Machine Learning (ML) Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, UK, Germany, Japan - Size and Forecast 2024-2028

Machine Learning Market Size 2024-2028

The machine learning (ML) market size is forecast to increase by USD 162.94 billion at a CAGR of 67.63% between 2023 and 2028. Market growth hinges on several factors, notably the rising adoption of cloud-based offerings, the integration of machine learning in customer experience management, and its application in predictive analytics. The scalability and flexibility of cloud solutions attract businesses seeking efficient operations and cost savings. Machine learning's role in enhancing customer experiences and predictive analytics drives demand, as companies strive to stay competitive in an increasingly data-driven landscape. This convergence of technologies not only drives innovation but also reshapes business strategies, enabling organizations to harness data-driven insights for informed decision-making and sustainable growth in the dynamic market landscape. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

To learn more about this report, View Report Sample

Market Dynamics and Customer Landscape

In the dynamic realm of Technology, Machine Learning (ML), a subset of Artificial Intelligence (AI), continues to revolutionize Computer Science through advanced Algorithms. ML's applications span across various sectors, including Self-driving cars in Transportation, Cybersecurity for securing Computer Systems in Organizations, and Face recognition in Social Media Platforms. The E-commerce industry leverages ML for recommendation systems, while Large Enterprises and SMEs utilize ML Software programs for predictive analysis and Security analytics. ML's impact extends to the Public sector, Financial services, and Healthcare, where Big Data analysis drives informed decision-making. Machine learning algorithms are increasingly being used to analyze data from industrial sensors, enhancing predictive maintenance and operational efficiency in manufacturing processes.

ML technologies, such as AI, Cloud computing, and Edge computing, are transforming industries like 5G wireless networking and Supply chain management. Cyber specialists employ ML to counteract Cyber threats, including Supply chain attacks. ML's role is pivotal in the evolving landscape of Technology, ensuring a secure and efficient future. Our researchers analyzed the data with 2023 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.

Key Market Driver

Increasing adoption of cloud-based offerings is the key factor driving the growth of the market. The market is experiencing significant growth due to the increasing adoption of Artificial Intelligence (AI) and advanced algorithms in various industries. Computer science technology enables self-learning systems in sectors such as cybersecurity, face recognition on social media platforms, e-commerce, and chatbots. Large enterprises and even Small and Medium-sized Enterprises (SMEs) are transitioning to cloud-based, pay-per-use subscription models for cloud computing services. This shift reduces operating costs and eliminates the need for dedicated IT support teams.

In addition, machine learning applications are expanding into sectors like healthcare, finance, retail, IT and telecommunications, banking, automotive and transportation, advertising and media, energy and utilities, and the public sector. Cloud, hybrid cloud, 5G wireless networking, edge computing, and AI technologies are driving market expansion. However, responsible computing and addressing cyber threats, including supply chain attacks, remain crucial concerns for cyber specialists. Therefore, the above-mentioned advantages of cloud-based offerings, including their integration with recommendation engines that personalize user experiences across diverse sectors, are expected to drive the growth of the market in the forecast period. Recommendation engines utilize AI and machine learning algorithms to analyze vast amounts of data, enabling businesses to deliver targeted content, products, and services to users, thereby enhancing customer satisfaction and engagement. As industries embrace these technologies for enhanced personalization and efficiency, the demand for cloud-based solutions with integrated recommendation engines is set to increase significantly.

Significant Market Trends

Application of machine learning to IoT data is the primary trend in the market. Machine learning, a subset of artificial intelligence, plays a pivotal role in the IoT ecosystem by enabling computer systems to learn and improve from experience without being explicitly programmed. This technology uses algorithms to analyze large datasets generated by interconnected devices, sensors, and networks in real-time. Machine learning is revolutionizing various industries, including self-driving cars, cybersecurity, face recognition, social media platforms, e-commerce, and chatbots, among others. Large enterprises and SMEs alike are adopting cloud-based and cloud computing solutions for machine learning applications.

Moreover, healthcare sector is leveraging machine learning for Big Data analysis, while cybersecurity specialists use it for security analytics to combat cyber threats such as supply chain attacks and 5G wireless networking vulnerabilities. Machine learning is also transforming IT and telecommunications, banking, retail, automotive and transportation, advertising and media, energy and utilities, and the public sector. As market expansion continues, responsible computing practices will ensure the ethical use of AI technologies. Such factors are expected to drive the market growth during the forecast period. 

Major Market Challenge

Shortage of skilled personnel is a major challenge to the growth of the market. Machine learning, a subset of artificial intelligence (AI) in computer science, is gaining significant traction in organizations across various industries. This technology, which involves the use of algorithms to enable computers to learn from data, is revolutionizing sectors such as self-driving cars, cybersecurity with face recognition, social media platforms, e-commerce, and chatbots. Large enterprises are increasingly adopting cloud-based machine learning solutions for applications like security analytics, while SMEs are leveraging software programs for specific use cases.

Further, AI technologies are also transforming healthcare with big data analysis, and the public sector, financial services, retail, IT and telecommunications, banking, automotive and transportation, advertising and media, energy and utilities, and other industries are expanding their use of machine learning. For instance, machine learning algorithms are increasingly being used in music streaming services to personalize playlists and enhance user recommendations based on listening habits and preferences. However, the growing popularity of machine learning also presents challenges, such as cyber threats and supply chain attacks, requiring cyber specialists and responsible computing practices. Additionally, advancements in 5G wireless networking, edge computing, and hybrid cloud are further expanding the potential applications of machine learning. Such factors will hinder market growth during the forecast period.

Customer Landscape

The market forecasting 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 market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• 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 Inc.
• SAP SE
• SAS Institute Inc.
• TIBCO Software Inc.
• Yottamine Analytics LLC

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation 

The market share growth by the BFSI segment will be significant during the forecast period. Machine learning, a subset of artificial intelligence and computer science, utilizes algorithms to enable computer systems to learn and improve from experience without being explicitly programmed. This technology is revolutionizing various industries, including finance, insurance, and services (BFSI), by reducing costs, enhancing customer relations, and improving risk management and decision-making processes. Machine learning is also transforming sectors like self-driving cars, cybersecurity, face recognition, social media platforms, e-commerce, and retail through chatbots and large enterprises' digital transformation. Cloud-based and cloud computing technologies facilitate machine learning's adoption by organizations, enabling scalability and agility. 

Get a glance at the market contribution of various segments View the PDF Sample

The BFSI segment was valued at USD 632.90 million in 2018 and continued to grow until 2022.  Additionally, machine learning is essential in sectors like healthcare, big data, and cybersecurity, where it powers software programs, security analytics, and cyber specialists' work against cyber threats and supply chain attacks. The technology's expansion includes 5G wireless networking, edge computing, hybrid cloud, and AI technologies' integration in public sectors, financial services, IT and telecommunications, banking, automotive and transportation, advertising and media, energy and utilities, and market expansion. Responsible Computing is a crucial aspect of machine learning's implementation to ensure ethical and unbiased use. Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

For more insights on the market share of various regions Download PDF Sample now!

North America is estimated to contribute 34% 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 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. Hence, such factors are driving the market in North America during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user Outlook
  • BFSI
  • Retail
  • Telecommunications
  • Healthcare
  • Automotive
  • Others

• Deployment Outlook 
  • Cloud-based
  • On-premise

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

Machine learning, a subset of artificial intelligence, has revolutionized various industries with its ability to learn and improve from data. In the marketing sector, machine learning algorithms are used to analyze customer data, identify patterns, and make predictions to optimize marketing strategies. Compute power and big data are essential for marketing, enabling the processing of vast amounts of data to gain insights. These insights include understanding customer behaviour, preferences, and trends, enabling personalized and effective marketing campaigns. Machine learning models, such as regression models, neural networks, and decision trees, are used to analyze data and make predictions. Companies like Google, Amazon, and Facebook use machine learning marketing extensively to deliver targeted ads and recommendations, enhancing customer experience and increasing sales. Marketing is a dynamic and evolving field, with advancements in technology such as talent management software leading to new applications and opportunities.

Additionally, the market is experiencing exponential growth, fueled by advancements in AI technology and the widespread adoption of cloud based solutions across various industries like financial services and insurance (BFSI), healthcare segments, and e-commerce. With technology pioneers driving innovations, data scientists are leveraging data centers and OCI Dedicated Regions to develop analytics-driven solutions that cater to diverse needs. The proliferation of social media platforms and self driving cars further accentuates the demand for ML and AI implementations, fostering collaborations and product launches aimed at meeting sustainable development goals. However, this rapid growth also attracts challenges such as cyber attacks, necessitating continuous learning capabilities to enhance security and privacy in this dynamic landscape.

View PDF Sample

What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. 

Get in touch