USD 8.08 billion
Artificial Intelligence As A Service Market Size, Share, Growth Analysis, By Service Type(Software and Services), By Deployment(Public Cloud and Hybrid Cloud), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45I2071 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
59
|Figures:
78
Artificial Intelligence As A Service Market Insights
Global Artificial Intelligence As A Service Market size was valued at USD 8.08 billion in 2022 and is poised to grow from USD 11.97 billion in 2023 to USD 278.64 billion by 2031, growing at a CAGR of 48.2% in the forecast period (2024-2031).
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.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Service
Growth Rate
48.2% CAGR
Global Artificial Intelligence As A Service ($ Bn)
Country Share for North America Region (%)
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Artificial Intelligence As A Service Market Segmental Analysis
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.
Global Artificial Intelligence As A Service By Service Type
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Artificial Intelligence As A Service Market Regional Insights
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%.
Global Artificial Intelligence As A Service By Region
- Largest
- Fastest
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Artificial Intelligence As A Service Market Dynamics
Artificial Intelligence As A Service Market Driver
- Rising AIaaS adoption in the BFSI and healthcare industries
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.
- Rise in Artificial Intelligence Dependence of Businesses
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
- Concerns about data privacy
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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Artificial Intelligence As A Service Market Competitive Landscape
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
- IBM
- Microsoft
- Amazon Web Services (AWS)
- Oracle
- SAP
- Intel
- General Electric (GE)
- Baidu
- HPE
- NVIDIA
- Infosys
- Cognitivescale
- Wipro
- Ayasdi
- Freenome
- Salesforce
- H2O.ai
- CognitiveScale
- Fractal Analytics
Artificial Intelligence As A Service Market Recent Developments
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The University of Cambridge, Intel Corporation, and Dell Technologies announced in November 2023 the launch of "Dawn Phase 1," the fastest AI supercomputer that was co-designed. The supercomputer, which harnesses the combined power of artificial intelligence (AI) and high-performance computing (HPC) to address some of the most pressing global issues, was constructed by elite technical teams. It is anticipated that this will hasten future technological leadership and foreign investment in the technology industry in the United Kingdom.
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With the launch of the AMD Instinct MI300 Series accelerator family, which featured a first look at the AMD Instinct MI300X accelerator, AMD disclosed its AI Platform vision in June 2023. The accelerator is designed to support workloads in generative AI by training and inferring huge language models.
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IBM revealed in June 2023 that The All England Lawn Tennis Club would be its partner during the 2023 Wimbledon Championship. During the competition, the business will use IBM Watsonx's generative AI technology to provide commentary for video highlights. Furthermore, the IBM AI Draw Analysis will provide information on how advantageous the draws would be for each singles player.
Artificial Intelligence As A Service Key Market Trends
- Cloud-based solutions are a key market trend driving the global artificial intelligence-as-a-service (AIaaS) market growth. The growing global acceptance of cloud computing services is increasing the popularity of cloud-based apps that can be used by a variety of end users. The benefits of cloud computing, such as low infrastructure computing costs, scalability, stability, and high resource availability, have forced organizations to adopt cloud-based solutions. Cloud computing reduces the need for dedicated IT support staff, reducing operating costs. Enterprises are implementing pay-per-use subscription services to reap maximum benefits. It will accelerate the adoption of cloud-based apps through service architecture.
Artificial Intelligence As A Service Market SkyQuest Analysis
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.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 8.08 billion |
| Market size value in 2031 | USD 278.64 billion |
| Growth Rate | 48.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| 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) |
| Companies covered |
Artificial Intelligence As A Service Market Recent Developments
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence As A Service Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence As A Service Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the 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 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence As A Service Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence As A Service Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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