The global machine learning market is expected to grow at a CAGR of around 40.1% over the forecast period 2019 to 2026 and expected to reach around US$ 76.8 Bn by 2026.
Machine learning is a subset of artificial intelligence technology that provides systems the ability to spontaneously learn and improve from experience without being programmed in detail. It focuses on the development of computer programs that can access the data and practice it learn for themselves. Hence, as the name describes, the primary aim of machine learning is to allow computers to learn automatically without human assistance or intervention. It enables analysis of massive data at a faster rate and provides more accurate results to identify profitable opportunities or dangerous risks.
A wide range of applications is a key factor to drive the demand for machine learning and thereby market growth. For instance, in the advertising industry, this technology is used to predict the behavior of a customer and helps in refining advertising campaigns. Artificial intelligence-driven marketing uses several models to automate, optimize, and augment the data. In the banking and finance industry, assets management, loan approval, and other processes are carried out using machine learning. The technology is also used for other applications such as document management, security, and healthcare, thereby driving the market growth.
The developing countries in the Asia Pacific and Latin America regions possess high potential for machine learning as a service market, due to developing infrastructure and low adoption base. Furthermore, the need for cost-effective predictive solutions among end-use industries is expected to propel the demand for machine learning.
Based on the component, the market has been divided into hardware, software, and services. The software segment accounted for the largest share of the market in 2018 due to the high adoption of cloud-based software. This can be attributed to improved cloud infrastructure and hosting parameters. However, the hardware segment is anticipated to observe the fastest growth rate during the forecast period. This is due to the growing demand for hardware optimized for machine learning, an increasing number of hardware providers, and technological development such as customized silicon chips with machine learning and artificial intelligence capabilities.
Based on the enterprise size, the global machine learning market is segmented into Small & Medium-sized Enterprises (SMEs) and large enterprises. In 2018, the large machine learning enterprise segment accounted for the largest share of the market. This can be attributed to the capability of investment and focus of large enterprises on connecting machine learning, deep learning, and optimization of decisions to deliver high business value. However, the adoption of machine learning is rapidly growing across small and medium-sized enterprises. This is majorly due to the cost-effective and easy deployment offered by service providers. Furthermore, the availability of options for deployment methods such as on-premise, cloud-based, or hybrid to easily scale-up pilot projects of small and medium-sized enterprises is likely to increase the demand for machine learning from SMEs.
Based on the end-user, the market is divided into healthcare, law, BFSI, advertising & media, retail, agriculture, automotive & transportation, manufacturing, and others. Advertising and media held the largest share of the market in 2018. However, healthcare is anticipated to observe significant growth and is expected to surpass advertising & media during the forecast period. This is due to broadening the application of machine learning technology in the healthcare industry such as the use of technology for better diagnosis and predicts the probability of death of the person. The law segment is witnessing the fastest growth in the coming years.
North America accounted for the maximum share of the market in 2018. This can be attributed to the presence of the number of banking organizations, investment in machine learning-based firms, and high adoption of next-generation technologies in the region. About 2900 companies are operating in the machine learning market in the U.S. However, the Asia Pacific is anticipated to observe the fastest growth during the forecast period. Increasing adoption of machine learning technology in emerging and developed countries in the region such as India, China, and Singapore, government support for next-generation technologies, and investment by service providers due to the presence of talent base are anticipated to boost the market growth in the coming years. In May 2018, NITI Aayog, a policy think tank of the Government of India, collaborated with Google LLC, a multinational technology company. Through this collaboration, the former company will incubate and train start-ups based on AI in India.
The market research study on “Machine Learning Market – Global Industry Analysis, Market Size, Opportunities and Forecast, 2019 – 2026”, offers a detailed insight on the global machine learning market entailing insights on its different market segments. Market dynamics with drivers, restraints, and opportunities with their impact are provided in the report. The report provides insights into the global machine learning market, its component, enterprise size,end-use, and major geographic regions. The report covers basic development policies and layouts of technology development processes. Secondly, the report covers the global machine learning market size and segment markets by component, enterprise size, end-use, and geography along with the information on companies operating in the market. The machine learning market analysis is provided for major regional markets including North America, Europe, Asia Pacific, Latin America and Middle East and Africa. For each region, the market sizes for different segments have been covered under the scope of the report.
Key players operating in the machine learning market are Baidu Inc., Amazon Web Services, Inc., FICO, Google Inc., H2O.ai, International Business Machines Corporation, Intel Corporation, Hewlett Packard Enterprise Development LP, SAS Institute Inc., Microsoft Corporation, Prediction Labs Ltd., and SAP SE. Some of the start-ups in the machine learning industry are DataRobot (Predictive analytics), Benevolent AI (Pharmaceuticals), Pony.ai (Autonomous vehicles), and SenseTime(Facial recognition).Partnerships or collaborations of service providers with end-use industries and focus on launching innovative products are the key strategies adopted by market players to expand their geographical reach or customer base.
Market By Component
By Enterprise Size
Middle East & Africa
Machine learning is a subset of artificial intelligence technology that provides systems the ability to spontaneously learn and improve from experience without being programmed in detail.
A wide range of applications is a key factor to drive the demand for machine learning and thereby market growth.
Machine learning technology is used to predict the behavior of a customer and helps in refining advertising campaigns.
The machine learning technology is used for other applications such as document management, security, and healthcare.
Acumen Research and Consulting predict that the global machine learning market value is poised to reach around US$ 76.8 Bn by 2026
The machine learning market is anticipated to grow over 76.8 % CAGR during the forecast period 2019 to 2026.
North America held maximum share in 2018 for machine learning market.