February 19, 2020 by Market-NewsFlash
As per a detailed analysis by Market Research Future (MRFR), the cognitive computing technology market is likely to garner a CAGR of 35% during the forecast period (2017–2023). Cognitive computing is generally executed with the help of a computer-generated model which can mimic the human procedure of cognitive ability and thinking in the form of simulation over a specialized platform. These systems are independent of human assistance and result in accurate outcomes and zero human error.
Market Potential and Pitfalls
The cognitive computing technology market is gaining huge attention in the global market due to the advancements in cognitive computing, which has resulted in its higher adoption. The rising number of large, unstructured, and complex sets of data, and advancements in the computing platforms like mobile, cloud, and data analytics are some of the major factors contributing to the growth of the cognitive computing technology market. Top players are focusing on R&D investments in order to embrace advanced cognitive solutions. Companies are also indulging into mergers and acquisitions to make the most use of technology. Such factors trigger the demand for cognitive computing technology across the globe. Moreover, the implementation of IoT and AI that enables automated integration between hardware platform, software, and the consumer, further accelerates the market growth. The demand for cognitive systems in the computing technology market is expanding by leaps and bounds. Huge data present, along with the business organizations, is generally in the form of videos, human language, and pictures consisting of valuable information. To process the data, there is a strong requirement for cognitive analytic technologies like machine learning and NLP. It is anticipated that the volume of data will boost considerably, thereby spurring the market growth in terms of revenue.
On the contrary, the high cost of deployment and concerns associated with the regulatory and government compliance is likely to hamper the growth of the market. The impact of cognitive computing on traditional business applications along with the dearth of awareness among the SMEs, especially in the developing economies are certain factors curbing the growth of the market across the globe.
Global Cognitive Computing Technology Market: Segmental Analysis
The global cognitive computing technology market is segmented on the basis of technology, organization size, end-user, and deployment.
By mode of technology, the cognitive computing technology market is segmented into machine learning, natural language processing (NLP), automated reasoning, and others.
Based on organization size, the cognitive computing technology market constitutes of large enterprises and SMEs. Among these, the large enterprise segment is predicted to invest a huge amount in the market. Owing to the high adoption of cloud services, SMEs indulge in the global cognitive computing market.
The end-users segment comprises retail, banking & financial service, IT & telecom, aerospace & defense, automotive & transportation, energy & power, and others. Cognitive solutions are built to accelerate, expand, and increase expertise within the IT & telecommunication industry. The data which flows within the sector is growing at a rapid pace, thus causing the system to break down. It also helps to maintain the data loads, thus minimizing the operation to a fraction of the time.
The deployment segment is split into on-premise and cloud. Organizations which are more focused towards the safety use on-premise deployment on a large scale.
Geographically, the cognitive computing technology market spans across Europe, North America, Asia Pacific, and Rest-of-the-World (RoW).
Considering the global scenario, the North American region acquires the lion’s share in the global market, mainly due to the advancing technology and increasing volume of unstructured data. The high investments in R&D activities from the top vendors are assisting in the expansion of the market in this region. The major part of cognitive computing service providers like Google, Microsoft, and IBM Corporation is based in this region, which further augments the market’s growth. For instance, IBM Corporation is spending in specialty-specific electronic medical records, Modernizing Medicine, and a supplier of cloud-based to accelerate the acceptance of Watson System. Such factors are likely to spur the growth of the regional market in the coming years.
Europe bags the second spot in terms of the share as the region is technologically matured with the presence of countries like the U.K., Germany, and France. The establishment of numerous cognitive computing startups like Cognitive Scale takes place in this region, which further triggers its growth.
The Asia Pacific region is estimated to showcase the highest growth rate in the coming years. The rising trend of cloud-based services in small as well as medium ventures is creating growth opportunities for the market in the region.
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