Machine Learning as a Service Market Statistics: 2030
The global machine learning as a service market size was valued at $13.95 billion in 2020, and is projected to reach $302.66 billion by 2030, growing at a CAGR of 36.2% from 2021 to 2030. Major machine learning as a service market growth drivers include increased market for cloud computing and growth associated with artificial intelligence and cognitive computing. Key impacting factors of the machine learning as a service include growth in demand for cloud-based solutions, including growth in demand for cloud computing, rise in adoption of analytical solutions, growth of artificial intelligence & cognitive computing market, increased application areas, and dearth of trained professionals.
Machine learning is a process of data analysis that comprises statistical data analysis performed to derive desired predictive output without the implementation of explicit programming. It is designed to incorporate functionalities of artificial intelligence (AI) and cognitive computing involving a series of algorithms and is used to understand the relationship between datasets to obtain a desired output. Machine learning as a service (MLaaS) incorporates a range of services that offer machine learning tools through cloud computing services.
The machine learning as a service market is segmented into By Application, By Organization Size, By Component and By End-Use Industry. Depending on component, the ML as a Service market is divided into software and services. On the basis of organization size, it is divided into large enterprises and small & medium enterprises. On the basis of end-user industry, it is divided into aerospace and defense, BFSI, public sector, retail, healthcare, IT & telecom, energy & utilities, manufacturing, and others. On the basis of application, it is divided 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 region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
In 2020, on the basis of component, the service segment dominated the machine learning as a service market share, and is expected to maintain its dominance in the upcoming years. This is attributed to factors such as increase in application areas and growth associated with end-use industries among developing economies is expected to drive the market growth for machine learning services. Industry players are focused toward implementation of technologically advanced solutions to increase adoption of machine learning services. Use of machine learning services in the healthcare industry for detection of cancer as well as to check ECG and MRI increases the market in the healthcare sector. Benefits offered by machine learning services such as cost reduction, demand forecasting, real-time data analysis, and growth in adoption of the cloud market are expected to unlock major opportunities for the machine learning as a service market. For instance, in April 2021, Microsoft Corporation announced an open Dataset for transportation, health & genomics, labor & economics, population & safety, supplemental, and common datasets to improve accuracy of machine learning models with publicly available datasets. This also allows companies to deliver insights at hyperscale using Azure Open Datasets with Azure’s machine learning and data analytics solutions that boosts sales of the ML as a Service of these companies.
By Component
Services segment is projected as one of the most lucrative segments.
North America is the fast growing region in the global machine learning as a service market, in terms of technological advancements and adoption. It possesses well-equipped infrastructure and the ability to afford machine learning as a service solutions. Furthermore, rise in investments in the defense sector, along with technological advancements in the telecommunication industry, is expected to drive the market growth during the forecast period. Government regulations regarding data security are expected to continue to be a strong driver for the machine learning services market. Services such as security information and cloud application are expected to drive the market. In addition, strong presence of industry leaders such as Google, IBM, Microsoft, and Amazon Web Services and diversified product offerings have further led to rise in demand for machine learning in this region. Furthermore, growth associated with artificial intelligence and cognitive computing is expected to create lucrative opportunities for the market players to leverage varied industry applications such as predictive analytics, natural language processing, computer vision, fraud detection & management.
However, Asia-Pacific is expected to be the fastest growing regional segment during the forecast period, with the highest CAGR. Leading players are focusing on Asia-Pacific to increase their business as the region is expected to witness high growth in the deployment of security services, especially in the banking, financial services, and insurance (BFSI) sector. Asia-Pacific is expected to be the fastest-growing regional segment during the forecast period, with the highest CAGR. Industry participants are realizing the importance of providing multi-modal platforms to ensure superior customer service. Rise in penetration of AI applications is expected to be the key trend influencing the machine learning as a service market growth in this region. In addition, government organizations have adopted key initiatives to further spur penetration of machine learning and adjacent technologies in this region.
COVID-19 Impact Analysis
The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. The COVID-19 pandemic has had a significant effect on health, financial, and social systems of various countries. Individuals can profit from understanding and coping with their mental, psychological, and social well-being if knowledge of individual-level susceptibility factors is accessible.
The application of artificial intelligence technology is expected to help combat the COVID-19 pandemic. Several countries are using population surveillance methods to track and trace COVID-19 cases. For instance, in South Korea, researchers use surveillance camera footage and geo-location data to track coronavirus patients. Using this data, data scientists leverage machine intelligence algorithms to predict location of the next outbreak and inform the responsible authorities, helping to track disease in real-time. Such active initiatives are expected to surge demand for machine intelligence solutions during the forecast period.
Top Impacting Factors
Increase in Market for Cloud Computing
Increase in adoption of cloud computing technology along with usage of social media platforms is driving the growth of the machine learning as a service market. Cloud-computing has been adopted widely among all the businesses, which provides enterprise storage solutions. Using cloud storage, the analysis of the data is performed online, which gives an advantage of analyzing the real-time data generated on the cloud. Cloud computing allows analysis of data from anywhere and at any time. In addition, implementing machine learning through cloud allows companies to retrieve meaningful information, such as consumer behavior and their buying patterns, virtually from integrated data warehouses, which ultimately reduces the cost of infrastructure and storage. Hence, rise in adoption of cloud computing technology drives growth of the machine learning as a service industry.
Growth Associated with Artificial Intelligence and Cognitive Computing
Artificial Intelligence (AI) system includes learning, reasoning, and self-correction powered by machine learning. Applications of AI include expert systems, speech recognition, and machine vision. Current projects, such as big data infrastructure and cloud computing, are responsible for increase in popularity of AI. Top companies in various sectors, such as Google, Microsoft, Amazon (Software & IT); Bloomberg, American Express (Financial Services); and Tesla, Ford (Automotive have identified AI and cognitive computing as a core strategic driver and started investments in machine learning to develop efficient systems which will be more advanced. These top companies have also supported new start-ups and provided financial support to generate new innovative technologies. For instance, Google invested $10.5 million in Algorithm, a marketplace & enterprise solution that allows developers to easily tap into its library of 3,500 algorithms, functions, and machine learning models.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current machine learning as a service market trends, estimations, and dynamics of the machine learning as a service market analysis from 2020 to 2030 to identify the prevailing machine learning as a service market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the MLaaS market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global MLaaS market trends, key players, market segments, application areas, and market growth strategies.
Machine learning as a Service Market Report Highlights
| Aspects | Details |
 By APPLICATION |
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 By Organization Size |
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 By Component |
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 By End-Use Industry |
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 By Region |
|
 Key Market Players | MICROSOFT CORPORATION, PREDICTRON LABS LTD, IBM CORPORATION, HEWLETT PACKARD ENTERPRISE, BIGML, INC, YOTTAMINE ANALYTICS, FICO, SAS INSTITUTE INC, AMAZON WEB SERVICES, GOOGLE INC |
Analyst Review
According to the market estimates issued by CXOs of leading companies, the current business scenario has exhibited surge in use of machine learning as a service across various applications, such as healthcare, banking and financial, research & education, defense, IT & telecom, and manufacturing. In accordance to insights of leading CXOs, utilization of machine learning as a service among varied end-use industries has increased due to rise in adoption of cloud-based solutions and artificial intelligence market among various end-use industries and need to optimize business operations for enhanced analytical solutions. Moreover, this market is gaining significant acceptance from commercial users and large enterprises for improving business performance and meeting customers’ expectations by analyzing unstructured data. In addition, recent innovations in prediction solutions have further fueled the market growth.
According to CXOs, increase in economic strength of developing nations such as China, India, Indonesia, and Thailand is expected to provide lucrative opportunities for the market. North America is expected to dominate the market during the forecast period and emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities.
The global machine learning as a service market report covers various parameters of the machine learning industry. The market is segmented on the basis of component, organization size, end-use industry, application, and region. 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. Based on end-use industry, it is classified into aerospace & defense, IT & telecom, energy & utilities, public sector, manufacturing, BFSI, healthcare, retail, and others
Key impacting factors of the machine learning as a service include growth in demand for cloud-based solutions, including growth in demand for cloud computing, rise in adoption of analytical solutions, growth of artificial intelligence & cognitive computing market, increased application areas, and dearth of trained professionals.
Leading applications of Machine learning as a Service Market includes Aerospace & Defense, IT & Telecom, Energy & Utilities, Public sector, and others.
North America is the dominating region in the global machine learning as a service market.
Some of the key data center automation industry players profiled in the report include Google Inc., SAS Institute Inc., FICO, Hewlett Packard Enterprise, Yottamine Analytics, Amazon Web Services, BigML, Inc., Microsoft Corporation, Predictron Labs Ltd., and IBM Corporation.
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