The Machine Learning market is a competitive one and is characterized by several companies operating globally. The growth of these vendors depends upon the market conditions, development in technical expertise, evolution of new upgraded technologies, government support, and industry development. The industry is expected to remain competitive with frequent acquisitions and strategic alliances adopted by the key players as a part of their business strategy to increase the industry presence. Companies aim at optimizing their resources and further develop value-added capabilities to maximize their margins.
The global Machine Learning market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain a considerable market share.
The market share analysis has been derived by considering various factors such as financial position, segment wise R&D investment, brand value, Machine Learning product portfolio, strategy analysis, and, key innovation in Machine Learning market among other factors. The major players holding a prominent position in the Machine Learning market are IBM Corporation, Google LLC, Amazon Inc, Intel Corporation, Microsoft Corporation, Baidu Inc, Apple Inc, Facebook, Cisco Systems, Nuance Communications, and Wipro.
According to Wantstats analysis, IBM Corporation is currently leading the global machine learning market in terms of market share. The company has an extensive product portfolio which includes platforms namely IBM Watson, IBM Analytics, and IBM Power AI, among others. It also provides hardware products that support machine learning applications such as POWER9 processors and Analog chips. Its products are embedding AI into solutions required by application areas such as security, commerce, healthcare, transportation, retail, education, and insurance. The company operates globally in the regions of the Americas, Europe, Asia, the Middle East, Africa, and Asia-Pacific, out of which the large revenue share is drawn from the Americas. The company has dedicated its resources for the research and development to create new products and enhance the capabilities of existing products for gaining the market share. It invests nearly USD 5.6 billion for research and development to expand its AI capabilities. It focuses on product launch & development and acquisitions to expand its market reach and strength its position, which gives the company a competitive advantage in the market.
Google LLC. has occupied the second position in the global machine learning market. The company provides a comprehensive product portfolio that consists of tools for building machine learning applications. TensorFlow is one of the most widely used machine learning frameworks for deep learning applications. The company has patent assets that are used to support its product. It hires talented employees to develop new machine learning products. Google has also developed some open-source frameworks that help it to develop better products, and as a giant search engine provider, it generates a large volume of data that can be used to make accurate machine learning models and algorithms. Moreover, the company has its presence globally in North America, Europe, the Middle East & Africa, and Asia-Pacific. The company invests significant resources in research and development, including acquisitions, to enhance its technology and existing products and services portfolio and introduce new products and services that customers can use effectively and easily.
Amazon Inc. has occupied the third position in the global machine learning market. The company offers a wide variety of products and solutions for machine learning applications, including Amazon SageMaker, AWS Inferentia, and Amazon Lex. It also helps other companies to harness machine learning. Thousands of its customers are using AWS with SageMaker to build their own machine learning models. The company makes alliances and collaborations with other businesses to strengthen its competitive position. The company is heavily investing in research and development and is actively involved in new product development to enhance the customer experience. The company maintains a healthy relationship with its channel partners to broaden its customer base and geographic presence.
Intel Corporation has occupied the fourth position in the global machine learning market. The company has its hardware products such as Intel Xeon processors, Xeon chips and Nervana Neural Network processor as well as software platforms such as PlaidML that that helps the customers to build machine learning models and applications easily. To be a prominent player in the machine learning market, the company cultivate new industry relationships with partners and customers in this market segment. In addition, it continuously improves the performance, cost, integration, and energy efficiency of its products and expands its software capabilities to provide the customers with comprehensive computing solutions. It hires and retains talented resources that are trained to develop products needed to stay competitive in the market. The company has an extensive geographic presence and focuses on strategic growth initiatives for delivering superior value to its customers.
Microsoft Corporation. has occupied the fifth position in the global machine learning market. The company offers products such as machine learning servers, Windows machine learning, and AI platforms. Around 1 million developers have used its cognitive services to easily and quickly create AI and machine learning applications. Its customers are rapidly adopting Azure Databricks for advanced analytics, data preparation, and machine learning. The company’s machine learning products provide its customers with advantages in the total cost of ownership, performance, and productivity. The company has its presence in more than 190 countries, which gives it a key competitive advantage in the market.
Threat of New Entrants
Currently, the global machine learning market is experiencing significant growth. Developing machine learning systems requires moderate investment for hardware components such as chips, memory, processors, and networking devices with high computing capabilities. However, high technical expertise is needed to understand complex machine learning algorithms and models such as linear regression, logistic regression, CART, Naïve Bayes, KNN, Apriori, K-means, PCA, and others. The technological complexity is also high due to the complex programming of machine learning models. Due to this, the prominent players in the global machine learning market possess a moderate threat of new entrants.
Bargaining Power of Suppliers
Enterprises of all industry verticals are adopting machine learning technologies to gain meaningful insights from the data to solve the complex and data-rich problems. It also offers personalized services to its clients and helps them to remain competitive in the market. The suppliers in the global machine learning market provide the required components such as processors, memory, and storage devices. The number of suppliers present in the market is high, which lowers their bargaining power. Furthermore, the product differentiation is low. Additionally, the substitute availability of these components in the market is high since a large number of hardware and services providers are required to create machine learning solutions; this further lowers the bargaining power. Due to these factors, the bargaining power of suppliers in the machine learning market is expected to be low during the forecast period.
Bargaining Power of Buyers
The buyers for the machine learning solutions include industry verticals such as BFSI, automotive, and healthcare. Hence, the buyer concentration in machine learning market is high. However, the technical expertise among the buyers is moderate as the machine learning solutions are provided by the companies such as Amazon, the only technical expertise required on the buyer’s side is to handle such solutions. However, the buyers are price sensitive, which lowers their bargaining power. The switching costs of buyers are low due to the presence of a large number of machine learning solution providers. Owing to the aforementioned factors, the bargaining power of buyers is expected to be moderate in the global machine learning market during the forecast period.
Threat of Substitutes
Currently, there are no direct replacements for machine learning solutions available in the market. However, there is internal substitution as each player aims at developing solutions focusing on specific applications such as machine vision, recommendation engine, and natural language processing, owing to which the product differentiation is high. The key players are investing intensely to develop machine learning algorithms which will help cater to various application areas and offer best-in-class services to its consumers; due to this, the brand loyalty among the consumers is high. However, the cost of switching to substitute products is moderate as the solutions are application specific. Therefore, the threat of substitutes is expected to be low in the global machine learning market during the forecast period.
Intensity of Rivalry
The global machine learning market is expected to register high competition among the existing players. For maintaining a competitive advantage among the competitors, the companies are spending significantly in research and development of machine learning algorithms and models and increasing its application areas in various industries. Also, the global market witnesses a high brand loyalty, as customers opt for tier-1 companies for high computing capability systems with low power consumption to be used in AI, IoT and other applications. Furthermore, the market poses high barriers to exit as it requires moderate capital requirement, very high technical expertise, and high investments for research and development of machine learning components. Therefore, the intensity of rivalry is expected to be high in the global machine learning market during the forecast period.
