The $5,49-billion global cognitive systems spending market will witness a massive hike in the revenues, reaching a whopping $21,46-billion by the end of 2026.
Over the 10-year forecast period 2016-2026, the global cognitive systems spending market will expand at a healthy CAGR of 14,6%, gaining a healthy incremental opportunity of over $15-billion.
The advent of technology has created an inevitable need for human-machine communication that increasingly compels individual users as well as enterprises to employ machine intelligence for better, facilitated, and organised work.
This, being the most prominent factor driving the cognitive systems spending, few other key influencers associated with growth of cognitive systems spending market assessed for the next decade.
* Cognitive technology has been undergoing constant evolution, fuelling demand in various end-use sectors.
* Following developed market, developing regions are increasingly augmenting their IT spending on cognitive systems, which will be one of the predominant factors uplifting the cognitive systems spending in emerging economies.
* As adoption of intelligent Personal Assistants is surging, the applications of Natural Language processing technology is also likely to experience a significant rise in terms of sales revenues.
* North America will continue to hold relatively strong foothold in the global market with around 65% market value share in 2026. This $3,5-billion regional market is anticipated to attain a value of $13,83-billion by the end of 2026, followed by Western Europe, Latin America, and APEJ.
Emerging countries are expected to witness evident growth over the following decade. Latin America will demonstrate relatively fast CAGR of 15%, primarily driven by the market growth in Brazil and Mexico. From around $500-million at the beginning of the forecast, this region will reach beyond $2-billion in the span of next ten years. Japan and APEJ are also anticipated to expand at the respective CAGRs of 14,9% and 14,8%.
Soaring commercialisation of predictive analytics within North America (especially the US) will remain the key driver to North America’s market growth.
Rapidly proliferating demand for cognitive systems in healthcare sector and substantial adoption of Natural Language processing cognitive technology are expected to be responsible for Latin America’s growth. Moreover, consistent innovation in the comprehension economy will further push the market for cognitive systems analytics in Latin America.
Favourable government initiatives and increasing IT spending on cognitive systems will foster the APEJ market.
Towering adoption of cognitive systems for personalised learning, coupled with growing popularity of predictive analytics will continue to accelerate the Japanese market.
By product type, services will be the largest and fastest growing segment with over $12-billion revenues estimated for 2026 end. While this segment is likely to expand at an impressive 15,1% CAGR, it will hold over 58% value share in 2026. Software will remain the second largest segment with over $5-billion revenues in 2026, accounting for over 25% share.
On the basis of technology, natural language processing segment is expected to continue pre-eminence and surpass a value of $13-billion by the end of 2026. This segment will grow at a CAGR of over 16% and capture over 60% share of the total market revenues in 2026. Automated reasoning, followed by machine learning segment, will represent decent growth in revenues, accounting for over 20% and over 19% of the market value towards the close of 2026, respectively.
Based on deployment, on-premise will remain the leading segment with over 66% market value share by the end of the assessment period, surpassing $14-billion in values. While this segment will possibly register a robust CAGR of 14,9%, public segment is also likely to witness significant expansion at a 14% CAGR over 2016-2026.
By application, the banking segment will attain over $6-billionrevenues in 2026, contributing over 28% share to the entire market revenues. Healthcare segment will witness relatively high CAGR of 15,8%, reaching around $4-billion that will reportedly account for over 17% share in 2026 market value. Insurance will remain the third largest application segment.
While IBM continues to rule the roost with almost 54% market revenue share, Accenture, HP Inc, Microsoft, and Intel are experiencing intense competition on the global market landscape. Attivio, Wipro Limited, Cognitive Scale, and IPSoft are also among the key market players partaking in the heating competition. Among these, IBM, HP, and Cognitive Scale have a strong application presence in banking, healthcare, education, manufacturing, retailing and security. Other notable players include EMC, Alteryx, SE, DtaStax, Hortonworks, Teradata, Cloudera and Continnum Analytics.