Global AI as a Service (AlaaS) Market Insights Forecasts to 2032
- The Global AI as a Service (AlaaS) Market Size was valued at USD 8.54 Billion in 2022.
- The Market Size is Growing at a CAGR of 40.25% from 2022 to 2032
- The Worldwide AI as a Service (AlaaS) Market Size is expected to reach USD 251.39 Billion by 2032
- Asia Pacific is Expected To Grow the fastest during the forecast period
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The Global AI as a Service (AlaaS) Market Size is Expected To reach USD 251.39 Billion by 2032, at a CAGR of 40.25% during the forecast period 2022 to 2032.
AI as a Service (AlaaS) is a cloud-based service that provides artificial intelligence (AI) outsourcing. AI as a Service (AIaaS) is a third-party provider of artificial intelligence (AI) outsourcing. It enables individuals and organisations to investigate various avenues for various purposes without requiring a large initial investment and involves risk. Also, AI bots help in financial planning, the detection of fraud and cybercrime, the improvement of bureaucratic efficiency, and the provision of a personalised experience. The growing demand for automation and analytics solutions drives artificial intelligence adoption in industries such as automotive & transportation, manufacturing, government, BFSI, healthcare, it & telecom and others. Organisations are concentrating their efforts on implementing artificial intelligence technology. Furthermore, some of the complex tasks that artificial intelligence can perform include analysing medical data to assist doctors in making faster and more accurate decisions about medical treatments. In additional, AIaaS platforms provide scalability and flexibility, allowing businesses to access AI resources as needed. Companies can easily scale up their AI capabilities as the demand for predictive and analytics solutions grows by leveraging AIaaS services. This adaptability enables organisations to respond to changing business requirements without making large upfront investments in infrastructure and expertise such factors are boost market growth in forecast period.
Global AI as a Service (AlaaS) Market Report Coverage
|Market Size in 2022:||USD 8.54 Billion|
|Forecast Period 2022-2032 CAGR:||40.25%|
|2032 Value Projection:||USD 251.39 Billion|
|Historical Data for:||2018-2021|
|No. of Pages:||200|
|Tables, Charts & Figures:||110|
|Segments covered:||By Cloud, By Technology, By Component, By End-user, By Region and COVID-19 Impact Analysis.|
|Companies Covered:||Amazon Web Services, Inc., RainBird Technologies, SiftScience, Microsoft, BigML, Inc., Google LLC, SAP SE, Siemens, DataBricks, Salesforce, Inc., International Business Machines Corporation, Intel Corporation, Fair Isaac Corporation, and Other Key Vendors.|
|Pitfalls & Challenges:||COVID-19 Empact, Challenge, Future, Growth, & Analysis|
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Enterprises are investing in AI services in order to maximize the power of their businesses. They are using the solutions to carry out activities such as forecasting, planning, and predictive maintenance, as well as customer service chatbots and other applications. The rapid advancement of technology in recent years has created a new threat scenario, compelling businesses to investigate advanced defensive strategies. If AI is integrated into cybersecurity, security experts will have enormous resources to secure sensitive networks and avoid future data breaches. Firms will see a massive transformation in their business activities as AI performs more enterprise activities. During the forecast period, such factors are likely to boost market growth. Furthermore, the increasing number of innovative startups around the world is expected to drive market growth. Government initiatives promoting AI-based infrastructure around the world may contribute to market growth.
The significant upfront expense of adopting artificial intelligence is one of the factors impeding the growth of the artificial intelligence as a service industry. When covered to provide stakeholders with a better understanding, the overall regulatory framework of the artificial intelligence as a service market is exhausting as well as costly.
By Cloud Insights
The public segment dominates the market with the largest revenue share over the forecast period.
On the basis of cloud, the global AI as a service (AlaaS) market is segmented into public, private, and hybrid. Among these, the public segment is dominating the market with the largest revenue share over the forecast period. Public cloud providers provide a variety of services, such as machine learning, natural language processing, and computer vision, that organisations can use to build, train, and deploy AI models. The advantages of public cloud AIaaS solutions include cost-effectiveness, scalability, and availability. Public cloud providers typically use a pay-as-you-go model, allowing businesses to only pay for the services they use. Public cloud platforms provide infinite scalability, allowing businesses to quickly scale up or down their AI workloads based on demand.
By Technology Insights
The computer vision segment is witnessing significant CAGR growth over the forecast period.
On the basis of technology, the global AI as a service (AlaaS) market is segmented into machine learning, natural language processing, context awareness, computer vision, others. Among these, the computer vision segment is witnessing significant growth over the forecast period. Businesses can gain valuable insights from visual data, improve operations, and improve the customer experience by utilising computer vision in AIaaS. It enables businesses to analyse large amounts of visual data in real time, allowing them to make more informed and timely decisions.
By Component Insights
The software segment is expected to hold the largest share of the global AI as a service (AlaaS) market during the forecast period.
Based on the component, the global AI as a service (AlaaS) market is classified into software and services. Among these, the software segment is expected to hold the largest share of the AI as a service (AlaaS) market during the forecast period. Software tools play an important role in predicting outcomes from enormous quantities of data by revealing hidden patterns in data and datasets. Furthermore, software tools aid in the development of various company strategies as well as the making of critical business decisions. The software learns in real time while speaking, hearing, seeing, and moving, allowing it to reach conclusions, which is an important aspect of authentic thinking. Sallie can distinguish objects with her eyesight, build an internal model, ask questions, and follow instructions without prior knowledge.
By End User Insights
The BFSI segment accounted for the largest revenue share over the forecast period.
On the basis of end-user, the global AI as a service (AlaaS) market is segmented into automotive & transportation, manufacturing, government, BFSI, healthcare, it & telecom, others. Among these, the BFSI segment dominates the market with the largest revenue share over the forecast period. In the BFSI sector, artificial intelligence is primarily used for fraud detection, client suggestion, algorithmic trading, and chatbots. Banks are experimenting with chatbots, which are expected to spur investment in similar technologies by other financial institutions. Artificial intelligence in finance can be useful in assessing real-time activity in any setting. It provides accurate predictions and forecasts based on a variety of variables, which are essential for business planning.
North America dominates the market with the largest market share over the forecast period.
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North America is dominating the market with the largest market share over the forecast period. The AI as a service expansion can be attributed to technological advancements and the growing acceptance of digital technology. The region is one of the most important cognitive computing markets, with numerous large industries and IT infrastructure, government data security regulations, and cloud application and security information services all contributing to market growth. Furthermore, with many educational institutions and research centres in the area carrying out ground-breaking AI research, North America has also been at the forefront of AI innovation. This has resulted in the development of new AI technologies and applications, propelling the AI as a Service market forward.
Asia Pacific is expected to grow the fastest during the forecast period. China, Japan, and South Korea are the region's leading innovators in artificial intelligence. China and South Korea make major investment in the development of automation technologies for industries, which is one of the primary factors driving the growth and adoption of artificial intelligence in these countries.
List of Key Market Players
- Amazon Web Services, Inc.
- RainBird Technologies
- BigML, Inc.
- Google LLC
- SAP SE
- Salesforce, Inc.
- International Business Machines Corporation
- Intel Corporation
- Fair Isaac Corporation
Key Market Developments
- On September 2023, EY's investment laid the groundwork for the launch of EY.ai, a new unifying platform that will assist organisations in confidently adopting artificial intelligence (AI).
- On July 2023, Fujitsu partners with Informa D&B to integrate explainable AI technology for the financial-commercial information industry.
- On April 2023, The ChatCrypto token, a deflationary artificial intelligence token, was introduced by CHATCRYPTO, a blockchain enterprise. This token is used to gain access to blockchain as a service (BaaS), artificial intelligence as a service (AIaaS), and high-performance computing (HPC) power rentals via infrastructure as a service (IaaS).
This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the global AI as a service (AlaaS) Market based on the below-mentioned segments:
AI as a Service (AlaaS) Market, Cloud Analysis
AI as a Service (AlaaS) Market, Technology Analysis
- Machine Learning
- Natural Language Processing
- Context Awareness
- Computer Vision
AI as a Services (AlaaS) Market, Component Analysis
AI as a Service (AlaaS) Market, End User Analysis
- Automotive & Transportation
- IT & Telecom
AI as a Service (AlaaS) Market, Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
Frequently Asked Questions (FAQ)
1. What is the market size of the global AI as a Service (AlaaS) market?The Global AI as a Service (AlaaS) Market is expected to grow from USD 8.54 billion in 2022 to USD 251.39 billion by 2032, at a CAGR of 40.25 % during the forecast period 2022-2032.
2. What are the elements driving the growth of the global AI as a Service (AlaaS) market?Growth in importance of data-driven decision-making in business, increase in need to provide enhanced customer experience and gain competitive advantage are key elements driving the global AI as a service (AlaaS) market expansion.
3. Which region is dominating the global AI as a service (AlaaS) market?North America is dominating the global AI as a service (AlaaS) market.
4. Which are the key companies in the market?Amazon Web Services, Inc., RainBird Technologies, SiftScience, Microsoft, BigML, Inc., Google LLC, SAP SE, Siemens, DataBricks, Salesforce, Inc., International Business Machines Corporation, Intel Corporation, Fair Isaac Corporation and Others.
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