March 5, 2024
Machine Learning as a Service (MLaaS) Market

Machine Learning as a Service (MLaaS) Market Propelled by Increased Adoption in Predictive Analysis, Machine Learning as a Service (MLaaS) Market Witnesses Steady Growth

Machine learning as a service (MLaaS) refers to the use of cloud-based artificial intelligence, machine learning algorithms and models offered as cloud services by different vendors. MLaaS helps organizations gain machine learning capabilities without having to build and maintain dedicated infrastructure, hire data scientists or develop models in-house. It allows organizations to utilize machine learning techniques for various applications such as predictive analytics, sentiment analysis, automated decision making and fraud detection.

The global Machine Learning as a Service (MLaaS) Market is estimated to be valued at US$ 10072.55 Mn in 2023 and is expected to exhibit a CAGR of 26.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Increased adoption in predictive analysis is one of the major trends witnessed in the MLaaS market. MLaaS is increasingly being used by organizations for predictive analytics applications such as sales forecasting, diagnostics, risk assessment, recommendation engines and customer churn prediction. It allows organizations to leverage predictive analytics capabilities without investment in deployment of corresponding on-premises infrastructure. MLaaS platforms deploy advanced algorithms and machine learning techniques to gain insights from historical data and predict future outcomes. This has boosted the adoption of MLaaS for predictive analytics across industries such as retail, healthcare, BFSI and manufacturing. The ease of use and scalability of MLaaS for predictive modeling has propelled its demand in recent years.

SWOT Analysis
Strength: MLaaS reduces the need for setting up expensive machine learning infrastructure and hiring data scientists. It allows businesses of any size to take advantage of machine learning.

Weakness: MLaaS providers have access to customers’ sensitive and proprietary data which raises security and privacy concerns. Accuracy of models built by MLaaS providers depend on the quality and quantity of data provided by customers.

Opportunity: Growing demand for AI-driven applications across industries such as healthcare, banking, retail etc provides significant market opportunity for MLaaS providers. Integration of MLaaS with other cloud platforms can further increase its adoption.

Threats: In-house development of machine learning models may threaten the growth of MLaaS market as organizations improve their AI capabilities. Open source machine learning platforms also pose a threat as they offer similar functionalities at no cost.

Key Takeaways

Global Machine Learning As A Service (Mlaas) Market Size is expected to witness high growth over the forecast period 2023 to 2030.

Regional Analysis: North America currently dominates the MLaaS market owing to rapid technological adoption and presence of major players in the region. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increasing investments in AI and machine learning projects by companies in countries like China and India.

Key players operating in the MLaaS market are Fitbit Incorporation, Garmin International, Pebble Incorporation, Xiaomi, Samsung Electronics, NIKE Incorporation, Shanda Group, and Sony Corporation. These players are focusing on expanding their service portfolios and capabilities through acquisitions and partnerships. For instance, in 2022 Fitbit partnered with DeepMind to build more advanced AI-powered features for health and wellness.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it