Cognitive Cloud Computing Market, by Technology (Natural Language Processing, Machine Learning, Automated Reasoning, Others), Enterprise Size (Large Enterprises, Small and Medium Enterprises), Industry Vertical (Healthcare, BFSI, Retail, Government, IT & Telecom, Energy & Power, Others), Regional Analysis (North America, Europe, Asia-Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027

According to a new study by Research Dive, the global cognitive cloud computing market will reach $108,788.7 million by 2027, at a CAGR of 31.3%, increasing from $11,530.0 million in 2019. North America region registered for highest global market share in the past decades and is projected to retain its steady rise during the estimated timeframe. Asia-Pacific cognitive cloud computing market is expected to rise at a notable rate during the forecast time.

COVID-19 Impact on Cognitive Cloud Computing Market:

The coronavirus pandemic has had a desirable impact on the global cognitive cloud computing market size in 2020. This growth is expected to be due to rising importance of natural language processing (NLP) technique in the healthcare and pharmaceutical organizations to support healthcare professionals and scientists during the pandemic. This NLP technique is the most advanced approach to better patient monitoring and patient care. Also, NLP technique is an automated process and allows clinicians to more efficiently manage and monitor patient population by finding virus related symptoms in real time. This aspect has augmented the demand for NLP and is directly impacting the cognitive cloud computing method demand in healthcare systems. These factors are predicted to impact the global cognitive cloud computing market growth in a desirable direction.

Cognitive Cloud Computing Market Analysis:

Gradual shift of businesses towards modernizing their processes is a major driving factor for the growth of the cognitive cloud computing market

Cognitive cloud computing is utilization of computerized techniques that use scientific disciplines of signal processing and artificial intelligence to help the humans in critical situations where the results may be uncertain and ambiguous. It can synthesize information or data from several sources such as data mining, natural language processing and patter recognition to suggest the most appropriate approaches for business operations. Due these benefits, increasing adoption of cognitive cloud computing models by various industry verticals such as BFSI, healthcare, retail and others to revolutionize their business operations is expected to drive the market growth in the forecast years. Moreover, growing utilization of artificial intelligence tools in cognitive cloud computing models is also estimated to propel the market growth in the forecast years. For example, in healthcare sector, cognitive computing with AI technologies is being used in oncology sector to find the most suitable procedure for drug development, based on patient needs. Furthermore, rising implementation of cognitive cloud computing model in OTT sector for delivering high quality video-based content with low latency in the form of movies and web series is also estimated propel the market growth in the analysis time.

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High implementation cost is restraining the growth of cognitive cloud computing market

High implementation cost of the cognitive cloud computing platforms is restricting the adoption in the small and medium size enterprises, which is predicted to limit the growth of the market in the forecast years. Also, the leading players are still facing difficulties with the development of software platforms which is further expected to hamper the growth of the market in the prediction period.

Increasing adoption of emerging technologies may create major investment opportunities for the growth of the cognitive cloud computing market

Emergence of innovative tools and interaction platforms in the cognitive cloud computing models is predicted to create lucrative opportunities for the market growth in the coming years. For instance, chatbot is a humanoid robot which utilizes ML, AI and NLP technologies to imitate human conversation and activities to provide faster services in a short time with more accuracy. Currently, rising deploying of chatbots incorporation with cognitive computing technologies in the healthcare sector to fight against COVID-19 by tracking and monitoring patients is further estimated to upsurge the market growth in the upcoming time.

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Cognitive Cloud Computing Market, by Technology:

Natural language processing technology is expected to grow at a 32.2% CAGR in the estimated time

Source: Research Dive Analysis

In 2019, natural language processing technology sub-segment accounted for evident cognitive cloud computing market share and is estimated to continue its constant rise over the global market throughout the forecast years. This command over the global market is majorly owing to wide utilization of NLP with cognitive computing technologies in almost all sizes of industry verticals because this enables the computers to communicate with humans in real time. Currently, machines and computers can analyze and identify more language-based information and data than humans without exhaustion and in a consistent way. Also, NLP with cognitive computing technologies have various capabilities such as content categorization, topic modeling & discovery, content extraction, text-to-speech & speech-to-text and many other capabilities to offer advanced algorithms to meet organizational requirements. These factors are estimated to fuel the market growth in the estimated period.

Cognitive Cloud Computing Market, by Enterprise Size:

Large enterprise sub-segment held the global market size in 2019

Source: Research Dive Analysis

In the previous years, the cognitive cloud computing market size for large enterprises accounted for $8,069.0 million and is estimated to produce a revenue of $73,711.1 million till the end of 2027. This growth is significantly due to extensive usage of cognitive computing techniques in the large enterprises because it supports employees when they are dealing with complex decision making. Besides large enterprises, the SMEs size sub-segment is expected to witness a noteworthy growth and is anticipated to account for $35,077.7 million revenue by 2027. Increasing adoption of cognitive cloud computing services by SMEs to transform into modern enterprises for faster growth in a digital economy is estimated to propel the market growth in the estimated timeframe

Cognitive Cloud Computing Market, by Industry Vertical:

Healthcare industry vertical will grow at a CAGR of 32.5% in the projected years

Source: Research Dive Analysis

In 2019, healthcare sub-segment was the significant contributor of cognitive cloud computing market and is predicted to retain its dominance over the global marketplace throughout the forecast years. This dominance is majorly attributed to wide utilization of cognitive computing technologies in the healthcare sector to assist healthcare professionals in better and improved treatment of diseases. In the previous decades, BFSI sub-segment occupied second position in the global market and is predicted to account for a revenue of $19,486.4 million till the end of 2027. Increasing implementation of cognitive cloud computing technologies in banks and financial institutions to provide better security systems as well as to identify financial frauds with more robust abilities is anticipated to upsurge the market growth in the review period.

Global Cognitive Cloud Computing Market, by Region:

North America region will have enormous growth opportunities for the market applicants in the coming years

In the past years, the North America dominated the global cognitive cloud computing market size; it was about $3,849.9 million and is anticipated to continue its constant growth in the global industry during the prediction period. The command over the global market is mainly accredited to presence of technically progressive economies such as Canada and U.S., U.S. being the major revolution hub for the most of upcoming technologies. These factors are inspiring most organizations to adopt new technologies to modernize and revolutionize their business activities; this is predicted to propel the market growth in the North America region. Europe region accounted for second position in the global market in terms of revenue and is predicted to generate a revenue of $34,268.4 million by the end of 2027. This growth is majorly due to rising usage of cognitive cloud computing solutions by the organizations to analyze organizational data to provide innovative solutions.  

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Key Participants in the Global Cognitive Cloud Computing Market:

Product launches and R&D investments are some common strategies followed by the key players

Source: Research Dive Analysis

The significant cognitive cloud computing market players are Nuance Communications, Inc., SparkCognition, Numenta, Cisco, Microsoft, SAP, CognitiveScale, Hewlett Packard Enterprise Development LP, EXPERT.AI and IBM. These significant players are adopting various strategies including collaborations & partnerships, acquisitions and business expansions to gain a high competitive edge in the global cognitive cloud computing industry.

Porter’s Five Forces Analysis for Cognitive Cloud Computing Market:

• Bargaining Power of Suppliers: This market has larger number of small & medium and large size suppliers and increasing demand for cognitive computing services is delivering high changing cost between providers. The bargaining power of suppliers is HIGH.

• Bargaining Power of Consumers: This market contains huge number of customers. Rising demand for cognitive cloud computing services owing to unavailability of suitable substitutes along with significant players delivers advanced quality and maintenance services. The bargaining power of the consumer is MODERATE.
• Threat of New Entrants: Growing demand for cognitive cloud computing services, existence of leading participants in the global market along with high development cost are required for cloud computing techniques are resulting in a high risk for new entrants into the market. The threat of new entrants is HIGH.
• Threat of Substitutes: This market has a smaller number of replacements, and prominent players are providing advanced technologies is resulting minimal risk of replacements. The threat of substitutes is LOW.
• Competitive Rivalry in the Market: Cognitive cloud computing market has high number of prominent players. These significant participants are concentrating on product improvements and new technological overviews to strengthen their presence in the overall marketplace. This aspect is resulting high intensity of rivalry between the industry players. The competitiveness between the players is HIGH.