Global Cognitive Computing Market Size, Share & Industry Trends Analysis Report By Deployment Type (On-premise and Cloud), By Technology, By Enterprise Size, By Vertical, By Regional Outlook and Forecast, 2023 - 2030

Global Cognitive Computing Market Size, Share & Industry Trends Analysis Report By Deployment Type (On-premise and Cloud), By Technology, By Enterprise Size, By Vertical, By Regional Outlook and Forecast, 2023 - 2030

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.

Market Growth Factors

Rising adoption of automation in various industries

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.

Increasing requirement of cognitive computing for predictive analytics

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.

Market Restraining Factors

Risks to data integrity and lack of skilled professionals

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.

Deployment Type Outlook

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.

Technology Outlook

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.

Enterprise Size Outlook

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.

Vertical Outlook

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.

Regional Outlook

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.

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

Recent Strategies Deployed in Cognitive Computing Market

Partnerships, Collaborations and Agreements:

May-2023: SAP SE came into collaboration with IBM, a global hybrid cloud and AI, and consulting expertise provider. With the help of this partnership, the company would embed IBM Watson technology with its solutions to offer new AI-driven insights and automation which would create more efficient and effective user experiences.

May-2023: SAP came into an expanded partnership with Google, an American multinational technology company. Through this partnership, companies would aim to organize data landscapes and unlock the value of business data. Additionally, through the help of the SAP Datasphere solution and Google's data cloud, customers would build an end-to-end data cloud that combines data from across the business landscape, enabling enterprises to view their complete land in real time.

May-2023: Google Cloud extended its partnership with SAP, a Germany-based software company. The partnership focuses on jointly building the future of open data and AI and bringing in a full-fledged open data offering developed to make data landscapes easier. This offering allows users to build data could.

Apr-2023: Microsoft Corp. expanded the collaboration with Epic Systems Corporation, an American healthcare software company. The collaboration is aimed to integrate generative AI-powered solutions with Epic's EHR to enhance patient care, and productivity and improve the financial integrity of health systems globally.

Apr-2023: Microsoft expanded its partnership with OpenAI, an artificial intelligence company, to make the advancement in AI. With this expansion, Microsoft's expertise in providing AI-driven solutions and OpenAI's research on AI Alignment would be combined to build an advanced framework for the secure deployment of Microsoft's AI technologies.

Feb-2023: Google entered into a partnership with Anthropic, an AI-based startup to develop reliable and Credible AI systems. This partnership would enable Google to utilize Anthropic capabilities in providing cloud-driven solutions and integrate with Google's expertise in the training and deployment of AI systems, to build AI-enabled systems.

Oct-2022: Oracle Corporation came into partnership with NVIDIA, an American technology company, to integrate Oracle Cloud Infrastructure with NVIDIA's accelerated computing stack. The partnership would provide the customers of the two companies with solutions AI-powered solutions for overcoming business challenges.

Jul-2022: SAS formed a partnership with Moro Hub, a subsidiary of Digital DEWA. The partnership would enable the company to leverage Moro Hub’s multiple cloud services on a single platform to increase the scalability and security of its solutions for data management. This would help clients manage their high volumes of data in a streamlined manner and cost-effectively.

Product Launches and Product Expansions:

Jan-2023: Hewlett Packard took over Pachyderm, a US-based operator of data engineering platform. The blend of HPE and Pachyderm would deliver a combined ML pipeline and platform to advance a customer's journey.

Dec-2022: Oracle Corporation took over Newmetrix, a cloud-based platform that uses artificial intelligence to highlight construction problems focused on project safety. Through this acquisition, Oracle Corporation would be able to fasten its abilities in utilizing Machine Learning and AI to construct more predictive behaviors.

Jul-2022: IBM took over Databand.ai, a leader in data observability software. With this acquisition, the company aimed to strengthen its software portfolio through automation, data, and AI to address the full spectrum of observability.

Mar-2022: Microsoft acquired Nuance Communications, a US-based company that provides speech recognition solutions, healthcare AI solutions, and omnichannel customer engagement. This acquisition enables healthcare services providers a better opportunity to provide economical, attainable healthcare services, and allows organizations in other industries to better serve the needs of their clients.

Acquisitions and Mergers:

Apr-2023: Oracle Corporation added new capabilities for Oracle Fusion Cloud Applications Suite. The new capabilities include AI-powered lead time estimation for improved lead time assumptions, a better quote-to-cash process, and Rebate management facilities.

Mar-2023: Google Cloud announced the launch of Generative AI App Builder. The launched product enables developers to rapidly ship the latest experiences consisting of chat interfaces, digital assistants, bots, and more. Additionally, with this launch, Google enables a complete generation of developers, builders, innovators, and doers to leverage the power of AI in novel ways.

Mar-2023: TCS unveiled TCS Cognitive Plant Operations Adviser, a composite AI solution for manufacturing and process plant operations that utilizes Microsoft Project Bonsai's low-code, AI platform to offer insights and information to plant operators for making real-time and autonomous decisions.

Oct-2022: Oracle Corporation introduced new features for Oracle Fusion Analytics for customer experience. The new features include Oracle Fusion CX Analytics, Oracle Fusion ERP Analytics, Oracle Fusion SCM Analytics, and Oracle Fusion HCM Analytics.

Jul-2022: IBM Corporation introduced IBM Process Automation Manager Open Edition and IBM Decision Manager Open Edition. IBM Process Automation Manager Open Edition is a workflow automation facility that includes BPMN2.0 modeling, full decision management, and dashboarding support. IBM Decision Manager Open Edition is an Automation Decision service that includes DMN1.4-compliant runtime, Kogito-based cloud-native architecture, and complex event processing.

Scope of the Study

Market Segments covered in the Report:

By Deployment Type

• On-premise
• Cloud

By Technology

• Natural Language Processing (NLP)
• Machine Learning
• Automated Reasoning & Others

By Enterprise Size

• Large Enterprises
• Small & Medium-sized Enterprises

By Vertical

• Healthcare
• BFSI
• Retail & E-commerce
• Manufacturing
• IT & Telecom
• Government & Defense
• Energy & Power
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• 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
• Oracle Corporation

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