According to a recent report published by Allied Market Research, titled, “Cognitive Computing Market by Technology, Deployment Type, Enterprise Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2019–2026,” the cognitive computing market size was valued at $8.87 billion in 2018, and is projected to reach $87.39 billion by 2026, growing at a CAGR of 31.6% from 2019 to 2026.
Cognitive computing refers to the development of computer systems model that simulates the human thought process as a human brain. These systems use natural language processing capability to tackle complex situations and learn from experience. Theyare capable of interacting with humans in a natural/human way, and help in making decisions based on the learning. Cognitive computing includes self-learning systems that use pattern recognition, data mining, and natural language processing to impersonate the way human brain works or takes decision. Moreover, cognitive computing is a sub-technology of artificial intelligence (AI) that includes almost the same underlying technologies to power its applications such as neural networks, expert systems, robotics, and virtual reality.
Increased adoption of cognitive computing applications in large and small & medium enterprises boosts the growth of the market. In the prevailing business scenario, demand for unstructured data insights is witnessing a steady growth amongst the organizations. Increase in amount of unstructured data availability is one of the major growth factors for the cognitive computing market in various regions. Moreover, increase in trend of cloud-based services and big data analytics adds to the growth of cognitive computing. On the other hand, huge cost involved in the deployment of cognitive computing is anticipated to hinder the growth of the market.
The global cognitive computing market growth is in its evolving phase in most of the geographical regions. Natural language processing has driven larger portion of the market in present scenario owing to its dynamic features. It can respond in natural language, in turn inspiring its major use in the field of healthcare, banking, and financial sector.
Key Findings Of The Study
- By technology, the natural language processing segment dominated the cognitive computing market forecast. However, the machine learning segment is expected to exhibit significant growth during the forecast period in the cognitive computing industry.
- By deployment type, the on-premise segment dominated the cognitive computing market share in 2018. However, the cloud segment is expected to exhibit significant growth during the forecast period.
- By enterprise size, the small and medium enterprises segment dominated the market revenue in 2018. However, thelarge enterprises segment is expected to exhibit significant growth during the forecast period
- Depending on industry vertical, the healthcare industry generated the highest revenue in 2018 owing toits high R&D expenditure capability for enabling technologies. However, the BFSI sector is expected to witness a considerable growth in the near future.
- Region wise, North America dominated the cognitive computing market trends in 2018. Whereas, Asia-Pacific is expected to witness significant growth in terms of CAGR in the coming years.
Some of the key market players profiled in the cognitive computing market analysis include 3M, Google LLC, Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Microsoft Corporation, Nuance Communications Inc., Oracle Corporation, SAP SE, SAS Institute Inc., and Tibco Software Inc. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With increase in artificial intelligence R&D initiatives across the globe, major players have integrated their product portfolio to provide differentiated and innovative products. This study includes marketanalysis, trends, and future estimations to determine the imminent investment pockets.