Machine Learning as a Service (MLaaS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Machine Learning as a Service Market Analysis

The machine learning-as-a-service (MLaaS) market is expected to register a CAGR of 39.25% during the forecast period.

• Machine learning (ML) is a subfield of artificial intelligence (AI) that enables training algorithms to make classifications or predictions through statistical methods, uncovering critical insights within data mining projects. These insights drive decision-making within applications and businesses, ideally impacting key growth metrics. Since it revolves around algorithms, model complexity, and computational complexity, it requires skilled professionals to develop these solutions.
• With advancements in data science and artificial intelligence, the performance of machine learning accelerated at a rapid pace. Companies are identifying the potential of this technology, and therefore, the adoption rate of the same is expected to increase over the forecast period. Companies are offering machine learning solutions on a subscription-based model, making it easier for consumers to take advantage of this technology. In addition, it provides flexibility on a pay-as-you-use basis.
• Amazon released SageMaker Studio, the first machine learning IDE, in 2021. This application provides a web-based interface through which clients can run all ML model training tests in a single environment. SageMaker Studio provides access to all development methods and tools, including notebooks, debugging tools, data modeling, and its automatic creation.
• The significant players in the market are organizing competitions to train Ai and security communities to handle critical scenarios in real-time AI systems. For instance, In July 2021, Microsoft established MLSEC.IO, an educational Machine Learning Security Evasion Competition (MLSEC) for the AI and the security community to practice attacking critical AI systems in a realistic context. The competition, hosted and sponsored by Microsoft, NVIDIA, CUJO AI, VM-Ray, and MRG Effitas, awards competitors who successfully escape AI-based malware and AI-based phishing detectors.
• The ML startups are receiving fundings millions of dollars of ML investment. For instance, In June 2022, Inflection AI secured one of the largest artificial machine learning funding rounds, totaling USD 225 million. It is referred to as a machine learning and AI startup. It has obtained USD 225 million in equity financing from venture capitalists. This ML investment will improve machine learning, allowing for intuitive human-computer interfaces in the near future.
• Machine learning-as-a-service leverages deep learning techniques for predictive analytics to enhance decision-making. However, using MLaaS introduces security challenges for ML model owners and data privacy challenges for data owners. Data owners are concerned about the privacy and safety of their data on MLaaS platforms. In contrast, MLaaS platform owners worry that their models may be stolen by adversaries who pose as clients.
• The COVID-19 pandemic caused many organizations to accelerate their migrations to public cloud solutions since cloud service elasticity can meet unexpected spikes in service demand. Migrations to the cloud helped companies reinvent the way they conduct their businesses in the time of COVID-19. The need for AI services has grown, and many cloud providers offer AIaaS and MLaaS.

Machine Learning as a Service Industry Segments

Machine learning-as-a-service (MLaaS) is a broad range of services that offer machine learning (ML) tools as a feature of cloud computing services. MLaaS suppliers offer tools including APIs, data visualization, natural language processing, predictive analytics, and face recognition. The supplier’s cloud infrastructure handles all the actual computation.

The study provides an in-depth perspective of the market segments based on application, organization size, end user, and geography. The market study also covers the impact of COVID-19 and how the market reacted during the pandemic.

Report scope can be customized per your requirements. Click here.

Machine Learning as a Service Market Trends

This section covers the major market trends shaping the Machine Learning as a Service Market according to our research experts:

Increasing Adoption of IoT and Automation to Drive the Market

• IoT operations ensure that the thousands or more devices run correctly and safely on an enterprise network and the data being collected is both timely and accurate. While sophisticated back-end analytics engines work on the heavy lifting of processing the data stream, ensuring data quality is often left to obsolete methodologies. To ensure the rein in sprawling IoT infrastructures, some IoT platform vendors are baking machine learning technology to boost their operations management capabilities.
• Machine learning may demystify the hidden patterns in IoT data by analyzing significant volumes of data utilizing sophisticated algorithms. ML inference may supplement or replace manual processes with automated systems using statistically derived actions in critical processes. Solutions built on ML automate the IoT data modeling process, thus, removing the circuitous and labor-intensive activities of model selection, coding, and validation.
• Small businesses adopting IoT may significantly save on the time-consuming machine learning process. MLaaS vendors may conduct more queries more quickly, providing more types of analysis to get more actionable information from vast caches of data generated by multiple devices in the IoT network.
• As per Zebra's Manufacturing Vision Study, smart asset monitoring systems based on IoT and RFID are predicted to outperform traditional, spreadsheet-based approaches by 2022. According to research conducted by Microsoft Corporation, 85% of businesses have at least one IIoT use case project. This figure could rise, as 94% of respondents said they would pursue IIoT initiatives in 2021. These instcances may create opportunities for the MLaaS vendors in the near future.
• The increasing use of cloud-based technology in many organizations benefits data transfer due to the ease with which these connections may be formed. This allows every employee in an organization to access data, increasing a company's cost efficiency. In May 2021, Google Cloud unveiled Vertex AI, a new managed machine learning platform that allows users to maintain and deploy AI models based on client needs.

To understand key trends, Download Sample Report