According to a new report by Allied Market Research, the global machine learning as a service industry is expected to reach $302.66 billion by 2030, realizing a CAGR of 36.2% from 2021 to 2030.
For reference, this industry generated $13.95 billion in 2020 alone.
Opportunities and limitations
The report, entitled “Machine learning as a Service Market by Application (Marketing and Advertising, Fraud Detection and Risk Management, Predictive analytics, Augmented and Virtual reality, Natural Language processing, Computer vision, Security and surveillance, Others), by By Organization Size (Large Enterprises, Small and Medium Enterprises), by By Component (Solution, Services), by By End-Use Industry (Aerospace and Defense, IT and Telecom, Energy and Utilities, Public sector, Manufacturing, Banking, Financial Services, Insurance, Healthcare, Retail, Others): Global Opportunity Analysis and Industry Forecast, 2020-2030”, points to the rise in demand for cloud computing, increased implementation of technologies such as artificial intelligence and cognitive computing, and surge in adoption of analytical solutions as the main growth drivers of the global machine learning as a service market.
In terms of limitations and hurdles, it points to the relative scarcity of trained and experienced professionals; however, it also points out a rise in application areas and growth associated with end-use industries among developing nations as presenting new opportunities in the coming years.
The impact of Covid-19 on machine learning
Covid-19 has played a significant impact in setting up the massive growth opportunity for this market:
•Many countries are now relying on machine learning as a service for population surveillance to track and trace the prevalence of Covid-19 cases. For example, South Korean researchers are using surveillance camera footage and data related to geo-locations to track patients infected with Covid-19.
•Additionally, data scientists are leveraging machine intelligence algorithms for predictions regarding the locations of the next outbreak. Specifically, they are tracking the spread in real-time and informing the authorities about to spread to take preventive measures.
Industry: IT and telecom to maintain leadership position
Based on end-use industry, it is expected that the IT and telecom segment, which has held the highest market share in 2020 (accounting for around 20% of the global machine learning as a service market), is expected to maintain its lead position during the forecast period. This is due in large part to tremendous utilization by the number of IT & telecom organizations to predict the effects of forthcoming promotional strategies for finding the most profitable channels.
The retail segment, meanwhile, is estimated to realize the largest CAGR of 45.2% from 2021 to 2030. This is attributed to business intelligence provided to various retail sectors and organizations that assist in raising sales, predicting churn rates, and improving fraud management.
Application: Fraud detection and risk management will lead the way
Speaking of fraud management, based on application, the fraud detection and risk management segment (which accounted for the highest market share in 2020 – contributing 25% of the global machine learning as a service market), is expected to maintain its leadership status during the forecast period. This is due to rise in applications and services on digital platforms that prevent fraud taking place online through different sources.
The marketing and advertising segment will see the overall highest CAGR of 39.9% from 2021 to 2030, due largely to its usefulness in product advertising and final dispatch.
Geo: North America will be dominant in terms of revenue
Regionally speaking, North America contributed the highest market share in terms of revenue in 2020 (accounting for nearly two-fifths of the global machine learning as a service industry) and is expected to maintain its dominance in terms of revenue by 2030. This is due to an expected rise in investment in the defense sector along with technological advancements in the telecommunication industry.
The Asia-Pacific region is projected to realize the fastest CAGR of 39.1% during the forecast period, due largely to high growth in the deployment of security services especially in the BFSI sector.
Get your customers ready for machine learning as a service
Introducing machine learning as a service to your customers will allow them to run their companies with more efficiency and greater agility. What’s more, the incorporation of an ML-supported infrastructure not only makes it easier to scale, but it also delivers the power and integrated data services your customers need to stay competitive in today’s ever-shifting landscape.
To learn more about machine learning as a service, read the report in full.