May 22, 2024
Machine Learning as a Service (MLaaS) Market
Ict

Accelerating Adoption Of Cloud-Based Machine Learning Is Driving The Machine Learning As A Service (Mlaas) Market

Machine Learning as a Service (MLaaS) allows organizations to develop, train, and deploy machine learning models using cloud-based algorithms and tools without installing expensive specialized hardware or complex software. MLaaS platforms automate model training, greatly simplify deployment, and provide flexible scaling of machine learning models on-demand. Industries across various sectors have begun to leverage MLaaS platforms to enhance customer experience, optimize operations, and automate business processes through applications such as predictive maintenance, demand forecasting, risk assessment, and personalized product recommendations.

The global MLaaS Market is estimated to be valued at US$ 11603.58 Mn in 2024 and is expected to exhibit a CAGR of 26.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving the growth of the MLaaS market is the increasing adoption of cloud-based services across various industries. Modern enterprises are transitioning from on-premise machine learning models to cloud-native MLaaS platforms due to benefits such as reduced costs of ownership, No need for upfront investments in hardware or software licensing, seamless scalability without infrastructure limits. MLaaS also allows businesses, especially small and mid-sized companies, to leverage machine learning capabilities without requiring data science expertise in-house. The pay-as-you-go pricing models of cloud make ML techniques affordable for a wider user base. As more industries automate processes and develop AI-powered solutions, demand for cloud-based ML capabilities through MLaaS is expected to surge significantly over the forecast period.

Porter’s Analysis

Threat of new entrants: The threats of new entrants in the MLaaS market is low as it requires massive investment in infrastructure and skills. There are also barriers to enter due to established players.

Bargaining power of buyers: The bargaining power of buyers in the MLaaS market is high. Buyers can negotiate on price and demand customized solutions. They can also switch between providers easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate in the MLaaS market. Few suppliers provide crucial machine learning and algorithms to service providers.

Threat of new substitutes: The threat of substitutes is moderate. Other forms of artificial intelligence and cloud-based services can be considered as substitutes.

Competitive rivalry: The competitive rivalry is high among existing players. Players compete based on pricing models, quality of service, security, and regional expansions.

Key Takeaways
The Global Machine Learning As A Service (Mlaas) Market Size is expected to witness high growth over the forecast period driven by increasing adoption across industries.

Regional analysis: The APAC region is expected to grow at the fastest pace during the forecast period. This is attributed to growing digital transformation initiatives, increasing investments from technology players, and rising adoption of cloud-based services across industries in the region. Countries like China and India are emerging as major markets.

Key players: Key players operating in the Machine Learning as a Service (MLaaS) market are Fitbit Incorporation, Garmin International, Pebble Incorporation, Xiaomi, Samsung Electronics, NIKE Incorporation, Shanda Group, and Sony Corporation. Players are focusing on new service launches, partnerships, acquisitions for growth and leadership in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it