Artificial Intelligence as a Service Market - By Technology (Solution, Services), By Cloud Type (On-premises, Cloud), By Enterprise Size (SMEs, Large Enterprise), By Offering (Spend Analytics, Risk Analytics, Supply Chain Management, Vendor Analytics, Con

Artificial Intelligence as a Service Market - By Technology (Solution, Services), By Cloud Type (On-premises, Cloud), By Enterprise Size (SMEs, Large Enterprise), By Offering (Spend Analytics, Risk Analytics, Supply Chain Management, Vendor Analytics, Contract Management, Others), By End User, Forecast 2023 - 2032

Artificial Intelligence as a Service Market size is poised to depict over 32.5% CAGR from 2023-2032. The rising collaboration among AI solution providers, industry players, and research institutions is fostering innovations in Artificial Intelligence as a Service (AIaaS) technology. The growing number of partnerships to facilitate the integration of AI technologies into existing systems along with the development of more sophisticated solutions will also prove favorable for the market growth. For instance, in May 2023, Indian IT services company Wipro extended its partnership with Google Cloud for bringing generative AI capabilities to its clients worldwide.

The AIaaS industry is segmented into technology, cloud type, organization size, offering, industry vertical, and region.

In terms of technology, the market size from the computer vision segment is anticipated to foresee robust expansion between 2023 and 2032. AI models are trained for identifying and categorizing objects, patterns, and specific attributes within images. Owing to their ability to detect and track multiple objects within images and video streams, computer vision has grown largely popular in various applications, including surveillance, autonomous vehicles, and inventory management. Advantages, such as scalability, reduced development time, ease of implementation, and access to cutting-edge algorithms and updates will also boost the segment expansion.

Artificial Intelligence as a Service industry from the retail industry vertical segment will expand exponentially up to 2032. This is driven by the surging need to analyze customer behavior, purchase history, and offer personalized product recommendations. AI-driven visual search assists customers to find products by employing images as opposed to text queries. The robust demand for image recognition technology for streamlining the search and purchase process will contribute to the segment growth.

Regionally, the Asia Pacific AIaaS industry size is projected to record significant expansion through 2032 owing to the surging government support through policies and initiatives. With the growing number of AI start-ups, there has been strong focus on niche AI solutions in the region for catering to specific industry needs. The rapidly expanding healthcare sector is also driving AI-powered innovations in diagnostics, drug discovery, telemedicine, and patient care for improving outcomes and accessibility to healthcare services, adding to the regional market growth.