Thursday, 4 May 2017

Machine Learning as a Service Market : Increasing Shift towards Cloud Computing to Reflect Positively

With a large pool of participants, the global machine learning as a service (MLaaS) market is highly competitive in nature, states a research report by Transparency Market Research (TMR). The market, predominantly led by Amazon, IBM Corp., and Microsoft, experiences an intense rivalry between participants. The top three players held more than 73% of the overall market in 2016, thanks to the continual development and innovation in machine learning techniques.

Over the forthcoming years, these players are likely to be increasingly involved in mergers, acquisitions, and partnerships with small-scale regional players in order to expand their reach, notes the research study.

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According to the research report, the global market for MLaaS is expected to rise at a phenomenal CAGR of 38.40% during the period from 2017 to 2025 with its opportunity increasing from US$1.07 bn in 2016 to US$19.86 bn by the end of the forecast period. The demand for MLaaS has been higher in the healthcare and life sciences industry and is anticipated to remain so over the next few years, owing to the augmenting need to integrate structured as well as unstructured data in this industry.

Strong Demand for Private Cloud-based MLaaS Solutions

As per the study, MLaaS solutions are primarily deployed in public cloud and private cloud. Among the two, private cloud contributes for the majority of the revenue generated in the global MLaaS market, as enterprises are preferring private cloud-based MLaaS solutions over their public cloud-based counterparts due to data security reasons. However, the latter, on account of their easy and cost efficient installation, is anticipated to gain momentum over the forthcoming years. Small- and mid-size enterprises, especially, are adopting public cloud-based MLaaS solutions, which is likely to reflect positively on this segment in the near future.

Geographically, Asia Pacific, the Middle East and Africa, North America, South America, and Europe have been considered as the primary segments of the worldwide market for MLaaS in this research report. With a contribution of US$362.7 bn, North America dominated the global market in 2016. Researchers project this regional market to retain its leadership throughout the forecast period on the ground of the escalating need for Internet of Things (IoT), swift integration of MLaaS with big data, and other advanced technologies, states the market report.

Mounting Structured and Unstructured Data in Enterprises to Boost Adoption of MLaaS

“With the increasing heaps of structured and unstructured data in enterprises, thanks to the rising usage of Internet, the need for MLaaS in a bid to analyze both structured and unstructured data for future predictions and use it further for marketing and other purposes, has been fueled, boosting the global market for MLaaS, says an analyst at TMR. The growing adoption of cloud-based technologies has emerged as another important factor behind the significant growth of the MLaaS market across the world, as a number of companies have shifted towards cloud computing and it is easier for them to uptake machine learning services.

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The future of the worldwide market for MLaaS solutions also looks very much thriving; however, the shortage of skilled professionals and the increasing concerns of consumers over data security may limit the adoption of these solutions over the next few years, reports the research study.

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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.


TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

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