AI Inference PaaS Market Growth Forecast to 2030
Source: marketsandmarkets.com
AI Inference PaaS Market Analysis
The AI inference PaaS market is projected to reach USD 105.22 billion by 2030, up from USD 18.84 billion in 2025, showing a CAGR of 41.1%. This growth is fueled by the increasing use of generative AI and large language models (LLMs), necessitating scalable and low-latency infrastructure for real-time deployment. The shift toward cloud-native AI architectures positions PaaS providers as crucial, offering efficient and high-performing environments.
The integration of inference capabilities into industry-specific SaaS platforms broadens applications across finance, retail, and healthcare, boosting market growth.
Public Cloud to Dominate Deployment
The public cloud segment is expected to hold the largest market share in 2025 because of its scalability, cost benefits, and accessibility. Hyperscale providers like AWS, Microsoft Azure, and Google Cloud offer infrastructures with advanced GPU and TPU resources, making them ideal for large-scale AI inference. The public cloud enables enterprises to quickly deploy generative AI, NLP, and computer vision applications without significant upfront investment. SMEs and startups benefit from flexible pricing and integration with AI toolchains. Public cloud providers are expected to continue leading, providing specialized AI accelerators and managed inference services to meet enterprise and developer demands.
IT & Telecom Sector Growth
The IT & telecom sector is anticipated to experience the highest CAGR in the AI inference PaaS market from 2025 to 2030. Rapid digitization, 5G deployment, and demand for AI-enhanced customer experience management are driving this. Telecom operators use inference PaaS to improve network performance and deliver real-time analytics. IT service providers are adopting inference platforms to scale AI-enabled cloud services and enhance cybersecurity. The integration of AI inference with edge computing presents opportunities in low-latency applications. Partnerships between telecom operators and hyperscalers, along with the demand for sovereign AI, position the IT & telecom sector as a key driver for AI inference PaaS adoption.
North America's Leading Market Share
North America is projected to hold the largest market share in 2030, supported by its advanced cloud infrastructure and early adoption of AI technologies. The US, with major players like AWS, Microsoft Azure, and Google Cloud, leads in offering inference services for generative AI and machine learning. The BFSI, healthcare, and media & entertainment sectors are significant users, utilizing it for fraud detection, medical imaging, and personalized recommendations. A mature AI startup ecosystem and venture capital investments support continuous innovation. Regulatory frameworks promote responsible adoption, especially in finance and healthcare. Enterprises are adopting hybrid and multi-cloud inference strategies. The region's strong AI budgets and collaborations between hyperscalers and industry verticals are expected to maintain its leading position in the global AI inference PaaS market.
Key Players in the Market
Key companies in the AI inference PaaS market are Microsoft (US), Amazon Web Services, Inc. (US), Google (US), Oracle (US), and IBM (US).