Cognitive Automation Market Forecasts to 2030 – Global Analysis By Component (Solutions, Services and Other Components), Deployment Mode, Enterprise Size, Technology, Application, End User and By Geography

Cognitive Automation Market Forecasts to 2030 – Global Analysis By Component (Solutions, Services and Other Components), Deployment Mode, Enterprise Size, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Cognitive Automation Market is accounted for $15.3 billion in 2024 and is expected to reach $33.2 billion by 2030 growing at a CAGR of 13.7% during the forecast period. Cognitive Automation is the integration of artificial intelligence (AI) with process automation technologies to improve business operations and decision-making. It combines machine learning, natural language processing, and robotic process automation to automate complex tasks. Cognitive automation is increasingly used in sectors like banking, healthcare, retail, and manufacturing to streamline processes like customer service, compliance, and data management.

Market Dynamics:

Driver:

Increasing volume of data generated by businesses

The explosion of data from various sources like IoT devices, social media, and business applications is making it increasingly difficult for humans to process and extract insights. This is driving businesses to adopt cognitive automation solutions that can efficiently handle large volumes of structured and unstructured data. Moreover cognitive automation leverages technologies like AI, machine learning, and natural language processing to automate data-intensive processes and generate actionable insights which drives the growth of the market.

Restraint:

Technological limitations

Implementing cognitive automation into business processes can be complex and time-consuming, potentially leading to delays and increased costs. This complexity can deter companies from pursuing cognitive automation, as it may disrupt operations. Additionally, data privacy and security concerns arise due to the processing of sensitive data, and compliance with regulations like GDPR and CCPA can complicate the deployment of cognitive automation solutions hampering the markets growth.

Opportunity:

Increased demand for efficiency and cost reduction

Cognitive automation helps organizations achieve substantial cost savings by minimizing manual errors and optimizing resource allocation. By automating routine tasks, businesses can reduce labor costs and improve the speed and accuracy of their operations. For instance, the integration of cognitive capabilities into robotic process automation (RPA) allows for the efficient handling of structured and unstructured data, which is crucial for decision-making and operational excellence

Threat:

Increased reliance on data in cognitive automation systems

Cognitive automation relies on quality training data, which can be biased or inaccurate if it contains human biases or inaccuracies. This can lead to unfair treatment, incorrect predictions, and erosion of trust in the technology. Mitigating algorithmic bias requires careful data curation and testing. The opaque nature of AI algorithms makes it difficult to explain decision-making, which can be problematic in areas like healthcare and finance where transparency and accountability are critical.

Covid-19 Impact:

The COVID-19 pandemic has had a mixed impact on the Cognitive Automation Market. While it has accelerated the adoption of automation technologies as businesses seek to enhance efficiency and reduce costs, the initial economic disruption caused by lockdowns and supply chain issues slowed market growth in 2020-2021. However, as cognitive automation solutions become more sophisticated and businesses increasingly rely on data-driven insights to drive performance.

The solutions segment is expected to be the largest during the forecast period

The solutions segment is expected to be the largest during the forecast period because these solutions improve operational efficiency by automating repetitive tasks, allowing employees to focus on strategic activities. This leads to increased productivity in sectors like banking, healthcare, and IT. Advanced technologies like AI and machine learning enable organizations to analyze large data volumes, support better decision-making, and enhance business process adaptability encouraging its market growth.

The healthcare segment is expected to have the highest CAGR during the forecast period

The healthcare segment is expected to have the highest CAGR during the forecast period because cognitive automation is revolutionizing healthcare by automating administrative tasks like medical record digitization and billing, enhancing clinical decision-making by analyzing patient data, and reducing medical errors. It allows healthcare staff to focus on patient care, improves treatment plans, and reduces errors in areas like prescription management and drug interactions, ensuring patient safety.

Region with largest share:

North America is projected to hold the largest market share during the forecast period attributed to its early adoption of automation and AI technologies by businesses and government institutions. The US has a strong presence of leading vendors like Blue Prism, IBM, IPsoft, and Kryon Systems, driving innovation and adoption. Additionally, the region is witnessing significant growth in the use of intelligent virtual assistants for customer service and sales interactions.

Region with highest CAGR:

Asia Pacific is projected to witness the highest CAGR over the forecast period due to economic development and urbanization, leading to increased demand for efficient processes and cost-effective solutions. The rise of digitalization and cloud adoption further enhances this market, enabling organizations to improve operational efficiency, reduce costs, and enhance customer experiences.

Key players in the market:

Some of the key players in Cognitive Automation market include Automation Anywhere , Blue Prism, Edge Verve Systems Ltd., FPT Software, IBM, Kofax, Microsoft Corporation, NICE, NTT Advanced Technology Corp., OnviSource, Inc., Pegasystems, UiPath and WorkFusion, Inc

Key Developments:

In August 2024, IBM and Intel have announced a collaboration to deploy Intel® Gaudi® 3 AI accelerators as a service on IBM Cloud. This offering, which is expected to be available in early 2025, aims to help more cost effectively scale enterprise AI and drive innovation underpinned with security and resiliency.

In August 2024, IBM announced the introduction of generative AI capabilities to its managed Threat Detection and Response Services utilized by IBM Consulting analysts to advance and streamline security operations for clients.

Components Covered:
• Solutions
• Services
• Other Components

Deployment Modes Covered:
• Cloud
• On-Premise
• Hybrid

Enterprise Sizes Covered:
• Small and Medium Enterprises (SMEs)
• Large Enterprises

Technologies Covered:
• Natural Language Processing
• Machine Learning
• Cognitive Computing
• Robotics
• Other Technologies

Applications Covered:
• Customer Service
• Process Automation
• Data Analysis
• Decision Support
• Security
• Other Applications

End Users Covered:
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Retail & eCommerce
• Manufacturing
• IT & Telecommunications
• Energy & Utilities
• Government
• Transportation & Logistics
• 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 2022, 2023, 2024, 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