Cognitive systems are a type of technology that is used to facilitate the use, delivery, and collaboration of in formation in analysis and decision making. These systems use information, knowledge graphs, artificial intelligence, and other components to help workers provide recommendations, answer questions, and predict future events. It uses analytics to process data collected and provide vital insights.
The global cognitive systems spending market is estimated to account for US$ 24,710 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
The global cognitive services market is witnessing various technological advancements with exceptional features for various industries such as healthcare, IT and telecom, banking, research and development, security, education, and more. Furthermore, cognitive technology with high definition can aid in determining the world’s most competitive data analysis challenges by using big data, natural language processing, machine learning, and automated reasoning technology. Constant advances in technology would further benefit in the diffusion of big data, which in turn, is expected to drive growth of the global cognitive systems spending market during the forecast period.
As global population continues to increase, the population in urban areas is rising rapidly as compared to rural areas. According to the United Nations (UN), in 2018, 55% of the global population lived in urban areas, which is expected to increase to 68% in 2050. Urbanization leads to several impacts on emerging businesses. For instance, health problems in urban areas are multiplying with respect to growth rate of urbanization. As a result of this, lifestyle in urban areas is changing rapidly leading to more and more use of advanced technologies such as cognitive systems. Hence, these factors are expected to propel the market growth in the near future.
North America held dominant position in the global cognitive systems spending market in 2019, accounting for 64.4% share in terms of value, followed by Europe, RoW and Asia-Pacific respectively.
Figure 1: Global Cognitive Systems Spending Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
Extended timelines and project schedules are required to develop more complex systems that tap into multiple data sources and need curated content. Cognitive systems have many more moving parts than most IT automation projects, including aspects of data science, knowledge curation, model building, and overall workflow process improvement. All of this takes more time, which will slow adoption. Therefore, these factors are expected to restrain growth of the global cognitive systems spending market in the near future.
A key area of importance for the upcoming influence of cognitive systems can be the power these systems can apply and the intrusion of commercial concerns into new areas of business. Moreover, to understand commercialization concerns, it is important to first understand the nature of computing technology that is assembled on layers of abstraction that permits investments at one level to be made sovereign over other layers. Businesses should have legal authority and patent to understand the technologies used in cognitive systems in the commercial world. Therefore, these factors are expected to hinder market growth in the near future.
|Base Year:||2019||Market Size in 2019:||US$ 8,103 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||15.0%||2027 Value Projection:||US$ 24,710 Mn|
IBM Corporation, IPSOFT Inc., Accenture plc, Cognitive Scale Inc., HP Inc., Wipro Limited, Microsoft Corporation, Attivio, and Intel Corporation.
|Restraints & Challenges:||
The expenditure on cognitive systems has increased significantly in the IT sector in the software segment. This includes both cognitive software and cognitive applications platforms, which assists the development of advisory, intelligent, and cognitively permitted solutions. According to Coherent Market Insights’ analysis, the largest, as well as the fastest-growing category of cognitive systems spending, is forecast to approach $18.4 billion in 2026. Cognitive-based services indicate the second largest category in expenditure while hardware spending is expected to grow as fast as software spending.
Since information is increasing exponentially, it is adding continued pressure to enhance knowledge worker performance and decision-making. Knowledge workers are required to deal with a vast amount of information. Cognitive systems can provide a suite of tools that will improve knowledge worker productivity. Thus, these factors can present lucrative growth opportunities in the near future.
Figure 2: Global Cognitive Systems Spending Market Value (US$ Mn), 2017 - 2027
The global Cognitive Systems Spending market was valued at US$ 8,103 Mn in 2019 and is forecast to reach a value of US$ 24,710 Mn by 2027 at a CAGR of 15.0% between 2020 and 2027.
Increasing demand for predictive analytics in the region
In North America, there is a constant demand for predictive analytics since the cognitive system integration provides communication relocation of real-time data between networks and machines. There is a rising need to strategically monitor and analyze information, which in turn, will influence overall market growth in the near future. Furthermore, large businesses have started using big data to deliver better services, boost revenues, and optimize costs. Hence, many large industries have gained many advantages from development in big data technology through an examination of buying patterns of consumers. Hence, these factors are expected to boost regional market growth in the near future.
Rising adoption of natural language processing in cognitive systems
In Western Europe, increasing demand for improved customer experience is encouraging end user sectors to surge their spending on natural language processing services and solutions. This is a growing factor for the natural language processing market and is also fuelling the demand for cognitive systems. Furthermore, the growing acceptance of natural language programming in customer care centers and a decrease in the operational costs are factors driving the growth of the cognitive systems market.
Global Cognitive Systems Spending Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on cognitive system spending market as well. Software companies across the globe are using business intelligence tools to analyze the data to understand the consumer behaviors and market trends. Due to Covid-19 demand for these tools is increasing as companies are using these reports to identify new financial threats and opportunities. For instance, IBM Corporation products such as IBM Watson Tone Analyzer and the IBM ILOG CPLEX are being used by the company to analyses the behavior of the consumer and predict the ongoing effects of corona for next quarter.
Key players operating in the global cognitive systems spending market are IBM Corporation, IPSOFT Inc., Accenture plc, Cognitive Scale Inc., HP Inc., Wipro Limited, Microsoft Corporation, Attivio, and Intel Corporation.
Cognitive systems facilitate the use, delivery, and collaboration of information in analysis and decision making. Cognitive system is typically used with BI methods and conventional reporting to help enterprises in better decision making. Enterprises use these systems in order to monitor consumer behavior and preferences. With increasing adoption of social media technology, cognitive system technology aids enterprises to remain competitive in the market.
Increasing use of social media boosting the demand for big data is expected to drive growth of the global cognitive systems spending market during the forecast period. Majority of private organizations are focused on adopting big data solutions, in order to capture and store large volumes of unstructured data generated through social media platforms and emails, enterprise IT systems and CRM conversations. Furthermore, big data offers Hadoop solutions, which enable users to manage, store, and analyze data across numerous resources efficiently. Hence, these factors are expected to drive growth of the global cognitive systems spending during the forecast period. Increasing use of social media boosting the demand for big data is expected to drive growth of the cognitive systems spending market during the forecast period
Rise in demand for business intelligence solutions, tools, and platforms is expected to drive growth of the global cognitive systems spending market during the forecast period. The demand for social media monitoring and analytics tools is increasing rapidly worldwide to manage, analyze, and sort unstructured data. Social media analytics tools facilitate organizations to identify patterns in customer preferences and helps in enhancing presence in the market. Therefore, these factors are expected to drive growth of the cognitive systems spending market in the near future. For instance, in April and July 2015, Microsoft Corporation and IBM Corporation introduced Threat Analytics Tool in cloud and Advanced Threat Analytics respectively. Threat analytics tools are user-friendly, which offers an overall view of threats in the dashboard; i.e. from which source threats are originating.
This report segments the global cognitive systems spending market on the basis of device type, technology, deployment type, verticals and region. On the basis of device type, the global cognitive systems spending market is segmented into hardware, software and services. On the basis of technology, the global cognitive systems spending market is segmented into natural language, processing machine learning and automated reasoning. On the basis of Deployment type, the global cognitive systems spending market is segmented public and on-premise. On the basis of verticals, the global cognitive systems spending market is segmented into (banking, education, government, healthcare, insurance, manufacturing, securities and investment services, telecommunications, transportation, other industries (cross industries, discrete manufacturing, process manufacturing, retail)). On the basis of region, the global cognitive systems spending market is segmented into North America, Europe, Asia Pacific, ROW.
Key features of the study:
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