Cognitive Operations Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Cognitive Operations Market is segmented by Component (Solutions, Services), Deployment Mode (Cloud, On-Premises), Enterprise Size (Large Enterprises, Small and Medium-Sized Enterprises), Application (IT Operations Analytics, Application Performance Management, Network Analytics, Security Analytics, Infrastructure Management), Industry Vertical (BFSI, Healthcare & Life Sciences, IT & Telecom, Retail & E-commerce), and Geography.

Cognitive Operations Market Size

Cognitive Operations
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 27 %

Major Players


*Disclaimer: Major Players sorted in no particular order


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Cognitive Operations Market Analysis

The Cognitive Operations Market was valued at USD 12.2 Billion in 2021 and is projected to reach USD 28.09 Billion by 2027 at a CAGR of 27% over the forecast period 2022 to 2027. The market's primary growth determinants include the increasing demand to monitor the complex IT environment and a growing focus on implementing cloud-based cognitive IT operations solutions across verticals. It also helps to improve IT Infrastructure. IT analytics solutions and cognitive capabilities can be crucial in solving various problems.

  • Cognitive operations are the type of operations that utilize artificial intelligence to gain insights on potential issues through cognitive solutions in considerably less time. These systems also help enable IT & business processes to automate patterns, analyze image and voice signals, make forecasts and optimize tasks.
  • Organizations are shifting their core business applications to the cloud to leverage the benefits offered by the cloud. The cloud deployment option provides various uses, such as scalability, reduced cost, and ease of deployment. Furthermore, organizations are migrating toward the cloud due to growing data storage requirements. In addition, cloud-based solutions can help organizations quickly implement predictive analytics capabilities into various business applications. These benefits are expected to create the demand for cloud-based cognitive operations solutions. Moreover, with the growing complexity of managing the hybrid environment and the physical and virtual environment, IT operations teams are shifting their focus from their traditional monitoring suites to the cloud.
  • With the development of technology and the digitalization of society, IT operations are becoming increasingly important in all businesses. Effective management of the same has become essential to get a competitive edge. Therefore, improving system performance and availability is the main business priority. This can be accomplished by monitoring server, Infrastructure, and IT application activity and performance. IT operations teams can assess the performance and health of the IT systems by examining the log and metrics data produced by the IT systems. Here, cognitive operations solutions can play a crucial role in assisting IT teams in identifying problems and swiftly resolving incidents to understand the underlying causes that negatively affect the business.
  • The expectations of the organizations from embracing automation are moving towards getting value at a higher speed. Hence, with the growing automation across the businesses, cognitive service providers are gaining adhesion for developing more APIs to build more innovative applications that help align the core works with business objectives.
  • While developing, deploying, and managing AI-powered systems in IT operations, most firms encounter challenges related to a lack of expertise and analytical skills. Organizations frequently struggle with a shortage of analytical talent and highly skilled workers. Building machine learning models is a complicated process that requires knowledge, experience, and proper training. Additionally, integrating cognitive solutions into the current system necessitates data processing, skilled employees, and expertise. Implementing cognitive solutions in the IT environment could be a restraint due to the limited skill set in the machine learning and artificial intelligence fields.
  • The COVID-19 pandemic has impacted every industry. The population around the globe had restricted themselves from going out of the home, which positively impacted the market due to the rise of advanced technologies, WFH option, Internet of Things (IoT), Artificial Intelligence, and Machine Learning concepts which enhances the need for cognitive operations services.

Cognitive Operations Industry Segmentation

Cognitive operations solutions enable organizations to automatically build predictive models by analyzing the data collected from various IT operations tools and devices, thus optimizing IT operations, automating manual and repetitive tasks, and proactively responding to real-time problems. Cognitive operations utilize artificial intelligence to gain insights into potential issues through cognitive solutions in less time. 

By Component
By Deployment Mode
By Enterprise Size
Large Enterprises
Small and Medium-Sized Enterprises
By Application**
IT Operations Analytics
Application Performance Management
Network Analytics
Security Analytics
Infrastructure Management
Other Applications
By Industry Vertical
Healthcare & Life Sciences
IT & Telecom
Retail & E-commerce
Other Industry Verticals
North America
Rest of the World

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Cognitive Operations Market Trends

This section covers the major market trends shaping the Cognitive Operations Market according to our research experts:

IT and Telecommunication Segment to Grow Significantly

  • The cognitive services strengthen the telecommunication industry in improving their core trade tasks by automating support bots by interpreting natural language and translating text. Eventually, it aids in changing the telecom back offices into a knowledgeable customer support team. Intelligent network operations, also recognized as a cognitive network operations center, utilize artificial intelligence (AI), machine learning (ML), and advanced analytics to drive self-healing, self-optimized, and autonomous transport networks.
  • To heighten business scalability, activity, and performance, telecom operators grow cognitive network operation centers based on a three-layer framework, namely a cognitive computing engine with AI and ML abilities, scalable data infrastructure, smart operational apps, workflows, and dashboards. The IT and telecom vertical uses cognitive operations solutions to get critical insights from the vast volumes of data generated from user networks. With the help of cognitive operations capabilities, Telecom companies can analyze large volumes of data to enhance customer experience.
  • Cognitive Services are strengthening the telecommunications industry to improve its core business tasks by automating assistive robots by interpreting natural language and translating text. Ultimately, this helps transform the telecommunications administrative offices into a competent customer service team. Innovative grid operations, also known as cognitive network operations centers, use Artificial Intelligence Machine Learning and advanced analytics to drive autonomous self-healing and self-repairing.
  • In August 2022, Jio Haptik, one of the leading conversational AI companies, is using Microsoft Azure Cognitive Services to improve existing Hindi conversational AI models and accuracy. This industry-leading AI translation model that enables end-to-end conversations in Hindi, English, and even Hinglish is an integral part of allowing users to chat with the Intelligent Virtual Assistants at Jio Mobility, thus adopting Cognitive services.
  • Besides, IBM solution for cognitive network operations is built on foundational components, such as Netcool Operations Insight with Agile Service Manager, IBM Operations Analytics with predictive insights, and IBM SPSS/Streams and automation devices such as Robotic Process Automation and Runbook Automation providing the skills for alarm pattern analysis, root cause analysis, and predictive insights to allow proactive management and automated resolution, as applicable.
  • Moreover, the volume of big data in data storage centers is rapidly increasing in addition to its complexity leading to the adoption of cognitive operations. It provides the organization with the correct information to sharpen and accelerate business decision-making. For instance, according to Forbes, the amount of data created each year is growing faster than ever. By 2025, every human will produce 3.2 megabytes of information each second. The accumulated world data will increase in only a year to 64 zettabytes (that’s 64 trillion gigabytes).
Cognitive Operations Market

Asia-Pacific is Expected to Witness Significant Growth

  • The Asia-pacific region is expected to witness the fastest growth in demand during the forecast period. Significant growth factors for the market in APAC include the rising complexities in the IT environment, increasing adoption of cognitive operations solutions in the Telecommunication, Banking, Financial Services, and Insurance (BFSI) vertical for optimizing the IT operations processes, and an increasing demand to deliver an improved customer experience across all the leading industry verticals.
  • Asia-Pacific will continue to undergo substantial gains during the forecast period. This is because of the growing expenditure for IT infrastructure development, growing demand for innovative CRM solutions from emerging countries such as China and India, and the surging number of small-scale businesses. The telecom sector, which has a higher market share in the Cognitive Operations Market, is booming in the APAC region. For instance, according to S&P Global, in 2021, the number of mobile subscriptions in China rose to 1800 million against 1530 million in India, enhancing the need for Cognitive operations services.
  • Asia-Pacific is projected to be the fastest-growing region for data governance, data management, and data analytics, owing to the increasing technology expenditures in economies such as India, China, Singapore, and Australia. The need for cost-effective data management and governance solutions and services among small- and medium-sized enterprises (SMEs) further motivates the need for the Cognitive Operations Market in the region.
  • Initiatives taken by the region regarding smart manufacturing and digitization are anticipated to be an essential driver for the region's market. Also, owing to fast economic developments, digitalization, foreign direct investments, globalization, and enhanced adoption of high-end technologies across important APAC countries, the market is supposed to see an increase in demand.
Cognitive Operations Market

Cognitive Operations Industry Overview

The Cognitive Operations Market is moderately competitive owing to the presence of many small and large players providing services in domestic and international markets. The major players are adopting strategies like product and service innovation and mergers and acquisitions to expand their reach and stay ahead of the competition. Some major players in the market are Micro Focus International Plc, Broadcom Corporation, IBM Corporation, and VMware, Inc., among others.

  • In December 2021, TCS launched TCS Cognix, an ecosystem of ready-made solutions that accelerates digital transformation and is powered by the Machine First Delivery Model (MFDM). It logically, innovatively, and modularly orchestrates the digital technology ecosystem and contextualizes solutions using domain knowledge. TCS Cognix helps realize a configurable enterprise enabling organizations to achieve a competitive edge through cognitive operations.
  • In November 2021, Beyond Limits, an industrial and enterprise-grade AI software company announced the general availability of its new Luminai Refinery Advisor, developed in collaboration with bp. This cloud-based offering leverages Beyond Limits’ Cognitive AI software to better adhere to commercial operating plans, capture and operationalize expert knowledge, reduce production material costs, maximize operational efficiencies, accelerate time to market, and reduce waste in various sectors.

Cognitive Operations Market Leaders

  1. IBM Corporation

  2. Micro Focus International Plc

  3. Broadcom Corporation

  4. VMware, Inc.

  5. Splunk Inc.

*Disclaimer: Major Players sorted in no particular order


Cognitive Operations Market News

  • August 2022 - Operaize joins the SAP PartnerEdge program in the manufacturing industry to accelerate innovation for AI-based production planning and scheduling in the cloud. Operaize integrates its AI-based production planning and scheduling solution Cognitive Operations with the production planning component within SAP ERP Central Component (SAP ECC) and SAP S/4HANA. The solution drives customer value using artificial intelligence to achieve speed and accuracy while managing complexity at the same time. This helps enable customers to take their operational excellence to new heights.
  • December 2021 - Blume Global, a leading supply chain execution and visibility technology solutions, partnered with Kuehne+Nagel, one of the largest logistics service providers, to provide a cognitive intermodal TMS, among other solutions, for the entire North American business. Blume Global also provides real-time visibility with ELD integration to Kuehne+Nagel's intermodal carriers, chassis billing, and multimodal visibility solutions, including predictive ETA and exception alerts, thereby enriching customer experience and cognitive operations solutions.

Cognitive Operations Market Report - Table of Contents


    1. 1.1 Study Assumptions​ and Market Definition​

    2. 1.2 Scope of the Study​




    1. 4.1 Market Overview​

    2. 4.2 Market Drivers

      1. 4.2.1 Growing Focus Toward Selection of Cloud-Based Cognitive IT Operations Solutions

      2. 4.2.2 Rising Demand for Monitoring the Complex IT Environment

    3. 4.3 Market Restraints

      1. 4.3.1 Integration of Cognitive Operations Capabilities With the Present Systems

      2. 4.3.2 Dearth of Skills and Expertise

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis​

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Assessment of Impact of Covid-19 on the Industry


    1. 5.1 By Component

      1. 5.1.1 Solutions

      2. 5.1.2 Services

    2. 5.2 By Deployment Mode

      1. 5.2.1 Cloud

      2. 5.2.2 On-Premises

    3. 5.3 By Enterprise Size

      1. 5.3.1 Large Enterprises

      2. 5.3.2 Small and Medium-Sized Enterprises

    4. 5.4 By Application**

      1. 5.4.1 IT Operations Analytics

      2. 5.4.2 Application Performance Management

      3. 5.4.3 Network Analytics

      4. 5.4.4 Security Analytics

      5. 5.4.5 Infrastructure Management

      6. 5.4.6 Other Applications

    5. 5.5 By Industry Vertical

      1. 5.5.1 BFSI

      2. 5.5.2 Healthcare & Life Sciences

      3. 5.5.3 IT & Telecom

      4. 5.5.4 Retail & E-commerce

      5. 5.5.5 Other Industry Verticals

    6. 5.6 Geography

      1. 5.6.1 North America

      2. 5.6.2 Europe

      3. 5.6.3 Asia-Pacific

      4. 5.6.4 Rest of the World


    1. 6.1 Company Profiles*

      1. 6.1.1 Broadcom Inc.

      2. 6.1.2 IBM Corporation

      3. 6.1.3 VMware, Inc.

      4. 6.1.4 Micro Focus International Plc

      5. 6.1.5 Splunk Inc.

      6. 6.1.6 HCL Technologies Limited

      7. 6.1.7 BMC Software, Inc.

      8. 6.1.8 New Relic, Inc.

      9. 6.1.9 CloudFabrix Software Inc.

      10. 6.1.10 Servicenow Inc.

      11. 6.1.11 Loom Systems Inc.

      12. 6.1.12 Dynatrace LLC

      13. 6.1.13 Interlink Software Services Ltd

      14. 6.1.14 DEVO Technology Inc.

      15. 6.1.15 Correlata Solutions Inc

      16. 6.1.16 ScienceLogic Inc.



**Subject to Availability
**Qualitative Analysis
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Cognitive Operations Market Research FAQs

The Cognitive Operations Market is studied from 2018 - 2028.

The Cognitive Operations Market is growing at a CAGR of 27% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

IBM Corporation, Micro Focus International Plc, Broadcom Corporation, VMware, Inc., Splunk Inc. are the major companies operating in Cognitive Operations Market .

Cognitive Operations Industry Report

Statistics for the 2023 Cognitive Operations market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cognitive Operations analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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