INNOVATION AS A SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Innovation as a Service Market Size and Trends

The Global Innovation as a Service Market size was valued at US$ 1.76 Bn in 2023 and is expected to reach US$ 5.27 Bn by 2030, growing at a compound annual growth rate (CAGR) of 17% from 2023 to 2030. Innovation as a service refers to business models where enterprises work with external innovation partners to access on-demand innovation capabilities, resources, and solutions. It helps organizations leverage external capabilities to accelerate innovation, reduce costs and risks, and focus on their core business. The key drivers of the market include increasing Research &Development costs, the need for open innovation, and the demand for accelerated product development cycles.

Innovation as a Service Market Trends:

• Emergence of Startup Innovation Networks: Enterprise partnerships with startups are growing as an important source of innovation. Startups are agile, come up with disruptive ideas, and can prototype rapidly. This innovative approach fosters collaboration and knowledge exchange among startups, established companies, and industry experts, leading to a more dynamic and adaptable innovation ecosystem.
• Focus on Intellectual Property Generation: Companies are increasingly focusing on generating intellectual property (IP) from innovation to gain a competitive edge. Owning the IP for solutions creates differentiation. Innovation as a service is evolving with IP-sharing agreements between enterprises and external partners to co-develop IP-protected solutions. 
• For instance, in June 2023, Wipro, an IT consulting company, announced the launch of the Wipro Industry Innovation Experience for Financial Services, featuring a new suite of banking and financial services solutions built on Microsoft Cloud.
• Leveraging Disruptive Technologies like AI, ML, and Big Data: Technologies like AI, ML, and Big Data are disrupting the innovation process by enabling the analysis of huge amounts of information to generate insights. Enterprises are beginning to adopt these technologies to streamline and enhance innovation. Service providers are also integrating these into their offerings.