Market Insight- Global Cognitive Computing Market
Cognitive computing is a technology platform, which is based on the scientific disciplines of signal processing and artificial intelligence. These platforms are comprised of natural language processing (NLP), reasoning, speech recognition and vision, machine learning, human-computer interaction, and narrative generation. In other words, cognitive computing simulates the human thought process in the computerized model, in order to create automated IT systems that can solve problems without human intervention. Cognitive computing has been considered as revolutionary as it uses a unique approach of acquiring knowledge from structured and unstructured data and learns from it instead of being programed with strict linear or logical rules or responses. Various organizations have started adopting cognitive technology due to recent advancements in digital technology.
The global cognitive computing market is estimated to account for US$ 76.46 Bn in 2019 is expected to exhibit a CAGR of 53.0% during the forecast period.
Market Dynamics- Drivers
- Increasing investment in big data analytics is expected to drive growth of the global cognitive computing market during the forecast period
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, high growth of the global big data and analytics market has increased the demand for cognitive computing systems in the industry. Companies in the market are focused on making significant investments in big data is expected to support the global cognitive computing market growth during the forecast period.
- Growing use of cloud-based applications is expected to propel the global cognitive computing market growth over the forecast period
Cloud-based applications are typically used due to their diverse characteristics such as less consumption of memory, high flexibility, lesser cost, and increased flexibility. Since the organizations of different sizes are focused on moving their critical business systems onto cloud platforms, the demand for a cognitive cloud platform is expected to increase making it possible to create and bring cognitive computing applications to masses. Therefore, growing cloud-based applications is expected to boost the market growth over the forecast period.
North America region dominated the global cognitive computing market in 2019, accounting for 36.3% share in terms of value, followed by Asia Pacific and Europe, respectively
Source: Coherent Market Insights
Market Dynamics- Restraints
- Low funding access and high upfront investments are expected to hamper the global cognitive computing market growth over the forecast period
Deployment of cognitive computing system requires high upfront cost as majority of cognitive technology companies are facing extreme difficulties in drawing the pilot stage funds for research and development for supporting prototypes and technologies. Furthermore, cognitive computing is one of the cutting-edge technology, thus the interested companies may delay or reconsider the high investments. In fact, long-term investment period of various cognitive computing innovations is also expected to hamper the market growth over the forecast period.
- Lack of skilled personnel is expected to hinder the global cognitive computing market growth during the forecast period
Implementation and operating of cognitive computing system require a skilled workforce. Advancing cognitive computing capabilities require particular skill sets namely proficiency in natural language processing and machine learning. There is limited personnel with these skill sets and there is high demand for them. Hence, the lack of a skilled workforce is expected to hinder growth of the global cognitive computing market during the forecast period.
- High demand from healthcare sector can present lucrative growth opportunities for market players
According to Coherent Market Insights’ analysis, cognitive computing technology is expected to witness significant growth in the healthcare sector during the forecast period. Around 80% of the data available in the healthcare sector is unstructured and hence provides an opportunity for cognitive computing technologies that can organize, access, and analyze all types of data including voice recordings, images, structured and unstructured data with meaningful solutions. For instance, IBM Watson for Oncology can analyze patient medical history and sift through thousands of studies, articles, textbooks, medical journals, and patient cases to offer oncologists with probable treatment plans. As the global population is aging, cognitive digital innovations are expected to play an even bigger role in the healthcare industry.
- Growing demand for next-generation data centers is expected to provide major business opportunities
In the recent past, IT organizations have struggled against complexity. As business demands have increased significantly, scores of technologies have been implemented in an attempt to respond. As a result of this, data centers have become costly and complex with over-provisioned physical configurations. Although cloud and virtualization have improved the circumstances, they are further hampered data center inefficiencies namely less automation and orchestration among data center components. Cognitive data centers can provide simpler and more adoptive infrastructure, which is capable of responding to disruptive changes, integrating legacy and new architectures in a single minable ecosystem. Thus, these characteristics of cognitive data centers can offer lucrative growth opportunities over the forecast period.
Source: Coherent Market Insights
- Advent of cognitive bank is a major sector
Cognitive systems are capable of providing innovative solutions and perspectives of growth to various organizations to provide better customer service, improve quality, and timely delivery of decisions by uncovering new insights. Cognitive computing is helping personnel from banking sector mine for insight as big data is growing rapidly in variety, volume, and complexity, particularly in the financial services sector. Furthermore, it has facilitated banks to achieve their strategic priorities through better and quicker decision-making resources. This trend is expected to continue during the forecast period.
- Growing investments on R&D in NLP, machine learning, scheduling, and reasoning
Various companies across the globe are focused on increasing investments in research and development activities in cognitive computing technologies such as natural language processing (NLP), reasoning, speech recognition and vision, machine learning, human-computer interaction. This has enabled organizations to break prevailing trade-offs among quality, speed, and cost.
In global cognitive computing market, by deployment segment, cloud sub segment dominated the global market in 2019, accounting for 67.0% share in terms of value.
Source: Coherent Market Insights
Key players operating in the global cognitive computing market are Accenture Inc., SparkCognition Inc., Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, Google Inc., Microsoft Corporation, Narrative Science Inc., Flatiron Health, Inc., and Digital Reasoning Systems, Inc.
- Key players in the market are focused on mergers and acquisitions, in order to enhance their market presence. For instance, in December 2019, Accenture Inc., an Ireland-based company, acquired Clarity Insights, a U.S.-based deep data science, and machine learning expertise to further enrich AI.
- Major market players are involved in mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in August 2019, Cisco Systems Inc., a U.S.-based technology company, acquired Voicea, which allowed Cisco Systems to take step towards delivering on AI-driven, cognitive collaborations across the entire portfolio.