According to a report by Market Research Future (MRFR), the Machine Learning as a Service (MLaaS) market is expected to grow at a compound annual growth rate (CAGR) of 36.20% between 2023 and 2032, with a projected market size of USD 304.82 billion by 2032. The expanding use of the Internet of Things (IoT) is driving the growth of MLaaS add-ons, and as more businesses adopt IoT-based technologies and solutions, machine learning technology is becoming increasingly popular for data analytics. MLaaS would encourage IoT innovation by assisting in automation.
The market segmentation for MLaaS is based on component, organisation size, application, and end-user. Cloud APIs currently dominate the market with 35% of sales. The segment of small and medium-sized businesses has generated the highest revenue (66%). The market is segmented by industry, including manufacturing, healthcare, BFSI, transportation, government, and retail, among others. Retail is projected to account for about 38% of the market revenue by 2022, as the growth of e-commerce necessitates greater customer interaction.
North America is anticipated to dominate the MLaaS market, primarily due to its strong infrastructure and the financial ability to acquire an MLaaS solution. Increased defense spending and advancements in telecommunications technology are projected to further increase the market in North America.
The use of big data and machine learning has enabled Airbnb to deliver world-class service to over 80 million visitors worldwide. By analyzing historical data, Airbnb gains a better understanding of customer needs, allowing for tailored service to each visitor. With the use of IoT and automation, companies can ensure proper and safe operation of connected devices as well as the collection of accurate data.
The report highlights the importance of machine learning in data analytics and its significant role in narrowing the gap between what is beneficial and profitable for businesses and their customers. MLaaS’s scalability and affordability were two major factors driving growth in the market.
