Context Aware Computing Market Size, Share & COVID-19 Impact Analysis, By Component (Solutions and Services), By Vendor (Mobile Network Operator, Device Manufacturer, and Online, Web, and Social Networking Vendors), By End-User (BFSI, Consumer Electronics, Media and Entertainment, Automotive, Healthcare, Telecommunication, Logistics and Transportation, and Others), and Regional Forecast, 2021-2028

The global context aware computing market size was USD 35.12 billion in 2020 and is projected to grow from USD 40.79 billion in 2021 to USD 153.37 billion in 2028, at a CAGR of 20.8% during forecast period. Based on our research, the market exhibited a substantial growth of 15.4% in 2020. The global impact of COVID-19 has been unprecedented and staggering, with context aware computing solutions witnessing a diverse demand shock across all regions amid the pandemic.

Context aware computing (CAC) is a computing system’s ability to fetch, monitor, and acquire the environmental & situational context about places, people, etc. A context aware system collects and interprets low-level and raw contextual information into high-level interpreted context and adapts application behaviors. The growing penetration of connected devices, such as tablets, PCs, adaptive phones, along with smart wearable devices, and the adoption of shopping assistant tools and active maps, are likely to catalyze the demand for context aware computing among enterprises.

COVID-19 Impact

COVID-19 Pandemic to Surge the Demand for CAC Solutions among End-users

The outbreak of COVID-19 has had a neutral impact on this market. In compliance with social distancing norms, many institutions and companies have instructed their employees to work from home (WFH) as a preventive measure to decrease the risk of contagion. However, owing to WFH, employees have been exposed to various security risks. The effects of the COVID-19 pandemic have drastically impacted industries such as consumer electronics. The steady demand for smart devices owing to the COVID-19 crisis and changes in the purchasing power and consumer behavior are also affecting the growth of the market. According to the International Data Corporation (IDC) and Worldwide Quarterly Smart Home Device Tracker report, global shipments of smart devices are estimated to reach around 1.39 billion units in 2023.

During the COVID-19 pandemic, location-awareness technologies, such as GPS, navigation, etc., have seen a huge growth in interest owing to the various contact tracking mobile application variants discussed, deployed, and developed among enterprises. In addition, the advent of 5G technology and smart city projects are also estimated to fuel the market's growth over the forecast period.

• For instance, in October 2020, the Indian government launched an online campaign for people's participation to prevent inappropriate contact behavior amid COVID-19. The aim is to encourage people to follow physical distancing, wear a mask, and maintain hand hygiene.

LATEST TRENDS

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Increasing Adoption of AI and ML-enabled CAC Platforms to Push Market towards a Higher Growth Trajectory

The rising adoption of artificial intelligence (AI) and machine learning (ML)-powered context aware computing solutions among enterprises is one of the market's key trends. End-use industries, including automotive, BFSI, and healthcare, adopt ML and AI-enabled CAC solutions to understand the human context. A context aware AI (CAAI) smart system needs to be adaptive, intelligible, controllable, customizable, and context aware while interacting with humans. An AI-based CAC solution can analyze and gain behavioral, social, and historical data that enable enterprises to understand their consumer contexts better. Various organizations are focusing on launching AI-based time context solutions to strengthen their product portfolio.

• For instance, in September 2020, MeeamiTech launched a Deep Learning and AI-based context aware noise suppression system called ClearConferenceTM. The aim is to eliminate background noise from video and voice calls.


• In March 2019, PacketSled launched its network-monitoring platform, MixMode, driven by the CAAI technology. The aim is to reduce the enterprise network false positive alerts by 90%.

DRIVING FACTORS

Rising Deployment of Advanced Sensors to Boost Adoption of CAC Solutions

The demand for CAC solutions is rapidly increasing due to the integration and development of advanced sensors in connected devices such as laptops, smart wearable, smartphones, and other smart products. Many connected devices are equipped with various advanced sensors, including GPS, accelerometers, magnetometers, light sensors, and microphones, that add context-aware capabilities and improve end-user experience. It has become possible for solution developers to gain contextual information using mobile-based sensors. The rising number of sensor-enabled connected devices is projected to enhance the demand for these computing services. The demand for advanced sensors will rise in various industries as electronics device manufacturers are deploying this type of computing solutions for emergency alerts, location tracking, and other purposes.

• For instance, in September 2020, Muse Wearables, an Indian watch manufacturer, launched an AI-powered personal wellness smart band – “Muse Cue”. It is equipped with a context aware activity tracker and skin temperature sensor that predicts and alerts end-users about COVID-19 symptoms.

RESTRAINING FACTORS

Increasing Emphasis on Data Privacy and Information Security to Restrict Context Aware Computing Market Growth

The rapid adoption of CAC technology is expected to face security challenges and limitations among enterprises. Data privacy and security have become the main concern for industries across the globe. As massive data and information are transferred and stored across networks, there is a continuous threat of data exploitation. According to Skyline.org, in 2019, the Chartered Professional Accountants of Canada (CPA) experienced a cyber-attack when a cybercriminal accessed crucial information related to the distribution of the CPA Canada magazine and personal data of over 329,000 stakeholders and members. Hence, solution providers need to ensure high-level data privacy and information security to maintain consumers’ trust.

Numerous industries have experienced cyber-attacks on connected platforms and devices to gain organizational and personal private information. Crucial data and important information are often stored in databases that allow cybercriminals to use that data to enter into unlawful dealings. Thus, the growing adoption of connected devices increases concerns over data safety and privacy, which are likely to impede the demand for CAC. The lack of advanced wireless networks and data breaching across the globe are some of the major challenges faced by enterprises that may limit the growth of the market.  

SEGMENTATION

By Component Analysis

Rising Demand from Small and Medium Industries to Aid the Market

Based on component, the market is distributed into solutions and services. The growth of the solutions segment is owing to the increasing adoption of context aware applications across industries, such as BFSI, IT & telecom, healthcare, oil & gas, and others.

The services segment is predicted to grow at the highest CAGR in the forecast years, owing to the increasing demand for wireless personal area network services and consultancies by small and medium enterprises.

By Vendor Analysis

Rising Adoption of Smart Devices to Contribute to Market Growth

Based on vendor, the market is classified into mobile network operators, device manufacturers, and online, web, and social networking vendors.

The online, web, and social networking vendors segment is expected to register the highest CAGR during the projected years. The growth is attributed to the increasing adoption of advanced and smart connected devices that include smartphones, iPads, laptops, and others. This will help and encourage organizations to design and launch new mobile communication and marketing strategies.

The increase in online commerce business globally is expected to boost the demand for network operators and device manufacturers.

By End-User Analysis

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Increasing Adoption of Social Media Platforms and Real-Time Customer Solutions to Boost the Market

By end-user, the market is segmented into BFSI, consumer electronics, media and entertainment, automotive, healthcare, telecommunication, logistics and transportation, and others.

The healthcare segment is expected to show the highest growth rate during the forecast period, owing to the rising demand for real-time customer solutions and wireless personal area network solutions from hospitals and clinics to augment patient care and outcomes.

The other end-user industries, such as BFSI, IT and telecom, government, media & entertainment, and automotive, are estimated to witness a modest growth rate. The rising adoption of social media platforms and reliable real-time customer solutions are expected to drive the market's growth across these end-use industries.

REGIONAL INSIGHTS

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

North America is expected to dominate the context aware computing market share during the forecast period. Growing smartphone penetration and rising consumer preference & demand for the bring your own device (BYOD) concept is likely to drive the market's growth in this region. In addition, the presence of prominent market players, such as Google LLC, Cisco Systems, Inc., Intel Corporation, Microsoft Corporation, Portshift Ltd., Amazon.Com, Inc., AT&T, and others, is likely to boost product demand. These players are constantly incorporating CAC technology to enhance their product offerings and customer service.

• For instance, in July 2020, Portshift Ltd., a US-based Kubernetes-native security platform developer and a subsidiary of Cisco Systems, Inc., unveiled its new K8SHIELD Framework and context aware security policy enablement. It is designed to support security and DevOps professionals with protection and clarity against cyber-criminals.

The market in Asia Pacific is anticipated to display the fastest growth during the estimated period. The rising adoption of connected devices, IoT-based devices, AR-VR smart devices, and sensors aimed to deliver an improved consumer experience is likely to contribute to the regional market growth. Technological advancements and digitization trends are propelling the demand for context aware computing solutions among enterprises. Major players in this region are focusing on product launching and development strategies to strengthen their product portfolio and customer experience.

• For instance, in November 2020, Tech Mahindra Limited launched its next-gen integrated digital workplace solution, WORKSPACE NXT (Workplace as a Service), for enterprises across the globe. The aim is to offer high security and personalized remote working experiences using a hybrid workspace delivery model. This model can leverage context aware security, enterprise mobility, and virtualization.

Europe is expected to hold a significant market position in the upcoming years. The increasing adoption of mobile computing devices, such as smart wearable, laptops, iPads, etc., is contributing to the growing demand for CAC solutions in Europe.

The Latin America and the Middle East & Africa regions are likely to exhibit a radical CAGR during the forecasted period. The rising adherence to information security & data privacy and theft regulations are contributing to the growth of the market in these regions.

KEY INDUSTRY PLAYERS

Industry Players to Focus on Creating Context- ware APIs for the Development of Innovative Applications

The global market is highly fragmented. Major vendors in the market are focusing on upgrading their existing products and service portfolios. Top market players, such as Cisco Systems, Inc., Samsung, Intel Corporation, Microsoft Corporation, and others, are focusing on offering context-aware APIs to develop advanced mobile applications. These players are also focused on launching advanced CAC solutions integrated with technologies such as AI, ML, the cloud among others to cater to the varying enterprise demands.

March 2017 – Samsung launched its context aware AI assistant Bixby in the Samsung Galaxy S8. The intent is to provide an improved cross-user experience. Bixby is a context-aware function that allows users to understand the current context and the state of the application to perform work.

LIST OF KEY COMPANIES PROFILED:

• IBM Corporation (New York, United States)


• Microsoft Corporation (Washington, United States)


• Cisco Systems, Inc. (California, United States)


• Oracle Corporation (California, United States)


• Amazon.com, Inc. (Washington, United States)


• Samsung Electronics Co. Ltd (Seoul, South Korea)


• Apple Inc. (California, United States)


• Onapsis Inc. (Massachusetts, United States)


• Teliasonera (Stockholm, Sweden)


• Verizon Communications Inc. (New York, United States)


• Infosys Limited (Karnataka, India)


• Google LLC (California, United States)


• Nokia Corporation (Espoo, Finland)

KEY INDUSTRY DEVELOPMENTS:

• July 2018 – Google LLC launched its context aware access management program to accelerate traditional businesses. It allows enterprises to enforce and define granular access to resources, GCP APIs, third-party SaaS apps, and G Suite based on users’ location, context, and identity of their request.


• December 2017 – Bragi and Audio Analytic collaborated to launch AI-enabled context aware wireless audio earphones called Hearables at the Consumer Electronics Show, or CES. The idea is to incorporate sound recognition capabilities into Bragi devices.

REPORT COVERAGE

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The context aware computing market research report offers qualitative and quantitative insights on the industry and a detailed analysis of the size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative study of market dynamics, emerging market trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of context aware computing solutions, recent industry developments, such as partnerships, mergers & acquisitions, Porter’s Five-Force analysis, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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