Cognitive Computing Market - Forecast 2021 - 2026
Cognitive Computing Market size is forecast to reach $58.28 billion by 2025, after growing at a CAGR of 27.5% during 2020-2025. The increasing incorporation of artificial intelligence and Internet of Things between software and hardware platform and also the need for big data analytics are driving the need for cognitive business. Furthermore, the deployment of innovative hardware and software systems and cloud-based technological advancements along with machine learning and cognitive analytics are further providing opportunities for the cognitive computing market during the forecast period.
Report Coverage
The report: “Cognitive Computing Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Cognitive Computing Market.
Key Takeaways
- North America dominates the cognitive computing market owing to increasing advancements in the IT sector and the presence of giants such as IBM, Microsoft and Google.
- The increasing collaboration of machine learning with artificial intelligence and IoT is fueling the growth of the cognitive computing industry.
- The rising demand for pattern recognition, facial recognition, fraud detection and the analysis of big data analytics in a complex environment is leading to drive the cognitive computing market.
- However, the rising risk of security breach due to the use of more connected devices is leading to hinder the adoption of cognitive computing market.
Type of Technology - Segment Analysis
The Natural Language Processing (NLP) segment holds the largest share in the cognitive computing market in 2019. The deployment in technology has led NLP to play a significant role in facilitating text analytics and is also significantly contributing to the upgradation of progressive speech and text which will accelerate in the coming years. The significant demand for natural language processing in applications such as intelligent chatbots, speech-to-text and semantic search will further propagate the cognitive computing market. This technology will also mold the communication capacity of cognitive computing. Furthermore, NLP will also continue to gain growth in the future due to the integration with the AI system.
Additionally, the development in the machine learning technology is also enhancing the cognitive computing market. The machine learning technology is growing at a rapid pace, owing to the increasing applications based on machine learning such as automobile, agriculture, legal and healthcare. Moreover, the recent advancement in technology has led machine learning to use AI for root cause analysis and automatic detection of problems by machines. Also, the addition of AI and IoT has further led to the rise of machine learning technology which will further drive the cognitive computing market.
End-user - Segment Analysis
The IT & Telecommunication sector holds the largest market share for cognitive computing market and is growing at a CAGR of 17.25%. The rising technological advancements such as the integration of machine learning, artificial intelligence, IoT and so on are highly enhancing the IT sector which is further leading to the rise of cognitive computing. The development of smart and automated solutions and applications are also driving the cognitive computing market. The innovations in the business models has led to the emergence of machine learning technology, as it is integrated with AI-based technologies that transforms business processes. Furthermore, the IT solutions provider companies such as BMC Software Inc. has recently introduced Helix Cognitive Service Management (CSM) for integrating cognitive technologies such as AI and ML into traditional IT service management. In addition, the growing adoption of AI-based technology along with NLP and ML in IT sector will anticipate the growth of the cognitive computing market.
Geography - Segment Analysis
North America dominates the cognitive computing market with a share of more than 28.5%, followed by APAC and Europe. The presence of major companies such as IBM, Microsoft and Google are significantly embracing the development new technologies and are leading in the field of cognitive computing. Moreover, the increasing developments in the healthcare sector in the U.S with rising adoption of NLP technology is further driving the growth of the cognitive computing in this region. Also, the disruption of technology in retail sector is also enormously driving the need for cognitive computing in the North America. The retailers in the U.S are significantly accessing to more operational data for conducting sophisticated analytics and tap into artificial intelligence (AI), which will further manage the supply-chain management. This rising shift of retail sector towards AI will propel the cognitive computing market in the U.S.
Drivers – Cognitive Computing Market
· Integration of NLP & Machine Learning with AI
The integration of natural language processing and machine learning with artificial intelligence is adopted rapidly in various applications including retail, healthcare and so on. The combination of these technologies enhances the current level of efficiency by quickening decision making. The abrupt use of these technologies accelerate the level of performance by capturing information from real-world. The immersive use of machine learning and NLP also enables the deep learning of any patient’s data in the healthcare sector. This current adoption of artificial intelligence for solving big data analytics problems and the rise of digital transformation in various fields will drive the cognitive computing market.
· Advancements of Computing platforms
The advancements in the computing platforms such as cloud, big data analytics, mobile and so on is set to drive the cognitive computing market. The adoption of cloud-based technology in the IT industry has led to the continuous development of the business processes. Also, the popularity of mobile devices such as smartphones and laptops pose a major impact on the adoption of cloud computing. Furthermore, the increasing shift towards big data analytics for handling traditional data warehouses is also enhancing the cognitive computing market. Additionally, emerging technologies such as DataOps, Data storytelling and visualization and augmented analytics will further provide growing opportunities for cognitive computing market.
Challenges – Cognitive Computing Market
· The rising concern related to Security
The shift towards innovative technologies by various industries will also led to increasing formation of complex data that rises the risks related to security. The connection of more connected devices leads to issues related to security breach. This significant arising of security challenge lead to rising concern about the data security and encryption which further hampers the adoption of cognitive computing market.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the cognitive computing market. In 2019, the market of cognitive computing has been consolidated by the top ten players - Google Inc., Hewlett-Packard Development Company, International Business Machine Corporation, Microsoft Corporation, Nuance Communications, Inc., Oracle Corporation, SAP SE, TIBCO Software Inc., SAS Institute Inc. and Saffron Technology, Inc.
Acquisitions/Technology Launches
Ø In September 2019, Schlumberger, Chevron and Microsoft announced their collaboration for accelerating digital technologies. This collaboration will be performed in three phases that includes the deployment of the Petrotechnical Suite in the DELFI environment, secondly the development of cloud-native applications on Azure, and the co-innovation of a suite for cognitive computing native capabilities.
Ø In May 2019, Microsoft Corporation announced a series of new Azure cognitive services and developer technologies. This series of services will lead to the spanning of AI, mixed reality, IoT and blockchain which will further provide additional advancement in hybrid cloud and edge computing.
