Cognitive Services Market by Technology, Service Type, Deployment Mode, Application, End-User, Vertical (BFSI, Healthcare, Retail, IT and Telecommunication, Government and Education, Manufacturing), and Region - Global Forecast to 2023
[151 Pages Report] Cognitive services leverage the benefits of technologies, such as machine learning, deep learning, and NLP, to analyze trends that enable enterprises to develop applications that are capable of understanding image, audio, and video data. The cognitive technology rapidly learns from the patterns of internal and external sources of enterprise environments to provide insights from huge volumes of structured and unstructured data. The fetched insights allow enterprises to analyze market threats and vulnerabilities across all business functions and thus assist them in enabling continuous business improvement. This aspect is boosting the demand for cognitive services that help enterprises in drafting marketing plans, preventing network attacks, and reshaping the operations model. Various industries are witnessing a rapid change in the market scenario, which requires them to be updated and maintain an advantage over their competitors to increase the profit margin.
The global cognitive services market to reach USD 15.28 Billion by 2023, at a Compound Annual Growth Rate (CAGR) of 42.6% during the forecast period.
By application, the diagnosis and treatment system segment is expected to have the highest CAGR during the forecast period.
By application, the cognitive services market is segmented into marketing analysis, predictive maintenance, supply chain management, quality management investigation and recommendation, safety and security management, diagnosis and treatment system, and others (automated customer services agents, autonomous governance, and real-time analysis). The diagnosis and treatment system application is projected to have highest CAGR during the forecast period.
By region, APAC is expected to grow at the highest rate during the forecast period.
APAC has a significant potential for growth in the cognitive services market. The region is focused on enhancing its digital capability and increasing its security expenditure, owing to the ever-changing market competitive scenario. The region is also concerned about cybersecurity, which can be addressed through cognitive risk intelligence service.
By service type, the consulting and advisory sector is expected to lead the market during the forecast period.
Market Dynamics
Driver: Help with aligning organizational core work with business objectives
Organizations are rapidly working toward streamlining their business processes to achieve operational efficiencies and higher revenues. The business objectives can be achieved by delivering better products and services, enhancing businesses operations, and designing growth strategies. Cognitive services offer a systematic way to attain these objectives by reducing the efforts required to work on repetitive tasks. For instance, digital assistants are used in various verticals to carry out simple tasks, and are built with an aim to interpret and respond to plain texts and voice questions. Organizations can reduce the human efforts required to complete tasks by deploying digital assistants into their operations. Hence, the digital assistants enable employees to concentrate on their core work by reducing the time required to complete the tasks. Apart from the digital assistants, various APIs that include vision, speech, text, and search capabilities are playing a crucial role in the process of automation and data analysis. For instance, Microsoft is offering its Cognitive Services Text Analytics APIs to BlueBolt Solutions, a Microsoft partner. The cognitive services would be used to automate the process of document classification, as a result, data experts can save hundreds of hours required to classify the documents. These examples show that cognitive services are becoming crucial in automating various business processes, thereby helping organizations focus on achieving their business objectives.
Restraint: Stringent external regulations across regions
Cognitive services offered in the form of APIs and SDKs are playing a crucial role in enabling organizations to integrate intelligent capabilities with their business applications. Cognitive service providers help various end-user verticals in data analysis processes, which, in turn, helps them solve their business challenges. For instance, in the healthcare vertical, data is generated in large volumes, which include patients history, clinical trials, reports, medical images, medical claims, and patients behavior. The healthcare vertical can use this information for drug discovery, and Research and Development (R&D) by using cognitive services. Healthcare organizations, therefore, need to utilize this data for completing these tasks. However, there are several regulations imposed by various government authorities for accessing such data. For instance, the US government has passed a law called the Health Insurance Portability and Accountability Act (HIPAA) that focuses on safeguarding patients information. Apart from that, in the European region, the European Union General Data Protection Regulation (EU GDPR) is designed to restrict companies from accessing customers data. These regulations restrict end-user verticals from sharing customers data with cognitive service providers, which may restrain the growth of the cognitive services market.
Opportunity: Growing use of cognitive services across various industry verticals
To leverage the benefits of cognitive services, the demand for cognitive services is expected to grow across various verticals. These verticals include healthcare, retail, finance, education, and manufacturing, which would focus on taking the advantages of computer vision, machine learning, NLP, speech recognition, and text recognition technologies. For instance, in the telecommunications vertical, Microsoft helped Telefonica build a cognitive agent for multiple services. By deploying Microsofts Azure Bot Service and Cognitive Services, Telefonica could quickly build its cognitive agent. Cognitive agents can easily communicate with customers. Apart from that, Stylelabs, a US-based company, is also using Microsoft Cognitive Services to personalize the customer experience. Stylelabs deployed services such as Vision API that would enable automatic scanning of thousands of photos for facial recognition. In addition to this, other verticals are expected to deploy cognitive services in the coming years, as these services offer various benefits such as automation of multiple business processes and reduction of operational costs. The adoption of cognitive services is, therefore, expected to grow in the coming years.
Challenge: Lack of awareness across the industry
The primary issue that most organizations face across the sector is the lack of analytic understanding. The dearth of in-depth analytic knowledge continues to be a concern for organizations. As a result, there is a growing need for educating industries to leverage the cognitive technology for their overall benefit. Recruiting and retaining technical resources has become a significant focus for many enterprises. However, enterprises can skip this step by opting for cognitive services, as service providers host their professionals for data analysis. To stay competitive in the market, industries need to be aware of the advantage of deploying cognitive services. Thus, the lack of awareness across industries is expected to be a significant restraint to the growth of the global cognitive services market.
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Scope of the Report
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Report Metric |
Details |
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Market size available for years |
20162023 |
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Base year considered |
2017 |
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Forecast period |
20182023 |
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Forecast units |
Billion (USD) |
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Segments covered |
Technology, Service Type, Deployment Mode, Application, End-User, Vertical, and Region |
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Geographies covered |
North America, APAC, Europe, and Rest of the World (RoW) |
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Companies covered |
Key market players including, |
The research report categorizes the Cognitive Services Market to forecast the revenues and analyze the trends in each of the following sub-segments:
By Technology:
- Machine learning and deep learning
- Natural Language Processing (NLP)
By Service Type:
- Knowledge management
- Data transformation
- Cloud and web-based Application Programming Interfaces (APIs)
- Data integration and cognitive automation
- Cognitive risk intelligence
- Consulting and advisory
- Training and support
- Communication monitoring
- Others*
By Application:
- Marketing analysis
- Predictive maintenance
- Supply chain management
- Quality management investigation and recommendation
- Safety and security management
- Diagnosis and treatment system
- Others*
By Deployment Mode:
- Cloud
- On-premises
By End-user:
- SMEs
- Large enterprises
By Vertical:
- Banking, Financial Services, and Insurance (BFSI)
- Healthcare
- Retail
- IT and telecommunication
- Government and education
- Manufacturing
- Others*
By Region:
- North America
- US
- Canada
- Europe
- UK
- Germany
- France
- Rest Of Europe
- Asia Pacific (APAC)
- China
- Japan
- India
- Rest Of Asia Pacific
- Rest of the World (RoW)
Key Market Players
IBM (US), Microsoft (US), AWS (US), Google (US), SAS (US), Apple (US), and TCS (India).
Recent Developments
- In May 2018, Microsoft updated its Cognitive Services portfolio with the addition of several innovative features. The company also announced the availability of new services, such as Unified Speech service and Bing Visual Search, through its Cognitive Services portfolio. In addition to this, the company expanded its Cognitive Services Labs of innovative technologies.
- In April 2018, Qualcomm Technologies launched a new platform, Qualcomm Vision Intelligence, designed for IoT devices with advancements in machine learning, computer vision SDKs, and camera processing software.
- In March 2018, Google added the text to speech synthesis technology to its Cloud Platform. This enhancement would enable developers to select from 32 different voices in 12 languages.
- In March 2018, AWS made enhancements to its service, Amazon Polly, wherein the company added a new Speech Synthesis Markup Language (SSML) Breath feature. This feature is designed for developers so that they can add appropriate pauses in speeches to sound more natural.
- In February 2018, Nuance Communications enhanced its text-to-speech technology with the addition of deep neural networks to deliver enhanced quality products as compared to the previous speech synthesis technique.
Critical questions the report answers:
- Which segment or region will lead the cognitive services market, and why?
- Which are the most significant revenue-generating regions for the market?
- What are the significant upcoming trends in the market?
- Who are the leading vendors in the market?
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
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Table of Contents
1 Introduction (Page No. - 17)
1.1 Objectives of the Study
1.2 Market Definition
1.3 Market Scope
1.4 Years Considered for the Study
1.5 Currency
1.6 Stakeholders
2 Research Methodology (Page No. - 20)
2.1 Research Data
2.1.1 Secondary Data
2.1.2 Primary Data
2.1.2.1 Breakdown of Primaries
2.1.2.2 Key Industry Insights
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.2 Top-Down Approach
2.3 Research Assumptions
2.4 Limitations
3 Executive Summary (Page No. - 26)
4 Premium Insights (Page No. - 30)
4.1 Attractive Opportunities in the Cognitive Services Market
4.2 Market Top 3 Verticals
4.3 Market Top 3 Applications and Regions
4.4 Cognitive Services Market Investment Scenario
5 Market Overview and Industry Trends (Page No. - 33)
5.1 Market Dynamics
5.1.1 Drivers
5.1.1.1 Help With Aligning Organizational Core Work With Business Objectives
5.1.1.2 Growth in Data Volumes Creating Demand for Cognitive Services
5.1.2 Restraints
5.1.2.1 Stringent External Regulations Across Regions
5.1.3 Opportunities
5.1.3.1 Growing Use of Cognitive Services Across Various Industry Verticals
5.1.3.2 Increasing Demand for Intelligent APIs to Build Smarter Applications
5.1.4 Challenges
5.1.4.1 Lack of Awareness Across the Industry
5.1.4.2 Lack of Knowledge About Data
5.2 Use Cases
5.2.1 Introduction
5.2.1.1 Use Case: Scenario 1
5.2.1.2 Use Case: Scenario 2
5.2.1.3 Use Case: Scenario 3
5.2.1.4 Use Case: Scenario 4
5.2.1.5 Use Case: Scenario 5
6 Cognitive Services Market By Technology (Page No. - 38)
6.1 Introduction
6.2 Machine Learning and Deep Learning
6.2.1 Facial Recognition
6.2.2 Emotion Detection
6.3 Natural Language Processing
7 By Service Type (Page No. - 42)
7.1 Introduction
7.2 Cloud and Web-Based Application Programming Interface
7.3 Data Transformation
7.4 Knowledge Management
7.5 Data Integration and Cognitive Automation
7.6 Cognitive Risk Intelligence
7.7 Consulting and Advisory
7.8 Training and Support
7.9 Communication Monitoring
7.10 Others
8 Cognitive Services Market By Deployment Mode (Page No. - 50)
8.1 Introduction
8.2 Cloud
8.3 On-Premises
9 Cognitive Services Market, By Application (Page No. - 53)
9.1 Introduction
9.2 Marketing Analysis
9.3 Predictive Maintenance
9.4 Supply Chain Management
9.5 Quality Management Investigation and Recommendation
9.6 Safety and Security Management
9.7 Diagnosis and Treatment System
9.8 Others
10 Cognitive Services Market, By End-User (Page No. - 60)
10.1 Introduction
10.2 Small and Medium-Sized Enterprises
10.3 Large Enterprises
11 Cognitive Services Market By Vertical (Page No. - 63)
11.1 Introduction
11.2 Banking, Financial Services, and Insurance
11.3 Healthcare
11.4 Retail
11.5 IT and Telecommunication
11.6 Government and Education
11.7 Manufacturing
11.8 Others
12 Cognitive Services Market, By Region (Page No. - 70)
12.1 Introduction
12.2 North America
12.2.1 United States
12.2.2 Canada
12.3 Europe
12.3.1 United Kingdom
12.3.2 Germany
12.3.3 France
12.3.4 Rest of Europe
12.4 Asia Pacific
12.4.1 China
12.4.2 Japan
12.4.3 India
12.4.4 Rest of Asia Pacific
12.5 Rest of the World
12.5.1 United Arab Emirates
12.5.2 Brazil
12.5.3 Mexico
12.5.4 Rest of the RoW
13 Competitive Landscape (Page No. - 91)
13.1 Overview
13.2 Competitive Scenario
13.2.1 New Product/Service Launches and Enhancements
13.2.2 Partnerships, Collaborations, and Agreements
13.2.3 Mergers and Acquisitions
13.2.4 Business Expansions
14 Company Profiles (Page No. - 96)
(Business Overview, Services Offered, Recent Developments, SWOT Analysis, MnM View)*
14.1 Introduction
14.2 IBM
14.3 Microsoft
14.4 Google
14.5 AWS
14.6 Baidu
14.7 Nuance Communications
14.8 Qualcomm Technologies
14.9 SAS
14.10 Apple
14.11 TCS
14.12 Nokia
14.13 Expert System
14.14 Verbio Technologies
14.15 Softweb Solutions
14.16 Folio3 Software
14.17 Fusion Informatics
14.18 Inbenta
14.19 Cognitivescale
14.20 Ipsoft
14.21 BMC Software
14.22 Attivio
14.23 Megvii
14.24 Kairos
14.25 Squirro
14.26 Clarifai
*Details on Business Overview, Services Offered, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.
15 Appendix (Page No. - 141)
15.1 Insights of Industry Experts
15.2 Discussion Guide
15.3 Knowledge Store: MarketsandMarkets Subscription Portal
15.4 Introducing RT: Real-Time Market Intelligence
15.5 Available Customization
15.6 Related Reports
15.7 Author Details
List of Tables (68 Tables)
Table 1 United States Dollar Exchange Rate, 20152017
Table 2 Cognitive Services Market Size, By Technology, 20162023 (USD Million)
Table 3 Machine Learning and Deep Learning: Market Size By Region, 20162023 (USD Million)
Table 4 Natural Language Processing: Market Size By Region, 20162023 (USD Million)
Table 5 Cognitive Services Market Size, By Service Type, 20162023 (USD Million)
Table 6 Cloud and Web-Based Application Programming Interface: Market Size By Region, 20162023 (USD Million)
Table 7 Data Transformation: Market Size By Region, 20162023 (USD Million)
Table 8 Knowledge Management: Market Size By Region, 20162023 (USD Million)
Table 9 Data Integration and Cognitive Automation: Market Size By Region, 20162023 (USD Million)
Table 10 Cognitive Risk Intelligence: Market Size By Region, 20162023 (USD Million)
Table 11 Consulting and Advisory: Cognitive Services Market Size By Region, 20162023 (USD Million)
Table 12 Training and Support: Market Size By Region, 20162023 (USD Million)
Table 13 Communication Monitoring:Market Size By Region, 20162023 (USD Million)
Table 14 Others: Cognitive Services Market Size By Region, 20162023 (USD Million)
Table 15 Cognitive Services Market Size, By Deployment Mode, 20162023 (USD Million)
Table 16 Cloud: Market Size By Region, 20162023 (USD Million)
Table 17 On-Premises: Cognitive Services Market Size By Region, 20162023 (USD Million)
Table 18 Cognitive Services Market Size, By Application, 20162023 (USD Million)
Table 19 Marketing Analysis: Market Size By Region, 20162023 (USD Million)
Table 20 Predictive Maintenance: Cognitive Services Market Size By Region, 20162023 (USD Million)
Table 21 Supply Chain Management: Market Size By Region, 20162023 (USD Million)
Table 22 Quality Management Investigation and Recommendation: Market Size By Region, 20162023 (USD Million)
Table 23 Safety and Security Management: Cognitive Services Market Size By Region, 20162023 (USD Million)
Table 24 Diagnosis and Treatment System: Market Size By Region, 20162023 (USD Million)
Table 25 Others: Market Size By Region, 20162023 (USD Million)
Table 26 Market Size, By End-User, 20162023 (USD Million)
Table 27 Small and Medium-Sized Enterprises: Market Size By Region, 20162023 (USD Million)
Table 28 Large Enterprises: Market Size By Region, 20162023 (USD Million)
Table 29 Cognitive Services Market Size By Vertical, 20162023 (USD Million)
Table 30 Banking, Financial Services, and Insurance: Market Size By Region, 20162023 (USD Million)
Table 31 Healthcare: Market Size By Region, 20162023 (USD Million)
Table 32 Retail: Cognitive Services Market Size By Region, 20162023 (USD Million)
Table 33 IT and Telecommunication: Market Size By Region, 20162023 (USD Million)
Table 34 Government and Education: Market Size By Region, 20162023 (USD Million)
Table 35 Manufacturing: Market Size By Region, 20162023 (USD Million)
Table 36 Others: Market Size By Region, 20162023 (USD Million)
Table 37 Market Size, By Region, 20162023 (USD Million)
Table 38 North America: Market Size By Country, 20162023 (USD Million)
Table 39 North America: Cognitive Services Market Size By Technology, 20162023 (USD Million)
Table 40 North America: Market Size By Service Type, 20162023 (USD Million)
Table 41 North America: Market Size By Application, 20162023 (USD Million)
Table 42 North America: Market Size By End-User, 20162023 (USD Million)
Table 43 North America: Market Size By Deployment Mode, 20162023 (USD Million)
Table 44 North America: Market Size By Vertical, 20162023 (USD Million)
Table 45 Europe: Cognitive Services Market Size, By Country, 20162023 (USD Million)
Table 46 Europe: Market Size By Technology, 20162023 (USD Million)
Table 47 Europe: Market Size By Service Type, 20162023 (USD Million)
Table 48 Europe: Market Size By Application, 20162023 (USD Million)
Table 49 Europe: Market Size By End-User, 20162023 (USD Million)
Table 50 Europe: Market Size By Deployment Mode, 20162023 (USD Million)
Table 51 Europe: Market Size By Vertical, 20162023 (USD Million)
Table 52 Asia Pacific: Cognitive Services Market Size, By Country, 20162023 (USD Million)
Table 53 Asia Pacific: Market Size By Technology, 20162023 (USD Million)
Table 54 Asia Pacific: Market Size By Service Type, 20162023 (USD Million)
Table 55 Asia Pacific: Market Size By Application, 20162023 (USD Million)
Table 56 Asia Pacific: Market Size By End-User, 20162023 (USD Million)
Table 57 Asia Pacific: Market Size By Deployment Mode, 20162023 (USD Million)
Table 58 Asia Pacific: Market Size By Vertical, 20162023 (USD Million)
Table 59 Rest of the World: Cognitive Services Market Size, By Country, 20162023 (USD Million)
Table 60 Rest of the World: Market Size By Technology, 20162023 (USD Million)
Table 61 Rest of the World: Market Size By Service Type, 20162023 (USD Million)
Table 62 Rest of the World: Market Size By Application, 20162023 (USD Million)
Table 63 Rest of the World: Market Size By End-User, 20162023 (USD Million)
Table 64 Rest of the World: Market Size By Deployment Mode, 20162023 (USD Million)
Table 65 Rest of the World: Cognitive Services Market Size By Vertical, 20162023 (USD Million)
Table 66 New Product/Service Launches and Enhancements, 20162018
Table 67 Partnerships, Collaborations, and Agreements, 20162017
Table 68 Mergers and Acquisitions, 2017
List of Figures (42 Figures)
Figure 1 Global Cognitive Services Market Segmentation
Figure 2 Global Market Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Market: Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 Cognitive Services Market: Assumptions
Figure 8 Market Snapshot By Application (20182023)
Figure 9 Market Snapshot By Service Type (20182023)
Figure 10 Market Snapshot By End-User (20182023)
Figure 11 Cognitive Services Market Snapshot By Region
Figure 12 The Need for Analyzing the Growing Volumes of Data is Expected to Drive the Cognitive Services Market Growth During the Forecast Period
Figure 13 Banking, Financial Services, and Insurance Vertical is Expected to Hold the Largest Market Size During the Forecast Period
Figure 14 Marketing Analysis Application and North America are Estimated to Hold the Largest Market Shares in the Global Market in 2018
Figure 15 Asia Pacific is Expected to Be the Best Region for Investments During the Forecast Period
Figure 16 Cognitive Services Market: Drivers, Restraints, Opportunities, and Challenges
Figure 17 Natural Language Processing Technology is Expected to Exhibit A Higher CAGR During the Forecast Period
Figure 18 Consulting and Advisory Services Segment is Expected to Exhibit the Highest CAGR During the Forecast Period
Figure 19 On-Premises Deployment Mode is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 20 Diagnostics and Treatment System Application is Expected to Exhibit the Highest CAGR During the Forecast Period
Figure 21 Small and Medium-Sized Enterprises Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 22 IT and Telecommunication Vertical is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 23 North America is Estimated to Account for the Largest Market Size in 2018
Figure 24 Asia Pacific is Expected to Register the Highest CAGR During the Forecast Period
Figure 25 North America: Market Snapshot
Figure 26 Asia Pacific: Market Snapshot
Figure 27 Key Developments By the Major Players in the Cognitive Services Market During 20162018
Figure 28 IBM: Company Snapshot
Figure 29 IBM: SWOT Analysis
Figure 30 Microsoft: Company Snapshot
Figure 31 Microsoft: SWOT Analysis
Figure 32 Google: Company Snapshot
Figure 33 Google: SWOT Analysis
Figure 34 AWS: Company Snapshot
Figure 35 AWS: SWOT Analysis
Figure 36 Baidu: Company Snapshot
Figure 37 Nuance Communications: Company Snapshot
Figure 38 Qualcomm Technologies: Company Snapshot
Figure 39 SAS: Company Snapshot
Figure 40 Apple: Company Snapshot
Figure 41 Nokia: Company Snapshot
Figure 42 Expert System: Company Snapshot
Growth opportunities and latent adjacency in Cognitive Services Market