GVR Report cover Artificial Intelligence As A Service Market Size, Share & Trends Report

Artificial Intelligence As A Service Market Size, Share & Trends Analysis Report By Technology, By Service Type, By Deployment, By Vertical (BFSI, Healthcare, Retail, Energy & Utility), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68040-002-3
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global artificial intelligence as a service market size was valued at USD 5,608.6 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 37.1% from 2022 to 2030. The rising demand for machine learning services in the form of software development kit (SDK) and application programming interface (API), as well as the growing number of innovative startups, are likely to boost the artificial intelligence as a service (AIaaS) market. For instance, in May 2022, Elemeno AI, a cloud-based machine learning platform vendor, announced the release of its machine learning operations platform. The machine learning platform assists businesses in reaping the benefits of AI and provides an excellent user experience for data scientists creating ML models from inception.

Asia Pacific Artificial Intelligence as a Service market size, by technology, 2020 - 2030 (USD Million)

Enterprises are investing extensively in AI services these days to unlock the power of their businesses. They are implementing the solutions to execute activities ranging from forecasting, planning, and predictive maintenance to customer service chatbots and other applications. The growing advancement of technology in recent years has resulted in a new threat scenario, compelling firms to explore advanced defensive tactics. Security experts will have a tremendous resource to secure sensitive networks and avoid future data breaches if AI is integrated into cybersecurity. As AI performs more enterprise activities, firms will see a massive transformation in their business activities. Such factors are likely to boost the AI as a service market during the forecast period.

Many government agencies, particularly in emerging economies, recognize the benefits and power of AI, and as a result, they are heavily promoting AI-based infrastructure development. For instance, in June 2022, in the presence of the Union Minister of Education of India Dharmendra Pradhan, Data Tech Labs Inc., announced the launch of a campaign named 'AI for India.' The campaign is powered by Amazon Web Services, Inc. and supported by the All India Council for Technical Education (AICTE) and the Ministry of Education (GOI) with the goal of training, evaluating, practicing, allocating projects, certifying, and employing 25 lakh Indians across the country. 

The increased spending on artificial intelligence and technical improvement for workflow optimization is expected to drive the demand for sophisticated analytical systems. Furthermore, the increased usage of cloud-based solutions and the growing need for artificial intelligence and cognitive computing is likely to expand the market size. For instance, in July 2022, IBM Corporation announced the acquisition of Databand.ai, Ltd., a provider of data observability software. The addition of Databand.ai expands IBM Corporation's R&D efforts and strategic partnerships in automation and artificial intelligence. IBM is well-positioned to address the complete spectrum of observability across IT operations by merging Databand.ai, Ltd. with IBM observability by IBM Watson Studio and Instana APM.

Technology Insights

The machine learning segment led the market in 2021, accounting for over 35% share of the global revenue. Machine learning platforms, such as reinforcement machine learning algorithms, supervised machine learning algorithms and unsupervised machine learning algorithms, are primarily concerned with developing computer systems that can access data and use it for self-learning. Machine learning algorithms, methodologies, and frameworks enable businesses to tackle complex problems fast. Furthermore, the most successful firms and industries plan and create new concepts and strategies to reduce workload. For instance, in June 2022, Amazon Web Services, Inc. unveiled Amazon CodeWhisperer. This new AI service employs machine learning to produce code suggestions for software engineers, bolstering its efforts in the emerging field of AI-powered programming. The Amazon CodeWhisperer provides code recommendations based on contextual information.

The natural language processing segment is anticipated to register significant growth over the forecast period. The segment's growth can be attributed to the capability of the technology to analyze user actions, which aids in providing an improved customer experience. For instance, in August 2021, OpenAI, L.L.C., an AI research and deployment company, upgraded the OpenAI codex, an artificial intelligence model that interprets natural language and generates code in response. Codex interprets simple natural language instructions and runs them on the user's behalf, creating a natural language interface for existing applications.

Service Type Insights

The software segment dominated the market and accounted for more than 70% share of the global revenue in 2021. Software tools play a vital role in predicting outcomes from vast amounts of data by uncovering hidden patterns in data and data sets. Retail, healthcare & life sciences, and banking, financial services, & insurance (BFSI) are among the industries combining these tools with their existing business systems to analyze enormous volumes of data and develop data patterns. Furthermore, software tools aid in the development of various company strategies and the making of business-critical decisions. For instance, in July 2022, FutureAI.guru, Inc., a consulting firm specializing in bridging the knowledge gap in artificial intelligence for businesses, launched Sallie, its newly designed software and an artificial entity. The software learns in real-time with speaking, hearing, vision, and mobility, allowing it to reach conclusions, a critical aspect of authentic thinking. Without prior information, Sallie can distinguish objects with eyesight, construct an internal model, ask questions, and take instructions.

The services segment is anticipated to register a noticeable growth rate over the forecast period. The increasing adoption of smart solutions is likely to fuel the demand for AI services. These services use the capabilities of solutions that speed up corporate operations. For instance, in June 2021, Google launched Vertex AI, a managed AI service with new features designed to assist businesses in accelerating the deployment of AI models. The new Vertex AI features will continue to speed up the deployment of machine learning models across enterprises. It also democratizes AI so that more users can deploy models in production, continually monitor, and create business impact with AI.

Organizations Size Insights

The large enterprises segment dominated the market and accounted for more than 70% share of the global revenue in 2021. The high share can be attributed to the increased demand for AI in various end-user industries and the financial capability of these large enterprises to implement AIaaS into their workflows. For instance, in July 2022, Shenzhen Super Eagle Technology Co., Ltd., a company specializing in power supply, car chargers, mobile phone chargers, and desktop chargers, announced the release of IPAW Model L, its AI robot server, a tremendously exciting development for the hospitality business. The IPAW Model L is capable of meal delivery, voice interaction, precise navigation, customer attraction, smart obstacle avoidance, and multi-machine collaboration. The startup is currently collaborating with Heineken, McDonald's, and Hilton to bring this fascinating technology to the people.

Global Artificial Intelligence as a Service market share, by organizations Size, 2021 (%)

The small and medium-sized enterprises segment is anticipated to register a healthy CAGR over the forecast period. Businesses are becoming more digital than ever, and small and medium-sized enterprises are experimenting with artificial intelligence (AI) solutions to optimize their operations and processes, driving up demand for AI services. Small and medium-sized enterprises can use predictive analytics to reduce risk, automate business forecasts with real-time data, and improve asset management efficiency. Enhanced prediction capabilities also enable broader market segmentation and open new avenues to innovation. SMEs can source external AI solutions and expertise through knowledge markets, often compensating for the lack of internal capacity.

Deployment Insights

The public cloud segment dominated the market and accounted for 50% of the global revenue share in 2021. Public cloud infrastructure can support massive data storage and the scalable processing capabilities required to crunch vast volumes of data and AI algorithms. The public cloud provides a variety of data storage alternatives, such as data warehouses, serverless databases, data lakes, and NoSQL data stores. By operating specific workloads on the public cloud while preserving highly sensitive data in their data center to suit client needs or regulatory requirements, organizations receive the freedom and innovation that the public cloud brings. For instance, in May 2021, Nokia, Finnish multinational telecommunication, information technology, and consumer electronics business, launched AI use case library for telecom service providers in collaboration with Microsoft. The AVA AI use case library is now available as a public cloud on Microsoft Azure, integrating telco-grade safety with rapid web-scale architectural scalability.

The hybrid cloud segment is anticipated to register a notable CAGR over the forecast period. Hybrid cloud technology gives precise, cost-effective computing and a route for leveraging large amounts of data. It enables businesses to successfully manage their data, providing strategic insights and suggestions, revealing patterns and trends in data, improving customer experience, and automating workflows. For instance, in June 2022, Microsoft released new Azure capabilities that will make it easier for businesses to operate AI software in hybrid cloud environments. Microsoft's new hybrid cloud artificial intelligence capabilities are based on Azure Kubernetes Service, a service for managing software container deployments, and Azure Machine Learning, a set of tools for developing neural networks.

Vertical Insights

The BFSI segment led the market in 2021, accounting for over 15% of global revenue. The BFSI sector benefits from AI as a service to develop various growth prospects. Artificial intelligence is primarily employed in the BFSI sector for fraud detection, client suggestion, algorithmic trading, and chatbots. Banks are experimenting with chatbots, which are expected to drive other financial institutions to invest in comparable technologies. AI in finance can be valuable in assessing real-time activity in any setting. It gives reliable predictions and forecasts based on various variables, which are critical for business planning. For instance, in June 2022, Kiya.ai, an innovative digital solutions provider servicing financial institutions and governments worldwide, announced the arrival of Kiyaverse, a banking metaverse. India's first metaverse is allowing clients to access numerous banking services remotely. Kiya.ai will initially enable banks to launch their metaverse for partners, clients, and employees.

Other verticals, such as telecommunications, retail, government and defense, energy, manufacturing, and others, are expected to significantly contribute to the growth of the AI as a service market. AI assists in increasing the need for real-time data, accelerating time to market, lowering infrastructure costs, and improving business process time. For instance, in July 2022, Vodafone Idea Limited, one of the world's major telecommunications firms, is launching an MLOps service across the organization with the assistance of Google Cloud. The AI Booster project intends to automate and standardize the creation and distribution of machine-learning models inside the carrier.

Regional Insights

North America dominated the market and accounted for over 40% share of the global revenue in 2021. This growth can be attributed to technical improvements and the increasing acceptance of digital technology. Furthermore, AI solution providers are emphasizing innovation and creating artificial intelligence technologies that may be delivered as a service in the market. Moreover, government initiatives that encourage the use of AI in various businesses, and the presence of emerging economies such as Canada and the U.S. The region is one of the most important cognitive computing markets; numerous large industries and IT infrastructure, government regulations regarding data security, and cloud application and security information services contribute to market growth. For instance, in June 2022, Guardforce AI Co., Limited, a provider of comprehensive security solutions, announced opening new offices in San Francisco, California, and Tokyo, Japan, to develop its Robotics-as-a-Service business lines in these two regions. The T-series robot for food delivery robots, reception services, and disinfection robots for shopping malls, hotels, and restaurants will be among the robotics solutions offered by the company.

Artificial Intelligence As A Service Market Trends by Region

Asia Pacific is anticipated to witness significant growth in AI as a service industry. Global investment in artificial intelligence is quickly expanding with Asia-Pacific leading the way. Furthermore, the use of AI as a service is quickly expanding in nations such as India and China. As a result, the industry's scope and demand for artificial intelligence are rising. For instance, in November 2021, Baidu, Inc., a Chinese multinational technology corporation, unveiled its AI-powered commercial self-driving cab service in the Beijing area. The technology is backed up by data gathered from vehicle operations on public roadways. The AI driver does not break traffic laws or become tired when operating in a complex traffic environment and can cut traffic accidents by more than 90%.

Key Companies & Market Share Insights

The artificial intelligence-as-a-service market is fragmented, with most companies creating solutions in silos. AI will become increasingly incorporated in various systems and applications in the future, from data management to retail buying. The key players employ multiple techniques and policies to broaden their consumer base. These policies and strategies include collaborations, mergers, acquisitions, extensions, joint ventures, establishments, new manufacturing techniques, inventions, technology expansion of existing items, and partnerships.

In April 2022, Ernst & Young Global Limited, a multinational professional services partnership headquartered in London, England, acquired Gensquared Inc., a company that uses a business-centric approach to assist enterprises in solving their most challenging data and analytics problems. This merger intends to strengthen EY Canada's data, analytics, and AI practice, helping grow resources and talent while broadening the firm's array of data and technology service offerings. Some prominent players in the global AI as a service market include:

  • Amazon Web Services, Inc.

  • Salesforce, Inc.

  • International Business Machines Corporation

  • Intel Corporation

  • Microsoft

  • BigML, Inc.

  • Google

  • SAP SE

  • Siemens 

  • Fair Isaac Corporation

Artificial Intelligence As A Service Market Report Scope

Report Attribute


Market size value in 2022

USD 7,695.6 million

Revenue forecast in 2030

USD 96,064.7 million

Growth Rate

CAGR of 37.1% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Technology, service type, organizations size, deployment, vertical, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; China; Japan; India; and Brazil

Key companies profiled

Amazon Web Services, Inc.; Salesforce, Inc.; International Business Machines Corporation; Intel Corporation; Microsoft; BigML, Inc.; Google; SAP SE; Fair Isaac Corporation; SAS Institute Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Artificial Intelligence As A Service Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global artificial intelligence as a service market report based on technology, service type, organizations size, deployment, vertical, and region.

  • Technology Outlook (Revenue, USD Million, 2017 - 2030)

    • Machine Learning (ML)

    • Computer Vision

    • Natural Language Processing (NLP)

    • Others

  • Service Type Outlook (Revenue, USD Million, 2017 - 2030)

    • Software

      • Data Storage and Archiving

      • Modeler and Processing

      • Cloud and Web-Based Application Programming Interface (APIs)

      • Others

    • Services

  • Organizations Size Outlook (Revenue, USD Million, 2017 - 2030)

    • Large Enterprises

    • Small and Medium-sized Enterprises (SMEs)

  • Deployment Outlook (Revenue, USD Million, 2017 - 2030)

    • Public

    • Private

    • Hybrid

  • Vertical Outlook (Revenue, USD Million, 2017 - 2030)

    • Banking, Financial, and Insurance (BFSI)

    • Healthcare and Life Sciences

    • Retail

    • IT & Telecommunication

    • Government and defense

    • Manufacturing

    • Energy & Utility

    • Others (Automotive, Education, Agriculture, Others)

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa (MEA)

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