AI-as-a-Service (AIaaS) Market size to grow by USD 28,773.14 million from 2022 to 2027

• 07 Jul 2023
• TM Team
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The artificial intelligence-as-a-service (AIaaS) market size is set to grow by USD 28,773.14 million from 2022 to 2027, progressing at a CAGR of 40.17% during the forecast period. The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment. The adoption of cloud-based solutions is the major factor driving the artificial intelligence-as-a-service market growth. Global acceptance of cloud computing services has directed the favor of cloud-based applications that can be used in numerous end-user industries. Also, the inherent benefits of cloud computing, such as minimal infrastructure computing costs, scalability, reliability, and high resource availability, have led enterprises to adopt cloud-based solutions. The adoption of cloud computing also lowers operating costs by eliminating the requirement for a dedicated IT support team. Businesses are adopting pay-as-you-go services to get the most value. It strives to augment the adoption of cloud-based applications through a service model. The availability of developed and scalable infrastructure at low cost will be a significant aspect driving the AIaaS market globally. Developing an AI platform needs significant investment in hardware, software, sensors, maintenance, and repair. Also, the software needs frequent maintenance and upgrades to satisfy varying business requirements. Businesses prefer to outsource these tasks to AIaaS providers to bypass these direct costs in implementing and utilizing AI which will be expected to drive market growth during the forecast period.

Artificial Intelligence-as-a-Service (AIaaS) Market 2023-2027 - Market Dynamics

Major Trends

The growing number of mergers and acquisitions is an emerging trend in the AIaaS market growth. Due to the expansion of AIaaS coverage and associated AIaaS market growth, the global AIaaS market is growing. Mainly, service providers in the banking, retail, and healthcare sectors are moving their business models to cloud-based models. Moreover, with government support, businesses are opening AI research centers. To gain access to new customers, market participants choose these partnerships and acquisitions. Further, it helps market players access new technologies that help improve their product portfolios. For instance, in January 2023, international accredited registrar DNV acquired Proxima Solutions, an AI-enabled wind software-as-a-service provider. This acquisition will strengthen DNV GreenPowerMonitor's business. Such strategic partnerships will help vendors to develop their geographic presence, expand their customer base, and deliver improved AI services, which will drive the growth of the market during the forecast period. 

Significant Challenges 

The rising concern for data privacy is a major challenge hindering market growth. To gain insights for future business planning and operational optimization, AI-based solutions use big data, and the emergence of newly developed AI solutions has privacy concerns. Due to the ability of tools to make autonomous decisions and actions, privacy issues arise in AI. Furthermore, companies use data anonymization techniques to generalize key details of data points and prevent privacy breaches when deploying AI. Nevertheless, sensitive data like this is the key to AIaaS. Assuring the privacy and anonymity of data points and large amounts of data, therefore, becomes a major challenge for the market growth during the forecast period.