Machine learning as a service market shifts towards cloud computing
The global market for machine learning as a service (MLaaS) has gained a significant impetus over the last few years thanks to the increasing penetration of internet across the world, according to a recent report. The massive amount of data being generated due to the increased usage of internet, shifting preference of organizations towards cloud computing platforms, surging adoption of advance technologies, and the burgeoning demand for machine learning among a number of industries, such as healthcare and life sciences, BFSI, and retail, are key factors behind the significant growth of this market.
Going forward, the extensive proliferation of Internet of Things (IoT)-connected devices is anticipated to create new growth opportunities for market players in the near future. As machine learning capabilities are projected to be integrated in more platforms and software, enabling organizations to take advantage of them, the market is likely to witness a substantial rise in the years to come. In 2016, the market presented a total opportunity worth $1.07 billion USD in 2016. Expected to progress at an exponential CAGR of 38.4 percent between 2017 and 2025, it is likely to reach $19.86 billion USD by the end of 2025.
The manufacturing, retail, telecom, healthcare and life sciences, BFSI, and various other sectors, such as energy and utilities, education, and the government, are the key end users of machine learning as service across the world. Among these, the healthcare and life sciences segment has emerged as the key contributor to this market, thanks to the growing need for machine learning in this sector to integrate the structured and unstructured data, especially the data generated by electronic health record (EHR) and the genomic and claims data.
Over the coming years, the demand for MLaaS is anticipated to increase substantially in other end-use industries, specifically in the BSFI, retail, telecom, and manufacturing, in order to enhance the decision-making capability of machines used in these industries.
Asia Pacific, the Middle East and Africa, North America, South America, and Europe are the primary geographical segments of the worldwide market for MLaaS. In terms of revenue, North America led the global market in 2016 with a contribution of $362.7 billion USD. The burgeoning need for rapid integration of MLaaS with big data, IoT, and other advanced technologies is likely to boost the North America market for MLaaS further, owing to which, the regional market is anticipated to remain dominant in the years to come. The U.S. and Canada have surfaced as the leading domestic market for MLaaS in North America, thanks to the presence of well-established players, such as Google Inc., IBM Inc., Microsoft Corporation, and Amazon Web Services Inc.
Compared to other regional markets for MLaaS, Asia Pacific is anticipated to witness a relatively faster growth in the near future on the grounds of the increasing uptake of advance analytics technology in the region’s healthcare and life sciences industry. The advancements in information technology in Australia, China, and India are also projected to propel the Asia Pacific MLaaS market over the forthcoming years. Google Inc., IBM Corp., Microsoft Corp., Amazon Web Services Inc., BigML Inc., FICO, Yottamine Analytics, Ersatz Labs Inc., Predictron Labs Ltd., and H2O.ai are some of the key participants in the global market for MLaaS.