Cognitive Analytics Market Forecasts to 2030 – Global Analysis By Component (Services and Tools), Deployment, Organization Size, Technology, Application, End User and By Geography

Cognitive Analytics Market Forecasts to 2030 – Global Analysis By Component (Services and Tools), Deployment, Organization Size, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Cognitive Analytics Market is accounted for $3.9 billion in 2023 and is expected to reach $32.7 billion by 2030 growing at a CAGR of 35.3% during the forecast period. Cognitive analytics involves the application of advanced technologies such as artificial intelligence, machine learning, and natural language processing to analyze and interpret complex data sets. This multidimensional approach enables systems to mimic human thought processes, extracting valuable insights from vast amounts of information. By uncovering patterns, trends, and correlations, cognitive analytics empowers organizations to make data-driven decisions, enhance problem-solving capabilities, and optimize processes across various industries, ultimately fostering innovation and improving overall business performance.

According to Flexera’s 2022 State of the Cloud Report, organizations reported spending more than USD 12 million yearly in 37% of cases in 2021 and more than USD 1.2 million on clouds in 80% of cases.

Market Dynamics:

Driver:

Rising demand for real-time insights

The market is witnessing a surge in demand for real-time insights as organizations recognize the critical importance of timely data-driven decision-making. This heightened need stems from the dynamic business landscape, where rapid changes and evolving trends necessitate instant and accurate analysis. Companies are increasingly adopting cognitive analytics solutions to gain actionable intelligence in real-time, enabling them to respond swiftly to market shifts and emerging opportunities, thereby enhancing overall operational efficiency and competitiveness.

Restraint:

Data privacy and security concerns

The collection, processing, and storage of personal and business data present potential risks, including unauthorized access, data breaches, and misuse. As cognitive analytics systems become more sophisticated, ensuring robust encryption, authentication protocols, and compliance with data protection regulations is imperative. Organizations must prioritize transparent privacy policies, implement stringent access controls, and regularly audit their systems to safeguard against potential vulnerabilities. Data privacy and security concerns are the factors restraining the growth of the market,

Opportunity:

Rising adoption of IoT devices and big data analytics

The market is experiencing a surge in adoption propelled by the widespread integration of Internet of Things (IoT) devices and the utilization of big data analytics. This synergy allows organizations to harness vast amounts of data generated by IoT devices, enabling sophisticated analysis and insights. The seamless integration of these technologies empowers businesses to make data-driven decisions, enhance operational efficiency, and gain a competitive edge in dynamic market landscape.

Threat:

Lack of skilled professionals

The demand for experts proficient in data science, machine learning, and artificial intelligence outpaces the current availability of qualified individuals. This scarcity limits the effective implementation of cognitive analytics solutions, impeding organizations from harnessing the full benefits of advanced data insights. Bridging this skills gap is crucial for businesses aiming to leverage cognitive analytics to enhance decision-making and gain a competitive edge. Hence, this is the major aspect hindering the growth of the market.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the Cognitive Analytics market as organizations sought advanced data-driven solutions to navigate unprecedented challenges. The demand for real-time insights surged, driving increased adoption of cognitive analytics to enhance decision-making processes and business resilience. Remote work dynamics also accelerated the need for AI-driven analytics, fostering innovation and growth within the market. The pandemic underscored the importance of cognitive analytics in adapting to dynamic circumstances, influencing a paradigm shift in data analysis strategies across industries.

The natural language processing segment is expected to be the largest during the forecast period

The natural language processing segment is expected to be the largest during the forecast period owing to the increasing demand for advanced language understanding and communication capabilities. Organizations are leveraging technologies to extract valuable insights from unstructured data, enhance decision-making processes, and improve customer experiences. This market expansion is propelled by the rising adoption of AI-driven solutions across various industries, showcasing the pivotal role in unlocking the potential of cognitive analytics for comprehensive data analysis and interpretation.

The transportation and logistics segment is expected to have the highest CAGR during the forecast period

The transportation and logistics segment is expected to have the highest CAGR during the forecast period. Cognitive analytics streamline supply chain operations, optimizing routes, inventory management, and demand forecasting. Machine learning algorithms enhance efficiency, reduce costs, and improve overall logistics performance. With the ability to analyze vast datasets, organizations gain valuable insights, enabling them to make informed decisions, enhance customer satisfaction, and adapt quickly to dynamic market demands within the transportation and logistics sector.

Region with largest share:

North America is projected to hold the largest market share during the forecast period due to increasing adoption of advanced analytics solutions across various industries. With a focus on leveraging artificial intelligence and machine learning technologies, businesses in the region are gaining valuable insights from vast datasets. The demand for real-time decision-making tools and predictive analytics is propelling market expansion.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. Organizations are adopting cognitive analytics solutions to derive meaningful patterns and predictions from vast datasets, enhancing decision-making processes. Factors such as technological advancements, rising awareness of analytics benefits, and the proliferation of digital transformation initiatives contribute to the region's expanding cognitive analytics market.

Key players in the market

Some of the key players in Cognitive Analytics market include SAS Institute, Hewlett Packard Enterprise Company, Google LLC, Amazon Web Services, Microsoft Corporation, Intel, Cisco Systems, Nokia, Oracle Corporation, Narrative Science, IBM Corporation, Accenture PLC, Nuance Communications, Inc., Numenta, Inc., Enterra Solutions LLC, SparkCognition Inc., Tata Consultancy Services and Ericsson.

Key Developments:

In September 2023, Ericsson launched advanced troubleshooting capabilities with an extension of Ericsson Expert Analytics. The solution implements AI, machine learning, and analytics tools to identify root-cause of issues.

In May 2023, Tata Consultancy Services strategically collaborated with Google LLC Cloud to provide generative AI and cognitive-powered services to customers. It caters to industry specific applications that focus on pushing business value in the real-world.

In March 2023, Tata Consultancy Services launched 5G-powered cognitive plant operations adviser to support industries such as oil and gas, manufacturing, retail, and others with advanced analytics and artificial intelligence. It would help clients in building prescriptive and predictive capabilities.

Components Covered:
• Services
• Tools

Deployments Covered:
• Cloud
• On-Premise

Organization Sizes Covered:
• Large enterprises
• Small and Medium-sized Enterprises (SMEs)

Technologies Covered:
• Natural Language Processing
• Machine Learning
• Automated Reasoning
• Other Technologies

Applications Covered:
• Supply Chain Management
• Asset Maintenance
• Fraud And Risk Management
• Customer Analysis And Personalization
• Sales And Marketing Management
• Other Applications

End Users Covered:
• Media And Entertainment
• Transportation And Logistics
• Telecommunications And IT
• Retail And Consumer Goods
• Healthcare And Life Sciences
• Manufacturing
• Government And Defense
• Energy And Utilities
• Banking, Financial Services, and Insurance (BFSI)
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements