Download Sample, Increasing Demand for Cognitive Systems and Evolution of Computing is Leading to Expansion of the Cognitive Systems Market
Cognitive computing is the analysis of large amounts of data and the provision of improved solutions to enhance human decision-making through the use of machine learning, neural networks, natural language processing, and other techniques. The market for cognitive systems is anticipated to experience significant growth over the forecast period. The continuous evolution of the computing environment, including cloud, mobile, and analytics; utilizing cognitive abilities to lower excess operational costs; and rising demand for intelligent business processes are the main factors driving the growth of the market.
The demand for cognitive analytics is rising significantly around the world as a result of continual advancements in predictive analytics and increasing demand for workplace performance enhancements. Cognitive systems offer several advantages like opening up of new opportunities to mine untapped data sources, provision of highly personalized and customized services, improvement in quality and enhancement of knowledge sharing among others. The increasing adoption of the Internet of Things (IoT) is largely driving the cognitive systems market. These systems bridge the gap between large data volumes and the need for quick decision-making.
The demand for cognitive analytics is rising significantly around the world as a result of continual advancements in predictive analytics and increasing demand for workplace performance enhancements. Cognitive systems offer several advantages like opening up of new opportunities to mine untapped data sources, provision of highly personalized and customized services, improvement in quality and enhancement of knowledge sharing among others. The increasing adoption of the Internet of Things (IoT) is largely driving the cognitive systems market. These systems bridge the gap between large data volumes and the need for quick decision-making.
Rising Adoption of Cognitive Systems in Banking and Healthcare Sector is Accelerating the Market Expansion
Numerous technological developments have made it possible for many sectors, particularly the banking industry, to benefit from exceptional features on the global market for cognitive systems. Cognitive systems with high-definition technology can assist in determining the world's most complex data analysis challenges by utilizing the power of big data, machine learning, natural language processing, and automated reasoning technology. Technology advancements accelerate the adoption of big data and boost the market for cognitive systems around the world. The use of conventional analytical systems prevents banks from gaining insights into huge amounts of data. The majority of banks and financial institutions face this issue which in turn fuels the global market for cognitive systems.
Moreover, the healthcare industry has experienced significant growth in recent years owing to the investments made by the governments to improve the healthcare infrastructure. According to the American Medical Association, the United States spent U.S. $4225.1 Billion on healthcare in 2021. Additionally, the healthcare industry is increasingly using cognitive systems for data assimilation and modern data analytics technologies to understand various patterns of illness and find a new drug for treatment, which is having a positive impact on the market. Researchers are also depending on the potential of cognitive solutions to improve clinical trials and open up new prospects in the healthcare sector.
Moreover, the healthcare industry has experienced significant growth in recent years owing to the investments made by the governments to improve the healthcare infrastructure. According to the American Medical Association, the United States spent U.S. $4225.1 Billion on healthcare in 2021. Additionally, the healthcare industry is increasingly using cognitive systems for data assimilation and modern data analytics technologies to understand various patterns of illness and find a new drug for treatment, which is having a positive impact on the market. Researchers are also depending on the potential of cognitive solutions to improve clinical trials and open up new prospects in the healthcare sector.
Recent Trends in the Cognitive Systems Industry
- Cognitive Systems with enhanced decision-making and automate complex processes.
- Use of cognitive systems in the fitness and wellness industry.
- Integration of cognitive systems with other emerging technologies.
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Security Threats and Lack of Skilled Labour Restrain the Market Expansion for Cognitive Systems
Security threats associated with cognitive systems are anticipated to hamper the market growth. Although cognitive systems offer various facilities, the security attacks on such systems outweigh the benefits if they are not addressed in time. Concerns over data security still continue to be an obstacle in the cognitive systems market. According to the January 2023 report of the Identity Theft Resource Centre, 1802 data compromises were reported in 2022. This figure represented the greatest amount of data breaches in the United States in a single year that were publicly reported. It impacted approximately 422 Million individuals mainly due to cyberattacks. In addition to financial data like address, picture ID, and debit or credit card information, databases also hold a variety of sensitive user information.
Cyberattacks like malware, distributed denial-of-service (DDoS), phishing, and SQL injection attempts are some tactics used by hackers to break into networks and steal the passwords of real users. Such threats have an adverse effect on the image of the company and also restrict the expansion of the cognitive systems industry. In addition to this, the adoption of cognitive computing necessitates a certain skill set especially in machine learning and natural language processing. As a result, lack of skilled labor prevents the implementation of artificial intelligence in the operation which restrains the market growth for cognitive systems.
Cyberattacks like malware, distributed denial-of-service (DDoS), phishing, and SQL injection attempts are some tactics used by hackers to break into networks and steal the passwords of real users. Such threats have an adverse effect on the image of the company and also restrict the expansion of the cognitive systems industry. In addition to this, the adoption of cognitive computing necessitates a certain skill set especially in machine learning and natural language processing. As a result, lack of skilled labor prevents the implementation of artificial intelligence in the operation which restrains the market growth for cognitive systems.
Increasing Investments and Company Acquisitions are Presenting Lucrative Growth Potential for the Cognitive Systems Market Growth
Several top businesses control the market by emphasizing research and development initiatives in an effort to improve performance by incorporating modern technologies. Contracts, new product launches, corporate expansions, collaborations, and acquisitions are a few of the modern growth strategies used to increase market share globally. For instance, in March 2022, Series A funding was successfully closed by Sanctuary Cognitive Systems Corporation, a company dedicated to developing the first human-like intelligence in general-purpose robots. Magna, SE Health, Verizon Ventures, Workday Ventures, Bell, Evok Innovations, Export Development Canada, and others were among the investors.
Again, in November 2022, Cognitive Systems Corp. partnered with Maxlinear to increase the wi-fi sensing accessibility for broadband platforms. This partnership is anticipated to provide customers with next-generation innovation with the highest level of operational efficiency by integrating modern chipsets with WiFi Motion technology. Additionally, in February 2023, VERSES Technologies Inc., a cognitive computing company that specializes in modern artificial intelligence technologies announced its collaboration with SVT Robotics to increase the deployment of AI-powered robots in in warehouses and distribution centres. The goal of this partnership is to achieve enhanced efficiency and productivity.
Again, in November 2022, Cognitive Systems Corp. partnered with Maxlinear to increase the wi-fi sensing accessibility for broadband platforms. This partnership is anticipated to provide customers with next-generation innovation with the highest level of operational efficiency by integrating modern chipsets with WiFi Motion technology. Additionally, in February 2023, VERSES Technologies Inc., a cognitive computing company that specializes in modern artificial intelligence technologies announced its collaboration with SVT Robotics to increase the deployment of AI-powered robots in in warehouses and distribution centres. The goal of this partnership is to achieve enhanced efficiency and productivity.
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Increasing Technical Developments and Rising Adoption of Cognitive Computing & Investments in Healthcare Sector are Impacting the Market Growth
The global market for cognitive computing is anticipated to be dominated by North America. The high growth rate in North America can be attributed to both start-ups adopting cognitive computing solutions and rising internet traffic. Businesses, particularly in the US, have begun implementing cognitive computing solutions to analyze vast amounts of data and produce improved solutions. Recent technological advancements like 5G and IoT have benefited the development of cognitive solutions in this area. Moreover, growing concerns over data security are anticipated to drive market growth in the U.S. and Canada.
The Asia-Pacific region is anticipated to experience the fastest demand growth over the forecast period, primarily as a result of the region's expanding pharmaceutical market and rising geriatric population, increasing expenditures on healthcare, and growing private and public investments in the healthcare sector. For instance, in 2022, NITI Aayog stated that the Indian healthcare sector is growing at a 22% per annum rate, and is anticipated to grow to U.S. $372 Billion by 2022. This increases the potential for investments in several areas of the healthcare sector. Besides this, increasing usage of the internet and the rising number of start-ups in India, Japan, and China are also aiding the market expansion. Additionally, the healthcare and education sectors in Latin America are predicted to grow significantly, which will contribute to the growth of the cognitive systems market.
The Asia-Pacific region is anticipated to experience the fastest demand growth over the forecast period, primarily as a result of the region's expanding pharmaceutical market and rising geriatric population, increasing expenditures on healthcare, and growing private and public investments in the healthcare sector. For instance, in 2022, NITI Aayog stated that the Indian healthcare sector is growing at a 22% per annum rate, and is anticipated to grow to U.S. $372 Billion by 2022. This increases the potential for investments in several areas of the healthcare sector. Besides this, increasing usage of the internet and the rising number of start-ups in India, Japan, and China are also aiding the market expansion. Additionally, the healthcare and education sectors in Latin America are predicted to grow significantly, which will contribute to the growth of the cognitive systems market.
The report provides a detailed overview of the cognitive systems market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the cognitive systems market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the cognitive systems market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the cognitive systems market. Some key countries and regions included in the cognitive systems market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Turkey, Egypt, Morocco, Israel, Kenya, Rest of MEA |
Cognitive Systems Market Research Report Covers In-depth Analysis on:
- Cognitive systems market detailed segments and segment-wise market breakdown
- Cognitive systems market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in cognitive systems industry)
- Current, historical, and forthcoming 10 years market valuation in terms of cognitive systems market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Cognitive Systems Market Demand Analysis
- Cognitive systems market regional insights with the region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the cognitive systems market
- Regulatory landscape by key regions and key countries
- Cognitive systems market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the cognitive systems market forecast by countries
- Mergers and acquisitions in the cognitive systems market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the growth of the Cognitive Systems market?
The growth of the Cognitive Systems market is driven by advancements in AI, increasing data generation, demand for automation, and the need for real-time analytics to support business operations.
What are the major challenges in the Cognitive Systems market?
Challenges in the Cognitive Systems market include high implementation costs, data privacy concerns, integration complexity, and the need for skilled professionals to manage advanced cognitive technologies.
What is the projected growth trend for the Cognitive Systems market in the coming years?
The Cognitive Systems market is expected to witness significant growth, driven by advancements in artificial intelligence, increasing adoption across industries, and the rising demand for automated and intelligent decision-making solutions.
