COGNITIVE SYSTEMS SPENDING MARKET ANALYSIS

Market Restraint

Market Dynamics- Restraints

1. Complex learning process is expected to restrain growth of the global cognitive systems spending market during the forecast period

Extended timelines and project schedules are required to develop more complex systems that tap into multiple data sources and need curated content. Cognitive systems have many more moving parts than most IT automation projects, including aspects of data science, knowledge curation, model building, and overall workflow process improvement. All of this takes more time, which will slow adoption. Therefore, these factors are expected to restrain growth of the global cognitive systems spending market in the near future.

2. Rising commercialization concerns are expected to hinder the global cognitive systems spending market growth over the forecast period

A key area of importance for the upcoming influence of cognitive systems can be the power these systems can apply and the intrusion of commercial concerns into new areas of business. Moreover, to understand commercialization concerns, it is important to first understand the nature of computing technology that is assembled on layers of abstraction that permits investments at one level to be made sovereign over other layers. Businesses should have legal authority and patent to understand the technologies used in cognitive systems in the commercial world. Therefore, these factors are expected to hinder market growth in the near future.

Market Opportunities

1. Rising IT expenditure on cognitive systems can present major growth opportunities

The expenditure on cognitive systems has increased significantly in the IT sector in the software segment. This includes both cognitive software and cognitive applications platforms, which assists the development of advisory, intelligent, and cognitively permitted solutions. According to Coherent Market Insights’ analysis, the largest, as well as the fastest-growing category of cognitive systems spending, is forecast to approach $18.4 billion in 2026. Cognitive-based services indicate the second largest category in expenditure while hardware spending is expected to grow as fast as software spending.

2. Information overload and knowledge worker productivity can provide lucrative growth opportunities

Since information is increasing exponentially, it is adding continued pressure to enhance knowledge worker performance and decision-making. Knowledge workers are required to deal with a vast amount of information. Cognitive systems can provide a suite of tools that will improve knowledge worker productivity. Thus, these factors can present lucrative growth opportunities in the near future.