Global Cognitive Computing Market By Component (Platform, and Services), By Technology (Natural Language Processing, Machine Learning, Automated Reasoning and Information Retrieval), By Deployment (On-premises and Cloud-based), By Organization Size (Large Enterprises & Small and Medium Enterprises), By Vertical (Healthcare, BFSI, Retail, Government, IT & Telecommunication, Energy & Power & Others) and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Industry Prospective

The global Cognitive Computing market size was worth around USD 9.26 Billion in 2021 and is predicted to grow around USD 76.83 Billion by 2030 with a compound annual growth rate of roughly 26.5% between 2022 and 2030. The report analyzes the global cognitive computing market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the cognitive computing market.

Global Cognitive Computing Market: Overview

Cognitive computing is a technology that communicates in human language and assists specialists in making better decisions by analyzing the complexity of unstructured data. The global market for cognitive computing includes technologies such as natural language processing, machine learning, automated reasoning, and information retrieval, which are used to translate unstructured data in order to perceive, infer, and forecast the optimal solution.

There is a growth in demand for cognitive systems in large organizations, which is anticipated to expand in small and medium-sized businesses due to cloud services. As cloud-based deployment reduces the cost of adopting cognitive computing within an organization, the total demand for cloud-based services increases.

For instance, IBM Watson, a market leader in cognitive computing, is anticipated to deliver Watson Analytics, a cloud-based service that will accelerate the adoption of cognitive computing via the cloud, in the next few years. Cognitive computing is gaining ground in developing nations and demand of cloud-based services is projected to serve as an opportunity for the expansion of the global market for cognitive computing.

An increase in big data analytics, advancements in machine-to-machine technologies, and a rise in demand for a superior customer experience are major drivers driving the growth of the cognitive computing market. In addition, industries such as BFSI, healthcare, social networking, and e-commerce have experienced a significant increase in transaction data and client information. In the forthcoming years, market growth is anticipated to be driven by the factors listed above.

In addition, NLP technology facilitates the analysis of unstructured data to improve consumer needs, expectations, and customer experiences. Consequently, with the aid of NLP, businesses gain greater insight into the optimization of business processes, the reduction of operational costs, and consumer perception, thereby boosting the segment's growth in the worldwide cognitive computing market.

Key Insights

• As per the analysis shared by our analyst team, the global cognitive computing market is estimated to grow annually at a CAGR of around 26.5% over the forecast period (2022-2030).
• In terms of revenue, the global cognitive computing market size was valued at around USD 9.26 Billion in 2021 and is projected to reach USD 76.83 Billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on component, the platform segment was predicted to show maximum market share in the year 2021
• Based on technology, the natural language processing segment was the leading revenue-generating type in 2021
• On the basis of deployment, the cloud-based segment was projected to show largest share in the year 2021
• On the basis of organization size, the large enterprises segment was dominating the market share in the year 2021
• On the basis of vertical, the healthcare segment was projected to show largest share in the year 2021
• On the basis of region, North America were the leading revenue generator in 2021 

COVID-19 Impact

The COVID-19 has had a favorable effect on the development of the market's growth. This growth is anticipated to be due to the growing significance of natural language processing (NLP) in the healthcare and pharmaceutical industries in order to assist healthcare professionals and scientists throughout the pandemic.

In addition, NLP is an automated procedure that enables clinicians to manage and monitor patient populations more efficiently by identifying virus-related symptoms in real time. This factor has increased the need for NLP and has a direct effect on the demand for cognitive cloud computing methods in healthcare systems.

The growing threat of the COVID-19 pandemic is producing societal tension and economic difficulties. The cognitive technology platform appears to be widely adopted, despite the fact that significant enterprises have been put on hold. Under this scenario, cognitive technologies are employed for both population screening and the evaluation of infection risks. In consequence, the market will shake off the effects of the Covid-19 outbreak and experience substantial industry expansion in the coming years.

Cognitive Computing Market: Growth Drivers

Rising Demand for Cognitive Technology Based on Cloud Solutions to Propel Market Growth

One of the rising industry trends is the reorientation of businesses towards the implementation of cloud-based cognitive technology. Cognitive cloud computing increases revenue, decreases expenses, and improves operational efficiencies for businesses. In addition, enterprises are emphasizing the use of cognitive cloud computing solutions and other cloud-based services in order to support real-time use cases, such as supply chain optimization and production for product innovation. Key market participants are concentrating on establishing a cognitive cloud computing platform to meet the growing demand across industries and businesses.

Cognitive Computing Market: Restraints

High Costs Incurred at the Initial Stage Hampering Market Growth

High initial expenditures required to establish maintenance architecture and infrastructure for cognitive solution development are resulting in high operational costs. The operating and installation process is significantly more complicated and requires depleted resources. This procedure uses a substantial quantity of electricity, network components, and data centres, among other resources. In addition, challenges related to government standards and uncertain regulatory compliance are anticipated to restrain the market expansion of cognitive computing.

Cognitive Computing Market: Opportunities

Escalating Demand for Big Data Analytics Among Organizations to Aid Market Growth

The increasing demand for big data analytics in areas such as IT and telecom, healthcare, and aerospace and defense are likely to aid the market growth. Demand for big data analytics is projected to be driven by the escalating volume of data and the adoption of big data techniques. According to the Data Science Association, the global market for big data analytics solutions generated around 189.1 billion USD in 2018. In addition, market leaders are investing in startups in order to extend their market presence. MAAM will provide artificial intelligence, machine learning, and big data solutions for a variety of industries, including healthcare, retail, insurance, media, and entertainment.

Cognitive Computing Market: Challenges

Concerns Pertaining to Risk of Security and Privacy Issues will be Challenging Factor for Cognitive Computing

The constraints of cognitive computing necessitate caution when integrating this technology into its diverse and extensive applications. These can involve security hazards, as these systems manage vast quantities of data and are susceptible to breaches. Another obstacle is the lengthy development period required to launch a highly sophisticated technology. This may make it more difficult for businesses with smaller development teams to create applications incorporating cognitive computing techniques.

Cognitive Computing Market: Segmentation Analysis

Based on component, the global market is segmented into platform and services. The platform with the largest market share as a result of the increasing demand for cognitive platforms will be driven by the growing acceptance of cognitive platforms among end users, such as cloud computing, IoT, and machine learning, among others. Data governance, financial, and data gravity criteria will fuel market expansion in the forecasted years.

On the basis of technology, the market is bifurcated into natural language processing, machine learning, automated reasoning, and information retrieval. The natural language processing segment is dominating the market share owing to the increasing development of natural language processing (NLP), which has been essential in cognitive technology's push toward globalization of IT infrastructure. In addition, the increasing demand for intelligent assistants like Siri and Alexa, as well as the implementation of predictive text, has led to an expansion of the scope of applications for cognitive computing solutions.

Based on deployment, the global market segments are on-premises and cloud-based. The cloud-based segment is dominating the market share owing to the prevalence of integrated cloud storage facilities and customized cloud solutions, such as private and public clouds, have boosted industry growth. The exponential growth of data has led businesses to rely on cloud solutions, where adopting cloud technologies could help cut cognitive computing costs.

Based on vertical, the global market segments are healthcare, BFSI, retail, government, IT & telecommunication, energy & power & others. The healthcare segment is dominating the market share owing to the widespread usage of cognitive technology to aid in better and more effective treatment of diseases by medical experts. Hospitals in the United States are collaborating with Watson to improve the treatment of cancer patients and assist physicians. This is accomplished by analyzing/studying the patients' prior medical records. Watson is able to respond to inquiries in natural language, thereby aiding in the selection of the optimal course of therapy for patients.

Recent Development

February 2022- Beyond Limits acquired Singapore-based cloud solutions and consulting partner Oak Consulting to build a strong position and profitability in the Asia-Pacific region and boost technical capacity to serve new customer projects and use cases. 

June 2021- Hewlett Packard Enterprise acquired Determined AI, leveraging an open source machine learning (ML) platform to train AI models. Also, enable ML engineers to simply develop and train machine learning models in order to give faster and more accurate insights from their data across nearly all industries.

June 2020- TIBCO has announced that two of their portfolios, Spotfire and TIBCO Data Science, will now be compatible with Microsoft Azure Cognitive Services by extending the services to evaluate multivariate abnormalities and include root cause analysis, utilizing information from the Key Phrase Extraction cognitive ability to make decisions and automate operations such as anomaly identification.

Regional Landscape

North America is Dominating the Market Share

North America is dominating the market share of the global cognitive computing market owing to the increased use of the internet and the adoption of cognitive computing solutions by startups. Increasing penetration of technologies such as big data, AI, IoT, as well as increasing projects in cognitive computing, are contributing to the development of cognitive solutions in the region.

Competitive Landscape

Google LLC, Hewlett Packard Enterprise Development LP, IBM Corporation, Beyond Limits Inc., Microsoft, Amazon.com, Inc., SparkCognition, Tata Consultancy Services Limited, Nuance Communications, Inc., Oracle, Enterra Solutions LLC, Red Skios, SAP SE, SAS Institute, Inc., TIBCO Software Inc., amongst others.

The global Cognitive Computing market is segmented as follows:

By Component

• Platform
• Services

By Technology

• Natural Language Processing
• Machine Learning
• Automated Reasoning
• Information Retrieval

By Deployment

• On-premises
• Cloud-based

By Organization Size

• Large Enterprises
• Small and Medium Enterprises

By Vertical

• Healthcare
• BFSI
• Retail
• Government
• IT & Telecommunication
• Energy & Power
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
• Benelux Reunion
  • • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America