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Cognitive Computing Market Size - By Technology (Machine Learning, Natural Language Processing (NLP), Human Computer Interaction, Deep Learning), By Component (Platform, and Services), By Deployment Model, Organization Size & Forecast, 2024 – 2032

  • Report ID: GMI10109
  • Published Date: Jul 2024
  • Report Format: PDF

Cognitive Computing Market Size

Cognitive Computing Market was valued at USD 41.1 billion in 2023 and is anticipated to grow at a CAGR of over 30% from 2024 to 2032. The rising use of AI to automate complex tasks is expanding across various industries. Cognitive computing systems are being deployed for automating customer service, supply-chain management, and financial operations, thereby improving efficiency and reducing costs. Generative Adversarial Networks (GANs) and other generative models are being used to create realistic synthetic data, which is useful in data augmentation, creative industries, and simulation.
 

Cognitive Computing Market

The increasing volume of unstructured data presents a significant opportunity for cognitive computing to tackle the emerging challenges of structuring the available data. The rising trends in this field include advancements in Natural Language Processing (NLP) and machine learning algorithms tailored for unstructured data analysis. Cognitive computing systems are increasingly equipped with deep learning models such as transformers and neural networks that excel in understanding and extracting insights from text, images, and multimedia sources. There is a growing emphasis on contextual understanding and sentiment analysis to derive actionable intelligence from diverse data sources.
 

Cognitive computing systems often process personal data, including names, addresses, and social security numbers, as well as other sensitive health and financial information. Effective anonymization techniques must be implemented to protect individual identities, especially in healthcare and finance sectors. Cognitive systems are attractive targets for cybercriminals due to the valuable data they configure. Strong security measures, such as encryption methods for data at rest and in transit, are essential to protect against data breaches and unauthorized access.
 

Cognitive Computing Market Trends

The rising trends in personalized customer experiences through cloud-based cognitive computing are characterized by advanced analytics, real-time processing capabilities, and enhanced AI-powered personalization. Businesses are increasingly leveraging cloud infrastructure to gather and analyze huge amounts of customer data, enabling intricate insights into behaviors & preferences. This data-driven approach helps in the deployment of AI models that deliver personalized recommendations and services in real-time, across various channels.
 

The growing adoption of IoT in healthcare is significantly enhanced by cognitive computing, which provides advanced analytics and decision-making capabilities. Cognitive computing processes real-time data from IoT-enabled devices, such as wearables and medical sensors, to monitor patient health continuously. It can detect anomalies and alert healthcare providers promptly. Cognitive computing powers virtual health assistants that interact with patients through IoT devices, providing medical advice, reminders for medication, and answering health-related queries.
 

Cognitive Computing Market Analysis

Global Cognitive Computing Market Size, By Component, 2022-2032, (USD Billion)

Based on component, the services segment was reached about 30% CAGR between 2024 and 2032.
 

  • The adoption of managed services and outsourcing models for cognitive computing platforms allows organizations to leverage specialized expertise and reduce operational burdens. There is a growing demand for consulting services to assist organizations in strategizing, planning, and implementing cognitive computing solutions tailored to their specific needs and the existing IT infrastructure.
     
  • There is a rise in the demand for customized solutions and implementation services to address unique business requirements and ensure seamless integration of cognitive computing technologies. The market is witnessing growing adoption of cloud-based cognitive computing services, enabling scalability, flexibility, and cost-effectiveness while supporting global accessibility and real-time data processing capabilities.
     
 Global Cognitive Computing Market Share, By Deployment Model, 2023

Based on the deployment model, the on-premise segment dominated the market in 2023 and is expected to reach over USD 200 billion by 2032.
 

  • Industries with strict regulatory requirements, such as government, healthcare, and defense, opt for on-premise deployments to ensure compliance with industry-specific regulations and data governance policy. Organizations view on-premise cognitive computing investments as long-term strategic initiatives that align with their digital transformation goals, supporting innovations and competitive advantage in their respective markets.
     
  • On-premise solutions provide greater control over operational risks, including data breaches and service disruptions, by reducing reliance on external service providers and minimizing exposure to potential cyber threats.
     
China Cognitive Computing Market Size, 2022-2032, (USD Billion)

Asia Pacific cognitive computing market is estimated to reach USD 90 billion by 2032. There is an increasing adoption of cloud computing in Asia Pacific, supported by the expansion of hyperscale cloud providers in the region. Organizations are adopting hybrid cloud strategies, combining on-premise cognitive computing capabilities with cloud-based services for scalability and flexibility.
 

South Korea has launched ambitious national strategies, such as the "Korea AI Grand Challenge," to promote the development and adoption of AI technologies, including cognitive computing. These initiatives aim to position South Korea as a global leader in AI innovations. Companies, such as Samsung, LG, and SK Telecom are investing heavily in AI R&D, including cognitive computing applications.
 

North America is witnessing the adoption of enterprise-grade AI solutions for customer experience management, operational efficiency, predictive analytics, and personalized marketing strategies. North American businesses are leveraging cognitive computing to gain competitive advantages and drive innovations. The proliferation of AI startups and innovation hubs in tech-centric cities such as Silicon Valley, Boston, and Toronto is notable. These hubs foster collaborations between academia, startups, and established companies, driving breakthroughs in cognitive computing applications.
 

Cognitive Computing Market Share

IBM & Amazon Web Services, Inc. together held over 15% share of the cognitive computing industry in 2023. IBM is a multinational technology and consulting company headquartered in Armonk, New York. Established in 1911, it has a long-standing reputation for innovations and has played a pivotal role in shaping the computing industry over the decades. IBM invests heavily in AI research and development, advancing cognitive computing through projects in AI ethics, quantum computing, and hybrid cloud technologies.
 

Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon providing on-demand cloud computing platforms and APIs to individuals, companies, and governments on a metered pay-as-you-go basis. AWS offers a wide range of cloud services, including computing power, storage solutions, database management, machine learning, and AI capabilities through its AWS AI services.
 

Cognitive Computing Market Companies

Major key players operating in the cognitive computing industry are:

  • IBM
  • Amazon Web Services, Inc.
  • Oracle
  • Hitachi Vantara
  • Hewlett Packard Enterprise
  • NetApp
  • Cloudera Inc.
     

Cognitive Computing Industry News

  • In March 23, Tata Consultancy Services (TCS) unveiled its latest innovation, the TCS Cognitive Plant Operations Adviser, a 5G-enabled solution designed for the Microsoft Azure Private Mobile Edge Computing (PMEC) platform. This solution assisted industries such as manufacturing, oil & gas, consumer packaged goods, and pharmaceuticals. in enhancing production capabilities through AI and machine learning, enabling greater intelligence, agility, and resilience.
     
  • In May 23, IBM announced plans for establishing a GPU-as-a-service infrastructure aimed at supporting AI-intensive workloads. Additionally, IBM introduced an AI-powered dashboard for measuring, tracking, managing, and reporting cloud carbon emissions. It also started a new practice within IBM Consulting focusing on WatsonX and generative AI, aimed at facilitating client deployments of AI solutions.
     

This cognitive computing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2024 to 2032, for the following segments:

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Market, By Technology

  • Machine learning
  • Natural Language Processing (NLP)
  • Human computer interaction
    • Computer vision
    • Machine vision
    • Robotics
  • Deep learning

Market, By Component

  • Platform
  • Service
    • Professional services
      • Consulting
      • Integration and deployment
      • Support and maintenance
    • Managed services

Market, By Deployment Model

  • On-premise
  • Cloud

Market, By Organization Size

  • Small and Medium Enterprises (SMEs)
  • Large enterprises

Market, By Industry

  • Healthcare
  • BFSI
  • Retail and e-commerce
  • Government and defense
  • IT and telecom
  • Energy and power
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • ANZ
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA

 

Authors: Suraj Gujar, Rutvij Kshirsagar

Frequently Asked Questions (FAQ) :

The market size of cognitive computing was reached USD 41.1 billion in 2023 and is anticipated to grow at over 30% CAGR between 2024 and 2032, driven by the rising use of AI to automate complex tasks.

The services segment in the cognitive computing market will witness over 30% CAGR between 2024 and 2032, as there is a strong demand for consulting services to assist organizations in strategizing, planning, and implementing.

Asia Pacific cognitive computing market size is estimated to reach USD 90 billion by 2032 supported by the expansion of hyperscale cloud providers.

IBM, Amazon Web Services, Inc., Oracle, Hitachi Vantara, Hewlett Packard Enterprise, NetApp, and Cloudera Inc.

Cognitive Computing Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 416
  • Countries covered: 22
  • Pages: 220
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