USD 5.45 billion
Report ID: SQMIG45I2071 | Region: Global | Published Date: June, 2023 | Pages: 242 | Tables: 59 | Figures: 75
Artificial Intelligence As A Service Market size was valued at USD 5.45 billion in 2021 and is poised to grow from USD 8.08 billion in 2022 to USD 187.98 billion by 2030, growing at a CAGR of 48.2% in the forecast period (2023-2030).
Artificial intelligence is concerned with the computer simulation of intelligent behaviour. A third party provides artificial intelligence as a service (AIaaS) to the company. AIaaS provides a company with a comprehensive set of AI tools and services accessible through a cloud platform including automated voice, vision, and language recognition capabilities. These intelligent services enable a company to optimize its data and uncover new perspectives. AIaaS does not require any prior knowledge of how they work, allowing even those with no prior expertise with AI to use them.
It mainly deals with the numerous services provided by artificial intelligence that help reduce human intervention and make work faster and more accurate without wasting much time. This helps to increase the efficiency of the company and thus helps to increase the revenue return of the organization. AI as a service has succeeded in capturing the market by taking on the company's additional responsibilities. Work was automated using artificial intelligence in analytical processes to manage big data without errors. In order to reduce the operational cost of the company, artificial intelligence has been evaluated as an option that helps increase the revenue return of the business. The emergence of the epidemic had a huge impact on the growth of the market. Due to restricted movement, the physical learning process suffered the greatest loss, managed with the help of artificial intelligence in the form of machine learning. AI-as-a-service is heavily used in the travel industry to quickly handle bookings and cancellations during the pandemic.
Neural networks are used to store large amounts of data and generate deep learning methods incorporating sound, text, and images, which facilitate easy comprehension with the aim of generating maximum output. Artificial intelligence as a service is widely used in the aviation industry to deal with environmental conditions inside and outside the aircraft. It helps in the automatic management of weather conditions for passengers. A similar experience has been found in the automobile business, where an autonomous temperature control system has been developed, which delivers individual climate conditions to the interior of the vehicle. Since artificial intelligence is complex, it is necessary to use professional workers to control the settings. However, it involves huge investment and hence acts as the biggest restraining factor of the market.
US Artificial Intelligence As A Service Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 5.45 billion
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Global artificial intelligence as a service market is segmented on the basis of service type, deployment and region. On the basis of service type, global Artificial Intelligence As A Service Market is segmented into software and services. On the basis of deployment, global Artificial Intelligence As A Service Market is segmented into public cloud and hybrid cloud. On the basis of region, global market is divided into North America, Europe, Asia Pacific and MEA.
Artificial Intelligence As A Service Market Analysis by Service Type
On the basis of service type, global artificial intelligence as a service market is segmented into software and services. The software segment dominated the market, contributing more than 70% of the total market revenue. By identifying hidden patterns in data and data sets, software tools play an important role in projecting results from large amounts of data. Retail, healthcare, and life sciences, as well as banking, financial services, and insurance (BFSI), are industries that are integrating these tools with their existing business systems to analyse large amounts of data and develop data patterns. Also, software tools help in formulating various firm strategies as well as making important business decisions.
The services segment is expected to grow at the fastest CAGR during the forecast period. The increasing use of smart solutions is expected to increase the demand for AI services. These services leverage the capabilities of technology to help speed up corporate processes. In June 2021, Google announced Vertex AI a managed AI service with additional capabilities aimed at helping organizations accelerate the implementation of AI models. New Vertex AI features will help organizations deploy machine learning models faster. It also democratizes AI, allowing more users to put models into production, continuously monitor them, and leverage AI to influence business.
Artificial Intelligence As A Service Market Analysis by Deployment
On the basis of deployment, global artificial intelligence as a service market is segmented into public cloud and hybrid cloud. The public cloud segment led the market, accounting for 50% of the global revenue share. Massive data storage and scalable processing capabilities enable massive amounts of data and AI algorithms to be supported by public cloud infrastructure. The public cloud offers a wide range of data storage options, including data warehouses, serverless databases, data lakes, and NoSQL data stores.
Organizations benefit from the freedom and innovation that the public cloud provides by running specific workloads on the public cloud while retaining highly sensitive data in their data centres to meet client needs or regulatory constraints. In May 2021, Nokia, Finnish multinational telecommunications, information technology, and consumer electronics business, launched an AI use case library for telecommunications service providers in collaboration with Microsoft. The AVA AI use case library is now available as a public cloud on Microsoft Azure, combining telco-grade security with rapid web-scale architectural scalability.
The hybrid cloud segment is expected to grow at a significant CAGR during the forecast period. Hybrid cloud computing provides accurate, cost-effective processing as well as the means to exploit massive amounts of data. It helps businesses successfully manage their data by providing strategic insights and recommendations, showing patterns and trends in data, enhancing customer experience, and automating activities.
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On the basis of region, global artificial intelligence as a service market is divided into North America, Europe, Asia Pacific and MEA. North America dominated the market, accounting for more than 40% of the revenue. This expansion can be driven by advancements in technology and the growing acceptance of digital technology. Also, AI solution providers are prioritizing innovation and the development of artificial intelligence technologies that can be provided as market services. Additionally, government measures promote the use of AI in various businesses as well as the presence of developing economies such as Canada and the United States. The sector is one of the most important cognitive computing markets with many large companies and IT infrastructure, government data security legislation, and cloud application and security information services all contributing to market growth.
AI as a service business is expected to grow significantly in Asia Pacific. Artificial intelligence investment is growing rapidly globally, with Asia-Pacific leading the way. Additionally, the use of AI as a service is growing rapidly in countries such as India and China. As a result, the scope and demand for artificial intelligence in the industry are expanding. For example, Baidu, Inc. The Chinese multinational technology company unveiled an AI-powered commercial self-driving cab service in the Beijing area in November 2021. The technology is powered by data collected from vehicle activity on public roads. When operating in complex traffic environments, the AI driver does not violate traffic rules or feel fatigued and can reduce traffic accidents by more than 90%.
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Artificial Intelligence As A Service Market Driver
The banking, financial services, and insurance sectors all witness significant growth during the forecast period. The expanding digital revolution in banking and the increased use of mobile payments, e-banking, real-time money transfers, and mobile banking applications create massive amounts of customer data or transaction records. Financial institutions can manage this massive amount of data and use artificial intelligence to deliver a personalized customer experience. Similarly, AI enables financial institutions like banks to detect fraudulent transactions and anti-money laundering initiatives, which is expected to boost industry growth. Cloud-based AI services, including chatbots and voice bots, biometric fraud detection, digital payment advisors, smart wallets, and personal financial services, are expected to drive market growth during the forecast period.
Due to the competitiveness of the business to provide the best possible service and experience, artificial intelligence has been quickly incorporated into the system. To manage large amounts of data without error, artificial intelligence has been integrated into the analytical activities of the organization. Artificial intelligence is seen as a way to increase an organization's revenue returns while reducing operational costs. This will allow small and medium-sized companies to expand significantly over the forecast period. Businesses use artificial intelligence in cloud learning to save time and resources and get the best results for the least money. Businesses can experiment with their products more effectively. The high demand for multi-cloud functionality and cloud-based intelligence that saves energy and space increases the revenue of the company.
Artificial Intelligence As A Service Market Restraint
AI-driven systems mine large amounts of data for future company planning and efficiency insights into operations. Concerns about data privacy are growing as powerful AI solutions are developed. AI raises data privacy concerns due to the tool's ability to make autonomous decisions and actions. Furthermore, corporations are using data anonymization strategies to prevent data breaches when using AI, in which they generalize important information about data points. In AIaaS such sensitive data is critical. As a result, it is difficult for organizations to ensure the privacy and confidentiality of data points and huge amounts of data.
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Global artificial intelligence as a service market is highly competitive with the presence of local as well as global companies. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of global artificial intelligence as a service market.
In April 2022, Ernst & Young Global Limited, a multinational professional service partnership headquartered in London, England, acquired Gensquared Inc. It acquired a company that uses a business-centric approach to help enterprises solve their most challenging data and analytics problems. The merger is intended to strengthen EY Canada's data, analytics, and AI practice, helping to increase resources and talent while expanding the company's range of data and technology service offerings.
Artificial Intelligence As A Service Market Top Player's Company Profiles
Artificial Intelligence As A Service Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our business information services team that collects, collates, co-relates, and analyses the data collected by means of primary exploratory research backed by the robust secondary desk research.
According to our global artificial intelligence as a service market analysis, artificial intelligence, including computer vision and machine learning, is reshaping the robotics business. Businesses have started to think about fully autonomous robots that can perceive, interact and imagine the environment around them to stay ahead in the global market. The AI as a service market is gaining rapid acceptance due to the growing adoption of digital platforms and IoT sensors, thus AI is becoming the preferred option for real-time decision-making. By region, North America dominated the market, accounting for more than 40% of the revenue. Cloud-based solutions are a key market trend driving the global market growth. However, it involves huge investment and hence acts as the biggest restraining factor of the market.
|Market size value in 2021||USD 5.45 billion|
|Market size value in 2030||USD 8.08 billion|
|Forecast Unit (Value)||USD Billion|
|Regions covered||North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)|
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For the Global Artificial Intelligence As A Service Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Artificial Intelligence As A Service Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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