MLaaS enables enterprises to build machine learning models on their own datasets without having to invest heavily in infrastructures or developing solutions in-house. MLaaS solutions help organizations leverage machine learning and artificial intelligence technologies for various applications like predictive analytics, image and speech recognition, natural language processing, and others. MLaaS platforms allow their customers to train, deploy and manage ML/AI models without infrastructure management and workforce hiring concerns.
The global machine learning as a service (MLaaS) market is estimated to be valued at US$ 9.5 billion in 2024 and is expected to exhibit a CAGR of 38% over the forecast period 2024-2032.
Key Takeaways
Key players operating in the machine learning as a service (MLaaS) market are Google, IBM, Microsoft, Amazon Web Services, SAS Institute and others. These key players provide MLaaS solutions and platforms that allow enterprises and developers to create and deploy custom machine learning models using their cloud-based AI services. The growing demand for ML/AI capabilities across various industry verticals without heavy infrastructure investments is a major factor driving the adoption of MLaaS. Various industries like healthcare, automotive, manufacturing, banking and others are increasingly adopting MLaaS solutions to derive valuable insights from their data. The increasing global footprint and widespread availability of cloud computing is facilitating the global expansion of the MLaaS market.
The growing demand for ML/AI capabilities across various industry verticals without heavy infrastructure investments is a major factor driving the adoption of MLaaS. Healthcare organisations are increasingly using MLaaS solutions to process medical images for disease diagnosis and develop personalized treatment plans. Automotive manufacturers are leveraging MLaaS to enable self-driving capabilities, predict maintenance requirements and enhance safety.
The increasing global footprint and widespread availability of cloud computing is facilitating the global expansion of the Machine Learning As A Service (Mlaas) Market Size. Major cloud providers are expanding their MLaaS offerings and capabilities to various global regions targeting both international enterprises as well as local businesses and startups. The growth of edge computing and hybrid cloud models is expected to further accelerate the global proliferation of MLaaS.
Market Key Trends
One of the key trends in the MLaaS market is the rising popularity of vertical-specific MLaaS solutions. Major providers are launching industry-focused MLaaS capabilities and services tailored for domains like healthcare, retail, manufacturing, telecom and others. This allows organizations to easily adopt ML/AI capabilities configured as per the needs of their industry and business processes. Another trend is the integration of ML/AI models with IoT infrastructure to enable predictive maintenance and optimize industrial operations. MLaaS vendors are offering AI-powered predictive maintenance platforms leveraging industrial IoT data. This is expected to drive efficiency gains in sectors like energy, utilities, manufacturing and others.
Porter's Analysis
Threat of new entrants: Low startup costs for ML software development can attract new players. However, large players have strong brand value and clientele.
Bargaining power of buyers: Large enterprises have higher bargaining power due to volume buys. However, switching costs are low for buyers.
Bargaining power of suppliers: A few big tech giants like AWS, Microsoft and Google dominate the cloud infrastructure market giving them bargaining power over smaller players.
Threat of new substitutes: Related technologies like AI as a service pose substitution threats. However, MLaaS solutions require specialized skills creating high switching costs.
Competitive rivalry: Presence of global and local players intensifies competition. Differentiation in domains of expertise and specialized tools affect rivalry.
Geographical Regions
North America currently accounts for the largest share in the global MLaaS market in terms of value mainly due to heavy investments in AI and ML technologies by US companies. The region is also experiencing high adoption of cloud-based solutions across industries.
The Asia Pacific region is expected to grow at the fastest rate during the forecast period. This is attributed to increasing digitalization, smartphone usage and internet penetration in emerging economies of China and India. Significant investments by technology companies in the region to develop localized ML solutions are supporting the market growth.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)