Cognitive Computing Market Overview:
Global Cognitive Computing Market is expected to generate revenue of $13.8 billion by 2020, registering a CAGR of 33.1% during the forecast period of 2015 - 2020. Cognitive computing helps to process volumes of complex data, thereby inadvertently enhancing the enterprise's productivity levels. Cognitive computing is considered as a next-generation system that converses in human language and helps experts to make better decisions by understanding the complexities of big data. In the current scenario, most of the data received is unstructured such as images, videos, natural language, and symbols. Cognitive computing, with the help of different technologies such as natural language processing, machine learning and automated reasoning, translates unstructured data to sense, infer and predict the best solution.
Cognitive computing is majorly used in BFSI, healthcare, security, retail, e-commerce and other sectors. Increasing volume of unstructured data and advancements in technology are the major driving forces of the cognitive computing market. Cloud-based technological advancements, development of innovative hardware and software systems and cognitive experience interfaces would foster the growth of the cognitive computing market.
Natural language processing is the most prominent technology used in the cognitive computing industry owing to its inherent capacity to process natural language interactions. At present, automated reasoning and information retrieval technologies have limited applications thereby, restricting the growth of natural language processing in the global cognitive computing market. However, these technologies are seeking new trends in artificial intelligence, probabilistic logic, and query searching that would further accelerate the growth of cognitive computing industry in the coming years. Use of cognitive analytics in healthcare and BFSI constitutes major share in the cognitive computing market size by value.
The value chain of cognitive computing market consists of six stages which include data origin, data classification and storage, data analytics, commercial, and consumer. Each intermediary plays a vital role at their point of operation, which, in turn, contributes to the competitive value of the product. The R&D activities, innovations, marketing strategies and aesthetics make considerable value additions to the end-deliverables by each player.
The global cognitive computing market is segmented based on technology, applications, end user, deployment type, and geography. The technology segment is further bifurcated into natural language processing, machine learning, automated reasoning and information retrieval. Moreover, the application segment of the cognitive computing market is further classified as healthcare, banking financial services and insurance (BFSI), retail, government (defense), IT & telecom, security and others (travel & tourism, media & entertainment, energy & power, research & education). Deployment type bifurcates the cognitive analytics market into on-premises software and cloud-based services. Large, small and medium enterprises are considered as end users for the cognitive computing industry.
Natural language processing technology accounted for maximum revenue share in 2014 and is expected to dominate the cognitive computing market during the forecast period (2015-2020). Healthcare is the largest revenue generating vertical for cognitive computing system, it is followed by BFSI, retail, and security application segment.
Top Factors: Cognitive Computing Technology Market
Increasing Volume of Large Complex Data
Demand for cognitive systems in the global cognitive computing market is growing by leaps and bounds. Expectedly, this growth would continue throughout the forecast period. Nowadays, enormous data present with business organizations are in the form of human language, videos and pictures which contain valuable information. Hence, to process this data, there is a strong need for cognitive analytic technologies such as NLP and machine learning. In the forecast period, it is expected that the volume of data would increase considerably, which would eventually drive the market growth in terms of revenue. Therefore, increasing demand for cognitive computing systems would affect the overall global cognitive computing market size.
Big Data Analytics
Currently, the cognitive computing industry is witnessing various technological advancements enabled with exceptional features for various industries such as healthcare, banking and financial, research and education, IT and telecom, security and others. This system could help in resolving the world’s most complex data analysis problems by entering into the complexity of big data and exploiting the power of natural language processing, machine learning and automated reasoning technology. Several innovations in the technology, would further help in penetration of big data, thereby fostering the growth of global cognitive computing market in the near future.
Harnessing Internet Speed
With an increasing internet speed, demand for cognitive computing would thereby increase at a rapid pace. In the present market scenario, internet has played a vital role in gathering huge amount of data in the form of images, videos, text and others. Internet is also expected to generate large amounts of data from diverse locations that can be combined very quickly.
Cost in Deploying Cognitive Computing
The complexity in deploying cognitive computing system, is responsible for limiting the growth of the market. Controlling cost is very difficult in the current market scenario as the technology used increases the cost of the cognitive system. However, the complexity and the cost incurred would reduce in coming years with further advancements in technology.
- The report provides an in depth analysis of the global cognitive computing market and offers current and future trends to identify lucrative investment pockets in the market
- The report identifies the key drivers, opportunities and restraints along with their impact analysis
- Porter’s five forces analysis provides a clear idea regarding the potency of the buyers and suppliers participating in this market. This would further lend competitive advantage to the stakeholders in making profitable business decisions helping them to have a better hold on the suppliers and buyers.
- Current and future trends are outlined to determine the overall attractiveness and figure out profitable trends in order to gain a stronger foothold in the market
- A quantitative analysis of the market through 2014-2020 is provided to highlight the market potential
Cognitive Computing Market Key Segments:
The market is segmented on the basis of technology, application, end-user, deployment type, and geography.
- Natural Language Processing
- Machine Learning
- Automated Reasoning
- Others (Information Retrieval)
- Government (Defense)
- IT & Telecom
- Large Enterprises
- Small and Medium Businesses (SMBs)
By Deployment Type
- On-Premises Software
- Cloud-Based Services
- North America