Cognitive Services Market Growing at CAGR of 42.6% | Key Players IBM, Microsoft, Google, AWS, Apple

October 10 09:34 2019
Cognitive Services Market Growing at CAGR of 42.6% | Key Players IBM, Microsoft, Google, AWS, Apple

IBM (US), Microsoft (US), AWS (US), Google (US), TCS (India), Baidu (China), Apple (US), Nuance Communications (US), Qualcomm Technologies (US), and SAS Institute (US)
Cognitive Services Market by Technology, Service Type, Deployment Mode, Application, End-User, Vertical (BFSI, Healthcare, Retail, IT and Telecommunication, Government and Education, Manufacturing), and Region – Global Forecast to 2023

Cognitive services enhance the computing experience of users with systems that can hear, understand, speak, and even reason. These services employ Application Programming Interfaces (APIs) and Software Development Kits (SDKs) to provide support to developers for making intelligent applications. The services use machine learning APIs, along with Natural Language Processing (NLP), to add intelligent features to the applications. Cognitive services are mainly classified into vision, speech, search, language, and knowledge APIs. The need to align core work with business objectives and growing data volume are expected to drive the growth of the cognitive services market.

MarketsandMarkets expects the Cognitive Services Market to grow from USD 2.59 billion in 2018 to USD 15.28 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 42.6% during the forecast period. There is an increasing demand for cognitive services for various business applications, such as analysis of large and complex data and emerging innovations across industries. These factors are expected to drive the growth of the cognitive services market.

North America is expected to lead the market in deploying cognitive services, and is projected to be the highest contributor to the cognitive services market as compared to the other regions. This is attributed to the growing business data due to digitalization and technological advancements, and the need to incorporate cognitive capabilities at the enterprises.

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The growth in the Asia Pacific (APAC) region is attributed to the high technological advancements taking place in the developing countries. The rapid expansion of domestic enterprises and advanced development of infrastructures are some of the important reasons that affect the growth of the cognitive services market in APAC. Major enterprises are competing to expand their presence in all the major countries in this region. The region is focused on increasing its digital capability and its security expenditure, owing to the ever-changing market competitive scenario.

On the basis of technologies, the cognitive services market has been segmented into machine learning and deep learning, and Natural Language Processing (NLP). Out of these, the NLP segment is expected to grow at a higher CAGR during the forecast period as the demand for NLP for data handling and analysis is more than the other technological segments.

By application, the cognitive services market is segmented into marketing analysis, predictive maintenance, supply chain management, quality management investigation and recommendation, safety and security management, diagnosis and treatment system, and others (automated customer services agent, energy usage analytics, image analytics, digital assistance, and real-time analysis). The marketing analysis application is expected to have the largest market size during the forecast period. The diagnosis and treatment system application is projected to have the highest CAGR during the forecast period.

The cognitive services market is classified on the basis of deployment modes into cloud and on-premises. The on-premises deployment mode assists in upgrading the in-house capabilities of the Artificial Intelligence (AI) technology. Due to inadequate resources for digital infrastructure in the industry, the cloud deployment mode is becoming the more popular deployment mode for cognitive services solutions. The adoption of the cloud deployment mode is growing rapidly, as organizations are focusing on planning cost-effective training programs.

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The major enterprise cognitive service vendors include Microsoft (US), IBM (US), SAS (US), AWS (US), Google (US), Baidu (China), Apple (US), TCS (India), Nuance Communications (US), and Qualcomm (US). The market players have adopted the strategies of new product launches, product enhancements, acquisitions, collaborations, and partnerships to offer feature-rich products, solutions, and services to their customers and penetrate deeper into un-catered regions.

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