July 25, 2024

Machine Learning As A Service (Mlaas) Is Driven By Surging Demand For Minimizing Costs Associated With Building And Maintaining Machine Learning Models

Machine learning as a service (MLaaS) delivers machine learning models designed, trained, and optimized by service providers and made available to customers through application programming interfaces (APIs). MLaaS reduces the costs associated with developing, testing, deploying, and maintaining machine learning models by eliminating the need for technical expertise in the domain. MLaaS provides developers and data scientists easy access to pre-trained models and APIs to build intelligent applications. Businesses can leverage MLaaS offerings to augment existing capabilities, gain new functionalities, and improve business processes without significant upfront investments.

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 38% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The growing demand for cloud-based machine learning services due to associated advantages like scalability, easy deployment, and cost effectiveness is a key trend in the MLaaS market. Cloud-based MLaaS solutions help businesses scale machine learning capabilities on demand without substantial infrastructure investments. Additionally, the increasing focus of businesses on digital transformation initiatives to enhance customer experience through technologies like AI and ML is expected to drive significant growth. MLaaS aids digital transformation by providing powerful machine intelligence capabilities without the need for specialized knowledge or infrastructure management. Other emerging trends in the market include growing focus on advanced techniques like deep learning and the increasing adoption of MLaaS across industries to automate processes and gain predictive insights.

Porter’s Analysis

Threat of new entrants: Low as it requires huge investments in setting up machine learning infrastructure and team of data scientists.

Bargaining power of buyers: Moderate as buyers have bargaining power due to availability of substitutes.

Bargaining power of suppliers: Moderate as there are number of technology providers.

Threat of new substitutes: High as there are different AI technologies available as substitutes like Deep Learning and Artificial Intelligence.

Competitive rivalry: High as the key players are expanding their portfolio and acquiring other players to gain market share.

Key Takeaways

The Global Machine Learning As A Service (Mlaas) Market Size is expected to witness high growth.

North America dominates the global MLaaS market currently due to advancements in technology and presence of major players in the region. The Asia Pacific is expected to grow at the fastest pace during the forecast period due to increasing investments in machine learning and AI by businesses in China and India.

Key players operating in the Machine Learning as a Service (MLaaS) market are H2O.ai, Google Inc., Predictron Labs Ltd, IBM Corporation, Ersatz Labs Inc., Microsoft Corporation, Yottamine Analytics, Amazon Web Services Inc., FICO, and BigML Inc. H2O.ai and Google Inc. together hold more than 35% of market share currently.

Regional analysis:

North America holds the largest share currently due to technological advancements and investments. The US contributes majorly to the market share owing to presence of major players.

Asia Pacific is expected to grow at the highest CAGR during the forecast period. Countries like China and India offer huge opportunities due to support from governments for AI and machine learning technologies. Rapid digital transformation of industries is propelling the growth.

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