The Global Cloud AI market is expected to register a CAGR of over 20% during the forecast period, 2020 to 2025. The global cloud AI market is expected to grow significantly, over the forecast period, owing to an increasing adoption rate of cloud-based services as well as a growing demand for virtual assistants in these cloud platforms. The rising adoption of hybrid cloud is also developing opportunities for cloud AI market.
- The growing investment in Infrastructure-as-a-Service (IaaS) market, especially by the SMEs, is also a significant factor for studied market growth. The companies are also increasing their investment in IaaS, owing to the technological advancements, increasing digitalization, and the growing demand for Virtualization, storage, and analytics. Hence, the cloud AI vendors have an excellent opportunity to penetrate.
- In 2018, Microsoft launched Intelligent Cloud Hub in an attempt to build an AI-ready workforce. The Intelligent Cloud Hub will support around 100 institutions with AI infrastructure. The company has also collaborated with Qualcomm in a joint effort to create a vision AI dev kit (pictured in the lead image), running Azure Internet of Things (IoT Edge).
- The lack of a skilled workforce, as well as growing concerns regarding data security, are some of the major factors restraining the studied market growth. However, many key players of the studied market are also creating awareness for the market.
- According to SAP, nearly 60% of companies and 75% of digital leaders in the MENA region plan to invest in the cloud by 2019. In addition, most of the companies are shifting to cloud from on-premise AI, owing to faster delivery time with low latency and real-time tracking, which is likely to foster the studied market growth, during the forecast period.
Scope of the Report
The cloud AIs are enhancing cloud-based service and applications, especially among SMEs. The rapid adoption of AI in industries, such as retail, automotive, and manufacturing is projected to increase at a fast pace. As the cloud is also playing a significant role in all these sectors, cloud AI is also expected to penetrate exponentially in these areas.
Key Market Trends
Government to Hold Significant Share
- Governments and large NGOs are investing in AI, spending budget and time on pilot programs for various AI applications and discussions with people in the field on the future implications of the technology.
- On a UN-INTERPOL conference in Singapore, National Defense University in Washington DC agreed on the statement of how AI could help improve healthcare in developing nations, and spoke with generals and colonels studying at.
- Siemens’ MindSphere successfully deployed and operated on Alibaba Cloud infrastructure to foster the industrial Internet of Things (IoT) in China.
- On Feb 2019, the US government has launched the American AI Initiative, AI.gov. This Initiative has the applications such as smart cars, cloud, and big data, smart robotics and strategic technologies to focus on the resources of the Federal government to develop Artificial Intelligence to Increase Nation’s prosperity, enhance national and economic security, and improve quality of life for the American people.
- The technical foundations of AI such as, low-cost cloud services, connected and sensing devices (the Internet of Things), machine-learning algorithms and data analytics, are growing and improving swiftly. Governments have traditionally moved to new technologies both rapidly and cautiously at times, and AI’s potential benefits for citizens create a compelling platform to run at a brisk pace.
- National Association of Software and Services Companies (NASSCOM), has titled ‘Cloud – Next Wave of Growth in India’ as cloud providers in analytics, Artificial Intelligence, big data, IoT, etc. are a compelling proposition for the Indian SMEs, enterprises and government.
North America Region to Hold Major Share
- North America is expected to dominate the global cloud AI market, owing to its status as one of the early adopters of the technology. The other factor is that most of the major players in the market are US-based. The cloud adoption among the regional end-user is also quite high. Hence, the investment in the studied market is too high.
- For instance, US-based SoundHound Inc. offers Houndify, an independent AI platform that enables developers and business owners to deploy a conversational interface anywhere to retain control of their brand and users, while differentiating and innovating. The company recently added SoundHound music recognition technology to its Houndify voice AI platform. It also made a strategic partnership with Honda Motor Co. Ltd to accelerate development.
- Many of the studied market vendors in the region are also investing in innovating additional and unique features to their offering, mainly to gain a competitive advantage as well as to expand their customer target base. This is also expected to bring advancement in the regional and global market. This factor expands the market scope further.
- In March 2019, US-based 8x8 inc integrated its 8x8 contact center with Google Cloud’s new contact center AI, a solution that combines multiple AI products to enhance the customer service experience, as well as the productivity of contact centers.
The cloud AI market is fragmented. The rapid adoption of AI in industries, such as retail, automotive, and manufacturing is projected to increase at a fast paceOverall, the competitive rivalry among existing competitors is high. Moving forward, acquisitions and collaboration of large companies with startups are expected, which are focused toward innovation. Some of the key developments in the area are:
On Mar 2018, Salesforce acquired MuleSoft, an API integration platform worth USD 6.5 billion, which is expected to boost the integration capabilities of the former. Furthermore, it is expected to enhance the existing middleware system, thereby, boost the company’s financials.
On September 2018, CloudMinds Technology, developer and operator of cloud AI robotic solutions, announced a technology in collaboration with Sprint. The companies are demonstrating two innovative use cases for retail, Cloud Pepper and the Smart Retail Go-Box.
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