Cognitive Services Market - Growth, Trends, and Forecast (2020 - 2025)

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.

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

36.45 %

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Market Overview

The cognitive services market was valued at USD 4.11 billion in 2019 and is expected to reach USD 26.56 billion by 2025, at a CAGR of 36.45% over the forecast period 2020 - 2025. 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 Deployment
Cloud
On-Premise
By Enterprise Size
Small and Medium Emterprises
Large Enterprises
By End-user Industry
BFSI
IT and Telecommunication
Retail
Healthcare
Other End-user Industries
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Brazil
Mexico
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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Competitive Landscape

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.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Growing Adoption of Intelligent APIs to Build Smarter Applications

      2. 4.2.2 Increase in Data Volume and Complexity

    3. 4.3 Market Restraints

      1. 4.3.1 High Cost Incorporated with the Implementation

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Deployment

      1. 5.1.1 Cloud

      2. 5.1.2 On-Premise

    2. 5.2 By Enterprise Size

      1. 5.2.1 Small and Medium Emterprises

      2. 5.2.2 Large Enterprises

    3. 5.3 By End-user Industry

      1. 5.3.1 BFSI

      2. 5.3.2 IT and Telecommunication

      3. 5.3.3 Retail

      4. 5.3.4 Healthcare

      5. 5.3.5 Other End-user Industries

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 Germany

        3. 5.4.2.3 France

        4. 5.4.2.4 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Mexico

        3. 5.4.4.3 Rest of Latin America

      5. 5.4.5 Middle-East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Amazon Web Services, Inc.

      2. 6.1.2 Attivio, Inc.

      3. 6.1.3 Enterra Solutions LLC

      4. 6.1.4 Google LLC

      5. 6.1.5 IBM Corporation

      6. 6.1.6 Infosys Limited

      7. 6.1.7 Microsoft Corporation

      8. 6.1.8 Nokia Corporation

      9. 6.1.9 SAS Institute Inc.

      10. 6.1.10 Tata Consultancy Services Limited

      11. 6.1.11 Wipro Limited

  7. *List Not Exhaustive
  8. 7. INVESTMENT ANALYSIS

  9. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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