AI as a Service Market revenue to cross USD 75 Bn by 2032
As per the report by Global Market Insights, Inc. “Worldwide AI as a Service Market was valued at USD 6 billion in 2022 and will surpass a revenue collection of USD 75 billion by 2032 with an annual growth rate of 25% over 2023 to 2032.”
Increasing data availability and advancements in cloud computing are cited as chief drivers of the industry. The proliferation of data and the rise of cloud computing are stimulating AI models as businesses are now generating vast volumes of high-quality data to train effectively. Cloud computing platforms provide the necessary infrastructure to store, process, and analyze this data, making it easier for AIaaS providers to offer their services at scale. Moreover, the ease of integration with existing systems facilitates the adoption of AI across various industries and is contributing to market growth.
The AI as a Service market from the large enterprises segment accounted for a significant revenue share in 2022, attributed to fluctuating demands for AI services based on the business cycles, seasonal variations, or specific projects in these organizations. AI as a service offers scalability and flexibility, allowing organizations to adjust their AI usage based on their needs. In addition, the ability to offload the burden of AI development, deployment, and maintenance to specialized providers aids large firms to save costs & effort.
The AI as a Service market from the private cloud segment will depict a considerable growth from 2023 to 2032, owing to greater control and customization over AI solutions. Private cloud services enable businesses to tailor AI models and algorithms to their specific needs, ensuring compliance and security of proprietary information. Moreover, it allows organizations to deploy AI services closer to their data sources, reducing latency and ensuring optimal performance.
Asia Pacific AI as a Service market is projected to amass substantial gains by 2032. Countries such as China, Japan, South Korea, and Singapore invest heavily on AI R&D, pursuing digital transformation initiatives across various sectors such as healthcare, finance, manufacturing, and retail. This transformation provides intelligent solutions for automation, data analytics, customer engagement, and personalized services, which will spur the regional market progression in the upcoming years.
Some of the leading companies operating in the AI as a Service market include Alphabet Inc. (Google LLC), Alibaba.Com, Amazon Web Services, Inc., CognitiveScale, Inc., Baidu, Craft.AI, IBM Corporation, DATAIKU SAS, Intel Corporation, Oracle Corporation, Microsoft Corporation, Salesforce.com Inc., and SAP SE. These companies engage in a range of product diversification tactics and strategic partnerships to stay ahead in the industry.
In March 2023, Oracle Corporation, an IT services company, partnered with Nvidia to roll out new AI technology. The new cloud computing service based on Oracles chips and software offerings, intended to aid Nvidia in expanding its AI generative chip product line.
In March 2023, Baidu, a Chinese IT behemoth, launched its AI bot in response to ChatGPT by Open.AI. The ERNIE Bot service will help the company to remain at the forefront in the AI services market and attain a competitive edge in the country.