AI as a service market is expected to grow at a CAGR...

AI as a service market is expected to grow at a CAGR of 48.2%

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Image Courtesy: MarTech Today

US: The AI as a service market is expected to grow from USD 1.52 billion in 2018 to USD 10.88 billion by 2023, at a CAGR of 48.2% during the forecast period. The growing demand for AI-powered services in the form of Application Programming Interface (API) and Software Development Kit (SDK) and increasing number of innovative startups are some of the major factors that are driving the growth of the AI as a service market. The demand for intelligent business processes is growing across verticals to enhance the overall experience that is delivered to their customers. Organizations are therefore focusing on integrating AI capabilities with their existing business applications. However, the process of building APIs is time- consuming. Hence, various verticals are focused toward the adoption of easily available AI-powered APIs and machine learning models to solve their business problems.

The healthcare and life sciences vertical is expected to hold the largest market size during the forecast period.
Verticals in the AI as a service market include Banking, Financial Services, and Insurance (BFSI), healthcare and life sciences, retail, telecommunications, government and defense, manufacturing, energy, and others (Education, Agriculture, Transportation, and Media and Entertainment).AI as a service helps various verticals easily integrate AI capabilities with their business applications.

Moreover, by leveraging the benefits of AI as a service, verticals can focus more on the enhancement of their business processes and formulation of growth strategies, rather than worrying about costs related to the purchase and maintenance of AI-powered platforms and tools.

Asia Pacific (APAC) is expected to witness the highest growth rate during the forecast period.
APAC is expected to grow at the highest CAGR during the forecast period. Factors such as the rapid generation of large volumes of data, due to the growing use of digital technologies, Internet of Things (IoT), and connected devices, coupled with the growing need to reduce operational costs are expected to fuel the growth of the AI as a service market across regions.

The North American region is expected to hold the largest market size during the forecast period.
North America is expected to witness the maximum adoption of AI as a service, owing to the factors, such as technological advancements, the growing need to analyze large volumes of data, and the increasing need for intelligent business processes. Apart from these factors, the growing government initiatives in enhancing the existing infrastructures and smart city programs are also expected to drive the demand for AI as a service across the region during the forecast period.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people.
• By Company Type – Tier 1 – 18%, Tier 2 – 46%, and Tier 3 –36%
• By Designation – C-level – 24%, Director-level – 51%, and Others – 35%
• By Region – North America – 25%, Europe– 46%, APAC – 16%, and MEA – 13%

Major vendors in the global AI as a service market include International Business Machines Corporation (IBM, US), SAP SE (Germany), Google (US), Amazon Web Service, Inc. (AWS, US), Salesforce (US), Intel (US), Baidu, Inc. (China), Fair Isaac Corporation (FICO, US), SAS Institute (US), and BigML (US)