AI as a Service Market worth $55.0 billion by 2028 as per report from MarketsandMarkets

AI as a Service Market worth $55.0 billion by 2028 as per a report from MarketsandMarkets.

CHICAGO, May 1, 2023 – The global AI as a Service Market size is estimated at USD 9.3 billion in 2023 and is projected to reach USD 55.0 billion by 2028, at a CAGR of 42.6% during the forecast period, according to a new report by MarketsandMarkets™.

The AI as a Service Market has been growing rapidly in recent years as more businesses adopt AI technologies to gain a competitive edge. The market is driven by the need for cost-effective and scalable AI solutions that can be easily integrated into existing workflows. AIaaS providers offer a range of services, including machine learning, natural language processing, computer vision, and predictive analytics, among others. The market is also fueled by the increasing demand for cloud-based solutions that can be accessed from anywhere, at any time. The AIaaS market is expected to continue to grow in the coming years, driven by advancements in AI technology and the increasing adoption of AI in various industries.

Healthcare & Lifesciences to account for higher CAGR during the forecast period

The AIaaS market for healthcare is categorized into various applications, such as patient data and risk analysis, medical imaging and diagnostics, precision medicine, lifestyle management and monitoring, drug discovery, inpatient care and hospital management, virtual assistant, wearables, and research. The growth in patient data due to the increasing adoption of Electronic Medical Records (EMR) and various advantages, such as predictive analytics and risk management, offered by AI systems to healthcare providers and payers, are supporting the growth of the patient data and risk analysis segment. The market for the medical imaging and diagnostics segment is projected to grow at the highest CAGR during the forecast period. Factors such as the presence of a large volume of imaging data, advantages offered by AI systems to radiologists in diagnosis and treatment management, and the influx of a large number of startups in this segment fuel the growth of medical imaging & diagnostics.

SMEs to account for higher CAGR during the forecast period

The market for AI as a Service is bifurcated based on organization size into large enterprises and SMEs. The CAGR of SMEs is estimated to be highest during the forecast period. AIaaS solutions provide SMEs access to advanced AI capabilities and resources without requiring significant upfront investments. These solutions can help SMEs automate repetitive tasks, such as customer support and data entry, freeing up resources for other business activities. AIaaS solutions can help SMEs gain insights from data, enabling them to make more informed decisions and identify new growth opportunities. AIaaS solutions can provide SMEs with the ability to compete with larger organizations by allowing them to access the same level of AI capabilities and resources.

Asia Pacific to exhibit the highest CAGR during the forecast period

The CAGR of Asia Pacific is estimated to be highest during the forecast period. Asia Pacific constitutes significant countries, such as China, India, Japan, and the rest of Asia Pacific, which are increasingly contributing toward developing data analytics solutions in the AI as a Service Market. Various industry verticals such as media & advertisement, retail & eCommerce, healthcare & life sciences, and telecom & IT are leading the race in terms of cloud adoption in the Asia Pacific region. The healthcare industry vertical is also gaining momentum with the increasing cloud spending and growing awareness of the benefits of a cloud platform for business data analytics solutions. China leads the region in terms of big data analytics funding and financing in the cloud, which will enhance business decisions, and is expected to continue the lead in the region in terms of revenue generation. Key industry players such as IBM, Google, and Microsoft have a prominent presence in the region, and other players are expected to increase their investments and improve their presence. The strong government support for AI research & development, a thriving startup ecosystem, and a large and growing pool of skilled AI professionals are the key drivers in the AIaaS market.

Major vendors in the global AI as a Service Market are:

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