United Kingdom Explainable AI Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software), By Application (Network Security, Database Encryption, Application Security), and United Kingdom Explainable AI Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Explainable AI Market Insights Forecasts to 2035

• The United Kingdom Explainable AI Market Size was Estimated at USD 385.21 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 13.50% from 2025 to 2035
• The United Kingdom Explainable AI Market Size is Expected to Reach USD 1551.12 Million by 2035

According to a research report published by Spherical Insights and Consulting, The United Kingdom Explainable AI Market Size is anticipated to reach USD 1551.12 Million by 2035, growing at a CAGR of 13.50% from 2025 to 2035. The industry is expanding as a result of companies' increasing need for transparency in AI decisions and their adoption of solutions that offer concise justifications. AI systems that are capable of handling multiple kinds, including text, pictures, numerical, and genetic data, are becoming more popular and demand such technology adoption.

Market Overview

The United Kingdom explainable AI market refers to the industry focused on the development and utilization of an artificial intelligence system that is designed to give human-interpretable explanations for the process of making decisions. Explainable AI finds use in a number of industries, including healthcare, automotive, telecommunication, internet and technology, and others. Modern times are nearly entirely reliant on new and developing technologies. Interpretability is another name for explainable AI. Also, the creation of artificial intelligence systems that can offer clear and intelligible justifications for their decision-making procedures is known as explainable AI (XAI). This constraint is intended to be addressed by XAI, which gives people access to the inner workings of AI algorithms so they can understand the logic behind outputs produced by AI. Recently, the government announced some AI-related programs. For instance, the government launched a new AI skills programme called "TechFirst" to equip pupils across the country with the skills needed for AI-powered jobs of the future. The initiative included a £187 million investment to bring digital skills and AI learning into classrooms and communities. Such a program and collaboration exceed the market growth.

Report Coverage

This research report categorizes the market for the United Kingdom explainable AI market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom explainable AI market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom explainable AI market.

Driving Factors

The market for United Kingdom explainable AI is driven by there is growing demand for AI decision-making processes to be transparent and interpretable as more companies integrate AI technologies into their operations. Human-AI collaboration promotes ongoing learning and adaptation, which could be learn from human feedback and adjusted to changing conditions by leveraging the knowledge and experience of human specialists, which fuels the market expansion with significant direction. The growing need for openness and confidence in AI decision-making in industries like healthcare, banking, and autonomous systems is propelling the market's explosive expansion. The market is expanding as a result of organizations investing in XAI to improve the interpretability of AI models and comply with regulatory standards.

Restraining Factors

The market expansion faces some barriers, such as the lack of qualified experts with expertise in creating and deploying Explainable AI (XAI) methods, the probability of data breaches, privacy concerns, and model complexity, requiring periodic balancing of explainability and inception for performance.

Market Segmentation

The United Kingdom Explainable AI Market share is classified into component and application.

• The hardware segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period.

The United Kingdom explainable AI market is segmented by component into hardware, and software. Among these, the hardware segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period. This is because specialized hardware is essential to the creation and application of AI models due to high levels of explainability and transparency. The processing capacity required to effectively process big datasets and intricate algorithms is provided by hardware designed for AI tasks, such as GPUs (Graphics Processing Units) and TPUs (Tensor Processing Units). This is essential for running sophisticated XAI models that analyze and interpret data in real-time, enabling them to provide immediate insights into their decision-making processes.

• The network security segment accounted for a significant share in 2024 and is expected to grow at a rapid pace during the forecast period.

The United Kingdom explainable AI market is segmented by application into network security, database encryption, and application security. Among these, the network security segment held a significant share in 2024 and is expected to grow at a rapid pace during the forecast period. This is because the rise in cyberattack threats and the sophistication of network infiltration techniques are to blame for this prominence, which has increased demand for cutting-edge, transparent AI-driven security solutions. The decision-making process behind threat detection and mitigation techniques may be clearly understood thanks to these technologies, which also identify and combat threats more effectively.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom explainable AI market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• MindsDB
• Polygraf AI
• DataRobot, Inc
• DataRoot Labs
• Reality Defender
• Aignostics
• InData Labs
• FAIRLY
• Zest AI
• Stanhope AI
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom explainable AI market based on the below-mentioned segments:

United Kingdom Explainable AI Market, By Component

• Hardware
• Software

United Kingdom Explainable AI Market, By Application   

• Network Security
• Database Encryption
• Application Security