Rise in adoption of Machine Learning as a Service (MLaaS) is expected to prove beneficial for the global MLaaS market, mainly because it helps in reducing the complexity and time required to implement machine learning, which is further helping to increase the adoption level.
The Machine Learning as a Service Market which was estimated to be worth USD 613.4 Million in 2016 is projected to reach a value of USD 3,755.0 Million by 2021, growing at a CAGR of 43.7% during the forecast period from 2016 to 2021.
Based on services, the professional services segment held the largest market share, whereas the managed services segment is expected to grow at the highest CAGR over the forecast period. On the basis of organization size, the SMEs segment is expected to grow at the highest CAGR by 2021, since the MLaaS solution helps SMEs in getting real-time data as well as predicting the future in order to meet the needs and expectations of the customer.
Among enterprise applications, the defense industry is likely to be the second-largest contributor during the forecast period, owing to the increasing adoption of MLaaS solutions to leverage on the real-time data generation and pattern recognition features. There has been a huge increase in the amount of data in the IT industry due to digitalization and the concept of connecting the world virtually, thereby giving a major boost to the adoption of MLaaS solutions in the market.
How is the market progressing, geographically?
Among regions, the market in North America is expected to be the largest market as well as grow at the highest rate over the forecast period. This growth is mainly due to the growing adoption of MLaaS in this region, which in turn is being fueled by the rising need for integration of MLaaS with Big Data, IoT, and various other advanced technologies. In addition, rapid expansion of enterprises in this region is also leading to the growth in demand for MLaaS. Moreover, the countries in this region are economically well established, thereby allowing more room for investments in new technologies.
Drivers and restraints for the market
The worldwide market for MLaaS is being majorly driven by the following factors:
- Increasing adoption of cloud-based and other advanced technologies
- Innovations and advancements in technology
- Rising need for understanding customer behavior
In addition, upcoming options in application areas, increasing investments in the healthcare industry, and enhanced connectivity and increase in data from IoT platforms are expected to further create an array of opportunities for the growth of this market. Huge demand for private clouds among enterprises is also said to be promoting cloud-based applications that is further boosting the adoption of MLaaS solutions in the networking market.
However, governance and compliance issues and shortage of skilled professional for deploying machine learning services are the factors that are likely to hinder the market growth. Also, the need for effective predictive technologies and their integration into the enterprises is the major challenge being faced by the players involved in this market.
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Key players and sustainability strategies adopted
The major players involved in the global MLaaS market comprise Microsoft, Amazon Web Services (AWS), Hewlett Packard Enterprises (HPE), Google, Inc., BigML Inc., FICO, and IBM Corporation. New product launches and upgradations, mergers & acquisitions, and partnerships, agreements, & collaborations are the major strategies being adopted by these companies to achieve growth in the MLaaS market. The strategy of new product launches and upgradation and mergers & acquisitions took up 47.8% and 34.8% of the total share, respectively, of the total strategic developments in the worldwide market for Machine Learning as a Service.