Forecast shows AI as a Service market value to reach $55 billion by 2028

A new report by MarketsandMarkets states that the global market for AI as a Service is predicted to grow significantly, from an estimated $9.3 billion in 2023 to $55.0 billion by 2028, at a compound annual growth rate of 42.6% during the forecast period. Businesses seeking to enhance their competitiveness attribute this growth to the rising adoption of AI technologies.

AIaaS providers offer a wide range of services, such as natural language processing, machine learning, computer vision, and predictive analytics, which can be integrated into existing workflows in a cost-effective and scalable manner. The demand for cloud-based solutions that provide remote access is also driving the growth of this market.

The AIaaS market may continue to grow due to technological advancements and the increasing adoption of AI in different industries.

SMEs to account for higher CAGR during the forecast period

The report segments the AI as a Service market into large enterprises and SMEs based on organization size, with a higher CAGR expected for SMEs during the forecast period. AIaaS solutions can offer SMEs access to advanced AI capabilities and resources without requiring significant initial investments.

By offering access to similar levels of AI capabilities and resources as larger organizations, AIaaS solutions can help SMEs to compete in the market. This can help automate repetitive tasks such as data entry and customer support, freeing up resources for other business activities. AIaaS solutions can provide SMEs with valuable data insights, helping them make informed decisions and identify new growth opportunities.

Asia Pacific to exhibit the highest CAGR during the forecast period

Countries such as India, China, Japan, and others contribute significantly towards developing data analytics solutions in the AI as a Service market. The Asia-Pacific region will likely have the highest CAGR during the forecast period. Various industry verticals, including media & advertising, retail & eCommerce, healthcare & life sciences, and telecom & IT, are leading the adoption of cloud-based solutions in the region.

The healthcare industry vertical is also witnessing growth, with increased cloud spending and awareness of the benefits of cloud platforms for business data analytics solutions. China is the leading country in big data analytics funding and financing in the cloud, which will improve business decision-making and generate more revenue in the region.

Prominent industry players such as IBM, Google, and Microsoft have a strong presence in the region, and other players are likely to increase investments and improve their market presence. The strong government support for AI research and development, a thriving startup ecosystem, and a large pool of skilled AI professionals are driving the growth of the AIaaS market in the region.

Major vendors of AI as a Service market

Major vendors in the global AI as a Service Market are IBM (US), Microsoft (US), Google (US), AWS (US), FICO (US), SAS Institute (US), Baidu (China), SAP (Germany), Salesforce (US), Oracle (US), Iris.AI (US), Craft.AI (France), BigML (US), H2O.ai (US), Vital.ai (US), Fuzzy.ai (Canada), RainBird Technologies (UK), SiftScience (US) DataBricks (US), CenturySoft (India), DataRobot (US), Alibaba (China), Tencent (China), Dataiku (US), Yottamine Analytics (US), Tecnotree (Finland), Cloudera (US), and Meya.ai (KSA).

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