CONTEXT AWARE COMPUTING MARKET ANALYSIS

The global context aware computing market size was valued at USD 69.5 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 32.4% from 2022 to 2030. The increasing use of advanced sensors in various devices is one of the major factors triggering the growth of the context aware computing market. Along with this, the integration of advanced sensors in various connected devices and mobile computing devices is resulting in an increase in the demand for context aware solutions, which is further driving growth of the market.

Global Context Aware Computing Market: Regional Insights

The global context aware computing market is segmented regionally into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected account for the largest share in the global context aware computing market during the forecast period, owing to dominance of the region in machine learning and AI technologies, presence of major market players in the U.S., and rising support of government towards adoption of ML, AI, and context aware technologies, which in turn is creating space for the market players to strengthen their presence across the region.

Moreover, Asia Pacific is also anticipated to witness substantial growth in the global context aware computing market over the forecast period. This can be attributed to the strong presence of large number of SMEs, rise in technological penetration in countries such as Vietnam, India, and China. Moreover, there is a rise in interest in technologies capable of reducing computational burden and increase speed. Several companies across the region are aiming to achieve higher speed of computational performance for reducing operation precision to 8 bits from 32 bits. Thus, the region is projected to support growth of the context aware computing market in the future.

Figure 1. Global Context Aware Computing Market Share (%), By Region, 2021

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Global Context Aware Computing Market Drivers:

Increasing number of mobile phones integrated with artificial intelligence is expected to propel growth of the global context aware computing market over the forecast period. There are several technologies flourishing in the market and one of them is artificial intelligence (AI), which offers promising transformations in the mobile app development sector. AI is rapidly being adopted in mobile phones due to rise in requirement for businesses to manage big amount of data in cheaper and efficient way, and due to the access to high-quality models and adaptable learning offered by the technology. Thus, this factor is expected to aid in growth of the market over the forecast period.

Increasing adoption of IoT is anticipated to boost growth of the global context aware computing market over the forecast period. Contextual information varies in terms of usability, content, complexity, and quality. The number of IoT users is rapidly increasing every day leading to a wide growth in mobility of the users as well as availability of unreliable sensors in IoT. This further increases the need for adapting their behavior at run time in the context-aware applications. Thus, growing offerings of integrated IoT is driving growth of the market.

Global Context Aware Computing Market Opportunities:

Increasing technological development and enhancement in context aware computing services is creating growth opportunities in global context aware computing market. The enhanced services will be leading more specific locations, social data, mapping presence, and other environment related information that can be utilized for anticipating immediate needs of existing user with more accuracy. This is anticipated to offer more situation-aware, specific usable, and sophisticated functions to the vendors. This in turn will create lucrative growth opportunities for market players in the global context aware computing market over the forecast period.

Rapid development of smartphones, machine learning, data science and IoT is also projected to offer lucrative opportunities for growth of the global context aware computing market over the forecast period. The number of users connected constantly to IoT and wearable’s integrated with various technologies such as AI is increasing all over the world, due to which vendors are developing solutions addressing all the concerns related to the use of these technologies. Smartphone penetration and use of machine learning in various everyday life technology is also increasing. This in turn is leading to advancement in context awareness, which in turn is driving growth of the market.

Global Context Aware Computing Market Trends:

Growing adoption of context aware computing is a major trend in the global context aware computing market. The context-aware technology is a system capable of detecting any relevant information and adapting itself for improvement of the interaction. The use of this technology, have made software highly capable of responding effectively to the real world complexities, as it applies many rules around time, event, location, or other context that are provided by conditions in which the system is operating. Thus, such advantages of using context aware computing has led to rise in adoption of the technology, which in turn is supporting growth of the market.

Growing use in healthcare sector is an emerging trend in the global context aware computing market. Traditionally, in the healthcare sector the information of patient used to be scattered in multiple systems such as electronic health records, patient relationship management systems, and CRM systems. Now with recent advancements in the sector, all the scattered systems and information are coming together. The use of context-aware systems in healthcare will be offering more dynamic and higher coordination. It will enable storing clinical and care information of a patient and support the interaction with other companies that could not be conventional healthcare organizations. Thus, this trend will continue in the market in the forecast future.

Global Context Aware Computing Market Restraints:

Factors such as complexities in computation are expected to obstruct growth of the global context aware computing market over the forecast period. Development of context-aware interactive systems is difficult, as the vendors need to consider the use of solutions by the users for interacting with the systems and adapting user behavior as per the need. The solutions should assist users in understanding the differing and adaptive application behavior and in connecting it to the situation they are in, which otherwise makes learning the system difficult for the user. Thus, such complex nature of computing the system is likely to impede the market growth.

Rise in emphasis on Information Security and Data Privacy is expected restrict growth of the global context aware computing market during the forecast period. The adoption of CAC technology is rapidly increasing, which will face limitations and challenges regarding security. Data security and privacy is the main concerns of all the companies around the world. The amount of information and data transferred and stored in networks is massive, which increases the risk of data exploitation. Thus, this factor will likely impede growth of the market in the near future.

Figure 2. Global Context Aware Computing Market Share (%), By Type, 2021

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Global Context Aware Computing Market Segmentation:

The global context aware computing market report is segmented into Vendor, End-user Industry, Type and Region.

Based on Vendor, the market is segmented into Device Manufacturer, Mobile Network Operator, Online, Web, and Social, Networking Vendors. Out of which, Device Manufacturer is expected to dominate the global market over the forecast period and this is attributed to the rise in technological developments and innovations in different consumer devices. This provides several growth opportunities for device manufacturers further leading them towards integration of these developments in the devices. This is further driving growth of the segment.

Mobile Network Operator segment is also expected to witness significant growth in the near future and this is owing to the penetration of 5G technology. The upcoming 5G technology is likely to boost the data generation which will create need for maintaining quality service, and deployment of context aware computing technology will help to balance the data traffic depending upon the insights of consumer data. Thus, the mobile network operator segment among vendors will flourish in the near future.

Based on End-User Industry, the market is segmented into BFSI, Consumer Electronics, Media and Entertainment, Automotive, Healthcare, Telecommunication, Logistics and Transportation, Other End-user Industries. Out of which, BFSI is expected to dominate the global market over the forecast period and this is attributed to the increasing electronic transactions utilizing mobile wallets and other payment methods. This is likely to boost demand for context aware computing to enable the vendors to better understand preferences of consumers allowing them to cater their needs.

Consumer Electronics segment is also expected to witness significant growth in the near future and this is owing to the rise in adoption of context aware computing in consumer electronics such as smartphones. The rise in technological developments of these devices has resulted into growing adoption of context aware computing, and this in turn is driving growth of the segment in the market.

Based on Type, the market is segmented into Hardware, Software, and Services. Out of which, Hardware is expected to dominate the global market over the forecast period and this is attributed to the amount of hardware components utilized for contextual computing in different devices such as wearable’s, smartphones, and automotive among others.

Software segment is also expected to witness significant growth in the near future and this is owing to the rising applications in different end-user industries for purposes such as authentication, security, embedding in AI solutions and voice-based assistance software and enhancing user experience.

Global Context Aware Computing Market: Key Developments

In October 2019, Oracle singed an acquisition agreement of CrowdTwist, for empowering brands to offer personalized customer experiences. The solution provides 100 out-of-the-box engagement paths that provide time-to-value for marketers for developing a much more complete customer view.

In March 2019, AT&T entered into partnership with Microsoft Azure for the testing of 5G and Edge Computing. The company announced that it is working with the Vorpal and Microsoft Azure for the development of network edge compute capabilities on its 5G network.

Global Context Aware Computing Market: Key Companies Insights

The global context aware computing market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global context aware computing market are Intel Corp., IBM Corporation, Apple Inc., Microsoft Corporation, Samsung Electronics Co. Ltd., Cisco Systems Inc., Verizon Communications Inc., Google LLC, Amazon Web Services Inc., and Oracle Corporation

*Definition:

Context aware systems leverage user information and environmental information to provide a more personal and tailored experience. Some examples of contextually aware applications include communication systems and health monitors. These systems use sensors and software to collect data to guide the user's responses.