The Global Cognitive Computing Market size is expected to reach $278.8 billion by 2030, rising at a market growth of 32.3% CAGR during the forecast period.
Cognitive computing helps retailers optimize inventory levels by analyzing historical sales data, current market trends, and external factors like weather or holidays. Therefore, the Retail & E-commerce segment acquired $3,282.1 million revenue in the market in 2022. This reduces the hazard of understocking or overstocking products. Cognitive computing can analyze social media, reviews, and customer feedback to gauge sentiment and gather insights. Retailers can use this information to make improvements and address customer concerns proactively. Cognitive computing models can identify upselling and cross-selling opportunities based on customer preferences and purchase history, increasing the average order value.
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. In October, 2022, Oracle Corporation came into partnership with NVIDIA to integrate Oracle Cloud Infrastructure with NVIDIA's accelerated computing stack with an aim to provide the customers of the two companies with solutions AI-powered solutions for overcoming business challenges. In January, 2021, IBM Corporation signed a partnership with Atos to provide solutions for the digitalization of businesses and enable the customers to modernize their businesses.
Based on the Analysis presented in the KBV Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the Cognitive Computing Market. In May, 2023, Google Cloud extended its partnership with SAP to jointly build the future of open data and AI and bringing in a full-fledged open data offering developed to make data landscapes easier. Companies such as Oracle Corporation, IBM Corporation and Hewlett Packard Enterprise Development LP are some of the key innovators in the Market.
Businesses want to automate repetitive and rule-based tasks to improve efficiency and reduce operational costs. Cognitive computing systems can automate data entry, customer support, and document processing tasks. Automation and cognitive computing are closely related but distinct technologies that, when combined, can offer powerful solutions to various business challenges. In summary, automation and cognitive computing are complementary technologies that, when integrated effectively, can lead to increased efficiency, improved decision-making, and enhanced customer experiences. Businesses can leverage this combination to gain a competitive advantage and navigate the complexities of the modern digital landscape. All these elements will aid in the expansion of the market in the coming years.
As a result of developments in computer science and AI, cognitive computing has grown swiftly, and it is expected that this will expand in the coming years. Incorporating machine learning (ML) technologies like predictive analytics with cognitive computing, whose major goal is to assist businesses in decision-making, is the ideal way to carry out efficient company operations. For businesses with dynamic pricing models, predictive analytics can help optimize pricing strategies based on various factors, such as demand, competition, and customer behavior. This can lead to higher revenue and profit margins while remaining competitive. These factors are expected to drive demand in the market for cognitive computing.
Data security issues are still a major barrier to the market for cognitive computing. Most control over database management and oversight rests with the providers of cognitive computing systems. A wide range of private user data is stored in databases, along with financial data, including address, photo identification, and credit or debit card information. Malware, distributed denial-of-service (DDoS), SQL injection, and phishing attempts are some examples of cyberattacks that some hackers use to breach networks and steal users' passwords. As a result, the market for cognitive computing is projected to experience growth constraints throughout the forecast period due to a shortage of skilled workers and data security threats.
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 characterized into on-premise and cloud. The cloud segment procured a considerable growth rate in the market in 2022. Cloud-based cognitive computing systems may be accessed through an internet connection from any location or device, making it possible for teams working in different locations to work remotely and collaborate. This accessibility is especially valuable for organizations with distribution teams or the need for 24/7 operations. Leading cloud providers offer robust infrastructure with redundancy and failover capabilities. This results in high availability and minimizes downtime, ensuring that cognitive computing applications are consistently accessible to users.
By enterprise size, the market is divided into large enterprises and small & medium-sized enterprises. The small and medium-sized enterprises segment garnered a remarkable growth rate in the market in 2022. Cognitive computing can benefit small and medium enterprises (SMEs) by providing advanced AI-driven capabilities to enhance efficiency, decision-making, and customer experiences. SMEs can automate routine and manual tasks across various departments, including finance, HR, and supply chain management, using cognitive automation technologies. This increases operational efficiency and reduces errors.
On the basis of technology, the market is classified into natural language processing (NLP), machine learning, automated reasoning, and others. The natural language processing (NLP)segment acquired the largest revenue share in the market in 2022. Cognitive NLP allows chatbots and virtual assistants to understand and respond to user queries more naturally and intelligently, enhancing the user experience. This also helps search engines to better understand user queries, providing more accurate and context-aware search results. Cognitive NLP models can handle multiple languages, breaking language barriers and enabling global communication and content processing.
Based on vertical, the market is segmented into healthcare, BFSI, retail & e-commerce, government & defense, IT & telecom, energy & power, and others. The healthcare segment procured the highest revenue share in the market in 2022. Cognitive computing technology has found numerous applications in healthcare, offering innovative solutions to improve patient care, streamline operations, and advance medical research. It can assist radiologists by detecting anomalies, tumors, fractures, or other conditions, potentially reducing misdiagnosis rates. Cognitive computing can improve EHR systems by extracting and structuring information from unstructured text notes, making patient records more accessible and useful to healthcare providers.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 30.8 Billion |
| Market size forecast in 2030 | USD 278.8 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 32.3% from 2023 to 2030 |
| Number of Pages | 333 |
| Number of Table | 473 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling |
| Segments covered | Deployment Type, Technology, Enterprise Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered the largest revenue share in the market in 2022. Cognitive computing deployment in North America has seen significant growth and adoption across various industries and sectors. North America, particularly the United States and Canada, is a leading nation for technological innovation and the development of cognitive computing solutions. North American manufacturing companies have embraced Industry 4.0 concepts with cognitive technology.
Free Valuable Insights: Global Cognitive Computing Market size to reach USD 278.8 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include SAP SE, Google LLC, Tibco Software Inc., 3M Company, Microsoft Corporation, SAS Institute Inc., TATA Consultancy Services Limited, IBM Corporation, Hewlett Packard Enterprise Development LP, and Oracle Corporation.
By Deployment Type
By Technology
By Enterprise Size
By Vertical
By Geography
This Market size is expected to reach $278.8 billion by 2030.
Rising adoption of automation in various industries are driving the Market in coming years, Risks to data integrity and lack of skilled professionals restraints the growth of the Market.
SAP SE, Google LLC, Tibco Software Inc., 3M Company, Microsoft Corporation, SAS Institute Inc., TATA Consultancy Services Limited, IBM Corporation, Hewlett Packard Enterprise Development LP, and Oracle Corporation.
The On-premise segment acquired the highest revenue in the Market, By Deployment Type in 2022; thereby, achieving a market value of $157.8 million by 2030.
The Large Enterprises segment is leading the Market, By Enterprise Size in 2022; thereby, achieving a market value of $185.7 billion by 2030.
The North America region dominated the Market, By Region in 2022; thereby, achieving a market value of $102.1 billion by 2030.
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