The global cognitive cloud computing market is expected to gain significant momentum in the forecast period 2020-2027.
The natural language processing technology sub-segment is set to gain the highest market share.
The large enterprises sub-segment is predicted to dominate the market.
The North American region is expected to further add to the market growth.
San Francisco, NFAPost: As per a recently published report by Research Dive, the global cognitive cloud computing market is anticipated to garner a revenue of $1,08,788.7 million by 2027 rising from $11,530.0 million at a stable CAGR of 31.3% from 2020-2027.
The growth in the market share of cognitive cloud computing is also fuelled by COVID-19 as there is a massive digitisation effort happening the world over. The rapid spread of the coronavirus over the past couple of years has been disadvantageous for a lot of organizations.
Due to the implementation of lockdowns and the travel ban, multiple businesses had to shut down. On the contrary, the cognitive cloud computing market witnessed a surge in owing to its extensive use within the healthcare sector.
Most pharmaceutical companies and clinicians utilized natural language processing (NLP) to manage patient-related data by detecting symptoms of the virus in real-time. This has also resulted in faster and more effective healthcare for the patient which has, in turn, led to an increase in demand for cloud computing technology in the healthcare sector.
Cognitive cloud computing technology is known to process information from different sources which includes pattern recognition, data mining and more to provide the best methods a business can follow for better operations.
It also uses artificial intelligence which assists humans in ensuring the best possible solutions to high-priority situations. Due to this, cognitive cloud computing is being used in multiple industries such as retail, BFSI and healthcare to name a few and has helped enhanced their business opportunities. These factors have contributed to the rapid growth of the market in the analysis period.
But the massive adoption of cognistive cloud computing is restrained by various factors. It is primarily due to the higher cost of the cognitive computing platforms, several small and medium businesses are unable to invest in it which could restrict the growth of the market.
Additionally, there are several experts in the market who have been experiencing challenges with the software platforms and the process of development. These factors are expected to hamper the growth of the market in the forecast period.
With constant upgrades in technology there has also been a rise in the number of advanced tools and other interactive platforms within the cognitive cloud computing model. One such innovation was that of chatbots which used AI and ML to communicate with humans while also imitating a human conversation to provide quicker solutions to queries.
Recently, chatbots which utilised cognitive cloud computing were also used by healthcare organizations to monitor patients among the rising Covid-19 cases. Thus, the above mentioned factors are set to provide an opportunity of growth for the market.
The market is segregated into multiple segments based on technology, enterprise size, industry vertical, and region.
Natural Language Processing Technology Sub-Segment to Dominate the Market
By technology, the natural language processing technology sub-segment has held a significant position in the part in the market since 2019 and is predicted to grow further in the forecast period. NLP is an innovative form of technology that has when used in combination with cognitive computing technologies has helped machine to human communication and vice versa easier. The machines are capable of identifying data in multiple data in multiple languages with ease and at a consistent pace. These factors are set to add to the growth of the market in the forecast period.
Large Enterprises Sub-Segment Expected to Gain Highest Market Share
By enterprise size, the large enterprise sub-segment is predicted to hold the highest market share with a rise in revenue from $8,069.0 million in 2019 to over $73,711.1 million by 2027. This growth is credited to large companies opting for cognitive computing technology to assist the employees in the process of decision making.
Healthcare Sub-Segment to Garner Highest Revenue
By industry vertical, the healthcare sub-segment is predicted to gain the highest revenue as it has maintained its presence in the market since 2019 and is expected to rise further in the estimated timeframe. The healthcare sector is one of the primary users of cognitive computing technology due to which medical experts are able to provide better diagnosis and treatment options for several illnesses to patients.
The North America region garnered a revenue of $3,849.9 million in 2019 and is anticipated to grow at a rapid pace in the forecast period. The U.S and Canada are the largest investors for the growth of advanced technologies due to which they are known to be hubs for new innovations. Also, the efforts by the countries to ensure the adoption of these newly developed technologies which have contributed to the growth of the businesses. These factors are predicted to assist in the rapid growth of the market in the region.
Key Market Players
The report also contains an extensive list of key players whose strategies have assisted in the growth of the market. These include mergers, product launches, partnerships, and collaborations. Some of them are as listed below –
1. Nuance Communications, Inc
9. Hewlett Packard Enterprise Development LP