The global machine learning as a service market is set to increase from $1B in 2016 to nearly $20B in 2025, thanks in part to demand from the healthcare industry.
The global machine learning as a service (MLaaS) market is poised to grow from $1.07 billion in 2016 to $19.86 billion in 2025, at a CAGR of more than 38%, according to a new report from Transparency Market Research.
Demand for MLaaS has been highest in the healthcare and life sciences industry, due primarily to the need to integrate structured and unstructured data in these areas, especially data generated by electronic health records. Other industries that will benefit from this technology moving forward include manufacturing, retail, telecom, finance, energy and utilities, education, and the government, as MLaaS can improve the decision-making capabilities of devices used in those areas, the report stated.
Enterprises' move to the cloud is another important factor behind the expected growth of the MLaaS market, the report noted--as more companies shift toward cloud computing, it is easier for them to take advantage of machine learning.
MLaaS solutions are typically deployed in both the public and private cloud, though private cloud accounts for most of the revenue generated in the global MLaaS market, the report noted. "Enterprises are preferring private cloud-based MLaaS solutions over their public cloud-based counterparts due to data security reasons," according to the press release. However, public cloud solutions are expected to gain momentum in the coming years due to their low cost and easy deployments.
"Small- and mid-size enterprises, especially, are adopting public cloud-based MLaaS solutions, which is likely to reflect positively on this segment in the near future," according to the press release.
The MLaaS market is driven by Amazon, IBM, and Microsoft, with the three tech giants holding more than 73% of the overall market in 2016. The market is very competitive, the report noted, with a large number of companies entering the field due to consistent development and innovation in machine learning techniques. It's likely that Amazon, IBM, and Microsoft will become increasingly involved in partnerships with smaller regional companies to expand their reach, the report noted.
Geographically speaking, North America dominated the global MLaaS market, with spending rates of more than $362 billion in 2016. And this region will likely keep its top position through 2025, the researchers said, due to the growth of the Internet of Things (IoT), integration of MLaaS with big data, and the adoption of other advanced technologies.
However, adoption of MLaaS solutions will not be without hurdles: A shortage of skilled professionals and growing concerns over data privacy and security could hinder the adoption of these solutions in the near future, the report said.
The 3 big takeaways for TechRepublic readers
1. The global machine learning as a service (MLaaS) market is predicted to increase from $1.07 billion in 2016 to $19.86 billion in 2025, according to a new report from Transparency Market Research.
2. This service is currently used most in healthcare and life sciences, but it is expected to grow in industries including manufacturing, retail, telecom, finance, energy and utilities, education, and the government.
3. While MLaaS is expected to grow steadily, the tech skills shortage and data security concerns could limit its adoption in the near future.
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