AI as a Service Market Analysis

AI as a Service Market Analysis

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The AI as a service market from SMEs segment is poised to expand at 30% CAGR through 2032 due to the growing digitalization and adoption of AI solutions by SMEs for enhancing their business operations. SMEs are focused on reducing risks and improving asset management efficiency. The growing usage of predictive analytics by SMEs for automating business forecasts enables a broader market segmentation, providing new opportunities for innovations.
 

The public cloud segment held a major AI as a service market share of over USD 3 billion in 2022, attributed to several benefits offered by the public cloud such as its ability to support vast data storage and scalable processing capabilities. The range of services offered by the public cloud including ML, NLP, and computer vision helps organizations build & deploy AI services. Also, the public cloud offers a wide range of data storage options including data warehouses, data lakes, and serverless databases. Public cloud deployment offers organizations freedom and innovations as operating workloads on the public cloud suit client needs and regulatory requirements.
 

The AI as a service market from manufacturing segment accounted for 22% revenue share and will observe around 26% CAGR during the forecast period, owing to the increasing adoption of AI services by manufacturers to search for defects in production lines and detect them more quickly & accurately. Manufacturers are also using AI for analyzing sensor data and predicting breakdowns. The use of AI services in manufacturing facilities also offers various benefits including increased productivity among engineers, predictive maintenance, 24/7 operation, enhanced inventory management, and demand forecasting.
 

The U.S. AI as a service market size dominated more than USD 1.2 billion in 2022, credited to the abundance of large enterprises and the IT infrastructure. Leading AI companies including Google, Amazon, IBM, and Microsoft invest heavily in the research & development of AI technology and help large businesses & SMEs to take advantage of AI, further contributing to the regional market growth. The continuous research & development in the AI field by research institutions in U.S. is also a major factor propelling the industry growth in the region.