloud are expanding regional capacity. Demand for upgraded AI chips from NVIDIA, AMD, and Intel continues to rise. China, Singapore, and Australia are prioritizing sovereign AI infrastructure to meet data localization, security, and latency needs.
Asia Pacific Artificial Intelligence (AI) Market, By Technology
Generative AI is poised for rapid growth. Large language models, AI agents, and multimodal models are increasingly adopted across sectors such as digital payments, eCommerce, customer service, content creation, and software development. Enterprises are progressing beyond pilot projects to integrate Generative AI into fundamental workflows, including customer support, document processing, software development, and decision intelligence. There is a marked demand from significant industries in China, India, and Southeast Asia to facilitate continued AI investment.
Asia Pacific Artificial Intelligence (AI) Market, By Business Function
By 2025, it is anticipated that the marketing & sales functions will lead in AI expenditure. Organizations are increasingly implementing AI solutions for customer analytics, personalized recommendation engines, and marketing automation. Marketing agencies leverage AI to improve customer segmentation, churn prediction, sentiment analysis, and omnichannel campaign management. Consequently, AI is extensively employed within sales and marketing departments for critical applications.
Asia Pacific Artificial Intelligence (AI) Market, By Enterprise End User
The healthcare & life sciences sector is expected to grow at the fastest rate during the forecast period. Vendors report strong demand for medical imaging, clinical decision support, and hospital workflow automation. Moreover, medical firms are deploying gen AI tools for clinical documentation and patient management. Japan, Australia, China, and Singapore are accelerating AI adoption in radiology, population health, and care coordination.
REGION
India will be the fastest-growing country in the Asia Pacific artificial intelligence (AI) market
India is experiencing rapid development in generative AI, with a focus on indigenous, multilingual models, such as BharatGPT (CoRover) and Sarvam's foundational models tailored, for Indian languages. The country possesses a substantial developer base and has seen a rapid deployment of enterprise copilots and automation platforms, as reported by AI vendors. The success of digital public infrastructure initiatives, including UPI, Aadhaar, and ONDC, is generating vast data volumes that drive large-scale AI applications. Major global vendors, including Microsoft, AWS, Google, IBM, and NVIDIA, as well as regional companies such as TCS, Infosys, Wipro, and Reliance, are making substantial investments in AI platforms, thereby accelerating the growth of India's AI sector.
ASIA PACIFIC ARTIFICIAL INTELLIGENCE MARKET: COMPANY EVALUATION MATRIX
The Asia Pacific artificial intelligence market matrix indicates that Microsoft (Star) leads with its extensive AI ecosystem, supported by Azure AI, Copilot, and advanced machine learning services. These capabilities enable enterprises to innovate, automate, and scale intelligent solutions across various industries. Baidu (Emerging Leader) is making rapid progress through its in-depth expertise in natural language processing, autonomous driving, and generative AI, exemplified by platforms such as Ernie Bot. Its strong emphasis on AI research, large-scale model development, and applications across cloud and mobility sectors position it as a rapidly growing competitor within the Asia Pacific AI landscape.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Baidu (China)
- Alibaba Cloud (China)
- Huawei (China)
- Microsoft (US)
- AMD (US)
- Qualcomm (US)
- NVIDIA (US)
- Intel (US)
- Google (US)
- Appier (Taiwan)
- SenseTime (China)
- Oracle (US)
- IBM (US)
- Advance.ai (Singapore)
- Cinnamon AI (Japan)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 69.06 BN |
| Market Forecast in 2032 (Value) | USD 815.98 BN |
| CAGR | 34.5% |
| Years Considered | 2020–2032 |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Units Considered | Value (USD BN) |
| Fastest-growing Country | India |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
|
| Countries Covered | China, Japan, India, South Korea, Australia & New Zealand, ASEAN, Rest of Asia Pacific |
WHAT IS IN IT FOR YOU: ASIA PACIFIC ARTIFICIAL INTELLIGENCE MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| IT Infrastructure Service Provider |
|
|
| Telecom & Cloud Provider – India |
|
|
RECENT DEVELOPMENTS
- November 2025 : Google DeepMind has established a new research laboratory in Singapore to further the development of artificial intelligence throughout the Asia Pacific region. The Singapore-based research facility will accommodate research scientists, software engineers, operations personnel, and experts in AI impact assessment. Their efforts will focus on enhancing Google's AI technology to promote linguistic and cultural inclusivity within the Asia Pacific region.
- August 2025 : IBM formed a strategic partnership with Vodafone Idea (Vi) to modernize information technology systems, enhance operational efficiency, and expedite digital initiatives through the utilization of artificial intelligence (AI) and automation. This multi-year agreement, valued at USD 600 million, seeks to overhaul existing IT infrastructure and incorporate AI and automation into telecommunications operations.
- April 2025 : Oracle launched the Oracle Cloud Infrastructure (OCI) File Storage, a fully managed service designed for AI/ML training and inference, and high-performance computing. OCI automates deployment, scaling, and maintenance, allowing users to concentrate on applications instead of infrastructure management. OCI deploys and maintains all Lustre (a type of parallel distributed file system) server components, including metadata, management, and storage servers.
- April 2025 : Amazon Lex V2 has been enhanced with generative AI functionalities, including support for Bedrock Knowledge Base, Guardrails, Anthropic Claude 3 Haiku, and Sonnet models. These improvements are incorporated within the built-in QnA slot. Additionally, Lex V2 now supports the QinConnect built-in intent to facilitate the integration of bots with Amazon Connect.
- March 2025 : NVIDIA launched the NVIDIA AI Data Platform, a customizable reference design for a new class of enterprise AI infrastructure aimed at demanding AI inference workloads. Leading storage providers are collaborating with NVIDIA to build customized AI data platforms using NVIDIA Blackwell GPUs, BlueField DPUs, Spectrum-X networking, and the NVIDIA Dynamo open-source inference library. The platform brings accelerated computing and AI to enterprise storage, enabling AI query agents to generate insights from data in near real time.
- March 2025 : IBM introduced several new capabilities in its Watsonx AI Assistant. Conversational search now supports more languages, including French, Spanish, German, and Brazilian Portuguese, expanding its global reach. Additionally, there's improved accuracy in understanding free-text responses, reducing errors and enhancing data collection. These updates reflect a focus on leveraging advanced AI models to improve the user experience and broaden language support.
Table of Contents
Exclusive indicates content/data unique to MarketsandMarkets and not available with any competitors.
Methodology
In the primary research process, a diverse range of stakeholders from both the supply and demand sides of the artificial intelligence ecosystem were interviewed to gather qualitative and quantitative insights specific to this market. From the supply side, key industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology & innovation directors, and technical leads from vendor companies offering artificial intelligence infrastructure, software & services were consulted. Additionally, system integrators, service providers, and IT service firms that implement and support artificial intelligence were included in the study. On the demand side, input from IT decision-makers, infrastructure managers, and business heads of prominent enterprise end users was collected to understand the user perspectives and adoption challenges within targeted industries.
The primary research ensured that all crucial parameters affecting the Asia Pacific Artificial Intelligence (AI) Market —from technological advancements and evolving use cases (predictive maintenance, fraud detection, customer service automation, content generation, personalized recommendations, etc.) to regulatory and compliance needs (GDPR, CCPA, Europe AI Act, AIDA, etc.) were considered. Each factor was thoroughly analyzed, verified through primary research, and evaluated to obtain precise quantitative and qualitative data for this market.
Secondary Research
Once the initial phase of market engineering was completed, including detailed calculations for market statistics, segment-specific growth forecasts, and data triangulation, an additional round of primary research was undertaken. This step was crucial for refining and validating critical data points, such as AI offerings (artificial intelligence infrastructure, software & services), industry adoption trends, the competitive landscape, and key market dynamics like demand drivers (growth in adoption of autonomous artificial intelligence, rise of deep learning and machine learning technologies, advancements in computing power and availability of large databases), challenges (lack of transparency and explainability in decision-making process of AI, concerns related to bias and inaccurately generated output, integration challenges and lack of understanding of state-of-the-art systems), and opportunities (advancements in AI-native infrastructure enhancing scalability and performance, expansion of edge AI capabilities for real-time data processing and decision-making, advancements in generative AI to open new avenues for AI-powered content creation).
Primary Research
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to record the critical information/insights throughout the report.
Market Size Estimation
To estimate and forecast the Asia Pacific Artificial Intelligence (AI) Market and its dependent submarkets, both top-down and bottom-up approaches were employed. This multi-layered analysis was further reinforced through data triangulation, incorporating primary and secondary research inputs. The market figures were also validated against the existing MarketsandMarkets repository for accuracy. The following research methodology has been used to estimate the market size:
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
Many theoretical definitions of artificial intelligence center on a machine's capacity to mimic human behavior or carry out tasks that call for intelligence, but given the majority of current applications, artificial intelligence can be described as “systems that employ methods that can gather data and use it to predict, suggest, or make decisions with varying degrees of autonomy and select the best course of action to accomplish particular objectives”. AI systems leverage advanced techniques such as deep learning, reinforcement learning, and probabilistic reasoning to process data, recognize patterns, and make autonomous decisions or provide predictive analytics. These systems are designed to improve over time through iterative training and adaptation, often utilizing large-scale data and high-performance computing infrastructure to optimize performance and accuracy.
Stakeholders
- AI software developers
- AI infrastructure providers
- AI-integrated service providers
- AI training dataset providers
- Core data service providers
- Business analysts
- Cloud service providers
- Consulting service providers
- Enterprise end users
- Distributors and Value-added Resellers (VARs)
- Government agencies
- Independent Software Vendors (ISVs)
- Managed service providers
- Market research and consulting firms
- Support & maintenance service providers
- System Integrators (SIs)/Migration service providers
- Language service providers
- Technology providers
- Academia & research institutions
- Investors & venture capital firms
Report Objectives
- To define, describe, and forecast the Asia Pacific Artificial Intelligence (AI) Market , by offering, business function, technology, enterprise application, and end user
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
- To analyze the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the Asia Pacific Artificial Intelligence (AI) Market
- To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
- To forecast the market size of segments for five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To profile the key players and comprehensively analyze their market ranking and core competencies
- To analyze competitive developments, such as partnerships, product launches, and mergers and acquisitions, in the Asia Pacific Artificial Intelligence (AI) Market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company
Geographic Analysis as per Feasibility
- Further breakup of the North American market for artificial intelligence
- Further breakup of the European market for artificial intelligence
- Further breakup of the Asia Pacific market for artificial intelligence
- Further breakup of the Middle Eastern & African market for artificial intelligence
- Further breakup of the Latin American market for artificial intelligence
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Need a Tailored Report?
Customize this report to your needs
Get 10% FREE Customization
Customize This ReportPersonalize This Research
- Triangulate with your Own Data
- Get Data as per your Format and Definition
- Gain a Deeper Dive on a Specific Application, Geography, Customer or Competitor
- Any level of Personalization
Let Us Help You
- What are the Known and Unknown Adjacencies Impacting the Asia Pacific Artificial Intelligence (AI) Market
- What will your New Revenue Sources be?
- Who will be your Top Customer; what will make them switch?
- Defend your Market Share or Win Competitors
- Get a Scorecard for Target Partners
Custom Market Research Services
We Will Customise The Research For You, In Case The Report Listed Above Does Not Meet With Your Requirements
Get 10% Free Customisation
Growth opportunities and latent adjacency in Asia Pacific Artificial Intelligence (AI) Market