Artificial Intelligence As A Service (AIaaS) Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Bots, APIs, Machine Learning, Others), By Enterprise Size (Small, Medium, Large), By End-User Industry (BFSI, Retail, IT And Telecom, Healthcare, Manufacturing, Government, Energy, Others) And Geography - Forecasts From 2021 To 2026

The Artificial Intelligence As A Service (Aiaas) Market is evaluated at US$3.758 billion for the year 2019 and is projected to grow at a CAGR of 46.05% reaching the market size of US$53.272 billion by the year 2026.

Continuous advancements in the field of artificial intelligence, on account of increasing investments into R&D by major players, have been increasing its popularity among enterprises across industries. High initial costs associated with the adoption of AI had, for a long, been hindering its adoption among enterprises, but AIaas has led to a reduction in the costs by eliminating the need to build AI infrastructure themselves, which is expected to boost the market growth during the assessment period. Moreover, the rising adoption of cloud computing is another major factor projected to boost the growth of the Artificial Intelligence as a Service (AIaaS) market during the forecast period.

The recent outbreak of the novel coronavirus disease had a positive impact on the Artificial Intelligence as a Service (AIaaS) market. As the pandemic restricted the people inside their homes and strict COVID-19 measures, work-from-home was implemented in many parts of the world, wherever possible, which increased the amounts of data generated, as everything was managed by distance. Hence, the pandemic led to a surge in the adoption of cloud technologies to manage huge amounts of data and to gain a competitive advantage by organizations. This set up a base for the adoption of AI as a service, due to which higher adoption of AIaaS was also seen during the period. Furthermore, the rising adoption of AI in healthcare and for population surveillance to monitor COVID-19 cases led to a surge in market growth during the pandemic.

Growing adoption of cloud computing.

One of the major factors anticipated to drive the growth of the Artificial Intelligence as a Service (AIaaS) market during the forecast period is the shift of a large number of organizations to cloud computing. Cloud computing allows companies to make use of artificial intelligence without the need of setting up an AI infrastructure themselves, which saves the companies cost and time. It allows the companies to focus completely on their core business, as AI as a service is provided by third parties, which is leading to rising demand for AIaaS and hence is anticipated to propel the growth of the Artificial Intelligence as a Service (AIaaS) market in the coming years. In June 2021, Ferrari entered into an agreement with Amazon Web Services (AWS) and made it its official cloud provider. As per Ferrari, the move was taken to transform it into a data-driven organization that utilizes the power of technology for upgrading its products and customer engagements, along with also being able to provide better driving experiences. Similarly, more and more companies are adopting cloud computing for upgrading their businesses, which is anticipated to boost the market growth during the assessment period.

Increasing investments in artificial intelligence.

The field of artificial intelligence has been attracting huge investments in recent times. The 2021 AI Index report collated with the help of Stanford University shows that private funding in artificial intelligence increased by 9.3 % in 2020 and by 5.7% in 2019. In July 2021, Artificial intelligence technology company DataRobot announced it has more than doubled its valuation to $6.3 billion after raising $300 million in a funding round led by Altimeter Capital and Tiger Global. Countries like China and United States are spending huge amounts on artificial intelligence. Furthermore, the governments of various countries are passing policies for the development of AI in their respective countries. For instance, the government of China has passed policies like the "Next Generation Artificial Intelligence Development Plan" and many others supporting AI in the country, which is further leading to a rise in investments in artificial intelligence. The growth in artificial intelligence, prompted by increased investments, is leading to an increase in the adoption of Artificial Intelligence as a Service (AIaaS) and hence is anticipated to surge the market growth during the forecast period.

North America to hold a significant market share.

Geographically, the North American region is anticipated to hold a significant market share owing to the presence of market leaders such as Microsoft Corporation, Amazon Web Services, Google LLC, IBM Corporation, among others. Furthermore, the countries in the region are technologically advanced and hence have a higher tendency to adopt technologies like AIaaS. The Asia Pacific region is anticipated to witness substantial growth during the forecast period due to rising investments in cloud-based solutions and an emerging IT sector. Furthermore, the rising number of start-ups in the region providing Artificial Intelligence as a Service (AIaaS) is anticipated to propel the growth of the market during the forecast period.

Artificial Intelligence as a Service (AIaaS) Market Scope:

Segmentation

• By Type
  • Bots
  • APIs
  • Machine Learning
  • Others
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-Use Industry
  • BFSI
  • Retail
  • IT and Telecom
  • Healthcare
  • Manufacturing
  • Government
  • Energy
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

Frequently Asked Questions (FAQs)

Q1. What is the size of the global artificial intelligence as a service (AIaaS) market?
A1. Artificial Intelligence As A Service (AIaaS) Market was valued at US$3.758 billion in the year 2019.

Q2. What will be the artificial intelligence as a service market size by 2026?
A2. The global artificial intelligence as a service market is projected to reach a market size of US$53.272 billion by 2026.

Q3. What are the growth prospects for the artificial intelligence as a service (AIaaS) market?
A3. The artificial intelligence as a service (AIaaS) market is projected to grow at a CAGR of 46.05% during the forecast period.

Q4. What factors are anticipated to drive artificial intelligence as a service market growth?
A4. One of the major factors anticipated to drive the growth of the artificial intelligence as a service (AIaaS) market during the forecast period is the shift of a large number of organizations to cloud computing.

Q5. Which region holds the maximum share of artificial intelligence as a service market?
A5. Geographically, the North American region is anticipated to hold a significant share of the artificial intelligence as a service (AIaaS) market.