SINGAPORE, 17 June 2025 – According to the International Data Corporation (IDC) Worldwide Semiannual Software Tracker (2H24 release), the Artificial Intelligence (AI) platforms market across the Asia Pacific (excluding Japan and China) (APeJC) region experienced a significant annual growth of 67%, reaching over US$2.2 billion in 2024. This remarkable market expansion is fueled by favorable government initiatives across the region, growing enterprise investments aimed at driving innovation, improving operational performance and enhancing customer interactions, strong demands for generative AI solutions across verticals, and a growing tech-savvy population.
IDC defines the AI Platforms market as encompassing software solutions that facilitate the development of artificial intelligence models and applications, including intelligent assistants that may mimic human cognitive abilities. The AI platforms market is made up of three functional markets: AI life-cycle software, AI software services, and search and knowledge discovery software.
While all three functional markets showed two-digits growth in 2024 within APeJC region, the AI software services market recorded a particularly strong growth of 94% year over year. The popularity of AI software services, especially pretrained standalone tools and development platforms, is becoming increasingly widely adopted due to their scalability, reliability and accessibility for non-technical users. This development enables users to build AI-powered applications without coding or data science knowledge efficiency, and allows organisations to deploy AI capabilities quickly, accelerating innovation cycles.
Noticeably, the public cloud share of the APeJC AI Platforms market in 2024 represented 75% of the total market share, growing at 94% year over year. This trend is largely driven by the robust security features, strong data governance, and regulatory compliance support provided by cloud service providers, along with their ability to scale rapidly. As technology evolves and demand for AI solutions increases across various industries, IDC is expecting the adoption of cloud-based AI platform software to continue expanding in the coming years.
Organisations across the APeJC region are rapidly advancing from AI pilot initiatives to full-scale production deployments. Key industries, including financial services, healthcare, manufacturing, and retail are driving this momentum by embedding AI into core business operations. Use cases such as predictive analytics, real-time personalisation, fraud detection, and intelligent automation are seeing strong adoption, particularly on platforms that support natural language processing and machine learning. In response to this accelerating demand, major cloud providers like Microsoft Azure, Google Cloud and AWS are expanding their presence across the region to support enterprise-scale AI deployment.
In 2024, regional trends across APeJC highlighted the varied yet accelerating adoption of AI technologies.
• India: reinforced its role as a key hub for AI innovation, driven by rising demand for multilingual and voice-based generative AI applications.
• Southeast Asia: growth in AI-powered digital services was fueled by government-backed innovation initiatives and increased cloud adoption.
• Australia and New Zealand: demonstrated advanced maturity in enterprise AI usage, with many organizations transitioning from pilot projects to achieving measurable business value across functions.
IDC expects the APeJC AI platforms market’s upward trajectory to continue to accelerate at 52% CAGR by 2029, presenting significant opportunities for businesses and investors across the region to harness the transformative power of groundbreaking innovations within AI platforms market.
“With AI rapidly shifting from pilot projects to full-scale deployments across APeJC, tech buyers and vendors should focus on scalable, cloud-native solutions that deliver real-time insights. Partnering with providers that offer strong machine learning and natural language processing capabilities—along with deep regional and industry expertise—is key to unlocking value in high-growth sectors like finance, healthcare, manufacturing, and retail”, says Anastasia Antonova, research manager, Data & Analytics, IDC Asia/Pacific.
For more information about IDC’s Worldwide Semiannual Software Tracker, please contact Jackie Kliem at 508-988-7984 and jkliem@idc.com.
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*Asia/Pacific excluding Japan and China (APeJC)
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