Cognitive Computing Market Size, Share & Trends Analysis Report By Technology, By Deployment (On-premises, Cloud), By Application (BFSI, Healthcare, Security, Retail, IT & Telecom, Aerospace), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global cognitive computing market size was valued at USD 25.62 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 27.6% from 2022 to 2030. The rise in the penetration of artificial intelligence and integrated cloud platforms is expected to bolster the growth of cognitive computing solutions. This factor is expected to fuel the growth of the industry during the forecast period.

The increase in concern among all the major business organizations to analyze a large volume of data to estimate the risk associated with any strategic initiative is further instrumental in accelerating the industry growth. The necessity for industries, such as healthcare, retail, and financial institutions, to analyze large volumes of data optimally on a real-time basis, is presumed to impact the industry favorably. Technological proliferation is leading to the adoption of innovative techniques, such as machine learning and automated reasoning, in dispensing systems.

Cognitive computing is a technology platform based on the scientific premises of signal processing and artificial intelligence. Natural Language Processing (NLP) is the most popular technology utilized owing to its inherent capacity to process natural language interactions. The extended usage of automated reasoning, big data, and machine learning technology, along with artificial intelligence and probabilistic logic, has paved the way for the more remarkable development of data science. The evolution of the Internet of Things (IoT) has also accelerated the growth momentum of the market with its diverse applications in developing interactive software platforms.

Data analytics has become ubiquitous and will remain pivotal in technology innovation and inventive approaches. However, the data analytics industry is vulnerable to constantly rising cyber security threats. An uptick in cloud services and mobile communications has provided a new target for cybercriminals. International Cyber Security Protection Alliance (ICSPA) facilitates channel funding, expertise, and assistance directly to restore law enforcement against cybercrime in domestic and international markets. Industry participants are likely to emphasize advancements in data analytics to sift through network information to anticipate security incidences.

Technology Insights

The natural language processing segment accounted for the largest revenue share of over 42% in 2021. The natural language processing segment is expected to account for a significant global share during the forecast period. In line with the prevailing trends, the emergence of NLP has helped cognitive technology propel IT infrastructure globally. Moreover, the surging demand for smart assistants, such as Siri and Alexa, as well as the use of predictive text, has augmented the footprint of cognitive computing solutions.

Machine learning technology is anticipated to foster the growth of the cognitive computing market, mainly due to the soaring demand to facilitate interaction with humans. Cognitive computing technology platforms are likely to exhibit traction for machine learning for adaptive and interactive learning. Industry players expect machine learning and NLP would be sought for better translation and interpretation tools. Moreover, stakeholders would also explore opportunities to spot business opportunities and assess emerging patterns.

Application Insights

The BFSI segment accounted for the largest revenue share of over 24% in 2021. The adoption of cognitive computing solutions is phenomenal in the BFSI domain. The BFSI application segment was valued at over USD 6.38 billion in 2021 and is presumed to grow at a CAGR of over 28.9% from 2022 to 2030. The adoption of cognitive solutions entails effective and efficient data analytics capabilities customized to the requirement of the business organization.

The healthcare segment is also expected to exhibit a decent CAGR of over 26.5% during the forecast period. Cognitive solutions enable medical practitioners to emphasize patient treatment by reducing the requisite paperwork. Cognitive computing systems will continue to receive impetus to boost human diagnosis and foster decision-making with a human touch. With the assessment and collation of data from medical journals, medical reports, and diagnostic tools, the system will remain invaluable in rendering a data-powered treatment recommendation.

Deployment Insights

The cloud segment was valued at over USD 18.3 billion in 2021 and is anticipated to grow at a CAGR of 28.0% over the forecast period. The recent development of data storage facilities, such as integrated cloud storage facilities, and the evolvement of customized cloud solutions, such as private and public clouds, have strengthened market growth. Besides, the prevalence of an exponential amount of data has prompted enterprises and organizations to count on cloud solutions. The adoption of cloud solutions could provide opportunities galore for stakeholders to reduce the cost of cognitive computing.

Major players are investing significant resources in building on-premises storage solutions, which facilitate the traditional file and block storage platforms. The market for on-premise storage is anticipated to exhibit significant growth at a CAGR of 26.7% during the forecast period. Leading companies could seek complete control and flexibility over the configuration of the servers. The prevailing trends could encourage businesses to inject funds into the on-premise platform. To illustrate, in June 2022, IBM announced its contemplation of acquiring Randori to bolster on-premise and cloud environments.

Regional Insights

The North America region dominated the industry for cognitive computing with a revenue share of over 39.6% in 2021. This growth is attributed to the rapid adoption of integrated cloud platforms and the emergence of new business models. Robust government policies in the U.S. and Canada are likely to promote the significance of data security, expediting the deployment of these systems across the region.

The Asia Pacific is expected to emerge as the fastest-growing region during the assessment period. Some upsides, such as soaring penetration of the internet and the rising number of startups across India, China, Australia, and Japan, have augured well for the regional outlook.

Leading players are expected to explore opportunities in cognitive computing solutions, mainly due to the trend for IoT and 5G and other technological advancements across the region. Prominently, machine learning has added fillip to regional growth by being an early step toward augmenting cognitive solutions. The soaring adoption of machine learning across advanced and emerging economies is likely to encourage investments.

Key Companies & Market Share Insights

Prominent industry players include Google, IBM, Microsoft Corporation, Oracle Corporation, SAP, Statistical Analysis System (SAS), Saffron Technology, Cognitive Scale, Numenta, Palantir, Tibco Software, and Vicarious.

Industry players are increasingly focusing on adopting AI platforms by acquiring relatively smaller industry participants and other ecosystem players. For instance, in November 2021, IBM announced the inclusion of natural language processing enhancements in Watson Discovery. The company expects it will help businesses, including insurance, financial and legal services. Some prominent players in the global cognitive computing market include:

• CognitiveScale

• PTC

• Enterra Solutions

• Google

• HP Development Company, L.P.

• IBM

• Microsoft Corporation

• Nuance Communications Inc.

• Numenta

• Oracle Corporation

• Palantir

• Saffron Technology

• SAP

• Statistical Analysis System (SAS)

• Tibco Software

• Vicarious

Cognitive Computing Market Report Scope

Global Cognitive Computing Market Segmentation

This report forecasts revenue growth on the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cognitive computing market report based on technology, deployment, application, and region:

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Natural Language Processing

  • Machine Learning

  • Automated Reasoning

  • Information Retrieval

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Healthcare

  • Security

  • Retail

  • IT & Telecom

  • Aerospace & Defense

  • Others

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premises

  • Cloud

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)