The Cognitive Services Market is segmented by Deployment (Cloud, On-premise), Organization Size (Small and Medium Enterprise, Large Enterprise), End-user Industry (IT and Telecommunication, BFSI, Retail), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
Fastest Growing Market:
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The cognitive services market was valued at USD 4.11 billion in 2020 and is expected to reach USD 26.56 billion by 2026, at a CAGR of 36.45% over the forecast period 2021 - 2026. Growth in computing power is witnessing boom due to the surge in the data and the incorporation of advanced machine learning algorithms. This facilitates the creation of an intelligent ecosystem driven by cognitive services
Cognitive services gained prominence in 2015 when Microsoft released a set of intelligent technologies, which performed cognitive tasks, such as face detection, categorizing images, speech recognition, and language understanding. The technology has made groundbreaking progress and has started to have significant implications on the business world.
The expectations of the companies from adopting automation are shifting towards getting value at a higher speed. Hence, with the increasing automation across the industries, cognitive service providers are gaining traction for developing more APIs to built smarter applications that helps in aligning the core works with business objectives.
The third step of the intelligent automation journey after robotics process automation and simple machine learning, the trend of automating the analysis of customer sentiments through blogs is driving the adoption of cognitive services. Advent to this, the increasing data volume and complexity are creating demand for cognitive services by eliminating the recurring tasks at the back offices.
However, due to the high cost incorporated with the implementation are restricting the growth of the market to an extent.
Scope of the Report
The scope of the study for the cognitive service market is limited to the cloud and on-premise deployment of the services provided by the companies and their applications in a wide range of industries of both large, small and medium enterprises globally.
By Enterprise Size
Small and Medium Emterprises
By End-user Industry
IT and Telecommunication
Other End-user Industries
Rest of Europe
Rest of Asia-Pacific
Rest of Latin America
Middle-East & Africa
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Key Market Trends
IT and Telecommunication Segment to Grow Significantly
The cognitive services help telecommunication industry in aligning their core business tasks by automating support bots by understanding natural language and translating text. Ultimately it helps in transforming the telecom back offices into intelligent customer support team.
Moreover, the volume of big data in data storage centers is on the rapid increase in addition to its complexity leading to the adoption of cognitive services, as it is providing the organization the right information to sharpen and accelerate business decision making. According to the Cisco Systems, this volume has reached 124 Exabytes in 2018 and is estimated to make it 403 Exabytes by 2021.
Machine assets are generating a tremendous amount of data having the potential for extraordinary business value. To extract that value from a lake of data, organizations are also leveraging cognitive machine learning to carry out predictive maintenance.
Many IT and telecommunication companies are adopting cognitive services to improve their customer engagement, optimize operations, and gain a competitive edge over others. For instance, in late 2018, Du, a telecommunication company in UAE collaborated with Mircosoft for cognitive services across all of their current touchpoints and digital channels.
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Europe is Expected to Grow Significantly
Initiatives taken by the European Union regarding smart manufacturing and the digitization of healthcare sector are expected to act as a major driver for the market in the region.
The smart manufacturing market in the region is augmented by the European Commissions, which plans to transform Europe’s digital sector. One of the prominent aims is to digitize the traditional industry in a global fight to lead the knowledge economy and keep jobs in Europe.
The European Commission is working to provide its citizens access to safe and top quality digital services in health and care with the priorities to provide citizens with secured access to their health data, personalized medicine through shared European data infrastructure, and citizen empowerment with digital tools for user feedback and person-centered care.
Moreover, according to the China AI development report published in 2018, the companies in Europe, including only in Sweden, Germany, France, and Spain account for over 14.70% of the AI companies worldwide. The region represented the third position after North America and Asia-Pacific and expected to show significant growth in the forecast period.
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The cognitive service market is inclined towards concentration with the presence of a few key players in the market, including Microsoft, Google, and AWS. These comapanies are highly investing in the research and developments towards improving cognitive services for varied industries and continuing their market dominance.
May 2019 - Microsoft announced its Machine learning model for its Cognitive Services Platform. This model has an API for recognizing handwriting and an improved speech recognizing service for transcribing conversations.