The Machine Learning as a Service (MLaaS) Market was valued at USD 1.0 billion in 2019?and is expected to reach USD 8.48 billion by 2025, at a CAGR of 43% over the forecast period 2020?- 2025. With advancements in data science and artificial intelligence, the performance of machine learning has accelerated at a rapid pace. Companies are now identifying the potential of this technology, and therefore, the adoption rate of the same is expected to increase over the forecast period.
- Artificial intelligence has emerged as an enabler for such solutions, and ML consequently plays a critical role.
- MLaaS model is expected to dominate the market, with users having an option to choose from a wide variety of solutions that are focused on different business needs.
- The increasing rate of adoption for IoT and automation systems in industries is expected to drive the growth of adoption rate for MLaaS. Industrial automation already has over a billion connected devices deployed. Owing to IoT, smart and connected technologies have increased the pace of creating vast amounts of data, which can be analyzed to gain profitable insights.
Scope of the Report
Machine learning (ML), a subfield of artificial intelligence (AI) in its simplest description spans a broad set of algorithms that are used to extract useful models from raw data and grew out of traditional statistics and analysis. Since it revolves around algorithms, model complexity, and computational complexity, as the market for machine learning as a service (MLaaS) is on demand as it requires the use of skilled professionals to develop these solutions.
Key Market Trends
Retail Sector is expected to hold the Major Market Share
- The retail industry is booming in the digital space. The revolution is started by some of the prominent companies such as Amazon and eBay that have led to huge challenges for the traditional retail business model, but also have massive potential for retailers and consumers alike.
- Retail and consumer goods companies are seeing the applicability of machine learning (ML) to drive improvements in customer service and operational efficiency. For instance, the Azure cloud is helping retail and consumer brands to improve the shopping experience by ensuring that shelves are stocked and the products are always available when, where and how the consumer wants to shop.
North America is Expected to Hold Largest Market Share
- North America is driven by the swift market penetration and presence of large companies, working on the technology which has influenced the growth of the market in the region.
- North America commands the machine learning services over other key regions on account of rapid integration of machine learning as a service with big data, Internet of Things (IoT), and other advanced technologies. The region having headquarters of some of the to topnotch companies for machine learning as a service adds to its benefit.
- Companies based in North America for instance, news organizations such as the Associated Press, are increasingly publishing new articles and stories written by software, instead of journalists. At the same time, Google is training its AI software, DeepMind, to detect two common types of eye diseases. Microsoft has been using AI for about a decade to improve its online search engine.
The machine learning as a service market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with the advancement of Artificial Intelligence, many of the companies are increasing their market presence by securing new contracts by tapping new markets.
- April 2019 - Microsoft developed a platform that uses machine teaching to help deep reinforcement learning algorithms tackle real-world problems. Microsoft scientists and product developers have pioneered a complementary approach called machine teaching. This relies on people’s expertise to break a problem into easier tasks and give machine learning models important clues about how to find a solution faster.
- November 2018 - Amazon announced the expansion of its machine learning services to healthcare organizations. Amazon Translate, Amazon Comprehend, and Amazon Transcribe are now HIPAA compliant.
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