PUBLISHER: The Business Research Company | PRODUCT CODE: 1435749
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435749
Cognitive services encompass tools enabling businesses to quickly integrate AI into applications without data scientists, facilitating information processing by computers.
Cognitive services encompass a range of critical service types: data transformation, cloud and web-based APIs, knowledge management, cognitive risk intelligence, data integration, automation, training, support, communication monitoring, consulting, and more. These services leverage technologies such as natural language processing (NLP), machine learning, and deep learning. NLP specifically enables computers to comprehend text and speech akin to humans, utilized for text analytics, predictive text, language translation, digital calls, and data analysis. Deployment options encompass on-premises and cloud, applied across diverse applications such as predictive maintenance, marketing analysis, quality management, supply chain optimization, diagnostics, safety, and other use cases. Industries benefiting from these services span healthcare, finance, IT, retail, manufacturing, education, government, and beyond.
The cognitive services market research report is one of a series of new reports from The Business Research Company that provides cognitive services market statistics, including cognitive services industry global market size, regional shares, competitors with a cognitive services market share, detailed cognitive services market segments, market trends and opportunities, and any further data you may need to thrive in the cognitive services industry. This cognitive services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The cognitive services market size has grown exponentially in recent years. It will grow from $12.9 billion in 2023 to $17.55 billion in 2024 at a compound annual growth rate (CAGR) of 36.1%. The historical growth was propelled by several factors including increased demand for automation, a significant increase in data volume, widespread adoption by enterprises, advancements in natural language processing (NLP) between 2018-2021, and the impact of global events and the shift to remote work in 2020-2021.
The cognitive services market size is expected to see exponential growth in the next few years. It will grow to $64.53 billion in 2028 at a compound annual growth rate (CAGR) of 38.5%. Anticipated growth in the upcoming period is linked to improvements in user experiences, the development of industry-specific applications, and the augmentation of personalization in products and services. Major trends expected in this forecast period encompass global digital transformation efforts, the escalating integration of AI, continuous technological advancements, and the focus on customization and industry-specific solutions to meet diverse needs.
The surge in data quantity and intricacy is anticipated to drive the expansion of the cognitive services sector in the foreseeable future. Data volume pertains to the extensive scale of data collections that necessitate assessment and handling, often reaching terabytes and petabytes. The proliferation of social media, mobile technology, analytics, and the prevalent use of cloud systems leads to the generation of substantial amounts of real-time, diverse, unstructured, and repetitive data. Cognitive Services play a pivotal role in mitigating data redundancy, facilitating accelerated processing of large-scale data sets. As per Tech Jury, a US-based business software solutions provider, global data production is projected to reach an astounding 181 zettabytes by 2025. Consequently, the surge in both data volume and complexity is a key driver behind the growth of the cognitive services market.
The rising need for AI and Machine Learning is forecasted to drive significant expansion within the cognitive services market. AI encompasses the broader concept of developing intelligent machines equipped with reasoning capabilities. Within AI, Machine Learning (ML) focuses on empowering machines to learn from data autonomously, bypassing explicit programming. Cognitive services play a crucial role in AI and ML by streamlining AI integration without the need to construct intricate models from the ground up. They also prepare data for ML models by extracting pertinent features and organizing the data structure. For instance, in January 2023, a report from CompTIA, a US-based non-profit trade association, highlighted the global AI and ML market's growth trajectory. Starting at a valuation of $119.78 billion in 2022, this market is anticipated to soar to $1,597.1 billion by 2030, indicating a remarkable Compound Annual Growth Rate (CAGR) of 38.1% from 2022 to 2030. Hence, the escalating demand for AI and Machine Learning serves as a primary catalyst driving the growth of the cognitive services market.
A prominent trend in the cognitive services market is the emphasis on technological advancement. Key industry players are dedicated to innovating and integrating new technologies to cater to consumer needs while solidifying their market position. For instance, in May 2022, Microsoft Corporation, a leading US-based technology company, augmented the Azure OpenAI service by incorporating InstructGPT. This addition comprises GPT-3-based models known for their reduced error rates and generation of less problematic text compared to their competitors.
Prominent companies within the cognitive services sector are actively prioritizing the development of cutting-edge technologies, such as cognitive speech services, to maintain their competitive edge. Cognitive speech services encompass speech processing technologies leveraging artificial intelligence and machine learning to comprehend and analyze spoken language. For instance, in March 2023, Microsoft Corporation, a leading US-based technology company, introduced Microsoft Azure Cognitive Speech Services. This platform features a pronunciation assessment tool aimed at aiding language learners in refining their pronunciation through feedback on prosody, vocabulary, grammar, and topic delivery in spoken speech. Additionally, it offers prebuilt voice enhancements for specific languages and enhances the capacity to create custom neural voices, further enhancing its capabilities.
In January 2022, ei3 Corporation, a US-based entity specializing in artificial intelligence technology, completed the acquisition of Cognitive Solutions and Innovation AG (COGSI AG), an Switzerland-based company, for an undisclosed sum. This strategic acquisition equips ei3's industrial clients with enhanced operational insights, aiming to minimize unforeseen downtimes, optimize asset efficiency, and bolster sustainability measures in their operations. COGSI AG brings advanced artificial intelligence solutions tailored for industrial manufacturing, augmenting ei3's capabilities in this domain through this acquisition.
Major companies operating in the cognitive services market report are Amazon.com Inc., Apple Inc., Alphabet Inc., Samsung Group, SK Inc., LG Corp., Accenture PLC, IBM Corporation, Deloitte Touche Tohmatsu Limited, Microsoft Corporation, Cisco Systems Inc., Ernst & Young Global Limited, Qualcomm Technologies Inc., Oracle Corporation, KPMG International Limited, SAP SE, Tata Consultancy Services Limited, Nokia Corporation, Capgemini SE, NEC Corporation, Cognizant Technology Solutions Corporation, Infosys Limited, Adobe Inc., HCL Technologies Limited, Atos SE, Wipro Limited, Fujitsu Limited, SAS Institute Inc., BMC Software Inc., Attivio Inc., Enterra Solutions LLC
North America was the largest region in the cognitive services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognitive services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the cognitive services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The cognitive services market includes revenues earned by entities by providing data transformation, cloud and web-based application programming interface, knowledge management, cognitive risk intelligence, data integration and cognitive automation, training and support, communication monitoring, and consulting and advisory. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cognitive Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cognitive services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cognitive services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cognitive services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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