COGNITIVE COMPUTING MARKET ANALYSIS

The global cognitive computing market size was valued at US$ 29.13 Bn in 2022, exhibiting a Compound Annual Growth Rate (CAGR) of 29.4% from 2023 to 2030.

The global cognitive computing market is a rapidly growing sector within the broader field of Artificial Intelligence (AI). Cognitive computing involves the use of advanced algorithms, machine learning, Natural Language Processing (NLP), and data analytics to mimic human thought processes and decision-making abilities. It enables machines to understand, learn, reason, and interact with humans in a more natural and intelligent manner.

The applications of cognitive computing are diverse and span various industries including healthcare, finance, retail, education, and customer service. Cognitive computing systems can process vast amounts of unstructured data, such as text, images, and videos, to extract valuable insights and make informed decisions.

Key players in the global cognitive computing market are continually innovating and developing sophisticated solutions that are increasingly integrated into business operations. The growing demand for automation, data-driven decision-making, and personalized user experiences is driving the adoption of cognitive computing technologies worldwide.

As the technology advances and more organizations recognize its potential, the global cognitive computing market is expected to witness significant growth in the coming years, transforming various aspects of industries and everyday life.

Global Cognitive Computing Market- Regional Analysis

North America held a dominant position in the global cognitive computing market in 2022, followed by Europe and Asia Pacific.

Figure 1. Global Cognitive Computing Market Share (%), By Region, 2022

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North America held a dominant position in the global cognitive computing market in 2022, owing to increasing technological advancements.

The North America region is at the forefront of technological advancements and innovation in AI and cognitive computing. The region's cognitive computing market is driven by a strong presence of major tech companies, research institutions, and startups focusing on AI development. Furthermore, the North America market benefits from a tech-savvy consumer base, receptive to embracing AI-powered solutions in their daily lives. As organizations seek to streamline operations, enhance customer experiences, and gain a competitive edge, the adoption of cognitive computing technologies continues to grow rapidly in the region.

The cognitive computing market in Europe is experiencing robust growth as businesses and industries recognize the transformative potential of AI technologies. With an increasing focus on data-driven decision-making and personalized user experiences, cognitive computing solutions are finding extensive applications in healthcare, finance, manufacturing, and more. European companies and research institutions are actively investing in AI research and development, driving innovation and adoption across the region. This trend is expected to continue, positioning Europe as a key player in the global cognitive computing market.

The Asia Pacific is witnessing significant growth as the region embraces AI technologies and digital transformation. With a large population and expanding tech infrastructure, industries in healthcare, finance, e-commerce, and education are adopting cognitive computing solutions to enhance efficiency and customer experiences. The rising investments in AI research and development by companies and governments further fuel the market's expansion. As Asia Pacific becomes a major hub for AI innovation, the global cognitive computing market is expected to experience continued growth and widespread adoption.

Global Cognitive Computing Market- Segmentation

• This report segments the global cognitive computing market on the basis of by deployment type, by end user, by application, by industry and region.
• On the basis of deployment type, the global cognitive computing market is segmented into on-premise and cloud software.
• On the basis of end user, global cognitive computing market is segmented into small scale enterprises, large scale enterprise and public sector.
• On the basis of application, global cognitive computing market is segmented into diagnostic APIs, robots, cyber security, farm mechanization, e-learning, supply chain management, social media monitoring, self-driving cars, gaming, video ,it infrastructure management and others.
• On the basis of industry, global cognitive computing market is segmented into healthcare, BFSI, it & telecom, energy & utilities, agriculture, retail, aerospace & defense, government, transportation, media & entertainment, education and others (HR, marketing & PR, etc.).
• On the basis of region, global cognitive computing market is segmented into North America, Latin America, Europe, APAC, Middle East and Africa.    

Figure 2. Global Cognitive Computing Market Value (US$ Bn) Analysis and Forecast,

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• The global cognitive computing market was valued at US$ 29.13 Billion in 2022 and is expected to reach US$ 227.3 Billion by 2030, exhibiting a CAGR of 29.4% between 2023 and 2030.

Global Cognitive Computing Market- Key Competitors

The major players operating in the global cognitive computing market include Accenture Inc., SparkCognition Inc., Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, Google Inc., Microsoft Corporation, Narrative Science Inc., Flatiron Health, Inc., and Digital Reasoning Systems, Inc.

Global Cognitive Computing Market- Recent Developments

• In August 2021, Indraprastha Institute of Information Technology Delhi (IIIT), Delhi, India received a funding of Rs 100 crore (US$ 12 Million) from the Department of Science and Technology (DST) to establish a cognitive computing hub called iHub Anubhuti. This technology innovation hub (TiH) is set up under the National Mission on Interdisciplinary Cyber-Physical Systems, supported by DST, and operates as a Section 8 company. The initiative falls under the central government's National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS). The funding will support the cognitive computing hub's operations for a duration of five years.
• On March 14, 2023, Tata Consultancy Services (TCS) multinational information technology services and consulting company, introduced its 5G-enabled solution, the TCS Cognitive Plant Operations Adviser, on the Microsoft Azure Private Mobile Edge Computing (PMEC) platform. The launch aims to assist manufacturing, oil and gas, consumer packaged goods, and pharmaceutical industries in revolutionizing their production processes.
• On June 28, 2023, Wisedocs, an AI software platform for insurance, unveiled its AI Medical Summary Platform. The platform expands on their medical record review software, enabling insurance companies to quickly summarize large volumes of medical records and gain insights for faster and cost-effective reviews and decisions.
• In May 2020, Vizient, Inc. which is a healthcare performance improvement company, announced the establishment of Ediom, LLC, a cognitive computing and data science company exclusively focused on healthcare. In collaboration with Mrs. Anita Pramoda, founder of Owned Outcomes, Inc. and former CFO at Epic Systems, Ediom, LLC will utilize its proprietary cognitive computing platform to offer software and analytic solutions for addressing Big Health Data challenges in the provider, supplier, and payor markets. The aim is to personalize data for all healthcare stakeholders, enabling software solutions to efficiently search through vast data and identify what is most relevant and impactful to each patient.

Global Cognitive Computing Market- Driver

Increasing adoption of cognitive computing across industries

Cognitive computing is being increasingly adopted by organizations worldwide due to its transformative potential and its ability to revolutionize business operations. As companies face escalating volumes of data, the demand for advanced data analytics and insights has grown exponentially. Cognitive computing technologies offer the capability to process and analyze vast amounts of unstructured data, such as texts, images, and videos, enabling businesses to derive valuable insights and make data-driven decisions. Moreover, cognitive computing systems possess the ability to learn and improve over time, continuously refining their understanding and decision-making capabilities.

By leveraging cognitive computing solutions, organizations can enhance operational efficiency, optimize resource allocation, and gain a competitive edge in their respective industries. The integration of AI-driven technologies in various applications, such as customer service, supply chain management, and risk analysis, further underscores the significance of cognitive computing for modern businesses. As organizations recognize the immense potential of cognitive computing in improving productivity and customer experiences, the global cognitive computing market continues to experience rapid growth, shaping the future of AI-driven innovation and business intelligence.

Rising investments in big data analytics

The increasing investments in big data analytics is anticipated to be a major driver for the growth of the global cognitive computing market during the forecast period. As organizations generate and collect massive amounts of data, there is a growing realization of the value of this data in gaining valuable insights and making informed decisions. Big data analytics plays a pivotal role in processing and analyzing such vast datasets, uncovering patterns, trends, and correlations that might be otherwise overlooked. Cognitive computing complements big data analytics by employing artificial intelligence and advanced algorithms to understand, learn from, and interpret this data, further enhancing the analytical capabilities.

With the integration of cognitive computing, organizations can extract deeper insights and gain a comprehensive understanding of their data, enabling them to make more precise predictions and optimize their business strategies. As the demand for sophisticated data analytics solutions continues to rise, the global cognitive computing market is expected to witness substantial growth, driven by the increasing adoption of big data analytics and the desire to unlock the full potential of data-driven decision-making.

Global Cognitive Computing Market- Restraint

Limited funding access and significant upfront investments

The global cognitive computing market growth is likely to face constraints due to two primary factors: low funding access and high upfront investments. Cognitive computing technologies involve sophisticated AI algorithms, advanced hardware, and large-scale data processing, resulting in substantial initial costs for organizations looking to adopt these solutions. Moreover, the development and implementation of cognitive computing systems demand considerable expertise and resources, further adding to the upfront investments. Additionally, smaller businesses and startups may encounter challenges in accessing sufficient funding to support their cognitive computing initiatives, hindering their ability to compete with larger enterprises.

The high upfront investments and limited funding access can act as deterrents for organizations considering cognitive computing adoption. However, as the technology matures and more success stories emerge, these barriers may gradually diminish. Efforts to create cost-effective solutions and potential collaborations between vendors and investors may also address this restraint, fostering wider adoption of cognitive computing solutions. Despite these challenges, the long-term benefits of cognitive computing, such as enhanced efficiency, data-driven insights, and improved customer experiences, continue to drive interest and investment in the global cognitive computing market.

Global Cognitive Computing Market- Opportunity

Market players can capitalize on lucrative growth opportunities due to the high demand from the healthcare sector

The healthcare sector presents significant growth opportunities for players in the global cognitive computing market. The increasing demand in healthcare for advanced data analytics, personalized medicine, and improved patient care has driven the adoption of cognitive computing technologies. Cognitive computing solutions can analyze vast volumes of patient data, including medical records, imaging results, and genomic data, to derive valuable insights for diagnosis and treatment planning. The ability of cognitive computing systems to learn from new data and medical research enables them to provide more accurate and timely recommendations, assisting healthcare professionals in making better-informed decisions.

Moreover, cognitive computing can revolutionize medical research and drug discovery by identifying patterns in large datasets and predicting potential drug interactions or treatment outcomes. The integration of AI-powered chatbots and virtual assistants in healthcare settings enhances patient engagement and support, contributing to a more patient-centric healthcare approach. With the continuous advancements in AI and cognitive computing, the healthcare sector is expected to witness transformative improvements in disease management, early detection, and overall patient outcomes, creating lucrative growth opportunities for market players in the global cognitive computing market.

Global Cognitive Computing Market- Impact of COVID-19:

The global cognitive computing market experienced both challenges and opportunities as a result of the COVID-19 pandemic. The crisis highlighted the significance of AI-driven technologies in addressing complex problems and enhancing operational resilience. While some businesses faced disruptions in the initial phase of the pandemic due to supply chain disruptions and decreased investments, others recognized the need to invest in cognitive computing solutions to adapt to remote working and changing customer behaviors. The healthcare sector witnessed increased demand for cognitive computing applications in medical research, drug discovery, and patient care, aiming to find solutions to the health crisis. Moreover, the pandemic accelerated the adoption of AI-powered chatbots and virtual assistants in various industries to handle customer inquiries and support services. As the global economy gradually recovers, the global cognitive computing market is poised for substantial growth, with businesses acknowledging the critical role of AI technologies in building a more resilient and efficient future.

*Definition: Cognitive computing refers to a branch of Artificial Intelligence (AI) that involves the development of computer systems capable of simulating human-like cognitive processes. These systems use various techniques, including machine learning, natural language processing, pattern recognition, and data mining, to understand, reason, learn, and interact with users in a way that resembles human thought processes. Cognitive computing aims to solve complex problems by processing and analyzing vast amounts of data, making informed decisions, and continuously improving its performance based on new information and experiences.