“Global Cognitive Analytics Market to reach a market value of USD 31.66 Billion by 2031 growing at a CAGR of 30.5%”
The Global Cognitive Analytics Market size is expected to reach $31.66 billion by 2031, rising at a market growth of 30.5% CAGR during the forecast period.
The North America region witnessed 36% revenue share in the market in 2023. The region's dominance in this market can be attributed to the presence of several leading technology companies and a strong emphasis on digital transformation across various. North America has been a forerunner in adopting cutting-edge technologies, and organizations in the region are heavily investing in artificial intelligence (AI), machine learning (ML), and data analytics to enhance their business processes and customer engagement strategies.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In April 2024, Oracle Corporation partnered with Palantir Technologies, a data analytics company known for its data integration and decision-making platforms, to deliver secure AI and cloud solutions to businesses and governments. The partnership leverages Oracle's cloud infrastructure and AI capabilities, combined with Palantir's platforms like Foundry and Gotham, to help organizations maximize data value, improve efficiency, and meet security and sovereignty standards across a range of industries, including defense and intelligence. Moreover, In May, 2024, Salesforce expanded its partnership with IBM, an American technology company, to integrate IBM’s watsonx AI and Data Platform with Salesforce Einstein 1 Platform. This collaboration introduces large language models and prebuilt AI actions to CRM solutions, enabling enterprises to enhance data-driven decision-making and streamline workflows. The integration supports advanced use cases like content generation and field summarization, reinforcing Salesforce’s AI capabilities within its analytics and CRM ecosystem.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Cognitive Analytics Market. In June, 2023, Microsoft Corporation signed a partnership with Moody’s, a financial services company. The partnership aimed to develop advanced data, analytics, and risk solutions using Microsoft Azure OpenAI Service. Companies such as Oracle Corporation, Cisco Systems, Inc, IBM Corporation are some of the key innovators in Cognitive Analytics Market.
The growing importance of data in business strategy has driven the demand for solutions that enable data-driven decision-making. Across industries such as healthcare, finance, retail, and manufacturing, organizations are leveraging vast amounts of data to make informed, evidence-based decisions. This data-driven approach helps businesses improve operational efficiency, optimize marketing efforts, and identify new growth opportunities. Thus, increasing demand for data-driven decision-making across industries drives the market's growth.
Additionally, With consumers expecting more personalized services and experiences, businesses are investing in technologies that enable them to deliver tailored offerings. Data-driven solutions are key to providing personalized customer experiences, as they help companies understand individual preferences, buying behaviors, and interaction patterns. By analyzing customer data, businesses can create targeted marketing campaigns, improve product recommendations, and offer personalized customer service, enhancing satisfaction and loyalty. Therefore, the growing need for enhanced customer experience and personalization propels the market's growth.
However, One of the major barriers to adopting data-driven decision-making technologies is the high initial investment required for implementation. Setting up the necessary infrastructure, such as cloud-based platforms, data management systems, and advanced analytics tools, can be costly for businesses. The cost of hiring skilled personnel to manage these technologies or outsourcing to third-party service providers adds to the financial burden. Hence, high initial investment and implementation costs for businesses are hindering market growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Based on deployment type, the market is divided into on-premise and cloud. The cloud segment held 48% revenue share in the market in 2023. Cloud-based cognitive analytics solutions offer several advantages: scalability, flexibility, and cost-efficiency. These solutions enable organizations to access advanced analytics tools without significant upfront investments in hardware and infrastructure. Cloud deployment allows for easier updates, integration, and collaboration, making it an attractive option for businesses leveraging cognitive analytics quickly and efficiently.
On the basis of type, this market is segmented into tools and services. In 2023, the services segment attained 43% revenue share in this market. The services segment encompasses consulting, implementation, integration, training, and ongoing support services that help businesses successfully deploy and manage these analytics tools. Many organizations rely on external expertise to customize these analytics solutions according to their specific business needs and to ensure smooth integration with existing systems.
Based on application, this market is categorized into sales & marketing, fraud & risk management, asset maintenance, supply chain management, and others. The fraud & risk management segment witnessed 25% revenue share in this market in 2023. With the rise of cyber threats, financial fraud, and operational risks, organizations are increasingly relying on these analytics to detect anomalies, identify potential risks, and enhance security measures.
By organization size, this market is divided into large enterprises and small & medium enterprises. The small & medium enterprises segment procured 37% revenue share in this market in 2023. While SMEs have fewer resources compared to large enterprises, they are increasingly recognizing the value of these analytics in improving business processes, enhancing customer experiences, and gaining a competitive edge.
Based on Vertical, this market is divided into BFSI, retail & consumer goods, energy & utilities, healthcare, telecom & IT, government, education, and others. In 2023, the retail & consumer goods segment procured 13% revenue share in this market. The retail industry is increasingly adopting these analytics to enhance customer experience, improve inventory management, and optimize supply chains. These analytics helps retailers understand consumer behaviour by analyzing purchasing patterns and feedback, allowing for personalized marketing strategies and recommendations.
Free Valuable Insights: Global Cognitive Analytics Market size to reach USD 31.66 Billion by 2031
The competition in the Cognitive Analytics Market remains dynamic and fragmented, with numerous emerging companies offering innovative solutions. These players focus on niche areas like AI-powered analytics, machine learning, and data-driven decision-making tools, contributing to the market's growth. As technology advances, smaller firms face the challenge of differentiating while competing on price, performance, and service.
Region-wise, this market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe region generated 32% revenue share in this market. Europe has been steadily adopting these analytics across various sectors, particularly in manufacturing, energy, healthcare, and government. European countries are increasingly focusing on data-driven solutions to improve efficiency, drive innovation, and enhance competitiveness on the global stage. The regulatory environment has pushed organizations to adopt analytics tools that ensure data security and compliance while still delivering actionable insights.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 3.82 Billion |
| Market size forecast in 2031 | USD 31.66 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 30.5% from 2024 to 2031 |
| Number of Pages | 387 |
| Number of Tables | 653 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Deployment Type, Type, Application, Organization Size, Vertical, Region |
| Country scope |
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| Companies Included | IBM Corporation, Oracle Corporation, SAP SE, Microsoft Corporation, SAS Institute Inc., Cisco Systems, Inc., TIBCO Software, Inc. (Vista Equity Partners Management, LLC), Salesforce, Inc., Google LLC (Alphabet Inc.), and Hewlett Packard Enterprise Company |
By Deployment Type
By Type
By Application
By Organization Size
By Vertical
By Geography
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