Cognitive Computing Market Analysis by Technology (Natural Language Processing, Machine Learning, Deep Learning, Human Computer Application, Automated Reasoning, Information Retrieval), Deployment Mode (On-Premises, Cloud), Organization Size (Large Enterprises, SMEs), Industry Vertical (Healthcare & Lifesciences, Retail & E-Commerce, BFSI, Security, IT & Telecom, Media & Entertainment, Aerospace & Defense, Manufacturing) - Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The global cognitive computing market was valued at $23.2 billion in 2021, and it is expected to reach $177.9 billion by 2030, growing at a CAGR of 25.4% between 2021 and 2030. This is primarily attributed to the increasing penetration of artificial intelligence, machine learning, neural networks, and integrated cloud platforms across industrial applications. Moreover, other factors driving the market include an increase in the adoption of big data analytics, the development of machine-to-machine technologies, and a rise in demand for better customer experience.

In addition, a large dataset deployment across numerous sectors is a key trend in the cloud computing industry. This dataset includes massive amounts of information and traditional data analysis methods, which are incompatible with processing information. Thus, organizations all over the world are focusing on the use of cognitive systems.

Furthermore, the increasing technological advancements in artificial intelligence and machine learning have improved computing technology, which is predicted to become an emerging technology during the forecast period. The main objective of this technology is to support businesses in decision-making. It is the perfect solution for carrying out smooth business operations by deploying machine learning capabilities like predictive analytics.

NLP Is One of the Major Technologies Used in Cognitive Computing

The natural language processing (NLP) category accounted for the highest revenue share, of more than 40%, in 2021. The NLP technology helps in analyzing unstructured data for improving customers’ needs, expectations, and experience. Moreover, organizations benefit from NLP by gaining improved insights into business process optimization, operational cost reduction, and customer perception, which are projected to drive the market growth. Furthermore, the growing usage of smart assistants, such as Alexa and Siri, along with the usage of predictive text, has increased the adoption of cognitive computing systems in the market.

Whereas, the demand for machine learning technology is expected to grow at a significant growth rate over the forecast period, owing to the surging need to enhance human-computer connection. Machine learning for adaptive and interactive learning is predicted to gain momentum on cognitive computing technology platforms. Also, machine learning is expected to be sought after by industry participants, in order to improve translation and interpretation systems.

Explore more about this report - Request free sample

BFSI Sector Is the Major Revenue Contributor

The BFSI category accounted for the largest revenue share, of more than 26%, in 2021, and it is projected to witness a significant growth rate throughout the forecast period. The adoption of cognitive solutions entails effective and efficient data analytic capabilities customized to the requirement of BFSI organizations. This technology attempts to provide items without delays, enhances face-to-face services, answers inquiries more quickly and effectively, and uses consumer data to tailor customer decisions. Therefore, banks will have a competitive edge if they implement cognitive technologies into their decision-making, transaction execution, and client experience.

The healthcare category is predicted to grow at a significant CAGR over the forecast period in the cognitive computing market. Cognitive solutions allow medical practitioners to focus on patient care by eliminating paperwork. Computing systems will continue to be pushed in order to improve human diagnostics and decision-making with a human touch. Also, the system will be beneficial in delivering a data-powered therapy suggestion with the assessment and aggregation of data from medical publications, medical reports, and diagnostic equipment.

The cloud category accounted for a significant market share in 2021. The recent advancement in data storage facilities, such as integrated cloud storage facilities, and the evolution of customized cloud solutions, such as private and public clouds, are some key drivers responsible for the market expansion in this category. Furthermore, the proliferation of an exponential amount of data has compelled corporations and organizations to rely on cloud solutions. The adoption of cloud technologies also provides stakeholders with several chances to minimize the cost of cognitive computing, which, in turn, bolsters the demand in the market.

However, major industry players are investing heavily in on-premises storage solutions that complement traditional file and block storage platforms. Also, leading firms may desire comprehensive control and flexibility over server configuration. Thus, the on-premises category is expected to rise at a substantial CAGR over the forecast period.

North America Is the Market Leader

North America led the industry for cognitive computing, with a revenue share of more than 40%, in 2021. This is attributed to the rapid adoption of integrated cloud platforms and the emergence of new business models. Also, strong government policies in the U.S. and Canada are expected to emphasize the importance of data security, hastening the adoption of cognitive computing solutions across the region. Furthermore, the regional industry is predicted to develop in the coming years, due to the rising number of start-ups and the surging adoption of cognitive computing technology by organizations to review enormous volumes of data and provide better answers. In addition, recent technological advancements, such as 5G and IoT, have also aided in the development of cognitive solutions in the market across the region.

On the other hand, APAC is expected to emerge as the fastest-growing region during the forecast period. Some positive developments, such as the rising internet penetration and the increasing number of start-ups in China, Japan, India, Australia, and other countries of the region, are predicted to boost the market growth. Moreover, leading players are projected to investigate the potential of cognitive computing solutions, owing to the trend for IoT, 5G, and other technological improvements. As a result, it has boosted the regional market by being an early step in augmenting cognitive solutions.

Big Data Analytics Are Widely Used Among Organizations

The increasing volume of data and the rising adoption of big data technologies are expected to boost the demand for big data analytics across various industries, such as IT and telecom, healthcare, and aerospace & defense. Big data technologies have accelerated the adoption of enterprise cognitive computing by enabling businesses to deploy data and processes based on data governance, financial, and data gravity requirements, wherever they are. The need for multitemperature data management, also known as data tiering, is projected to increase, as cognitive computing handles different types and sizes of data.

Also, this technology makes it easier to follow government regulations for storing real-time data on quicker, more accessible media, and tying cooler data to more affordable storage. Moreover, the use of cognitive computing platforms by real-time streaming analytics companies is expected to increase as a result, which would drive the market growth in the near future. Cognitive computing may also be used to address large data analytics challenges, as it is specially built to integrate and analyze large datasets.

In addition, as the use of big data analytics has increased significantly in the recent past, a majority of the data received by companies is in the form of unstructured data including images, audio files, videos, texts, etc. This makes organizations adopt the cognitive computing model to organize the data and provide meaningful interference. Furthermore, the high growth of the global big data and analytics market has increased the demand for cognitive computing solutions across the world. Thus, companies in the industry are focusing on making significant investments in big data, which is expected to support the market growth during the forecast period.

Top Players in Cognitive Computing Market Are:

• Microsoft
• Teradata
• IBM
• SAS Institute Inc.
• Google LLC
• Amazon Web Services Inc.
• CognitiveScale
• SparkCognition
• Cisco Systems Inc.
• Virtusa Corporation

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Technology

• Natural Language Processing
• Machine Learning
• Deep Learning
• Human Computer Application
• Automated Reasoning
• Information Retrieval

Based on Deployment Mode

• On-Premises
• Cloud

Based on Organization Size

• Large Enterprises
• Small & Medium Sized Enterprises (SMEs)

Based on Industry Vertical

• Healthcare & Lifesciences
• Retail & E-Commerce
• BFSI
• Security
• IT & Telecom
• Media & Entertainment
• Aerospace & Defense
• Manufacturing

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa