Dublin, Jan. 24, 2024 (GLOBE NEWSWIRE) -- The "AI as a Service Global Market Report 2024" report has been added to ResearchAndMarkets.com's offering.
The global AI as a service market has grown exponentially in recent years. It will grow from $9.86 billion in 2023 to $14.27 billion in 2024 at a compound annual growth rate (CAGR) of 44.7%. The growth observed in the historical period can be attributed to several factors, including advancements in cloud computing, increased availability and volume of data, cost-effective solutions, advances in algorithms, and the development of industry-specific applications. These factors collectively contributed to the expansion and adoption of Artificial Intelligence as a Service (AIaaS) during that period.
North America was the largest region in the AI as a service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global AI as a service market report during the forecast period.
The global AI as a service market is expected to see exponential growth in the next few years. It will grow to $63.2 billion in 2028 at a compound annual growth rate (CAGR) of 45.1%. The anticipated growth in the forecast period can be attributed to several key factors, including the application of AI for sustainability, the utilization of AI to enhance customer experience, increasing demand for AI-driven insights, the consideration of AI ethics and regulations, and a focus on explainable AI. Additionally, major trends expected in the forecast period include the democratization of AI, integration of AI in the Internet of Things (IoT), AI-enabled automation, augmented analytics, and the expansion of conversational AI. These trends reflect the evolving landscape and diverse applications of AI technologies across various sectors.
The anticipated increase in spending on artificial intelligence is set to drive the growth of the AI as a service market in the future. For example, in January 2022, the Government Digital Service, a UK-based IT service management company, reported that in 2020, the 432,000 UK enterprises that had implemented AI spent a total of $57.91 billion on manpower related to the creation, upkeep, and operation of such technologies. It is projected that by 2025, spending on employment connected to artificial intelligence (AI) may increase to between $100.96 billion and $129.91 billion, with annual growth rates of around 11.7% and 17.5%, respectively. This upward trend in spending on artificial intelligence is a driving force behind the growth of the AI as a service market.
The increasing adoption of cloud services is expected to contribute to the expansion of the AI as a service market. For instance, in December 2021, Eurostat, a Europe-based intergovernmental organization, reported that 41% of EU enterprises used cloud computing in 2021, representing a 5% increase compared to 2020. The rising adoption of cloud services is a key factor driving the growth of the AI as a service market.
Technology advancements have emerged as a key trend in the AI as a service market, with companies actively adopting new technologies to strengthen their market positions. In March 2023, Nvidia Corporation, a US-based software company, launched the "DGX Cloud," a new cloud supercomputing service technology that provides GPU supercomputers-as-a-Service. This offering allows businesses to access both hardware and software for developing advanced models for generative AI and other applications, showcasing the ongoing technological innovations in the AI as a service sector.
Major companies in the AI as a service market are placing a heightened focus on introducing innovative products to gain a competitive edge. EY.ai, launched by Ernst & Young Global Limited in September 2023, is a notable example. EY.ai is a unifying platform that leverages artificial intelligence to streamline and enhance business processes, offering a comprehensive solution for data analytics, automation, and intelligent decision-making within enterprises. Ernst & Young Global Limited has invested $1.4 billion in the platform, which integrates leading EY technology platforms and AI capabilities with deep expertise in various domains. EY.ai aims to help companies confidently and responsibly adopt AI by providing an extensive AI ecosystem, including alliances with innovative organizations and a secure, large language model called EY.ai EYQ.
In July 2022, International Business Machines Corporation (IBM), a US-based multinational technology company, acquired Databand.AI for $150 million. This strategic acquisition strengthens IBM's capabilities in hybrid cloud and AI, particularly in the areas of data quality, monitoring pipeline health, and automating advanced DataOps processes. Databand.AI, an Israel-based technology company, focuses on enabling individuals to track data quality, monitor pipeline health, and automate DataOps processes, aligning with IBM's commitment to enhancing its capabilities in these domains.
Report Scope
Markets Covered:
- By Component: Solutions; Services
- By Offering: Infrastructure as a Service; Platform as a Service; Software as a Service
- By Deployment: Public; Private; Hybrid
- By Organization Size: Small And Medium-Sized Enterprises; Large Enterprises
- By Industry: Banking, Finance Services, & Insurance (BFSI); Information Technology (IT) & Telecom; Retail; Manufacturing; Public Sector; Energy & Utilities; Healthcare; Other Industries
Key Companies Mentioned: Amazon Web Services Inc.; Salesforce Inc.; International Business Machines Corporation; Microsoft Corporation; Google Inc.
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
A selection of companies mentioned in this report includes:
- Amazon Web Services Inc.
- Salesforce Inc.
- International Business Machines Corporation
- Microsoft Corporation
- Google Inc.
- SAP SE
- Intel Corporation
- BigML Inc.
- Fair Isaac Corporation
- SAS Institute Inc.
- Siemens
- Apple Inc.
- CognitiveScale Inc.
- Dataiku SAS
- Oracle Corporation
- H2O.ai Inc.
- Craft.AI
- DataRobot Inc.
- OpenAI L.P.
- Baidu Inc.
- NVIDIA Corporation
- General Electric Company
- Infosys Limited
- Wipro Limited
- Tata Consultancy Services Limited
- Accenture plc
- CloudMinds Technology Inc.
- Palantir Technologies
- C3.ai
- Databricks
For more information about this report visit https://www.researchandmarkets.com/r/mc1buf
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