by The global Machine Learning as a Service (MLaaS) Market is estimated to be valued at US$ 11,603.58 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights. Machine learning as a service (MLaaS) is a cloud service that provides machine learning (ML) developers and data scientists with tools and resources to build, train, and deploy ML models without maintaining costly infrastructures. MLaaS makes advanced machine learning and AI technologies available to organizations of all sizes and helps identify opportunities for automation, optimization, and new revenue streams.
Market key trends:
Growth in cloud computing adoption has been a major factor driving the demand for MLaaS. As organizations are increasingly adopting cloud-based technologies and services, the demand for cloud-based machine learning capabilities offered through MLaaS solutions is growing. Cloud computing provides scalability, flexibility, and cost-effectiveness for ML model development, which encourages organizations to opt for MLaaS over on-premise solutions. The rapid digital transformation during the COVID-19 pandemic has further accelerated cloud adoption, boosting the Global Machine Learning As A Service (Mlaas) Market Size. MLaaS vendors are increasingly leveraging hyperscale public cloud platforms like AWS, Microsoft Azure, and Google Cloud to deliver machine learning capabilities on demand through pay-as-you-go pricing models, attracting more customers.
SWOT Analysis
Strength: MLaaS provides flexibility and scalability to businesses by handling heavy computational needs externally through cloud-based services. It enables businesses to leverage machine learning techniques without having to invest in related infrastructure or hiring data scientists.
Weakness: Issues related to data privacy and security are a major concern for businesses considering MLaaS due to sensitive customer and business data being handled externally. Performance can also vary depending on the load and capabilities of the service provider.
Opportunity: Growing adoption of AI and machine learning across industries is driving the need for MLaaS. Increasing availability of cloud computing infrastructure is also supporting the growth of MLaaS by enabling delivery of these services.
Threats: Competition from in-house machine learning teams developed by large companies poses a threat. Lack of standards and regulations regarding responsibilities in case of any errors or issues can also discourage adoption.
Key Takeaways
The global MLaaS market is expected to witness high growth over the forecast period on account of increasing investments in AI and cloud computing by businesses.
North America dominated the market in 2019 driven by significant technology investments and a high concentration of MLaaS vendors in the region. Growing focus of key players in the region on enhancing capabilities and industry-specific solutions is also supporting market growth.
Key players operating in the MLaaS market are Fitbit Incorporation, Garmin International, Pebble Incorporation, Xiaomi, Samsung Electronics, NIKE Incorporation, Shanda Group, and Sony Corporation. The market is characterized by presence of global players dominating the market and providing specialized industry-focused solutions. Major players are focusing on strategic collaboration and partnerships to expand their capabilities and market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
