What Fueled The Previous Growth In The AI As A Service Market?
The ai as a service market has seen considerable growth due to a variety of factors.
•The size of the AI as a service market has seen remarkable expansion in the past few years and it is predicted to rise from $14.03 billion in 2024 to $20.14 billion in 2025, with a compound annual growth rate (CAGR) of 43.6%.
The enormous growth during the historic period can be traced back to advancements in cloud computing, surges in data availability and volume, affordable service options, algorithmic progress, and tailor-made industry applications.
What Is The Expected Growth In The AI As A Service Market Size?
The ai as a service market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for AI as a service is anticipated to experience a tremendous increase in the coming years. The market is projected to expand to "$93.86 billion by 2029, with a compound annual growth rate (CAGR) of 46.9%.
This surge during the forecast period can be associated with AI's application for sustainability, enhancing customer interactions through AI, the rising demand for AI-derived insights, AI's ethical considerations and relevant regulations, and an emphasis on understandable AI. Key trends during this forecast period encompass the popularisation of AI, integration of AI into the IoT, the advancement of AI-enabled automation, augmented analysis, and the growth of conversational AI.
What Are the Critical Driver Fuelling the AI As A Service Market's Growth?
The AI as a service market is predicted to be driven forward by the rising adoption of artificial intelligence. Artificial intelligence is the duplication of human cognitive functions by devices, particularly computer systems, allowing individuals and organizations to experiment with AI for numerous purposes while experiencing lower risk and requiring a smaller initial investment. Eurostat, a governing body based in Belgium, reported in May 2024 that the percentage of large enterprises utilizing AI technologies grew to 30.4% in 2023, an escalation from 28.4% in 2021. This signifies a considerable increase in the adoption of AI solutions among these businesses. As a result, the growth of the AI as a service market is expected to be fueled by the escalating use of artificial intelligence.
How Is the AI As A Service Market segmented?
The AI as a service market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Offering: Infrastructure As A Service, Platform As A Service, Software As A Service
3) By Deployment: Public, Private, Hybrid
4) By Organization Size: Small And Medium-Sized Enterprises, Large Enterprises
5) By Industry: Banking, Finance Services, And Insurance (BFSI), Information Technology (IT) And Telecom, Retail, Manufacturing, Public Sector, Energy And Utilities, Healthcare, Other Industries
Subsegments:
1) By Solutions: Machine Learning Solutions, Natural Language Processing Solutions, Computer Vision Solutions, Speech Recognition Solutions, Predictive Analytics Solutions, Data Mining Solutions, Robotic Process Automation Solutions
2) By Services: Consulting Services, Integration Services, Support And Maintenance Services, Training And Education Services, Managed Services
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What New Trends Are Influencing the AI As A Service Market?
The emergence of technological innovations is a significant trend growing in popularity within the AI as a service market. To maintain their market status, businesses operating in this market are embracing new technologies. For example, Nvidia Corporation, a software firm based in the US, introduced a novel cloud supercomputing service technology called "DGX Cloud" in March 2023. This technology provides businesses with access to both the hardware and software necessary for creating advanced models for generative AI, among other applications.
Who Are the Key Players in the AI As A Service Market?
Major companies operating in the AI as a service market include:
• Amazon Web Services Inc.
• Salesforce Inc.
• International Business Machines Corporation
• Microsoft Corporation
• Google Inc.
• SAP SE
• Intel Corporation
• BigML Inc.
• Fair Isaac Corporation
• SAS Institute Inc.
• Siemens
• Apple Inc.
• CognitiveScale Inc.
• Dataiku SAS
• Oracle Corporation
• H2O.AI Inc.
• Craft.AI
• DataRobot Inc.
• OpenAI LP
• Baidu Inc.
• NVIDIA Corporation
• General Electric Company
• Infosys Limited
• Wipro Limited
• Tata Consultancy Services Limited
• Accenture plc
• CloudMinds Technology Inc.
• Palantir Technologies
• C3.ai
• Databricks
What Is The Most Dominant Region In The AI As A Service Market?
North America was the largest region in the AI as a service market in 2024.Asia-Pacific is expected to be the fastest-growing region in the global AI as a service market report during the forecast period. The regions covered in the AI as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
