How Has the Cognitive Computing Market Evolved Historically and What is its Current Size?
The cognitive computing market has seen considerable growth due to a variety of factors.
• In the past few years, the market size of cognitive computing has seen an enormous increase. The market, valued at $51.03 billion in 2024, is expected to increase to $65.18 billion in 2025, witnessing a compound annual growth rate (CAGR) of 27.7%.
Key factors driving this growth during the historical period include the surge in the use of IoT devices and big data analytics, applications in government and defense, customization in retail and e-commerce, a growing demand for data-based insights, and an increased need for smart assistants.
What is the Forecasted Market Size and CAGR for the Cognitive Computing Market?
The cognitive computing market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the cognitive computing market is projected to witness tremendous expansion in the upcoming years, escalating to $155.12 billion in 2029 at a compound annual growth rate (CAGR) of 24.2%.
The projected surge during the forecast period can be credited to factors including the explosion of data volumes, the proliferation of cloud computing technology, the need for improved customer experiences, the progression of autonomous systems, and enhancements in cybersecurity. Key trends that will shape the forecast period comprise of developments in machine learning and AI, forward strides in quantum computing, synchronization with 5G technology, fusion with blockchain, advances in natural language processing, and the integration of augmented reality (AR) and virtual reality (VR).
What Key Factors and Trends Are Driving The Growth Cognitive Computing Market?
The surge in the quantity of unstructured data is anticipated to steer the expansion of the cognitive computing market in the future. Unstructured data is characterized as data that lacks a pre-set data model or isn't ordered in a specific way, rendering it challenging to process and interpret using traditional databases and tools. Cognitive computing is employed to analyze, comprehend, and interpret natural language, imagery, and patterns, allowing machines to imitate human decision-making processes in unstructured data. For example, Komprise, a software firm based in the US, reported in August 2022 that about 87% of IT leaders pinpointed managing the explosion of unstructured data as a significant priority, rising from 70% in 2021. As a result, the surge in the quantity of unstructured data is fueling the expansion of the cognitive computing market.
What Are The Market Segments In The Cognitive Computing Market?
The cognitive computing market covered in this report is segmented –
1) By Component: Platform, Service
2) By Technology: Machine Learning (ML), Human Computer Interaction, Natural Language Processing (NLP), Deep Learning
3) By Deployment mode: On-Premise, Cloud, Hybrid
4) By End-User: Banking, Financial Services And Insurance (BFSI), Healthcare, Retail And E-commerce, Information Technology And Telecom, Government And Defense, Other End Users
Subsegments:
1) By Platform: Machine Learning Platforms, Natural Language Processing (NLP) Platforms, Automated Reasoning Platforms, Speech and Voice Recognition Platforms, Image and Video Analysis Platforms
2) By Service: Consulting Services, Integration Services, Support and Maintenance Services, Managed Services, Training and Education Services
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How Are New Trends Impacting The Size Of The Cognitive Computing Market?
Leading businesses in the cognitive computing industry are prioritizing the integration of emerging technologies such as 5G, with the goal of enhancing their market profitability. The application of 5G in cognitive computing involves the utilization of fifth-gen wireless technology to augment the efficiency, connectivity, and speed of cognitive computing systems, thereby leading to accelerated data processing and refined artificial intelligence capabilities. In a case study from March 2023, India's Tata Consultancy Services Ltd., a major player in the IT sector, introduced their Cognitive Plant Operations Adviser. This tool is a 5G-enabled solution that integrates AI, 5G, and edge computing to facilitate self-reliant production processes, which range from monitoring and diagnosing to optimizing and learning. The device is specifically designed for industries such as manufacturing and pharmaceuticals, and it forms a part of the TCS Enterprise 5G Edge suite on Microsoft Azure. It aims to transform production through smarter, more adaptable, and resilient operations. Additionally, it enables the crafting of plant information models and delivers knowledge assistance to operators.
Who Are the Key Players In The Cognitive Computing Market?
Major companies operating in the cognitive computing market report are:
• Amazon.com Inc.
• Alphabet Inc.
• Samsung Group
• Microsoft Corporation
• Meta Platforms Inc.
• Dell Technologies Inc.
• Huawei Technologies Co. Ltd.
• Tencent Holdings Ltd.
• Siemens AG
• General Electric Company
• Accenture PLC
• International Business Machines Corporation
• Qualcomm Inc.
• Oracle Corporation
• Honeywell International Inc.
• SAP SE
• Hewlett-Packard Enterprise Company
• Nvidia Corporation
• Salesforce Inc.
• Baidu Inc.
• Palantir Technologies Inc.
• OpenAI
• UiPath
• C3.ai Inc.
• DataRobot Inc.
• Clarifai Inc.
What Are The Regional Insights Into The Cognitive Computing Market?
North America was the largest region in the cognitive computing market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognitive computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
