Machine learning as a Service Market Overview:
Machine learning as a service Market incorporates a comprehensive range of services and solutions and techniques interrelated closely to artificial intelligence (AI), which performs statistical analysis of input data to understand its current or future relationship and performance. Machine learning makes use of massive amount of input data to deliver improved analytical output while optimizing workflow for varied industry verticals. Machine learning as a service (MLaaS) incorporates range of services that offer machine learning tools through cloud computing services.
Growth in IT expenditure in the emerging nations and technological advancements for workflow optimization fuels the demand for advanced analytical systems, thereby driving the MLaaS market growth. In addition, rise in penetration of cloud-based solutions, growth associated with artificial intelligence and cognitive computing market, and increase in market for prediction solutions also fuel the demand for machine learning as a service market. However, dearth of trained professionals is expected to restrain the MLaaS market growth during the forecast period. Furthermore, increased application areas for MLaaS is expected to create lucrative opportunities for market expansion.
The global machine learning as a service market is segmented based on component, organization size, end-use industry, application, and geography. The component segment is bifurcated into software and services. Based on organization size, it is divided into large enterprises, and small & medium enterprises. The application segment is categorized into marketing & advertising, fraud detection & risk management, predictive analytics, augmented & virtual reality, natural language processing, computer vision, security & surveillance, and others. On the basis of end-use industry, it is classified into aerospace & defense, IT & telecom, energy & utilities, public sector, manufacturing, BFSI, healthcare, retail, and others. By geography, the machine learning as a service market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Market Segmentation
Top Impacting Factors
The global machine learning as a service market is influenced by several factors that include growth in demand for increased application areas, growth associated with artificial intelligence (AI) & cognitive computing market, dearth of trained professionals, and impact of developing economies. All these factors collectively create opportunities for market growth. However, each factor is expected to have its definite impact on the MLaaS market share.
Top Impacting Factors
Impact of Developing Economies
The developing countries possess high potential for the machine learning as a service market, owing to a low adoption base and developing infrastructure. Further, the need for cost-effective predictive solutions among end-use industries is expected to fuel the demand for MLaaS.
Increased Application Areas
Increase in automation and advancement in technology are expected to boost the market growth during the forecast period. Machine learning technology has driven the emergence of predictive analytics which experiences rapid grow in consumption and has become an important aspect of all business operations and processes. Predictive analytics is used in several online activities such as Amazon product recommendations and Google search box auto suggestion. For instance, Netflix, an online movie rental service giant, used machine learning to predict the movies which a customer would prefer to view. Recently, Walmart Labs announced the acquisition of Inkiru, a specialized company in machine learning technology. This acquisition helped Walmart provide better site personalization and fraud prevention. Earlier, adoption of MLaaS was largely among developed nations, but in the recent years, most of the emerging economies such as India and China, have started implementing MLaaS.
Dearth of Skilled Workforce
At present, the impact of this factor on the market growth is high, which limits end users to invest into advanced solutions and services. However, by 2023, the impact is projected to decrease due to availability of skilled workforce.
Growth Associated With Artificial Intelligence and Cognitive Computing Market
Improved productivity, diversified application areas, increased customer satisfaction, and big data integration drive the artificial intelligence (AI) market. Cognitive computing, with the help of different technologies such as natural language processing, machine learning and automated reasoning, translates unstructured data to sense, infer, and predict the best solution. Cognitive computing is majorly used in BFSI, healthcare, security, retail, e-commerce, and other sectors. Increase in volume of unstructured data and advancements in technology majorly drive the cognitive computing market. AI has different application areas across media & advertising, finance, retail, healthcare, automotive & transportation, agriculture, law, educational institutions, oil & gas, and other industries. The impact of this factor is expected to be higher in future, since machine-learning algorithms are anticipated to be used for preventing payment frauds and cyberterrorism. Furthermore, AI is estimated to have a strong impact on healthcare advancements and lead to more accurate treatments and prevention of medical conditions.
- The report provides an overview of the trends, structure, drivers, challenges, and opportunities in the global machine learning as a service market.
- Porters Five Forces analysis highlights the potential of buyers & suppliers, and provides insights on the competitive structure of the market to determine the investment pockets.
- Current and future trends adopted by key market players are highlighted to determine overall competitiveness.
- The quantitative analysis of the market through 20162023 is provided to elaborate the market potential.
Machine learning as a Service Market Key Segments:
By Organization Size
- Large Enterprises
- Small & Medium Enterprises
By End-Use Industry
- Aerospace & Defence
- IT & Telecom
- Energy & Utilities
- Public sector
- Marketing & Advertising
- Fraud Detection & Risk Management
- Predictive analytics
- Augmented & Virtual reality
- Natural Language processing
- Computer vision
- Security & surveillance
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Players Profiled in the Report
- Google Inc.
- SAS Institute Inc.
- Hewlett Packard Enterprise
- Yottamine Analytics
- Amazon Web Services
- BigML, Inc.
- Microsoft Corporation
- Predictron Labs Ltd.
- IBM Corporation