The Machine Learning as a Service (MLaaS) market size is estimated to grow from $613.4 million USD in 2016 to $3.7 billion USD by 2021, according to the company Research and Markets.
The adoption of cloud-based technologies, strong need to understand customer behavior and advancements in technologies are increasing the adoption of MLaaS across end users. MLaaS – with the help of pattern recognition, advanced analytical methodologies and APIs – is able to make better decisions.
The professional services segment is the largest contributor, whereas the managed services segment is expected to grow at the highest CAGR. Professional services include consulting and integration, support and maintenance, and network security services and analytics, which are increasing the growth and awareness of MLaaS as the biggest use case of NFV technology.
Among the enterprises segment, the defense industry is expected to be the second largest contributor through 2021. This industry is adopting MLaaS solutions to leverage real-time data generation and pattern recognition features. The digitalization and revolution of connecting the world virtually has led to the generation of huge amounts of data in the IT industry, thereby boosting the adoption of MLaaS solutions.
The healthcare industry among all the verticals is expected to gain the maximum traction during this forecast period. The application of MLaaS in healthcare is used to understand customer behavior and derive in-depth insight into clinical performance. It is also efficient in forecasting future outcomes of patients by the use of advance analytics technology.
Organizations are using machine learning based applications to handle the needs of medical professionals. Due to the real-time data delivery feature of machine learning, medical experts get a clear idea about the patient's current situation. Machine learning also assists in better diagnosis of the patients.
North America is expected to hold the largest market share and to grow at the highest rate between now and 2021. Two prime reasons for this include: an increasing need for integration of MLaaS with big data, Internet of Things (IoT) and other advanced technologies; and an increasing number of Small and Medium Enterprises (SMEs) providing customized services and solutions.
As artificial intelligence gains momentum in North America, small players are providing machine learning solutions across multiple verticals as well as applications. Due to this, many major organizations in the market are also acquiring the smaller companies.
Other important factors to consider are that North America has well-established economies and it has rapidly-expanding enterprises, which allow investments in new technologies. The growth of MLaaS is fueled by the increased need for enterprise mobility and cloud-based solutions.
With the use of machine learning algorithms, decision-making abilities improve over time without being explicitly programmed. However, three factors may hinder the growth of the MLaaS market:
As the maintenance of MLaaS solutions needs skilled data scientists with prior experience in managing machine learning solutions, there is a need to educate customers and define the actual importance of MLaaS.
The full report provides an analysis of MLaaS and associated services along with an in-depth competitive analysis of the key players and strategies in the market.
Article published by icrunchdata
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