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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Overview

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

  1. Increasing technological advancements in cognitive technology are expected to drive growth of the global cognitive systems spending market during the forecast period

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.

  1. Rising urbanization expected to propel the global cognitive systems spending market growth over 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.

Statistics:

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

Cognitive Systems Spending  | Coherent Market Insights

Market Restraint

Market Dynamics- Restraints

  1. Complex learning process is expected to restrain growth of the global cognitive systems spending market during the forecast period

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.

  1. Rising commercialization concerns are expected to hinder the global cognitive systems spending market growth over the forecast period

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.

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Cognitive Systems Spending Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: US$ 7,240.0 Mn
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 9.8% 2027 Value Projection: US$ 15,320.8 Mn
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, Rest of Middle East
  • Africa: South Africa, North Africa, Central Africa
Segments covered:
  • By Device Type: Hardware, Software, Services.
  • By Technology Type: Natural Language Processing, Machine Learning, Automated Reasoning.
  • By Deployment Type: Cloud, On-premise.
  • By Verticals: Banking, Education, Government, Healthcare, Insurance, Manufacturing, Securities and investment services, Telecommunications, Transportation, Other industries.
Companies covered:

IBM Corporation, IPSOFT Inc., Accenture plc, Cognitive Scale Inc., HP Inc., Wipro Limited, Microsoft Corporation, Attivio, and Intel Corporation.

Growth Drivers:
  • Increasing technological advancements in cognitive technology
  • Rising Urbanization
Restraints & Challenges:
  • Complex learning process
  • Rising Commercialization Concern

Market Opportunities

  1. Rising IT expenditure on cognitive systems can present major growth opportunities

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.

  1. Information overload and knowledge worker productivity can provide lucrative growth opportunities

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

Cognitive Systems Spending  | Coherent Market Insights

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.

Market Trends

  1. North America Trends

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.

  1. Western Europe Trends

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.

Competitive Section

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.

Key Developments

  1. Major companies in the market are focused on product launches, in order to expand the product portfolio. For instance, in April 2017, IBM Corporation introduced Anaconda Open Data Science Platform for its cognitive system.
  2. Key players are involved in mergers and acquisitions, in order to enhance the market presence. For instance, in May 2020, Accenture plc acquired Byte Prophecy to augment AI and digital analytics capabilities in the market.

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.

Market Dynamics

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.

Market Taxonomy

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:

  • This report provides an in-depth analysis of the global cognitive systems spending market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2020-2027), considering 2019 as the base year.
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global cognitive systems spending market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered 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.
  • The market players are focusing on strategic collaborations to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global cognitive systems spending market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global cognitive systems spending market.

Detailed Segmentation:

  • Global Cognitive Systems Spending Market, By Technology:
    • Hardware
    • Software
    • Services
  • Global Cognitive Systems Spending Market, By Technology:
    • Natural Language Processing
    • Machine Learning
    • Automated Reasoning
  • Global Cognitive Systems Spending Market, By Technology:
    • Cloud
    • On-premise
  • Global Cognitive Systems Spending Market, By Technology:
    • Banking
    • Education
    • Government
    • Healthcare
    • Insurance
    • Manufacturing
    • Securities and investment services
    • Telecommunications
    • Transportation
    • Other industries (retail, etc.)
  • Global Cognitive Systems Spending Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • IBM Corporation*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • IPSOFT Inc.
    •  Accenture plc
    • Cognitive Scale Inc.
    • HP Inc.
    • Wipro Limited
    •  Microsoft Corporation
    •  Attivio
    •  Intel Corporation

 *Browse all the market data tables and figures on “Global Cognitive Systems Spending Market- Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Device Type
      • Market Snippet, By Technology
      • Market Snippet, By Deployment Type
      • Market Snippet, By Vertical
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New System Launch/Approval
  4. Impact of COVID-19 Pandemic on Cognitive Systems Spending Market
    • Short Term and Long Term Impact, By Region
      • North America
      • Europe
      • Asia Pacific
      • Latin America
      • Middle East and Africa
  5. Global Cognitive Systems Spending Market, By Device Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Segment Trends
    • Hardware
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Software
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Services
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  6. Global Cognitive Systems Spending Market, By Technology Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Segment Trends
    • Natural Language Processing
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Machine Learning
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Automated Reasoning
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  7. Global Cognitive Systems Spending Market, By Deployment Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Segment Trends
    • Cloud
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • On-premise
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  8. Global Cognitive Systems Spending Market, By Vertical, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Segment Trends
    • Banking
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Education
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Government
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Healthcare
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Insurance
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Manufacturing
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Telecommunications
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Transportation
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Other industries (retail, etc.)
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  9. Global Cognitive Systems Spending Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2019 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Device Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Technology Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Deployment Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Vertical, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Device Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Technology Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Deployment Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Vertical, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Regional Trends
      • Market Size and Forecast, By Device Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Technology Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Deployment Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Vertical, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Device Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Technology Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Deployment Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Vertical, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Device Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Technology Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Deployment Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Vertical, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  10. Competitive Landscape
    • Company Profiles
      • IBM Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • IPSOFT Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Accenture plc
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cognitive Scale Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • HP Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Wipro Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Microsoft Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Attivio
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Intel Corporation.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  11. Section
    • References
    • Research Methodology
    • About Us and Sales Contact

*Browse XX market data tables and XX figures on “Global Cognitive Systems Spending Market-forecast to 2027”.

Frequently Asked Questions

The global cognitive systems spending market size was valued at US$ 8,103 million in 2019 and is estimated to exhibit a CAGR of 15.0 % between 2020 and 2027.
Banking segment held the major market share in 2019 owing to due to the improvements in the variety, efficiency, and reliability of machine learning.
Major factor driving the growth of global cognitive systems spending market during the forecast period are Increasing technological advancements in cognitive technology.
Major factors hampering the growth of the cognitive systems spending market during the forecast period constitutes rising commercialization concerns.
North America cognitive systems spending market is expected to generate the highest revenue during the forecast period.
Some of the key players operating in the market are IBM Corporation, IPSOFT Inc., Accenture plc, Cognitive Scale Inc., HP Inc., Wipro Limited, Microsoft Corporation, Attivio, and Intel Corporation.
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