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AI as a Service Market Size

Report ID: GMI5714
Published Date: May 2023
Report Format: PDF

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AI as a Service Market Size

AI as a Service Market size was valued at USD 6.4 billion in 2022 and is anticipated to grow at a CAGR of 25% between 2023 and 2032. The growing number of innovative startups worldwide is expected to drive the market growth. Government initiatives worldwide for promoting AI-based infrastructure can contribute to market size.

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For instance, in June 2022, Data Tech Labs Inc. launched the ‘AI for India’ campaign. The campaign is supported by the All-India Council for Technical Education (AICTE) and the Ministry of Education, India. Under this campaign, the company plans to upskill 25 lakh Indians free of cost. The rising demand for Machine Learning (ML) services in various forms including APIs and SDKs is also contributing to market demand.

AI as a Service Market Report Attributes
Report Attribute	Details
Base Year:	2022
AI as a Service Market Size in 2022:	USD 6.4 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	28%
2032 Value Projection:	USD 75 Billion
Historical Data for:	2018 to 2021
No. of Pages:	300
Tables, Charts & Figures:	266
Segments covered:	Deployment Type, Organization Size, End-user, and Region
Growth Drivers:	Growing number of innovative startups across the globe Strong government initiatives to promote AI-based infrastructure worldwide Increasing importance of data-driven decisions in businesses High investments by enterprises in AI services
Pitfalls & Challenges:	Lack of skilled & qualified staff Data security issues

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AI as a Service refers to off-the-shelf tools that help companies use and scale AI techniques at a lower cost. It is a third-party service that offers AI outsourcing. It allows businesses and individuals to try out AI for various tasks & purposes with reduced risks and investments.

The limited availability of skilled employees to integrate AI and ML into their businesses is a major factor restraining AI as a service market value. The unavailability of skilled workforce to handle analytics projects involving complicated techniques is hampering market expansion. Businesses are focused on recruiting and retaining technical resources. Also, experienced & skilled professionals demand high salaries, making it difficult for SME, and in some cases, large enterprises to recruit them.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The AI as a service industry size was worth USD 6.4 billion in 2022 and is set to register 25% CAGR between 2023 and 2032.

The SMEs segment will record over 30% CAGR from 2023 to 2032, due to the growing digitalization and adoption of AI solutions by SMEs for enhancing their business operations.

The U.S. market size exceeded USD 1.2 billion in 2022 and will expand at a significant pace from 2023-2032, attributed to the abundance of large enterprises and the IT infrastructure.

Alibaba.Com, Alphabet Inc. (Google LLC), Amazon Web Services, Inc., Baidu, CognitiveScale, Inc., Craft.AI, DATAIKU SAS, IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc., and SAP SE.