Machine learning as a Service (MLaaS) Industry to Garner $20.1 Billion by 2024

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Machine learning refers to the artificial intelligence software which predicts the outputs without any explicit program. Instead of supervising the unsupervised program, machine learning learns from the environment and generates data accordingly. It is widely being used for predictive analysis, face recognition, big data analysis and other applications. Many companies are adopting machine learning to enhance their productivity and operational efficiency.   

Market Size and Forecast

Global machine learning as a service market is anticipated to flourish at a robust CAGR of 40.2% during the forecast period. In 2012, global machine learning as a service market was estimated at a valuation of $0.5 million. Further, the market of machine learning as a service was valued at $1.1 billion in 2016 and is expected to garner $20.1 billion by the end of 2024. Rising adoption of IoT across the globe is the dynamic factor behind the growth of the machine learning as a service market during the forecast period.

Geographically, North America accounted for more than 35% market share in 2016. Further, the region is expected to continue its dominance over the forecast period on the account of rising adoption of machine learning as a service. Furthermore, presence of major players in the region such as Google, Microsoft Corporation, IBM and Amazon webs services is envisioned to bolster the growth of the machine learning as a service market. In the North America region, U.S. captured the largest market share in 2016. This can be attributed to the wide scale adoption of machine learning as a service by many enterprises.

Asia Pacific is projected to grow at a significant pace over the forecast period. Positive growth and development of information technology sector in the region is expected to swell the demand for the machine learning as a service. Apart from this, rising adoption of advanced analytics tools in healthcare is expected to fuel the growth of machine learning as a service market. Europe region is predicted to grow at a significant pace and create substantial demand for machine learning as a service market during the forecast period. Rising adoption of machine learning by the European banks to increase the product sales is expected to swell the demand for the machine learning in the region.

On the basis of deployment type, global machine learning as a service market has been segmented into public cloud and private cloud. Public cloud has been a leading segment in the recent years and is expected to continue its dominance over the forecast period.

Growth Drivers & Challenges

Increasing adoption of advanced analytics tools by various industries is expected to escalate the growth of the machine learning as a service market. Furthermore, rising focus towards customer in order to increase the sales of the company is anticipated to trigger the growth of machine learning as a service market. Additionally, many companies are adopting machine learning to improve the performance and operational efficiency. These factors are anticipated to fuel the growth of machine learning as a service market.

Apart from this, rising trend of digitalization is fuelling the growth of the machine learning as a service market globally. Moreover, rise in adoption of cloud based platforms is expected to positively impact the growth of the machine learning as a service market.

In contrast, lack of qualified and skilled persons is believed to dampen the growth of the machine learning as a service market. Furthermore, rising concern toward data privacy is anticipated to restrain the development of machine learning as a service market.