The Market for Cognitive Computing
The market size for Cognitive Computing is expected to surpass $12 billion by 2022. Increased access to unstructured(dark) data, the proliferation of cloud-based services, the need for high speed internet and high demand for big data analytics are the major factors fueling this growth.
Market Growth Potential
Healthcare, Retail, Travel and Financial Services exhibit highest market growth potential. Primarily because they utilize high multi-structured data volumes (Big Data) that can leverage machine learning algorithms. These algorithms feed results and decision prescriptions directly to end-users via the cognitive technology of choice.
From 2011 through May 2014, over $2 billion in venture capital funds have flowed to companies building products and services based on cognitive technologies. Solutions tend to fall into four categories:
- Data Management and Analytical Tools
- Cognitive technology Components
- Point Solutions
North America accounted for highest market share in 2014, closely followed by Europe. Asia Pacific is expected to emerge as a lucrative market over the next seven years. This is largely attributed to the growing trend towards cloud-based services and the emergence of several small and medium-scale enterprises.
Who are the Market Leaders?
IBM, Microsoft, HP and Google are the market leaders investing heavily in this market. A few key industry players include Saffron Technology, Cognitive Scale and Palantir. The market has witnessed launch of several ventures based on cognitive computing platforms. Several start-ups are targeting industry specific applications that help them streamline sales pipelines while simultaneously presenting the benefits of cognitive computing.
The Problems that Cognitive Systems Address
Cognitive Interfaces address the high cost of a bad user experience
- Loss of Current Customers
- Loss of Potential Customers
- Loss of Future Customers
- Loss of Reputation
- Loss of Profits
Cognitive processes address the escalating costs of Skilled Labor
- Shrinking Skilled Labor Force
- Retiring Baby Boomers
- Job Specialization
- Extended Onboarding Times
- Increasing Employee Attrition
Adoption Challenges for Cognitive Systems
Problem identification, curating content and structuring data represent the biggest adoption challenges for Cognitive Systems. Most of the cognitive computing systems require high level configuration and effective content processing owing to which vendors focus investments to solve these critical issues that may be negatively impact the market growth.