The Global Cognitive Systems Spending Market, By Device Type (Hardware, Software and Services), By Technology (Natural Language, Processing Machine Learning and Automated Reasoning), By Deployment (Public and On-premise), By Vertical (Banking, Education, Government, Healthcare, Insurance, Manufacturing, Securities and investment services, Telecommunications, Transportation, Other industries (Cross industries, Discrete manufacturing, Process manufacturing, retail)) and by Region (North America, Europe, Asia Pacific, RoW) - Global Forecast to 2027, is expected to be valued at US$ 24,710 million by 2027, exhibiting a CAGR of 15.0% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Cognitive systems are used to provide the discovery and collaboration of information in analysis and decision making. It utilizes various types of technologies including artificial intelligence, knowledge graphs, information retrieval, information curation, etc. so as to predict future, answer questions, and provide recommendations. Cognitive systems are beginning to be combined with collaborative technologies to provide the next generation of tools to get work done.
The global cognitive systems spending market is estimated to account for US$ 24,710 Mn in terms of value by the end of 2027.
Increasing use of cognitive systems for security purposes is expected to boost the global cognitive systems spending market growth over the forecast period
Technology development in cognitive systems aids in tracking both internal and external threats. Cognitive systems are vital as complex data tracking happens when internet users mistakenly expose corporate systems data to threats. These abilities will provide a new avenue of insights and data analytics for companies and assist them to report cybersecurity threats and issues. . Cognitive security tools with such advanced capabilities will help organizations address cybersecurity threats and compliance issues. Hence, these factors are expected to drive growth of the global cognitive systems spending market in the near future.
Rising acceptance of intelligent personal assistants can present lucrative growth opportunities
Intelligent assistants are getting significant traction among consumers, driving sales of enterprise-based cognitive systems. In terms of impact, as the general population becomes more familiar with intelligent assistants (think Apple Siri, Microsoft Cortana, Google Now, and Amazon Echo/Alexa), it opens the door for task-based cognitive applications for product advisement, recommendations, process improvement, decision making, and other functions.
Decline in information curation tools is expected to hamper the global cognitive systems spending market growth over the forecast period
The need for information curation and knowledge graph building tools, components, and systems will drive the implementation and use of cognitive systems. To create a cognitive system, there must be curated data and information that the system can rely on as the ground truth. Currently, there is a dearth of tools and software components that help organizations find, gather, and curate information that becomes the basis of a cognitive system. Hence, these factors are expected to hamper the market growth over the forecast period.
Rising presence of consultancy companies is a major regional trend
In Latin America, unruly innovation in the comprehension economy emphases on cognitive systems analytics, and developers are structuring cognitive systems applications for every feasible usage to ensure business success. Moreover, in the region, data scientists with advanced cognitive skills are the major emphasis for this rapidly growing developer ecosystem. IBM is one of the leaders of the present cognitive systems ecosystem in Latin America. Following in its footsteps, leading consultancies are also getting in action to accelerate the creation of cognitive ecosystems. Moreover, companies such as PwC, Deloitte, and Accenture are heading up their imitation in this sector and are also assigning more resources to the progression of cognitive computing. In the Latin America region, many other consultancy firms are also gearing up with well-trained staff and are assigning dedicated client and systems innovation lab space to develop cognitive systems quickly.
Robust demand for unstructured and semi-structured data boosting demand for cognitive systems
In Eastern Europe, semi-structured and unstructured data is driving regeneration in the analysis and handling of information, ensuing in a new generation of capabilities and tools that assure to provide intelligent advice, assistance, and recommendations to knowledge workers and consumers around the globe. In the region, cognitively enabled solutions are implemented and developed on cognitive software platforms that provide the capabilities and tools to build knowledge bases and extract knowledge graphs from semi-structured and unstructured information and also offer recommendations, predictions, and intelligent assistance via the use of artificial intelligence, machine learning, and deep learning.
Global Cognitive Systems Spending Market- Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The overall revenue for all the software companies has declined due to covid19. The new ongoing projects have been put on hold or delayed. Companies like Apple, Google, and Microsoft has started investing on Research and development areas to control covid-19 situation. Recently, Google and Apple have collaborated together to design the contact tracing system to notify other users about infected people. These companies are using Business intelligence & AI tool to analyze these data.
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.