Cognitive Analytics Market Size - By Component (Tools, Services [Managed, Professional]), Deployment (On-premise, Cloud), Enterprise Size (SMEs, Large Enterprise), Application, End User, Growth Prospects, Regional Outlook & Forecast, 2023 - 2032

Cognitive Analytics Market Size - By Component (Tools, Services [Managed, Professional]), Deployment (On-premise, Cloud), Enterprise Size (SMEs, Large Enterprise), Application, End User, Growth Prospects, Regional Outlook & Forecast, 2023 - 2032

Cognitive Analytics Market Size

Cognitive Analytics Market size was valued at USD 3.2 billion in 2022 and is estimated to register a CAGR of 34% between 2023 and 2032. The increasing funding in cognitive analytics startups is driving significant growth in the market. These investments provide startups with resources to develop innovative technologies and solutions, fostering advancements in artificial intelligence & data analytics.

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For instance, in May 2023, Course5 Intelligence, a startup burgeoning in data analytics & AI, secured funding of USD 28 million from 360 ONE Asset Management. This investment will be used to improve the startup's context-conscious dialogue management along with cognitive semantic search abilities. The move also aims to allow users to interact with the structured and tabular data, enabling them to extract insights using natural language for swift decision-making.

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The proliferation of Big Data, characterized by massive volumes of structured and unstructured information, serves as a foundational driver for the cognitive analytics market. Businesses are increasingly harnessing data to gain valuable insights, understand market trends, and make informed decisions. Cognitive analytics solutions excel in processing and analyzing this vast data pool, extracting meaningful patterns & correlations. As the volume of data continues to grow exponentially, the demand for advanced cognitive analytics tools rises, fueling market expansion and innovation in data-driven decision-making processes.

Data security and privacy concerns stand as significant challenges hindering the cognitive analytics industry growth. As businesses increasingly rely on sensitive data for analysis, ensuring the confidentiality and protection of this information becomes paramount. The risk of privacy breaches, data theft, and unauthorized access poses a barrier to widespread adoption. Companies need robust security measures and compliance with regulations to alleviate these concerns and build trust among users, stakeholders & regulatory bodies.

COVID-19 Impact

The COVID-19 pandemic has positively impacted the cognitive analytics market as businesses navigate unprecedented challenges. The need for real-time data analysis to understand rapidly changing consumer behavior and market trends surged. Cognitive analytics tools have played a vital role in helping companies adapt their strategies swiftly, optimize supply chains, and enhance customer experiences. As a result, the demand for cognitive analytics solutions has grown, fostering innovation, and accelerating the adoption of advanced data-driven decision-making processes.

Cognitive Analytics Market Trends

Platforms offering data-driven risk assessment insights for insurance companies are driving lucrative growth in the market. These solutions empower insurers with advanced analytics, enabling precise risk evaluation, fraud detection & personalized policy offerings. For instance, in July 2023, Verikai, Inc., a provider of advanced predictive analytics & AI-driven solutions for the insurance sector, launched an innovative platform that integrates robust data-driven risk assessment insights into an intuitive digital portal, transforming the entire underwriting process for insurance companies and enhancing their overall experience.

Advancements in Artificial Intelligence (AI) and Machine Learning (ML) technologies are pivotal in propelling the cognitive analytics market. These continuous innovations empower cognitive analytics tools to handle increasingly complex and diverse datasets. Machine learning algorithms, backed by AI, enable accurate predictive modeling, automated data analysis & real-time pattern recognition. As businesses seek more sophisticated insights and automation, the evolution of AI & ML techniques plays a crucial role, making cognitive analytics solutions indispensable for modern enterprises aiming to gain actionable intelligence from their data.

Cognitive Analytics Market Analysis

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Based on component, the tools segment dominated around USD 2 billion revenue in 2022. Autonomy and control over analytics processes are driving the preference for cognitive analytics tools. Businesses seek self-reliance in data analysis, allowing them to customize, experiment & implement solutions independently. This control ensures confidentiality, agility, and the ability to adapt analytics to specific needs. With tools, organizations can make data-driven decisions in real time without relying on external expertise, promoting quicker, more efficient & personalized insights. This desire for independence propels the tools segment growth, offering businesses the freedom to harness data analytics according to their unique requirements.

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Based on application, the customer analytics segment accounted for 28% of the cognitive analytics market share in 2022. The need to identify customer engagement levels is propelling the customer analytics segment growth. Businesses increasingly recognizing the importance of understanding customer behavior, preferences, and sentiments. Cognitive analytics tools empower organizations to accurately analyze vast datasets, discern patterns & predict customer engagement levels.

For instance, in August 2023, Twilio Segment launched an impactful tool, CustomerAI Predictions, which is crafted to convert customer data into actionable insights. This tool assists marketers in making precise predictions about the behavior of specific customer segments, empowering them to make informed decisions based on these accurate forecasts.

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North America cognitive analytics market held over 33% of revenue share in 2022. Increasing investments in AI technology in the U.S. is a key factor propelling the market size. Companies in the U.S. are heavily investing in AI research, development & implementation, leading to the creation of advanced cognitive analytics solutions. These investments fuel innovation, enhance the capabilities of cognitive analytics tools, and drive their adoption across various industries. As a result, the North America market continues to experience significant growth, propelled by ongoing AI technology investments.

Cognitive Analytics Market Share

Major companies operating in the cognitive analytics industry are

• Amazon Web Services
• Cisco Systems Inc
• Google Inc.
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• SAS Institute
• Narrative Science
• Nuance Communications, Inc.
• Sinequa

The cognitive analytics market is dominated by Google Inc., IBM Corporation, Oracle Corporation, and SAS Institute. Major companies are fiercely competing for market shares through continuous technological advancements, product innovation, strategic partnerships, global expansion, and aggressive marketing campaigns.

Cognitive Analytics Industry News

• In October 2022, Ericsson and Vodafone joined forces to enhance the telecom company's network infrastructure development. Through this collaboration, Ericsson delivered AI-driven cognitive software solutions for network optimization, enabling data-driven decision-making. This support aided Vodafone in implementing anomaly detection capabilities and Zero-Touch Operations (ZTOs), strengthening both their network operations and ensuring seamless performance.

The cognitive analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Component

• Tools
• Services
  • Managed
  • Professional

Market, By Deployment

• On-premise
• Cloud

Market, By Enterprise Size

• SMEs
• Large Enterprise

Market, By Application

• Customer Analytics
• Sales & Marketing Optimization
• Fraud Detection & Risk Management
• Supply Chain Management
• Predictive Maintenance & Asset Management
• Others

Market, By End User

• Healthcare
• BFSI
• Retail &E-commerce
• Manufacturing
• IT & Telecom
• Energy & Utilities
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

How big is the cognitive analytics market?

The market size of cognitive analytics reached USD 3.2 billion in 2022 and is set to register 34% CAGR from 2023 to 2032, due to the increasing funding in startups worldwide.

Why is the cognitive analytics industry growing from the tools component?

The tools component segment recorded over USD 2 billion in 2022, owing to the rising demand for autonomy and control over analytics processes.

What factors are influencing cognitive analytics market growth in North America?

North America held over 33% of the market share in 2022, attributed to the increasing investments in AI technology in the region.

Who are the key cognitive analytics industry players?

Amazon Web Services, Cisco Systems Inc, Google Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, SAS Institute, Narrative Science, Nuance Communications, Inc., and Sinequa are some of the major cognitive analytics companies worldwide.