by Market Overview:
Machine learning as a service provides the advantages of machine learning capabilities together with data science platforms. It allows users with no knowledge or expertise in machine learning and predictive analysis to easily build machine learning models and apply AI/ML to their business needs or datasets.
Market key trends:
One of the key trends in the MLaaS market is the increasing popularity of deep learning algorithms. Deep learning algorithms use artificial neural networks for unsupervised and supervised machine learning and predict based on large amounts of unlabeled and labeled training data respectively. The deep learning approach enhances the quality of results as it requires a huge amount of data and computing power which can now be leveraged through cloud-based MLaaS services. This trend is expected to drive significant growth in the market over the forecast period.
The global Machine Learning as a Service (MLaaS) Market Size is estimated to be valued at US$ 10,072.55 Mn in 2023 and is expected to exhibit a CAGR of 38.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: Machine Learning as a Service (MLaaS) eliminates the need for extensive in-house AI/ML expertise and infrastructure. It allows organizations access to advanced machine learning capabilities with minimal effort and costs.
Weakness: MLaaS providers own and control the underlying machine learning models. Customers have limited control over how their data is used and processed. Data privacy and security is also a major concern.
Opportunity: Growing demand for AI-powered solutions across various industries like healthcare, marketing, transportation is driving the adoption of MLaaS. It allows businesses to leverage machine learning without significant investments.
Threats: Legal and ethical issues around data privacy, algorithmic bias and explainability of results generated by black-box ML models pose challenges. Customers may switch to in-house AI/ML teams for business critical applications requiring more control.
Key Takeaways
The global Machine Learning as a Service (MLaaS) market is expected to witness high growth, exhibiting CAGR of 38.% over the forecast period, due to increasing demand from Small and Medium Enterprises (SMEs) who want to leverage AI capabilities without developing in-house expertise.
North America dominated the MLaaS market in 2023, owing to substantial investments in AI research and presence of major tech companies offering MLaaS platforms in the region. Europe and Asia Pacific are expected to be the fastest growing regional markets between 2023 to 2030 with increasing digital transformation initiatives by businesses across industries.
Key players operating in the Machine Learning as a Service (MLaaS) market are H2O.ai, Google Inc., Predictron Labs Ltd, IBM Corporation, Ersatz Labs Inc., Microsoft Corporation, Yottamine Analytics, Amazon Web Services Inc., FICO, and BigML Inc. IBM, Microsoft, Google and Amazon collectively held over 60% of the global MLaaS market share in 2023 owing to their extensive portfolios of AI/ML services and solutions. Several startups are also emerging with offerings targeted at specific industry use cases and applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
