Machine Learning Market Trends & Forecast | 2028

Market Insights

The machine learning market is estimated to grow from USD 31.01 billion in 2022 and is likely to grow at a CAGR of 44% during 2023-2028 to reach USD 276.58 billion by 2028.

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What is machine learning?

Machine learning is referred to as a process that involves the application of artificial intelligence (AI) to offer the ability to the system to automatically learn as well as improve from experience without being explicitly programmed. This technology primarily focuses on developing a program that can access data and use it to learn for themselves.

Key Players

The following are some of the major key players operating in the machine learning market:

• International Business Machines Corporation (US)
• Hewlett Packard Enterprise Development LP (US)
• Amazon Web Services, Inc. (US)
• Baidu Inc. (China)
• Google Inc. (US)
• H2o.AI (US)
• Intel Corporation (US)
• Microsoft Corporation (US)
• SAS Institute Inc. (US)
• SAP SE (Germany)

There is stiff competition in the market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their application offerings on the basis of their quality and their penetration in the target and emerging markets. Also, there have been some major development strategies adopted by key players in the industry in recent years, which significantly influenced the competitive dynamics.

For example:

On 9 May 2023, IBM announced WatsonX, an AI and data platform, at its annual Think conference. WatsonX will enable enterprises to scale and accelerate the impact of advanced AI with trusted data. It provides a full technology stack for training, tuning, and deploying AI models across organizations, with trusted data, speed, and governance. WatsonX runs in any cloud environment.

On 12 April 2023, Siemens and Microsoft integrated generative AI to enhance cross-functional collaboration in the design, engineering, manufacturing, and operational lifecycle of products, using Siemens' Teamcenter software and Azure OpenAI Service.

On 21 March 2023, Amazon Web Services (AWS) and NVIDIA announced a collaboration to develop the world's most scalable, on-demand artificial intelligence infrastructure for training complex large language models and developing generative AI applications. AWS and NVIDIA have collaborated for over 12 years, delivering large-scale, cost-effective GPU-based solutions for various applications, including AI/ML, graphics, gaming, and HPC. 

On 3 May 2023, H2O.ai partnered with Nippon Life Insurance Company, also known as Nissay, to deploy H2O Driverless AI tools to improve policyholder needs, enhance corporate health insurance unions' financial soundness, and support health promotion and disease prevention.

On 2 May 2023, SAP and IBM announced that IBM Watson® technology will be integrated into SAP solutions, providing AI-driven insights and automation to accelerate innovation and enhance user experiences.

Market Dynamics

The machine learning market is driven by a host of factors, some of which are noted below:

• Growing developments in technology resulting in a higher accuracy of systems is a key factor augmenting the market growth People interact with several systems that are based on machine learning such as voice recognition systems, recommender systems, and image recognition systems.
• Significant technological advancement in image recognition systems has spurred the accuracy of the system, thereby bolstering industry growth.
• In healthcare, among many other applications, this technology can evaluate millions of different data points and predict outcomes, enabling rapid risk assessment and accurate resource allocation.

One of the most important applications of this technology is the detection and diagnosis of diseases and conditions that are sometimes difficult to identify. This can include everything from cancers, which are difficult to detect in their early stages, to other hereditary diseases.

A revolutionary technique called Computer Vision combines machine learning and deep learning.

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Restraining Factors:

Technical constraints and inaccuracies impede market advancement.

The ML platform, despite its potential for market growth, faces challenges due to its inaccuracy and undeveloped algorithms. This can lead to defective products and require human interaction to ensure a zero-error margin, potentially affecting market prospects.

Trends:

Analytics and Machine Intelligence Integration to Accelerate Market Development.

Retail analytics has grown rapidly, with e-commerce giants like Alibaba, eBay, and Amazon utilizing advanced data analytics technologies. Cognitive speech coding approaches based on ML are emerging. Machine learning is expected to become a key trend in security analytics, helping organizations predict, track, and recognize cyberattacks, and expanding the machine learning market size.

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The machine learning market is segmented into the following categories. 

By Component Type:

• Hardware
• Software
• Service

By Enterprise Size Type:

• SMEs
• Large Enterprises? 

By End-Use Type:

• Healthcare
• BFSI
• Law
• Retail
• Advertising & Media
• Automotive & Transportation
• Agriculture
• Manufacturing

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

Segment Analysis?

Component Trends

The market has been classified into hardware, software, and service. Under these, the hardware segment held a significant market share in 2022 & is expected to grow at a robust CAGR during the forecast period, owing to the rising adoption of hardware optimized for machine learning. The development of customized silicon chips with AI and ML capabilities is further bolstering the adoption of hardware, thereby boosting segment growth.

Enterprise Size Trends

The market is bifurcated into SMEs and large enterprises. Large enterprises accounted for the largest market share in 2022 and are expected to propel market growth at a significant rate during the review period. This is attributed to the increasing adoption of artificial intelligence and data science technologies to provide quantitative insights into business operations. Large companies are working to use deep learning, machine learning, and decision optimization to offer services at high market levels. It is estimated that

SMEs will show a significant growth rate during the forecast period. Artificial technologies and machinery are expected to propel market growth at a significant rate during the review period in learning should be key enablers enabling SMEs to reduce their ICT investments and access to digital resources.

End-Use Trends

The market is bifurcated into Healthcare, BFSI, Law, Retail, Advertising and media, Automotive and transportation, Agriculture, Manufacturing, and others. Under these BFSI is expected to be the highest contributor, whereas healthcare is projected to grow at the highest CAGR during the forecast period. Both industries generate massive amounts of data every second, and the demand for data management technologies like machine learning and predictive analytics to extract business-critical insights from this ever-growing data is increasing rapidly. 

Regional Analysis

In 2022, North America held the largest share in the machine learning market due to R&D investors like Oracle, Amazon, and IBM. The region's IT infrastructure and significant investments are expected to drive market growth. The US and Canada, with their focus on R&D innovations, are the fastest-growing markets. 

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The APAC region is expected to grow at the fastest pace during the forecast period with increased business productivity awareness and machine learning solutions and is also a highly potential market.

Europe is expected to experience strong global market growth due to the increasing use of ML technology in emerging markets, improved customer access to AI services, and increased digitization due to COVID-19.

Report Features

This report provides market intelligence in the most comprehensive way and the structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report.

What Deliverables will You Get in this Report?

Target Audience

The target audience of the machine learning market includes-

• Companies
• Distributors
• BFSI companies
• Government organizations

COVID-19 Impact Analysis

The COVID-19 pandemic has positively influenced the machine learning sector. Physical lockdowns amid the pandemic across different regions are likely to propel the demand for machine learning as companies enterprises worldwide are trying to find innovative ways to get their internal and wider globally dispersed teams to collaborate, communicate, and find a path forward during the crisis, thus augmenting the market growth.

Due to the significantly accelerated adoption of machine learning technologies in the healthcare, automotive, and retail industries. The COVID-19 pandemic has severely impacted the country's health, financial, and social systems. The use of artificial intelligence technologies is expected to help fight the pandemic. Several countries are using population surveillance methods to track COVID-19 cases.

Research Methodology

This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Technology portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.