"Smart Strategies, Giving Speed to your Growth Trajectory"
The global machine learning (ML) market size stood at USD 8.43 billion in 2019 and is projected to reach USD 117.19 billion by 2027, exhibiting a CAGR of 39.2% during the forecast period.
In the global effort to attenuate the spread of novel Coronavirus, several countries have adopted quarantine measures and social distancing policies to mitigate the impact of the pandemic. The developers and researchers intend to use such tools to analyze the effects of these measures.
Advancements in deep learning and integration of machine intelligence capabilities with analytics-driven solutions are expected to be the growing market trend. Substantial investments in artificial intelligence (AI) and the advent of self-driving cars are some of the factors that influence machine learning market growth.
Request a Free sample to learn more about this report.
Advancements in Deep Learning to Push Market towards Higher Growth Trajectory
The field of machine intelligence is experiencing exponential growth across the globe. Deep learning is a subset of ML in artificial intelligence (AI) technology. Deep learning leverages the hierarchical level of artificial neural networks (ANN) to carry out the process of machine learning. The global market is expected to gain traction owing to the advancements in the deep learning algorithms.
Many companies are strengthening their deep learning capabilities to drive innovation. For instance, in November 2019, Panasonic Corporation announced the offering of its application programming interface (API) for facial recognition technology incorporated with deep learning capabilities.
Integration of Machine Intelligence with Analytics-driven Solutions to Bolster Growth
Retail analytics has witnessed significant growth in recent years. Many e-commerce companies such as Amazon, Alibaba, and eBay are leveraging advanced data analytics solutions to boost their sales and provide enhanced customer experience. Research and development in speech and voice recognition technology have led to the emergence of cognitive speech coding techniques using ML paradigms.
ML in security analytics is likely to be a fast-growing trend. ML in cybersecurity plays a crucial role. Some of the established players have implemented machine intelligence solutions to protect their data. For example, Google is leveraging machine intelligence solutions to mitigate threats against mobile end-points running on Android. Thus, the above data shows that the integration of advanced learning capabilities with analytics-driven solutions is likely to be a growing market trend.
Substantial Investments in Artificial Intelligence (AI) to Drive Market
The commercial applications of AI are proliferating in both advanced and emerging economies. As a result of this, there is an intense competition between the market players to fund, develop, and acquire artificial intelligence technology startups. For instance, May 2020 Intel Corporation announced capital investments of USD 132 million in 11 disruptive technology startups. The startups including California based Anodot, that leverages ML to drive autonomous business monitoring. Similarly, Hypersonix, a provider of AI-powered autonomous analytics platform. KFBIO, the provider of digital pathology systems, Xsight Labs, develops innovative technology for machine intelligence, data analytics, and disaggregated storage among others. Such heavy investments would ensure to drive the global market in the coming years.
Advent of Self-Driving Cars to Augment Need for Advanced Learning Solutions
Self-driving cars have gained tremendous popularity in the recent years. The advancements in artificial intelligence technology and the Internet of Things (IoT) have paved way for driverless cars.ML is a vital component of the centralized electronic control unit (ECU) in a self-driving car. Real-time monitoring of the surroundings and predicting possible changes in the environment are the primary functions of ML algorithms in self-driving cars.
ML algorithms such as supervised learning, unsupervised learning, pattern recognition algorithms, decision matrix algorithms, among others are integrated into the functioning of self-driving cars. For example, Waymo LLC an autonomous driving technology development company headquartered in California, uses categorical machine intelligence technology to classify and detect different types of road features and objects. By incorporating advanced ML algorithms, the company intends to expand to more cities to encounter new scenarios and objects. These factors are likely to fuel the demand for intelligent retrieval algorithms, thereby aiding to the expansion of the market.
Increasing Emphasis on Data Privacy to Restrict Market Growth
Deepfakes posed by AI-enabled fake content are suspected to be a national security threat. However, the idea of AI licenses can overcome this constraint. For instance, Responsible AI licenses (RAIL) enable the software developer to publish open-source ML software with a license. This mitigates the risk of software to be used illegally.
Also, ML in robotic automation processes is exposed to fraud and undesired use cases which may hinder growth. To prevent the misuse of robot’s governments across, all regions are taking preventive measures. For instance, in September 2018, California approved a bill namely ‘California B.O.T. Act of 2018’. The law would criminalize the use of bots to interact with the citizen of California if the bot intents to mislead the person.
Spread of COVID-19 Pandemic Across Globe to Create Unprecedented Market Opportunities for Companies
The application of artificial intelligence technology is likely to help combat the COVID-19 pandemic. Several countries are using population surveillance methods to track and trace COVID-19 cases. For example, in South Korea, researchers are using surveillance-camera footage, geo-location data, to track corona patients. By using this data, scientists use machine intelligence algorithms to predict the location of the next outbreak and inform the responsible authorities to help track the disease in real-time. Such active initiatives are likely to surge the demand for machine intelligence solutions in the coming period.
Machine Learning Solutions to Account for Major Market Share
By component, the market is segmented into solutions and services. The solution segment is expected to hold major share during the forecast period. The solutions provided by the market players include IBM Corporation’s Watson ML, Oracle ML, Microsoft Corporation’s Azure ML among others. These solutions help data scientists and researchers to accelerate the deployment of artificial intelligence and ML. Hence, solutions are expected to hold a major share. Machine-learning-as- a service is expected to be a growing market trend in the coming years.
Professional and managed services are considered under the services segment. The services are forecast to witness significant growth during the forecast period. These services help industries in making informed decisions, actionable strategies; enhance operation workflow, end-to-end risk, and compliance management capabilities.
Small and Mid-Sized Enterprises to Increase their Tech Expenditure to Deploy AI and ML Technologies
By enterprise size, the market is bifurcated into small and mid-sized enterprises (SME’s) and large enterprises. Small and mid-sized enterprises are forecast to exhibit a significant growth rate during the forecast period. AI and ML, are expected to be the key technologies that will enable the SME’s to reduce ICT investments and access digital resources. Large enterprises are likely to hold a major machine learning market share.
Increasing Demand for adoption of Cloud Based Solutions to Drive Market
By deployment, the market has been classified into the cloud and on-premise. The market players offer machine intelligence solutions that can be deployed on the cloud or on-premise. For instance, Alphabet, Inc. provides Google Cloud. The Google cloud offers a comprehensive toolset regarding ML and AI. Similarly, BigML offers on-premise deployments for the enterprises that wish to configure, maintain, and manage their installations within the enterprise. The cloud-deployments are expected to witness a remarkable growth rate during the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Healthcare Industry to Witness Remarkable Market Growth Owing to Increasing Demand for Real-Time Health Monitoring
The industries working with large amounts of data leverage ML technology to glean real-time insights from the data. The real-time insights enable the industries to gain more advantage over competitors and work more efficiently.
In the pre-COVID scenario, the advent of wearable devices and sensors that are used to assess the patients’ health in real-time has surged the demand for machine intelligence applications in the healthcare industry. The technology helps medical experts to identify trends and analyze data to improve diagnosis and treatment. However, the outbreak of novel Coronavirus has increased the applications of artificial learning technology across the sector.
Banks and other financial businesses leverage machine intelligence technology to prevent fraud and identify important insights in data. E-Commerce has proved to be a major driver for retail trade business practices. Retailers rely on machine intelligence to capture data, analyze it, and leverage it to offer personalized shopping experience to customers. These are some of the aspects that drive the demand for ML technology in the financial and retail industries.
In the pre-COVID period, the manufacturing industry had been demonstrating an impressive adoption of artificial intelligence technology. Industrial Internet of Things (IIoT), Industry 4.0, smart factory including smart robotics, intelligent logistics, autonomous delivery using drones, and intelligent inventory management are some of the strong use cases of ML in the manufacturing industry.
Automotive and transportation segment is projected to witness significant growth in the coming years. Research & development in self-driving cars, and autonomous transportation, are driving the demand for advanced solutions. In the advertising and media industry, the proliferation of over-the-top (OTT) services has influenced OTT providers such as Netflix, Hotstar, and Amazon.com among others to deploy deep learning and machine intelligence to gain deep customer insights.
Further, machine intelligence has gained importance in the education sector owing to advanced programs such as Education 3.0. In the energy and utilities segment, industry prediction of energy consumption is the most popular use case of machine learning. Smart grid distribution drives the need for advanced algorithms in the sector.
North America Machine Learning Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific to Experience Flourishing Growth Rate During the Forecast Period Backed By Vibrant Startup Ecosystem
The market has been categorized into five major regions including North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. These regions are further divided into countries. North America is anticipated to emerge dominant in the global market. Asia Pacific is expected to witness a high growth rate.
North America is expected to hold major market share owing to the presence of R&D investors such as IBM Corporation, Amazon.com, and Oracle Corporation across the region. Moreover, heavy investments and the availability of established IT infrastructure are expected to drive the market growth in North America. For instance, the defense advanced research projects agency (DARPA) of the U.S. invested USD 2 billion to develop AI technologies such as ML among others.
In June 2018, the European Union proposed a Digital Europe Program with a budget of 10.4 billion USD for the period 2021-2027. The program aims at advancing AI technology and deploying its applications across the society and economy. Such active initiatives are likely to create new market opportunities and augment the regional market growth.
Asia Pacific is forecast to exhibit a fascinating growth rate. The developing economies in the region such as China, India, and Japan pose a strong and vibrant startup ecosystem assisted with an increasing number of skilled workforce that drives the market growth across the region. Further, the government of Singapore has created an AI Ethics Advisory Council as a part of its AI Strategy to deploy the applications of AI across different sectors. These are some of the factors that drive market growth in the Asia Pacific.
In the Middle East and Africa, the oil-rich Gulf States are making active efforts to diversify their economies through artificial intelligence. For instance, in 2017 Saudi Arabia gave citizenship to a robot. Whereas, the United Arab Emirates announced its first dedicated artificial intelligence minister. Also, smart city initiatives, and autonomous transport drive the demand for AI capabilities in the region. The Latin American countries such as Brazil, Mexico, and Uruguay are developing new AI policies and coherent strategies. The region is expected to pose new lucrative market opportunities in the future.
Microsoft Corporation to Introduce New Capabilities in its Product Offerings to Strengthen the Market Position
Microsoft Corporation offers automated machine intelligence solutions to easily build learning models and drive innovation. Microsoft’s Machine Learning Operations (MLOps) or DevOps incorporates the Azure’s ML capabilities. Responsible ML is the company’s state-of-the-art technology that empowers data scientists to innovate responsibly. To strengthen their market position, Microsoft Corporation tends to introduce new capabilities in its product offerings. For instance,
High Performers to Enter into Strategic Partnership & Collaborations to Drive Innovation
The activities of high performers such as SAP SE, IBM Corporation, SAS Institute, Inc., and Amazon.com, Inc. among others and niche market players including H2O.ai, and Fair Isaac Corporation, among others are focused on partnership and collaboration activities. These strategies will enable the companies to expand the product line and achieve organizational goals. For instance,
The market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry, current machine learning industry trends and analyzes various technologies that are being deployed rapidly at the global level. The report examines various paradigm shifts associated with the transformation of software. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain an in-depth knowledge about the market.
An Infographic Representation of Machine Learning Market
To get information on various segments, share your queries with us
2016 - 2027
2020 - 2027
2016 - 2018
Value (USD billion)
By Enterprise Size
Fortune Business Insights says that the machine learning market was valued at USD 8.43 billion in 2019
Fortune Business Insights says that the market is expected to reach USD 117.19 billion by 2027.
Growth of 39.2% CAGR will be observed in the market during the forecast period (2020-2027).
Within the industry segment, the healthcare industry segment is expected to lead during the forecast period.
Growing internet penetration across the globe, increasing adoption of smart speakers, the advent of autonomous cars, proliferation of OTT services, emergence of industrial IoT are some of the factors driving the market growth
SAP SE, IBM Corporation, Microsoft Corporation, and Oracle Corporation are some of the top companies in the market.
North America is expected to hold a major share. Presence of key market players in the region is likely to boost the market growth
The revenue of the market in North America in 2019 was USD 3.07 billion.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry