"Smart Strategies, Giving Speed to your Growth Trajectory"

Cognitive Computing Market Size, Share, COVID-19 Impact & Industry Analysis, By Component (Platform, and Services), By Technology (Machine Learning (ML), Natural Language Processing (NLP), Automated Reasoning) By Deployment (Cloud-based, and On-premise), By Enterprise Size (Small & Medium Enterprise (SMEs), and Large Enterprise), By End-user (BFSI, Healthcare, Retail & e-commerce, IT & Telecom) and Regional Forecast, 2020-2027

Last Updated: June 03, 2024 | Format: PDF | Report ID: FBI103377



Play Audio Listen to Audio Version

The cognitive computing market size was valued at USD 11.11 billion in 2019 and is projected to grow from USD 72.26 billion by 2027 to USD 185.62 billion by 2031, exhibiting a CAGR of 26.6% during the forecast. North America dominated the global market with a share of 39.78% in 2019. The growing volume of data has increased the use of big data analytics among organizations, thereby fostering the market progress.

The market growth is primarily driven by the rising penetration towards artificial intelligence (AI), machine learning (ML), and neural networks. According to Data.gov, global spending on cognitive and artificial intelligence (AI) systems was USD 37.5 billion in 2019 and will reach USD 77.6 billion in 2022.

Covid-19 Impact on Market

Cognitive Computing Being Increasingly Adopted by Organizations Owing to COVID-19 Outbreak

The rising threat of the COVID-19 pandemic has been causing social stress and leading to economic troubles. Although major businesses have been put on hold, the cognitive technology platform seems to be widely adopted. Under this worrying scenario, cognitive technologies are used for screening of the population as well as assessing the infection risks. As a result, the market will shrug off the impact of the Covid-19 pandemic and witness considerable industry growth in the coming years.  

The government and organizations are likely to invest in artificial intelligence (AI), machine learning (ML), cognitive technology, internet of things (IoT), and cloud computing. These technologies are beneficial for early detection, diagnosis of disease, environmental situations, mitigating risk of economic crisis, and analysis of the large volumes of data. Additionally, key players are focusing on launching new products to improve customer experience. For instance, in May 2020, Deeper Insights, UK-based Company, launched a free research discovery app - "COVID Insights". This app will keep medical experts up to date with recent data on COVID-19 and enable clinicians to find the COVID related information.


Request a Free sample to learn more about this report.

Rising Demand for Cognitive Technology Based on Cloud Platform to Drive the Market

One of the emerging trends for the market is the shifting focus of enterprises towards the deployment of cloud-based cognitive technology. Cognitive cloud computing helps the companies to increase revenue, reduce costs, and increase operational efficiencies. Also, organizations are focused on adopting cognitive cloud computing solutions and other cloud-based services, to cater to the real-time user cases, such as supply chain optimization and production for product enhancement. Key players in the market are focused on developing a cognitive cloud computing platform, to cater to the rising demand across industries and business organizations.


Burgeoning Demand for Big Data Analytics among Organizations to Aid Market Growth

One of the significant market drivers is the rising demand for big data analytics across various industries such as IT and telecom, healthcare, aerospace & defense. The rising volume of data and the adoption of big data tools are likely to drive the demand for big data analytics. According to Data Science Association, the global revenue for big data analytics solutions is around USD 189.1 billion in 2018. Also, major players in the market are focusing on investing in startups to expand their market presence. For instance, in December 2019, Multiples Alternate Asset Management Private Limited (MAAM), Indian private equity firm invested around USD 20 million in Quantiphi, Inc., an Indian AI, and big data company. According to this investment, MAAM will provide artificial intelligence, machine learning, and big data solutions across sectors such as healthcare, retail, insurance, media, and entertainment, among others.


High Costs Involved at Initial Stage Proving to be Inhibiting Factor for Market Growth

To develop cognitive solutions, the high upfront investment is required to set up maintenance architecture and infrastructure that leads to high operational costs. The operation and setup process is much more complex and requires exhausted resources. This process consumes a huge amount of energy, network components, data centers, and others. Furthermore, issues relating to government standards and uncertain regulatory compliance are expected to limit the cognitive computing market growth. The market is anticipated to experience several challenges owing to the lack of awareness among SMEs.


By Components Analysis

Platform Segment to Hold Highest Market Share

Based on the components, the global market is segmented into platform and services. The increasing adoption of cognitive platforms such as cloud among the end-users is expected to drive the demand for the cognitive platform. Further, the services segment is expected to show significant growth during the forecast period. Enterprises can reduce analytics timelines from weeks to minutes using cognitive services. Companies are investing heavily in cloud-based cognitive solutions and related services. For instance, in January 2017, Amazon Web Services launched a three AWS Cloud Cognitive Services. This service includes computer vision (Amazon Rekognition), text-to-speech (Amazon Polly), and chatbot (Amazon Lex).

By Technology Analysis

Natural Language Processing (NLP) Segment to Grow at Faster Pace

Based on technology, this market is divided into machine learning (ML), natural language processing (NLP), automated reasoning, and others. Among them, the natural language processing segment is expected to hold the highest market share during the forecast period. The intrinsic capacity to process natural language interactions is significantly contributing to the growth of this segment. NLP technology is a core ability of cognitive computing systems that helps in analyzing unstructured data for improving customer expectations and their needs. Hence, with the help of NLP, enterprises get better insights to optimize the business processes, customer perception, and reduction in operational cost which in turn is propelling the growth of the segment. Thus, key players are focused on adopting various marketing strategies such as new product launches to improve customer experience. For instance, in November 2019, Amazon Web Series (AWS) launched the NLP service “Amazon Comprehend”. This service uses the ML to find insights in the unstructured text.

The automated reasoning technology is expected to grow at the highest CAGR owing to its user-friendly and cost-effective deployment in various applications.

By Deployment Analysis

Cloud-Based Deployment to Gain Traction

Based on the study, the deployment segment is categorized into on-premises and cloud.

The cloud segment is expected to rise with the highest CAGR owing to the rising demand for secure, reliable, and cost-effective cognitive solutions among enterprises. With the advancements in technology, organizations are likely to adopt cloud-based cognitive solutions.

The on-premises segment is likely to have maximum market revenue share during the forecast period. For instance, in May 2017, the Australian Defense Department invested USD 4 million in the Watson cognitive computing infrastructure. The Australian Defense Department has made a three-year contract with IBM Australia to provide the on-premise cognitive platform.

By Enterprise Size Analysis

Implementation of Cost-Effective Cognitive Solutions to Boost the Adoption in SMEs

Based on enterprise size, this market for Cognitive Computing is segmented into small & medium-sized enterprises (SME’s) and large enterprises. SMEs segment is expected to grow at higher CAGR in the forthcoming years. This is attributable to the implementation of “Intelligent Chabot” to ensure better consumer experience for retaining and engaging consumers.

The large enterprises segment is expected to hold a major market share during the forecast period. The growth is attributed to the rising inclination towards the adoption of technologies such as artificial intelligence (AI), internet of things (IoT), and machine learning (ML), among others.

By End-user Analysis

To know how our report can help streamline your business, Speak to Analyst

Retail and E-commerce to Register a Higher CAGR

Based on the end-user, the market scope for Cognitive Computing includes BFSI, healthcare, retail & e-commerce, IT & telecom, government & defense, and others. The retail and e-commerce segment is predicted to grow at the highest CAGR during the forecast period. Major players in the market including IBM Corporation, and Microsoft Corporation are adopting cognitive services to reduce and eliminate threats & fraud, and enhance transparency in payment operations.  For instance, IBM Watson Commerce, predictive analysis, and voice assistant trends are transforming the retail and e-commerce industry.

The healthcare segment is expected to hold the highest market share in 2018. The growing adoption of cognitive solutions in healthcare to provide remote assistance to access patient health records and improve the patient experience is expected to drive the market.


North America Cognitive Computing Market Size, 2019 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Geographically, the market is divided into five regions, including North America, Asia Pacific, Europe, Middle East & Africa, and Latin America.

North America dominated the Cognitive Computing Market with a share of 39.78% and was valued at USD 4.42 billion in 2019. North America held the maximum market share due to the rising penetration of core technologies such as AI, IoT, big data.

To know how our report can help streamline your business, Speak to Analyst

Asia Pacific market is anticipated to grow with the highest CAGR during the forecast period. The rising investment made by major organizations and the government for the development of AI-based projects is expected to significantly accelerate the demand for cognitive services. According to Tsinghua University, in 2017, Chinese AI organizations have raised around USD 27.7 billion on AI and cognitive technology and services.   The market in Europe is expected to grow at a significant CAGR owing to the rising investment by major players to improve customer experience. The Middle East and Africa and Latin America are estimated to grow at a considerable rate.


Emphasis of Key Players towards Developing Innovative Cognitive Services to Strengthen Position

Microsoft Corporation develops and offers Microsoft office licenses, and provides a wide range of products, services, software, and electronic devices. Microsoft Corporation offers Azure Cognitive Services under its product segment. This service includes AI services and cognitive APIs that help users to build intelligent apps. The Azure cognitive service offered by Microsoft is easy to operate and deploy. The company is currently investing in the development of various cognitive services projects all across the globe.

March 2018 – Microsoft Corporation launched new offerings and several enhancements for its Azure Cognitive Services cloud APIs. This launch will help developers to leverage AI-based capabilities in mobile apps.


  • Alphabet, Inc. (Google LCC) (U.S.)

  • Microsoft Corporation (U.S.)

  • IBM Corporation (U.S.)

  • SparkCognition, Inc. (U.S.)

  • Tata Consultancy Services (TCS) (India)

  • Red Skios (Spain)

  • Saffron Technology, Inc. (U.S.)

  • Acuiti (Australia)

  • Enterra Solutions (U.S.)

  • Cognitive Scale, Inc. (U.S.)

  • Palantir Technologies (U.S.)

  • ColdLight Solutions, LLC (U.S.)

  • Numenta (U.S.)

  • Vicarious (U.S.)


  • March 2023: Tata Consultancy Services (TCS), a global IT services and consulting firm, introduced its TCS Cognitive Plant Operations Adviser, a 5G-enabled solution, on the Microsoft Azure Private Mobile Edge Computing (PMEC) platform. This launch is aimed at helping industries such as manufacturing, oil and gas, consumer packaged goods, and pharmaceuticals enhance their production processes.

  • June 2023: Wisedocs, an AI software platform tailored for the insurance sector, unveiled its AI Medical Summary Platform. This platform builds upon their existing medical record review software, providing insurance companies with a means to efficiently condense extensive medical records and extract valuable insights to expedite reviews and streamline decision-making processes.


An Infographic Representation of Cognitive Computing Market

To get information on various segments, share your queries with us

The Cognitive Computing Market report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation



Study Period


Base Year


Forecast Period


Historical Period

  2016 – 2018


  Value (USD billion)


  Component, Technology, Deployment, Enterprise Size, End-User   and Region

By Component

  • Platform

  • Services

By Technology

  • Machine Learning (ML)

  • Natural Language Processing (NLP)

  • Automated Reasoning

  • Others (Computer Vision, Deep Learning, Robotics, etc.)

By Deployment

  • Cloud-based

  • On-premise

By Enterprise Size

  • Small & Medium Enterprise (SMEs)

  • Large Enterprise

By End-user

  • BFSI

  • Healthcare

  • Retail & e-commerce

  • IT & Telecom

  • Government & Defense

  • Others (Energy & Utilities, Transportation, etc.)

By Region


  • North America (the U.S., Canada, and Mexico)

  • Europe (U.K., Germany, France, Italy, Spain, and the Rest of Europe)

  • Asia-Pacific (Japan, China, India, South Korea, Australia, and the Rest of Asia- Pacific)

  • South America (Brazil, Argentina, and the Rest of South America)

  • The Middle East & Africa (South Africa, UAE, Saudi Arabia and the Rest of the Middle East & Africa)

Frequently Asked Questions

Fortune Business Insights says that the Cognitive Computing Market value stood at USD 11.11 billion in 2019.

By 2027, the market size is expected to reach USD 72.26 billion

The market is expected to grow at a CAGR of 26.6% in the forecast period (2020-2027).

Within component, the platform segment is expected to lead the market during the forecast period

Burgeoning demand for big data analytics among organizations is one of the key drivers for market growth

Alphabet, Inc. (Google LCC), Microsoft Corporation, IBM Corporation, SparkCognition, Inc., and Tata Consultancy Services (TCS) are the top companies in the market.

The retail & e-commerce segment is expected to grow significantly at the highest CAGR during forecast period.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2032
    (In Process)
  • 2023
    (In Process)

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.