According to new market research report “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”, MarketsandMarkets expects the global 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.
Cognitive services offer a systematic way to attain business objectives by reducing the efforts required to work on repetitive tasks. Also, various Application Programming Interfaces (APIs), including vision, speech, text, and search capabilities, play a crucial role in the process of automation and data analysis. The growing data is becoming crucial and organizations are majorly focusing on the integration of cognitive capabilities with their applications to analyze their data. Therefore, the need to align core work with business objectives and growth in data volumes are expected to drive the growth of the cognitive services market.
The market has been segmented by technology into machine learning and deep learning, and Natural Language Processing (NLP). The NLP segment is expected to grow at a higher CAGR during the forecast period. Both the technologies play a vital role in the analyzing data effectively and efficiently.
Among service types, the consulting and advisory services segment is expected to grow at a higher CAGR during the forecast period. This is due to the growing need to analyze data while reducing expenses. The services help enterprises save deployment and infrastructure cost required to use cognitive technology.
The cognitive services market is also segmented on the basis of applications. The marketing analysis application segment is expected to have the largest market size during the forecast period. The application helps in analyzing customer behaviors and consumption patterns and suggest ways to avoid setback in performances to enhance customer experience. Cognitive service enables sales and marketing virtual assistants to provide market segmentation and recommendation systems. Its wide application area allows it to generate the highest revenue in the market.
Among end-users, the Small and Medium-sized Enterprises (SMEs) segment is expected to grow at a higher CAGR during the forecast period. Cognitive services can help these organizations take advantage of cognitive capabilities without investing much into infrastructure to deploy cognitive solutions. The SMEs have started realizing the benefits offered by cognitive services in analyzing large volumes of data and generating insights to increase their revenues.
On the basis of deployment types, the cloud deployment type is expected to grow at a higher CAGR during the forecast period. Cloud-based cognitive service solutions are significantly gaining traction, due to their cost-effective benefits and global availability.
Cognitive Services Market
North America is expected to have the largest market size in the cognitive services market, while Asia Pacific (APAC) is projected to grow at the highest CAGR during the forecast period. The North American region has shown increased investments in the market, and several vendors have evolved to cater to the rapidly growing market. A considerable growth is expected in the region during the forecast period. In North America, the cognitive services technology is effectively used for various business applications, such as market analysis, diagnosis and treatment system, safety and security management, and supply chain management.
The cognitive services market faces many challenges; for instance, lack of awareness across industry and lack of knowledge about data.
The major vendors that offer cognitive services across the globe include IBM (US), Microsoft (US), AWS (US), Google (US), SAS (US), Baidu (China), Apple (US), TCS (India), Nuance Communications (US), and Qualcomm (US). These vendors have adopted different types of organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions, to expand their presence in the cognitive services market.
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