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The machine learning (ML) market size is estimated to grow at a CAGR of 47.81% between 2022 and 2027. The machine learning market size is forecast to increase by USD 56,493.47 million. The growth of the market depends on several factors, including the increasing adoption of cloud-based offerings, the increasing use of machine learning in customer experience management, and the increasing use of machine learning in predictive analytics.
This machine learning market report extensively covers market segmentation by end-user (BFSI, retail, telecommunications, healthcare, and automotive and others), deployment (cloud-based and on-premise), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing adoption of cloud-based offerings is notably driving the market growth, although factors such as the shortage of skilled personnel may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing adoption of cloud-based offerings is the key factor driving the growth of the global ML market. The increasing adoption of cloud computing services around the world has led to an increase in the adoption of cloud-based applications targeting multiple end-user industries. The inherent advantages of cloud computing, such as the lowest cost of computing, network and storage infrastructure, scalability, reliability, and high resource availability, enable enterprises to incorporate cloud-based solutions into their business models. Adopting cloud computing also reduces operating costs by eliminating the need for a dedicated IT support team. To get the most value, businesses are adopting pay-as-you-go services. It aims to accelerate the adoption of cloud-based applications through a model as a service.
Moreover, the machine learning adopted via the cloud enables enterprises to experiment with machine learning technologies and capabilities at a fraction of the cost of setting up an in-house machine learning team and infrastructure. Machine learning also helps enterprises to scale up the production workload of their projects with the increase in data. Therefore, the above-mentioned advantages of cloud-based offerings are expected to drive the growth of the global machine learning market in the forecast period.
A growing number of acquisitions and partnerships is the primary trend in the global ML market. The market is growing owing to the increased areas of applications of machine learning and associated growth with AI. Service providers in the bank, retail, and healthcare sectors are migrating their business models toward cloud-based models. Moreover, to gain a competitive edge, vendors are investing in the development and provision of machine learning. The vendors operating in the market are also forming strategic partnerships and acquiring other vendors.
Market participants are opting for these partnerships and acquisitions to get access to new clients. In addition, these partnerships help market players to get access to new technologies that can help them to improve their product portfolio. Many a time, these partnerships and acquisitions also help market players to expand their geographic footprint to new locations, which are the key factors for the growth of the market in focus in the forecast period.
Shortage of skilled personnel is a major challenge to the growth of the global ML market. Machine learning is now being used to manage self-driving cars, self-functioning robots, healthcare systems that can distinguish between cancer cells and benign moles, and smart locks and thermostats. The growing popularity of machine learning and AI technologies has led to the adoption of the former in enterprise operations.
However, one of the barriers to the adoption of these technologies is the shortage of a workforce that has machine learning skills. To overcome this challenge, some US technology companies support schools in introducing courses, increasing enrollment, and developing new educational programs for students. This will create a high demand for machine learning that trains systems in creative thinking, problem-solving, negotiation, and other technical skills. Such factors will hinder market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Machine Learning Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alibaba Group Holding Ltd.: The company offers machine learning platform for AI that relies on Alibaba Cloud distributed computing clusters.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the BFSI segment will be significant during the forecast period. BFSI companies are investing in machine learning to reduce costs and improve customer relations, risk management, workflows, and decision-making process. BFSI companies are undertaking digital transformation initiatives that are resulting in the development of several customized solutions. BFSI companies are adopting machine learning to gain in-depth knowledge about their customers and provide customized solutions. The adoption of machine learning helps BFSI companies in achieving automated processing, data-driven insights about customers, and personalized customer outreach.
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The BFSI segment was valued at USD 478.13 million in 2017 and continued to grow until 2021. Banks primarily use machine learning to approve loans, assess risk, and manage bank assets. Machine learning is integrated into customer information and banking systems to determine the risk of lending to customers based on credit score and annual income. It is also used to cross-sell products, automate chatbots, anticipate customer needs, detect fraudulent transactions, and resolve issues without human intervention. To better anticipate customer needs, BFSI companies are automating customer service operations and employing machine learning to improve risk management. This is driving the growth of machine learning in the BFSI segment and is expected to continue growing during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. This region is anticipated to be the major revenue contributor to the global machine learning market during the forecast period. The demand for machine learning in North America is primarily due to the high adoption of cloud and machine learning and big data analytics to generate business insights. The region is also witnessing an increase in data generation from industries such as telecommunications, manufacturing, retail, and energy, driving demand for machine learning-based solutions.
The COVID-19 pandemic spread widely across North America, especially in the US, in 2020. However, in 2021, large-scale vaccination programs increased business activities, and the regional machine learning market witnessed more growth. Additionally, the pandemic has propelled the demand for machine learning, which will positively impact the growth of the market in focus during the forecast period.
The machine learning market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the machine learning market as a part of the global IT consulting and other services market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. The global IT consulting and other services market covers companies that provide information technology consulting and information management services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Machine Learning Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 47.81% |
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Market growth 2023-2027 |
USD 56,493.47 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
42.74 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alibaba Group Holding Ltd., Alphabet Inc., Altair Engineering Inc., Alteryx Inc., Amazon.com Inc., BigML Inc., Cisco Systems Inc., Fair Isaac Corp., H2O.ai Inc., Hewlett Packard Enterprise Co., Iflowsoft Solutions Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., Netguru S.A, Salesforce.com Inc., SAP SE, SAS Institute Inc., TIBCO Software Inc., and Yottamine Analytics LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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