Global Machine Learning as a Service (MLaaS) Market is expected to reach USD 30 bn by 2028: Ken Research
The Machine Learning as a Service (MLaaS) Market was valued at US$ 5 bn in 2017. It is estimated to capture a market size of US$ 10 bn by 2022 and is projected to reach US$ 30 Bn by 2028. It is expected to record a CAGR of ~20% during the forecast period, due to an increase in demand for cloud computing, as well as growth connected with artificial intelligence (AI) and cognitive computing.
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Key Growth Drivers
- ML is driven by the demand for cloud-based solutions, artificial intelligence, and the cognitive computing market. Machine learning’s primary pattern in IoT data is analyzing massive volumes of data using strong algorithms.
- The Machine Learning as a Service (MLaaS) Market is expected to grow as demand for a cloud-based solution increases, including growing demand for cloud computing, rise in adoption of analytical solutions, growth of artificial intelligence & cognitive computing market, increased application areas, and lack of trained professionals.
- According to research conducted by Microsoft Corporation in 2020, 85% of businesses have at least one IoT use case project. Nearly 94% of the respondents started pursuing IoT initiatives in 2021 leading to the creation of additional growth opportunities for Machine Learning as a Service (MLaaS) vendors in the market.
- The low availability of technically skilled personnel is expected to hamper the Global Machine Learning as a Service (MLaaS) Market growth during the forecast period along with the lack of data security faced by the organizations.
- Several organizations are unwilling to adopt ML technologies due to concerns regarding data security. For many regulated industry sectors such as banking, insurance, healthcare, and government, data security is crucial and any failure in data security may result in major problems.
- OneSpan, in a Global Financial Regulations report observed nearly half of surveyed banks focus on reducing and preventing cyberattacks and frauds, along with protecting sensitive data, as their top challenges. The overall fintech investments have reached US$ 98 billion in the first half of 2021, compared to US$ 121.5 billion in 2020
- COVID-19 caused an acceleration in the migration of public cloud solutions and some of the applications of AI to help in tracing patients during the pandemic. Since cloud service elasticity could meet the unexpected rise in demand, the need for AI services had seen growth, and many cloud providers offered Machine Learning as a Service (MLaaS). Several countries used population surveillance methods to track and trace COVID-19 cases.
- In South Korea, researchers used surveillance camera footage and geo-location data to track coronavirus patients. Using this data, scientists leveraged ML algorithms to predict the location of the next outbreak and inform the responsible authorities, helping to track diseases in real-time.
Key Trends by Market Segment
By Component: The service segment dominated the Machine Learning as a Service (MLaaS) Market in 2021 and is expected to maintain its dominance during the forecast period.
- The market for ML services is expected to grow due to increasing cloud applications and the growth of end-use industries in developing economies. To enhance the usage of ML services, industry participants focus on implementing technologically advanced solutions, for instance, the use of ML services in the healthcare sector for cancer detection, as well as checking ECG and MRI. ML services features, such as cost reduction, demand forecasting, real-time data analysis, and increased cloud use, are projected to open considerable prospects for the market.
- In December 2021, BigML added Image Processing to the BigML platform, a feature that enhances their components to solve image-driven business problems with ease of use. It labels the image data, trains and evaluates models, makes predictions, and automates end-to-end machine learning workflows.
By Application: Network analytics and automated traffic management segment accounted for the majority share of the Global Machine Learning as a Service (MLaaS) Market in 2021 and is expected to showcase the highest growth rate during the forecast period (2022-2028).
- Large amounts of data traverse network infrastructure on an everyday basis. The growth of this segment is attributed to ML’s capabilities and characteristics to tackle the exponential growth of datasets and act as a pivotal tool for network analytics and automated traffic management across various verticals.
- In 2021, Amazon released SageMaker Studio, the first ML IDE. This application provides a web-based interface through which clients can run all ML model training tests in a single environment. SageMaker Studio provides access to all development methods and tools, including notebooks, debugging tools, data modeling, and automatic creation.
By Enterprises: SME segment is estimated to capture the largest market share of the Global Machine Learning as a Service (MLaaS) Market in 2021 and is expected to showcase the highest growth rate during the forecast period (2022-2028).
- ML lets SMEs optimize their processes on a low budget in comparison with starting things from scratch. For SMEs the ‘pay for what you use or ‘pay as you grow system offered by most MLaaS providers makes it both budget-friendly and time-effective to integrate ML into their businesses while not requiring a team with specific technical capabilities. With the help of predictive analytics, machine learning algorithms not only provide real-time data but also predict future instances.
- SMEs use ML solutions for fine-tuning their supply chain by predicting a product demand and providing suggestions on the timing and quantity of supplies required to meet customers’ expectations.
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By End Users: The healthcare segment holds the largest market share in Global Machine Learning as a Service (MLaaS) Market in 2021.
- Growing adoption of ML solutions by various retail and healthcare service providers is expected to boost the Machine Learning as a Service market during the forecast period. Major market prospects are anticipated to be unlocked by the advantages provided by ML services, such as demand forecasting, cost reduction, real-time data analysis, and a rise in the use of the cloud market.
- In April 2021, Microsoft Corporation released an open dataset for health & genomics, transportation, labor & economics, supplementary, population & safety, and common datasets. This dataset aims to increase the accuracy of ML models using publicly accessible datasets. This also enables businesses to use Azure Open Datasets with its ML and data analytics solutions to offer insights at hyper-scale.
By Geography: North America accounted for the largest share among all regions within the total Machine Learning as a Service (MLaaS) Market, accounting for total market revenue.
- North America has been the most forward towards adopting ML services. The demand for MLaaS in the region can be attributed to the robust innovation ecosystem, strategic federal investments into advanced technology, and the presence of visionary entrepreneurs from globally renowned research institutions. Furthermore, this region has been extremely responsive to adopting the latest technological advancements such as integration technologies with the cloud, Big Data within ML Services.
- In November 2021, SAS added support for open-source users to its flagship SAS Viya platform. SAS Viya is for open-source integration and utility. The software user established an API-first strategy that fueled a data preparation process with ML.
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Competitive Landscape
The Global Machine Learning as a Service (MLaaS) Market is highly competitive with ~150 players which include globally diversified players, regional players as well as a large number of country-niche players each with their niche in a cloud-based solution, and technologies. The Machine Learning as a Service (MLaaS) Market’s growth is heavily reliant on IoT-based applications. Nowadays, numerous cloud-based companies, including Amazon, Google, HPE, Oracle, and IBM are investing in Machine Learning as a Service (MLaaS), and governments are also making significant investments in Machine Learning.
Country-Niche players comprise about ~45% of the market in terms of the number of competitors, while regional players hold a share of ~35%. Some of the major players in the market include Amazon, Google LLC, HPE, Oracle Corporation, IBM Corporation, Microsoft Corporation, SAS Institution Inc. FICO, Yottamine Analytics, LLC, PREDICTRON LABS, BigML, Ersatz Labs, Inc, and among others.
Recent Developments Related to Major Players
- In June 2021, Hewlett Packard completed the acquisition of Determined AI, a San Francisco-based startup offering a software stack to train AI models faster at any scale, utilizing its open-source ML platform. Hewlett Packard integrated Determined AI’s unique software solution with its AI and high-performance computing (HPC) products to empower ML engineers to conveniently deploy and train ML models to offer faster and more precise analysis from their data in every industry.
- In December 2021, Cognizant, a key player in the MLaaS market acquired Inwisdom, an AI and ML service provider to improve the decision-making ability of businesses using analytics and ML platforms.
- In June 2022, Inflection AI secured one of the largest artificial ML funding rounds, totaling US$ 225 million. This ML investment is expected to improve ML, allowing for intuitive human-computer interfaces in the near future.
Conclusion
The Global Machine Learning as a Service (MLaaS) Market is forecasted to continue exponential growth during the forecast period, primarily driven by an increase in the adoption of IoT-based applications to ensure the accuracy of operational management using IoT platforms. Though the market is highly competitive with over 150 participants, few global players control the dominant share, and regional players also hold a significant share.
Note: This is an upcoming/planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for pre-booking clients, and the report delivered within a maximum of two working weeks.
Ken Research has recently published report titled, Global Machine Learning as a Service (MLaaS) Market Size, Segments, Outlook, and Revenue Forecast 2022-2028. In addition, the report also covers market size and forecasts for the region’s four major regions’ North America, Asia Pacific, Europe, and LAMEA Machine Learning as a Service (MLaaS) market. The revenue used to size and forecast the market for each segment is US$ billion.
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