The cognitive computing market is expected to expand its roots at a strong CAGR of 26.3% during the forecast period. The market is likely to hold a revenue of USD 18.03 billion in 2023 while it is anticipated to cross a value of USD 188.2 billion by 2033.
The rise in concern among all the leading business organizations to analyze a large volume of data to estimate the risk associated with any strategic initiative is expected to accelerate market growth.
Factors such as the rise in big data analytics, developments of machine-to-machine technologies, and an increase in demand for a better customer experience led the market growth.
The human-like interface, advanced processing, better decision-making results, and technological advancements in corporate spaces are expected to garner growth. Furthermore, the challenges faced by the industry are anticipated to be solved through cognitive systems. A wide range of applications involving healthcare, government, IT & telecom, and manufacturing. The expanding application of smart technologies like artificial intelligence, machine learning, and big data are also projected to enrich the cognitive computing system experience.
The end-user brands are looking forward to adopting systems that increase and enhanced the adaptiveness of operations. The interactive, Iterative, contextual, and stateful capabilities of these systems inflict higher productivity and efficiency in any operation.
FMI explains how cognitive computing systems benefit different vertical operations. For example, the healthcare sector untangles complex and unstructured healthcare data. This data involves information regarding diagnoses, conditions, and patient history. For the retail sector, the system works on consumer data and delivers personalized suggestions. In the banking and finance industry, the system diversifies the data dimensions and gathers information through multiple sources to provide an idea about ant project.
Lastly, cognitive computing has properties that help these many applications. Some noticeable properties that the systems deliver are analytical accuracy, business process efficiency, customer interaction and experience, and service quality & employee productivity.
| Attributes | Details |
|---|---|
| Cognitive Computing Market CAGR (2023 to 2033) | 26.3% |
| Cognitive Computing Market Size (2023) | USD 18.03 billion |
| Cognitive Computing Market Size (2033) | USD 188.2 billion |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
There is an increase in the demand for cognitive systems in large organizations and this is expected to increase in SMBs owing to cloud-based services. As cloud-based deployment decreases the cost of deploying cognitive computing in the organization, there is a subsequent rise in the overall demand for cloud-based services.
The rise in big data analytics, developments of machine-to-machine technologies, and an increase in demand for a better customer experience. In addition, industries such as BFSI, social websites, healthcare, and e-commerce have witnessed a rapid increase in transaction information and customer data.
To develop cognitive solutions, a high upfront investment is required to set up maintenance architecture and infrastructure which leads to high operational costs.
Issues relating to government standards and uncertain regulatory compliance are also expected to limit the growth of the cognitive computing market. In addition, the market is anticipated to experience several challenges owing to the lack of awareness among SMEs.
Principal Consultant
One of the significant market key trends is the rising demand for big data analytics across various industries such as IT and telecom, healthcare, aerospace & defense. The rising volume of data and the adoption of big data tools are likely to drive the demand for big data analytics.
NLP technology helps in analyzing unstructured data for improving customer needs, expectations, and better customer experience. Hence, with the help of NLP, organizations get better insights into the optimization of business processes, reduction in operational cost, and customer perception.
| Countries | Revenue Share % (2023) |
|---|---|
| United States | 27.3% |
| Germany | 7.2% |
| Japan | 5.4% |
| Australia | 2.1% |
| Countries | CAGR % (2023 to 2033) |
|---|---|
| China | 29.3% |
| India | 23.1% |
| United Kingdom | 25.1% |
The global cognitive computing market is divided into North America, South America, Europe, Asia Pacific, the Middle East, and Africa based on geography. The North American region is expected to hold a substantial share of the global cognitive computing market. While the Asia Pacific (APAC) region is expected to grow at a significant rate during the forecast period.
North America is a significant revenue contributor in the global market. The region is witnessing significant developments in the market, owing to the increasing usage of the internet and startups adopting cognitive computing solutions.
In addition, organizations, especially in the United States, have started using cognitive computing solutions to analyze huge volumes of data to provide better solutions. New technological advancements, such as 5G and IoT have also aided in the boost of cognitive solutions in this region.
Cognitive computing demand in the United States has held a market share of 27.3% in 2022. Moreover, the United Kingdom and China are expected to thrive at growth forecasts of 25.1% and 29.3% respectively, throughout the forecast period.
The growth is attributed to the expanding manufacturing space in China while India’s forecast for the IT and telecom industry is rich and is projected to gain more traction for the market. China and India both emerging superpowers are anticipated to expand their market space as both build new healthcare, government-based infrastructure.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
| Category | By Deployment Type |
|---|---|
| Leading Segment | On-Premises |
| Market Share (2022) | 57.6% |
| Category | By Industry Type |
|---|---|
| Leading Segment | IT and telecom |
| Market Share (2022) | 17.5% |
The cognitive computing market can be segmented on the basis of deployment, application, industry, end user, and region. Based on the deployment, the market can be segmented into the following: on-premise, and cloud.
By deployment, the on-premise category of the cognitive computing market is expected to dominate the market as it held a market share of 57.6% in 2022. The growth is attributed to its capabilities such as data mining, pattern recognition, and natural language processing, which in turn is expected to accelerate the market growth over the analysis period.
According to FMI, on the basis of application, the market can be segmented into the following: diagnostic APIs, robots, cyber security, farm mechanization, social media monitoring, self-driving cars, gaming, video surveillance, eLearning, IT infrastructure management, supply chain management, and others. By application, the diagnostic APIs category is expected to dominate the market and is predicted to reach a CAGR of 27.9%, during the forecast period.
Based on Industry, the market can be segmented into the following: healthcare, BFSI, IT and telecom, manufacturing, energy & utility, retail, aerospace & defense, government, transportation, agriculture, media & entertainment, education, and. Based on end-user, the market can be segmented into the following: large enterprises, small and medium enterprises (SMEs), and public sector. The IT and telecom segment leads the market space as the IT industries are on the rise in emerging Asian economies. The demand for effective communication, data tracking, and evaluation techniques is likely to flourish in the segment during the forecast period.
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., among others, are the top companies in the global cognitive computing market.
With a sizable cognitive computing market share, these main firms are concentrating on growing their consumer base in new countries. These businesses are making use of strategic collaboration initiatives to grow their market share and profits.
Mid-size and smaller businesses, on the other hand, are expanding their market presence by gaining new contracts and entering new markets, thanks to technical developments and product innovations.
Market Developments
The market is anticipated to be valued USD 18.03 billion in 2023.
The market is estimated to evolve at a CAGR of 26.3% till 2033.
The China market is expected to develop at a CAGR of 29.3%.
By 2033, the market is estimated to be worth USD 188.2 billion.
In the United States, the market share to stand at 27.3%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment 5.1. On-Premise 5.2. Cloud 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Diagnostic APIs 6.2. Robots 6.3. Cyber Security 6.4. Farm Mechanization 6.5. Social Media Monitoring 6.6. Self-Driving Cars 6.7. Gaming 6.8. Video Surveillance 6.9. e-Learning 6.10. IT Infrastructure Management 6.11. Supply Chain Management 6.12. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry 7.1. Healthcare 7.2. BFSI 7.3. IT and Telecom 7.4. Manufacturing 7.5. Energy & Utility 7.6. Retail 7.7. Aerospace & Defense 7.8. Government 7.9. Transportation 7.10. Agriculture 7.11. Media & Entertainment 7.12. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. Large Enterprises 8.2. Small and Medium Enterprises (SMEs) 8.3. Public Sector 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia 9.5. East Asia 9.6. Oceania 9.7. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. 3M 19.2. Google LLC 19.3. Hewlett Packard Enterprise Development LP 19.4. International Business Machines Corporation 19.5. Microsoft Corporation 19.6. Nuance Communications, Inc. 19.7. Oracle Corporation 19.8. SAP SE 19.9. SAS Institute Inc. 19.10. Tibco Software Inc. 20. Assumptions & Acronyms Used 21. Research Methodology
Explore Technology Insights
View Reports
Cognitive Computing Market
