Global Artificial Intelligence as a Service Market is Estimated to Value Over USD 12 Billion by 2026 End

  • 18 Jul 2019

Global artificial intelligence as a service market is estimated to value over USD 12 billion by 2026 end and grow at a CAGR of over 48% during the forecast period 2019 to 2026.  

Artificial Intelligence (AI) as a service assists organizations and consumers in exploring a variety of avenues for different purposes like workflow optimization, analytics, etc. The aforementioned is achievable without any high installation investments thus making it a low-risk and profitable sector.


Market Growth Influencers:
•    Cloud-based solutions are on a rise which has risen the demand for AI in various industries like automobile, software which influences the growth of AI as a service (AIaaS) market
•    Companies like Google, Microsoft, Facebook, IBM are massively investing in services offered by AI and are making it an integral part of their core technologies which primarily influences the market growth

Market Growth Impeders:
•    One major factor that is poised to impede the augmentation of the market is the lack of skilled professionals as AI technology is yet to be regularized in institutes especially from emerging economies.

Asia Pacific is Foreseen to Showcase a Significant Market Proliferation
  
•    AI services are rapidly inculcated primarily in the Asia Pacific region owing to huge investments by technological companies based in this region. This trend is prominently observed in the healthcare industry and considering the number of patient population present in countries like India and China, this will undoubtedly assist the augmentation of the market
•    Furthermore, top tech companies offering AI services are establishing research labs in the Asia Pacific region which would increase the employment in the region and tapping more potential consumers
•    In January 2019, Microsoft announced to build the largest AI and IoT lab in China so as to target different business sectors ranging from healthcare to manufacturing. Google also announced the opening of its AI research centre in China in December 2017
•    Emerging economies like India and Taiwan are heavily investing in AI-based services which has expanded the market further

Natural Language Processing Technology is Anticipated to Showcase Significant Market Growth During the Forecast Period 

The most integral aspect of natural language processing is its capability to understand consumer behaviour. Additionally, this technology interprets text, speech and even sentiments pretty effectively resulting in its usage in a variety of AI-based services like Chatbot. Services like Chatbot are gaining popularity in multiple business sectors that function online owing to its quick response to consumer queries thus boosting the market growth significantly.

BFSI Industry Accounts for the Largest Share of the Market

•    BFSI industry is increasingly adopting AI technology to increase operational efficiency and enhance consumer experience which is the primary reason this segment dominates the global market
•    The industry uses AI mainly as chatbots, fraud detection, algorithmic trading and customer recommendations. Major banking companies like the Royal Bank of Scotland (RBS) are using chatbots which is likely to encourage other banking institutions to invest in AI-based services.
•    AI can be of paramount importance in case of analysing real-time financial activities which increases the demand for AI-based services
•    It can also provide an unbiased and accurate assessment of a potential borrower by considering multiple parameters like the financial background of the borrower which results in a data-backed, well-informed decision


The SME market segment has the potential of expanding the market considering the huge number of tech start-ups getting massively funded. These start-ups are primarily based on cloud-computing technology who require AI-based services for the purpose of database management.

Key Market Players:
•    IBM Corp.
•    Google Inc.
•    Amazon
•    Microsoft Corp.
•    Intel Inc.
•    SAP

IBM partnered with All-England Lawn Tennis Club (AELTC) for Wimbledon 2019 to create match highlights using IBM’s AI platform Watson. It analyses the match footage and spots certain incidents or points with reference to the crowd noise and player movement. The new Watson acoustics analytics is capable of detecting the exact point when the ball was struck which makes it easier for AELTC to obtain short and effectively cropped highlights footage. This recent innovation from IBM will surely assist the organization in achieving significant market proliferation.

FutureWise Key Takeaways:
•    Major BFSI and telecom companies are rapidly adopting cloud-based solutions which shall increase the demand for AI-based services
•    Multiple tech start-ups, who provide AI-based services, are being established all across the world which is an integral factor responsible for the rapid augmentation of the market

Objectives of the Study:
•    To provide with an exhaustive analysis on the artificial intelligence as a service market by region, by service type, by technology, by organization size, by vertical
•    To cater comprehensive information on factors impacting market growth (drivers, restraints, opportunities, and industry-specific restraints)
•    To evaluate and forecast micro-markets and the overall market 
•    To predict the market size, in key regions (along with countries)— North America, Europe, Asia Pacific, Latin America and rest of the world
•    To record evaluate and competitive landscape mapping- product launches, technological advancements, mergers and expansions

 

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