Global Cognitive Services Market Size By Deployment Mode (On-Premises, Cloud), By End User (Banking, Financial Services, And Insurance, IT And Telecommunication), By Geographic Scope And Forecast

Cognitive Services Market Size And Forecast

Cognitive Services Market size was valued at USD 17.24 Billion in 2024 and is projected to reach USD 188.08 Billion by 2031, growing at a CAGR of 38.40% from 2024 to 2031.

Rise in the adoption of cognitive services by various organizations for gaining essential insights to meet their business objectives and therefore boosted their demand in the market. The need for cognitive services has surged owing to the data-driven economy. Real-time data analysis is becoming more and more popular, which is another element boosting market expansion. It is employed to support both the growing demand for cognitive services as data volumes increase and the alignment of organizational core activities with business objectives. An opportunity is offered by the growing demand for sophisticated APIs.

Global Cognitive Services Market Definition

Cognitive Services is a set of cognitive Application Programming Interfaces (APIs) and Artificial Intelligence (AI) algorithms for building intelligent applications. A cognitive service refers to a model that provides language, vision, speech, search, and knowledge of APIs Cognitive services are employed to develop smarter products, build new variants of customer engagement, make smarter decisions, generate business value from unstructured information, and improve overall internal performance.

Cognitive services allow an enterprise to choose AI tools as per their needs. The toolkit helps to generate experience-based business values from disorganized information. Beneficiary advantages offered by cognitive services are greater efficiency, ensuring cost reductions, and enhanced results. It is applicable across various industries, such as banking, financial services, insurance, IT and telecommunication, retail, and others.

Global Cognitive Services Market Overview

Rise in the adoption of Cognitive services by various organizations for gaining essential insights to meet their business objectives and therefore boosted their demand in the market. The need for cognitive services has surged owing to the data-driven economy. In recent years, there is a noteworthy rise in the adoption of artificial intelligence (AI), and the internet of things (IoT) is one of the major factors driving the growth of the Cognitive Services Market in upcoming years. The rise in the from different industries for cognitive services and growing demand for intelligent APIs in order to build smarter applications is expected to create the potential for the Cognitive Services Market. Thus, the aforementioned factors are expected to drive the Cognitive Services Market during the forecasted period.

There are certain restraints and challenges faced which will hinder market growth. The need for cognitive services comes with strict external regulations from various regions and therefore is the biggest restricting factor of the market. Furthermore, the high cost associated with the implementation of cognitive services might restrict the growth of the market up to a certain extent over the forecasted period.

Global Cognitive Services Market Segmentation Analysis

The Global Cognitive Services Market is Segmented on the basis of Deployment Mode, End User, and Geography.

Cognitive Services Market, By Deployment Mode

• On-Premises
• Cloud

Based on Deployment Mode, the market is bifurcated into On-Premises and Cloud. The Cloud-based segment held the largest market share. These factors can be attributed to the development of robust cloud-based solutions. Also, Cloud-based cognitive services are flexible and easily accessible for enterprises.

Cognitive Services Market, By End User

• Banking, Financial Services, and Insurance
• IT and Telecommunication
• Retail
• Others

Based on End User, the market is bifurcated into Banking, Financial Services, and Insurance, IT and Telecommunication, Retail, and Others. The IT and Telecommunication segment is predicted to hold the most significant CAGR in the forecast period due to the high adoption of cognitive services among IT and Telecommunication companies, as it contributes to automating support bots by understanding natural language and translating text for their core business tasks. Therefore, it results in changing the telecom back offices into intelligent customer support teams.

Cognitive Services Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world
• On the basis of regional analysis, the Global Cognitive Services Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The largest share of the market will be dominated by the Asia Pacific region. The early acceptance of emerging technologies and rising focus towards digital capability and increase in the security expenditure across the region due to the ever-changing market scenario will drive the market. Cognitive risk intelligence service addresses issues related to cybersecurity, which can contribute to the market growth in the region. Whereas the Europe region is estimated to grow at a significant CAGR due to a rise in the sectors, such as smart manufacturing and the digitization of the healthcare sector across the region.

Key Players

The "Global Cognitive Services Market" study report will provide valuable insight with an emphasis on the global market including some of the major players such as IBM, Microsoft, Cisco Systems, Nuance Communications, BMC Software, Qualcomm Technologies, Inc., and others. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In September 2022, Focus Cloud, an IT recruiting company, acquired Cognitive Group, a Microsoft recruitment expert. Together, the new Focus Cloud Group will focus on recruiting for the life sciences and cybersecurity sectors as well as for major cloud platforms including Workday, SAP, Microsoft, ServiceNow, and Salesforce.
• In May 2022, With the support of InstructGPT, Microsoft Corporation, a US-based technology corporation, enhanced its Azure OpenAI service. A group of GPT-3-based models called InstructGPT are less error-prone and produce less problematic text than their competitors.
• In May 2019, for its cognitive services platform, Microsoft introduced its machine learning methodology. This model comprises an API for handwriting recognition and an enhanced speech recognition service for conversation transcription.
• Ace Matrix Analysis
• The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.
• Market Attractiveness
• The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global Cognitive Services Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.
• Porter's Five Forces
• The image provided would further help to get information about Porter's five forces framework providing a blueprint for understanding the behavior of competitors and a player's strategic positioning in the respective industry. Porter's five forces model can be used to assess the competitive landscape in the Global Cognitive Services Market, gauge the attractiveness of a certain sector, and assess investment possibilities.