Cognitive Computing Market Growth Drivers, Outlook 2024-2032
Cognitive Computing Market Growth Drivers, Outlook 2024-2032

Cognitive Computing Market Share, Size, Trends, Industry Analysis Report, By Technology (Natural Language Processing, Machine Learning, Automated Reasoning, Others); By Deployment; By Application; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Feb-2024
  • Pages: 116
  • Format: PDF
  • Report ID: PM1458
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global cognitive computing market was valued at USD 38.13 billion in 2023 and is expected to grow at a CAGR of 27.2% during the forecast period.

Cognitive computing is the use of reasoning, language processing, machine learning, and human-like capabilities to improve traditional computing, allowing for better problem-solving and data analysis. A computer system's intelligence grows as it learns patterns and behaviors, allowing it to handle complex decision-making processes.

The advancement of the Internet of Things (IoT) has played a critical role in driving market growth, providing numerous applications in the development of interactive software platforms. Cognitive computing is a technological foundation based on signal processing and artificial intelligence principles. Natural Language Processing (NLP) is widely used because of its inherent ability to handle natural language interactions. The widespread use of automated reasoning, big data, machine learning, artificial intelligence, and random logic has advanced the field of data science significantly.

  • For instance, IBM Watson, a major player in cognitive computing, is anticipated to launch Watson Analytics in the coming years. This cloud-based service has the ability to accelerate the widespread adoption of cognitive computing via cloud platforms.

The growing demand for cognitive systems within large enterprises is expected to spread to small and medium-sized businesses, owing to the prevalence of cloud services. The cost-effectiveness of cloud-based deployment facilitates the widespread adoption of cognitive computing in organizations, contributing to increased overall demand for cloud-based services.

Cognitive Computing Market Size

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The COVID-19 pandemic's growing challenges are causing societal strain and precipitating economic challenges. Despite significant business disruptions, cognitive technology platforms are seeing significant adoption. Cognitive technologies are being used in this worrying environment for population screening and assessing infection risks. As a result, the market is poised to overcome the effects of the COVID-19 pandemic, with significant growth expected in the coming years.

Governments and organizations have invested in artificial intelligence (AI), machine learning (ML), cognitive technology, the Internet of Things (IoT), and cloud computing. These technological advancements are invaluable for early disease detection, diagnostic capabilities, environmental monitoring, risk mitigation in economic crises, and the analysis of large data sets. Primarily, industry leaders are focusing their efforts on introducing novel products aimed at improving customer experiences. Deeper Insights, a UK-based company, for instance, introduced the "COVID Insights" app—a free research discovery app—in May 2020. This app serves two purposes: it keeps medical experts up to date on the most recent COVID-19 data, and it provides clinicians with a tool to access relevant pandemic information.

Natural Language Processing is a type of artificial intelligence that aims to give computers the ability to understand and analyze human language. This field is concerned with the analysis of text, with the goal of gaining valuable insights by extracting the inherent meaning from words and sentences. NLP technology has been instrumental in developing intelligent applications capable of comprehending, processing, and responding to natural language inquiries.

Natural Language Processing (NLP) is reshaping cognitive computing. Cognitive computing entails using advanced computer models to simulate human brain behavior and thought processes. This rapidly advancing technology is becoming increasingly important in the development of systems capable of comprehending user inquiries and providing precise and meaningful responses.

Cognitive Computing

Industry Dynamics

  • Growth Drivers
  • Improvement in flexible technology will drive the growth of the market

The advancement in flexible technology will drive the growth of the market. Companies across the world are actively looking for ways to derive meaningful insights from the vast reservoir of digital data. Businesses are investigating various enabling technologies to analyze dark data as the volume of digital data continues to grow. As a result, there is an increasing demand for systems capable of processing and interpreting digital information, facilitating the extraction of valuable insights. The use of cognitive technology in research and development (R&D) organizations has increased dramatically. This is due to its ability to anticipate and provide solutions for specific situations, which is a key driver fueling the market's growth.

Cognitive computing systems are developed using machine learning and natural language processing (NLP) algorithms to analyze, predict, and draw conclusions about situations. For instance, IBM Watson utilizes deep learning algorithms and neural networks to process information based on data sets. Additionally, cognitive computing has gained immense momentum recently as extensive research and development efforts have significantly improved the performance of these technologies. Moreover, commercialization investments in these technologies are increasing the sales and deployment of cognitive computing applications, positively impacting the market growth.

Report Segmentation

The market is primarily segmented based on technology, deployment, application and region.

By Technology

By Deployment

By Application

By Region

  • Natural Language Processing
  • Machine Learning
  • Automated Reasoning
  • Others

 

  • On-Premise
  • Cloud

 

  • Healthcare
  • Retail
  • BFSI
  • IT & Telecom
  • Government & Defense
  • Security
  • Others

 

  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Technology Analysis

  • The natural language processing segment accounted for the largest revenue share in 2022

In 2022, the natural language processing segment accounted the largest revenue share. Natural Language Processing (NLP) has the ability of a computer to comprehend human language, with significant challenges in the natural learning process centered on both understanding and generating human language. NLP is expanding and being implemented in a variety of domains, including e-commerce, web services, IT, telecommunications, and healthcare. Through the incorporation of NLP software solutions, its integration into these sectors aims to improve operational processes and elevate customer experiences. Despite the continued adoption of this technology in healthcare, there is an anticipation of rapid growth in technological innovations for software solutions across a wide range of other applications.

On the other hand, the machine learning technology segment is anticipated to witness fastest growth during the forecast period. Due to the growing demand for improved human interaction, cognitive computing technology platforms are expected to gain traction in the field of machine learning, particularly in adaptive and interactive learning. Experts predict a surge in interest in machine learning and natural language processing (NLP) to improve translation and interpretation tools. Furthermore, participants are preparing to inquire about opportunities for identifying business prospects and evaluating emerging patterns.

By Deployment Analysis

  • The cloud deployment segment accounted for the highest market share during the forecast period

The cloud deployment segment accounted for the highest market share during the forecast period. Recent improvements in data storage, such as the integration of cloud storage facilities and the progression of tailored cloud solutions such as private and public clouds, have aided in market expansion. Furthermore, the growing volume of data has compelled businesses and organizations to increasingly rely on cloud solutions. Adoption of cloud solutions provides stakeholders with numerous opportunities to reduce the costs associated with cognitive computing.

On the other hand, on-premise segment is anticipated to experience fastest growth during the forecast period. This On-premises deployment entails installing and running software on a customer's internal server and computing infrastructure, ensuring security and reliability because the software is located on the organization's premises. Despite being more expensive than cloud-based alternatives, on-premises solutions are preferred for their dependability. The higher cost is attributed to the requirement for IT infrastructure, including servers and the use of the organization's native computing resources.

Cognitive Computing Seg

Regional Insights

  • North America accounted for the largest market share in 2022

In 2022, North America accounted for the largest market share in the cognitive computing market. The cognitive computing market in north america is expanding rapidly, owing to rising internet penetration, robust IT infrastructure, widespread robotics adoption, advances in healthcare, and the rapid integration of cognitive computing into various business processes. The World Bank reported that over 92% of North Americans had internet access, laying the groundwork for the growth of the cognitive computing market across a wide range of industries, including fashion and retail, healthcare, manufacturing, transportation, and others. With ongoing economic developments and rising consumer spending power, the market is anticipated to grow further in the coming years.

Europe is accounted for the fastest growth in the cognitive computing market. Due to a significant increase in demand across diverse sectors such as healthcare, banking and finance, research and education, and with government support, European nations are improving their IT infrastructure to remain competitive in the rapidly evolving technological landscape. For instance, the Science and Technology Facilities Council (STFC), a publicly funded research council, has played a critical role in positioning the region at the forefront of international science and technology endeavors. The council's contributions have been critical in addressing a variety of societal challenges, including advances in research and education, global energy and power, and efforts to combat climate change.

Cognitive Computing Reg

Key Market Players & Competitive Insights

The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.

Some of the major players operating in the global market include:

  • Cold Light
  • Cognitive Scale
  • Enterra Solutions
  • Google, Inc.
  • IBM Corporation
  • Microsoft Corporation
  • Oracle Corporation
  • Palantir
  • Saffron Technology

Recent Developments

  • In March 2023, Sanctuary AI, a company dedicated to advancing general-purpose robotics and developing human-like intelligence, has partnered with the Canadian Tire Corporation and represents a significant step forward in providing general-purpose robots with unprecedented human-like intelligence. The first successful deployment at a commercial customer facility emphasizes the significance of this accomplishment.
  • In May 2021, SAP has partnered with Google Cloud with the objective of broadening SAP's capabilities in machine learning and artificial intelligence. This partnership also involves the incorporation of Google Cloud's cutting-edge technologies into SAP's suite of business applications.
  • In March 2021, Microsoft has acquired Nuance Communications, a prominent provider of healthcare-focused AI and speech technology solutions.

Cognitive Computing Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 48.44billion

Revenue forecast in 2032

USD 333.53 billion

CAGR

27.2% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Technology, By Deployment, By Application, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization

Report customization as per your requirements with respect to countries, region and segmentation

FAQ's

Cognitive Computing Market Size Worth $ 333.53 Billion By 2032

The global key market players include 3M, Cold Light, Cognitive Scale, Enterra Solutions, Google, Inc

North America contribute notably towards the Cognitive Computing Market?

The global cognitive computing market is expected to grow at a CAGR of 27.2% during the forecast period.

Cognitive Computing Market report covering key segments are technology, deployment, application and region