Artificial Intelligence as a Service (AIaaS) Market - Forecasts from 2024 to 2029

Artificial Intelligence as a Service (AIaaS) Market - Forecasts from 2024 to 2029

The Artificial Intelligence as a Service (AIaaS) market is projected to witness a CAGR of 46.52% during the forecast period to reach a total market size of US$168.449 billion by 2029, up from US$24.947 billion in 2024.

Artificial Intelligence as a Service (AIaaS) is being utilized as a low-cost, cloud-based way to empower businesses to use artificial intelligence (AI) algorithms and employ artificial neural systems without requiring infrastructure or tremendous startup ventures. AIaaS has different components that numerous businesses utilize, like cloud-based conveyance, pay-as-you-go pricing, and versatility with no limitations on infrastructure companies to focus on its core capacities.

AIaaS administrations include machine learning stages, natural language processing administrations, computer vision services, AI chatbots, and virtual colleagues. They permit machines to understand and produce human dialects, decipher visual data, and assist clients. Ceaseless progressions in the field of AI, on account of major players expanding ventures into R&D, have been expanding their popularity among endeavors over businesses.

Moreover, the high initial costs of implementing AI have hindered its adoption among businesses. However, AIaaS has reduced these costs by eliminating the need to build an AI infrastructure, which is expected to drive market growth in the forecasted period.

ARTIFICIAL INTELLIGENCE AS A SERVICE (AIAAS) MARKET DRIVERS:

Growing adoption of cloud computing is expected to increase the demand for Artificial Intelligence as a Service (AIaaS) solutions globally.

One of the major factors anticipated to drive the Artificial Intelligence as a Service market’s growth during the forecast period is the shift of a large number of organizations to cloud computing. Cloud computing allows companies to use artificial intelligence without the need to set up an AI infrastructure, saving them cost and time. It allows the companies to focus completely on their core business, as AI as a service is provided by third parties, which is leading to rising demand for AIaaS and propelling its market growth in the coming years.

For instance, in June 2022, e& Enterprise, a division of e& Group Limited, collaborated with DataRobot to introduce an industry-first Enterprise AlaaS solution for public and private companies looking to accelerate their digital transformation. It provides an end-to-end cloud solution that allows building, training, deployment, and managing AI & ML solutions at a fraction of the cost of in-house. Further, allowing governments and private companies to deploy AI fixes at scale and realize business value with minimal upfront AI expertise. Similarly, there are more companies are adopting cloud computing to upgrade their businesses, which is anticipated to boost the market growth during the assessment period.

Artificial Intelligence as a Service (AIaaS) Market Geographical Outlook:

The North American region is expected to hold a substantial Artificial Intelligence as a Service (AIaaS) market share.

The North American region is anticipated to hold a significant market share owing to the presence of market leaders such as Microsoft Corporation, Amazon Web Services, Google LLC, and IBM Corporation, among others. Further, the region has a strong industry player presence, leading to increasing technological advancements. Hence, there will be a higher tendency to adopt technologies like AIaaS for diverse industries in the coming years.

In addition, North American countries like the United States and Canada are anticipated to witness substantial growth during the forecast period due to rising investments in cloud-based solutions and an emerging sector realizing the utilization of AlaaS for multiple applications. Furthermore, the rising number of start-ups in the region providing AIaaS solutions is anticipated to propel the market growth during the forecast period.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

Market Segmentation:

The Artificial Intelligence as a Service (AIaaS) market is segmented and analyzed as below:

By Type

Bots
APIs
Machine Learning
Others

By Enterprise Size

Small
Medium
Large

By End-Use Industry

BFSI
Retail
IT and Telecom
Healthcare
Manufacturing
Government
Energy
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Taiwan
Thailand
Indonesia
Others