The research study for AI as a Service market involved extensive secondary sources, directories, journals, and paid databases. Primary sources were mainly industry experts from the core and related industries, preferred AI as a Service providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information, and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as IoT conferences and related magazines. Additionally, the AI as a Service spending of various countries was extracted from respective sources. Secondary research was used to obtain key information about the industry’s value chain and supply chain to identify key players by solution, service, market classification, and segmentation according to the offerings of major players and industry trends related to solutions, applications, verticals, and regions, and key developments from both market and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and AI as a Service expertise; related key executives from AI as a Service solution vendors, SIs, managed service providers, and industry associations; and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped in understanding various trends related to technologies, applications, service types, product types, end users, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using AI as a Service solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of AI as a Service, which would impact the overall AI as a Service market.
Note: Tier 1 companies account for annual revenue of >USD 10 billion; tier 2 companies’ revenue ranges between USD 1 and 10 billion; and tier 3 companies’ revenue ranges between USD 500 million–USD 1 billion
Source: MarketsandMarkets Analysis
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Market Size Estimation
Multiple approaches were adopted for estimating and forecasting the AI as a Service market. The first approach involves estimating the market size by summation of companies’ revenue generated through the sale of solutions and services.
Market Size Estimation Methodology- Top-down approach
In the top-down approach, an exhaustive list of all the vendors offering solutions and services in the AI as a Service market was prepared. The revenue contribution of the market vendors was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each vendor's offerings were evaluated based on breadth of solutions according to product type, business functions, organization size, service type, and end user. The aggregate of all the companies’ revenue was extrapolated to reach the overall market size. Each subsegment was studied and analyzed for its global market size and regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from industry leaders, such as CIOs, CEOs, VPs, directors, and marketing executives. The market numbers were further triangulated with the existing MarketsandMarkets’ repository for validation.
Market Size Estimation Methodology-Bottom-up approach
In the bottom-up approach, the adoption rate of AI as a Service solutions and services among different end users in key countries with respect to their regions contributing the most to the market share was identified. For cross-validation, the adoption of AI as a Service solutions among industries, along with different use cases with respect to their regions, was identified and extrapolated. Weightage was given to use cases identified in different regions for the market size calculation.
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the AI as a Service market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major AI as a Service providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primary interviews, the exact values of the overall AI as a Service market size and segments’ size were determined and confirmed using the study.
AI as a Service Market : Top-Down and Bottom-Up Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
AI as a Service (AIaaS) is a cloud-based solution offered by third-party providers, enabling businesses and individual users to integrate AI-powered capabilities, such as machine learning, natural language processing, and computer vision, into their systems without the need for significant upfront investments in infrastructure or expertise. These AI tools, hosted in the cloud and accessible over the internet, allow for on-demand scalability and flexibility, making AI more accessible to a wide range of users. AIaaS provides a low-risk, cost-effective approach for enterprises to automate processes, enhance decision-making, and drive operational efficiency, while also catering to individual users for personal or smaller-scale AI applications.
Stakeholders
- AI as a Service software providers
- Cybersecurity firms
- Business analysts
- Cloud service providers
- Consulting service providers
- Enterprise end-users
- Distributors and value-added resellers (VARs)
- Government agencies
- Independent software Vendors (ISV)
- Managed service providers
- Market research and consulting firms
- Support & maintenance service providers
- System Integrators (SIs)/migration service providers
- Technology providers
Report Objectives
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
- To analyze the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the AI as a Service market
- To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
- To forecast the market size of segments for five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To profile the key players and comprehensively analyze their market ranking and core competencies
- To analyze competitive developments, such as partnerships, product launches, and mergers and acquisitions, in the AI as a Service market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per your company’s specific needs. The following customization options are available for the report:
Product analysis
- Product quadrant, which gives a detailed comparison of the product portfolio of each company.
Geographic analysis
- Further breakup of the North American AI as a Service market
- Further breakup of the European AI as a Service market
- Further breakup of the Asia Pacific AI as a Service market
- Further breakup of the Middle Eastern & African AI as a Service market
- Further breakup of the Latin American AI as a Service market
Company information
- Detailed analysis and profiling of additional market players (up to five)
Jeffrey
Apr, 2019
Interested in the Microsofts GPU-optimized VM offerings..