Despite the rising forays of start-ups, competition in the global cognitive computing market will remain low on account of the explosively increasing consumer demand. Also the presence of a less number of established firms has kept the degree of competition under check. Among the players, who have already succeeded leaving their mark in the global cognitive computing, Cisco Systems, Inc., IBM Corporation, Microsoft Corporation, Google, Inc., and Accenture, Inc., have made the most exemplary contributions, finds Transparency Market Research (TMR) in a new study.
Of these, holding a majority share in the global market IBM Corporation emerged dominant in 2016. The market standing of the leading players are less likely to change in the coming years. However, with major advancements underway, influence of competitive trends is forecast to increase. The development targets of the leading players have enabled the cognitive computing market gain considerable momentum over the last few years.
According to TMR, the global cognitive computing market is likely to exhibit an impressive CAGR of 49.9% between 2017 and 2025. At this pace, the market’s valuation will reach a whopping US$1000.52 bn by the end of 2025, from US$29.67 bn in 2016. Large enterprises have emerged as the key end user, occupying the dominant 49.8% of the market in 2016. Regionally, North America is at the global market’s fore, however, between 2017 and 2025, the Middle East and Africa cognitive computing market is forecast to exhibit an exponential CAGR of 52.2%, thus exhibiting the fastest growth.
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“The market is majorly gaining traction from the escalating investment in big data analytics,” said a lead TMR analyst. The staggering increase in the volume of big data has pumped the demand for effective technologies for managing it. As a major part of data received by companies is in the form of unstructured data such as videos, images, audio files, texts, and others, the implementation of cognitive computing is deemed necessary. “The technology will help companies in collating data for seamless and meaningful inference,” added the analyst.
With the escalating use of cloud-based applications owing to its diverse characteristics such as low cost, lower memory consumption compared to predecessor technologies, high flexibility, and increased reliability, connotes the impending growth for the global cognitive computing market. As enterprises move their critical business systems onto cloud-based platforms, the demand for cognitive computing platforms will rise. With this, the market will witness an accelerated pace of gains in the coming years.
High Upfront Investments Required at Initial Phase Pose Threat to Market
On the downside, the global cognitive computing market is challenged by the low upfront investment around the world. Low funding access and high upfront investment have thus emerged as key challenges, making entry of smaller companies more difficult. Moreover, the long term investment period for cognitive computing innovations has also emerged as a major barrier for the market. In addition, the lack of skilled workforce is creating bottlenecks.