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Artificial Intelligence As A Service Market to Reach USD 14.71 Billion by 2024

Artificial Intelligence As A Service Market to Reach USD 14.71 Billion by 2024

Global artificial intelligence as a service (AIaaS) market was valued at around USD 1.06 billion in 2017 and is expected to reach approximately USD 14.71 billion in 2024. The AIaaS market is growing at a CAGR of 45.2% between 2018 and 2024, according to a report by Zion Market research.

Similar to cloud services, Artificial intelligence as a service is offered as an outsourced service. The key benefit of Artificial Intelligence as a service is that it allows users to leverage artificial intelligence capabilities without any major upfront investment in reducing overall risk. Companies do not need any separate data science department to cater to the business requirement that needs AI capabilities.

The sudden rise of the Internet of Things and associated requirements such as real-time decision making based on real-time data is driving the need for Artificial Intelligence as a Service market. New AI Startups and strong demand for AI-Powered services in the form of API and SDK is also driving the market.  However, lack of skill set is hampering the growth of artificial intelligence market, said the report.

Tech giants such as Amazon, Google and Microsoft are already leading the race in Artificial Intelligence as a service (AIaaS) market. Amazon provides open source software the Deep Scalable Sparse Tensor Network Engine (DSSTNE) which drives customer recommendation capabilities with in-house AI expertise. Google Cloud Platform provides a Tensor Flow recommendation software library to help its customers with AI capabilities. Google Cloud Platform also offers AI services such as speech recognition, translation & image content identification etc. There are other cloud providers such as Nvidia catering to needs of AI processing capabilities. AI service providers are increasingly innovating AI technologies that can be provided as services. Other major players in the artificial intelligence as a service market. include IBM Corp., Salesforce, FICO, Baidu, SAS Institute, Bigml, IRIS Al, Intel, SAP, Rainbird Technologies, and Cognitive Scale.

AIaaS business market is also exploring emerging tends such as integrating with Big Data and expected to grow the market revenue at a rapid pace. The use of AI for an illegal purpose such as phishing scams, hacking, and preparing more destructive weapons cannot be ruled out. Service providers and integrators are more inclined towards Artificial Intelligence as a service due to demand of intelligent business applications. This will drive strong growth of AIaaS market.

Artificial intelligence as a service market is bifurcated into software tools and services which include data storage and archiving, cloud and web-based Application Programming Interface (APIs), managed services, professional services. At the same time, Artificial intelligence technology type market is classified as Machine Learning & Deep Learning, and NLP, notes the report.

Artificial intelligence as a service market geographically segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

Rapid technological advancement, the rise of digital industries helping North America and Europe regions to lead large market size for AIaaS. As of now North America contributes 46% and Europe contributes around 25% of the total market revenue.

Asia Pacific region is also showing high opportunities for key vendors due to growing industrial pace and awareness of AIaaS among various verticals such as Banking, Financial, & Insurance (BFSI), Healthcare and Life Sciences, Retail, Telecommunications, Government and defense, Manufacturing, Energy, and Others. Asia Pacific region countries including India, China, and Japan are expected to have the largest potential for artificial intelligence as a service market growth in the forecast period due to increased use of digital technology and generation of the massive amount of data from technologies such as the Internet of Things (IoT).

The Middle East countries such as Egypt, Saudi Arabia, UAE, Bahrain, Kuwait, Oman, and Qatar hold the majority of revenue share for the artificial intelligence as a service market and expected to gain 2% of the total AIaaS global market in the forecast.

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Mandar Pise Opinions expressed by techsutram contributors are their own. More details

Mandar is a seasoned software professional & Fintech, Cloud, IoT, and Blockchain enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about Fintech, Cloud, IoT, AI and Blockchain, and the effects they will have economically and socially in the future.

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