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Surging Demand For Automation And Efficiency Propels Growth In The Cognitive Systems Market: Transformative Forces Shaping the Cognitive Systems Market Landscape in 2025
Cognitive Systems Market
What Will the Cognitive Systems Industry Market Size Be by 2025?
The market size of cognitive systems has seen a quick expansion in past years. The market is set to escalate from $42.5 billion in 2024 to $47.08 billion in 2025, following a compound annual growth rate (CAGR) of 10.8%. That growth during the historic period is a result of factors such as rising crime rates, stringent regulatory compliance obligations, heightened security risk awareness, integration with building management systems, and enhanced remote monitoring and management.
What's the Long-Term Growth Forecast for the Cognitive Systems Market Size Through 2029?
The market size of cognitive systems is projected to witness robust expansion in the coming years and is touted to reach a valuation of $66 billion in 2029, growing at a compound annual growth rate (CAGR) of 8.8%. Factors contributing to this upsurge during the forecasted timeframe include the integration of artificial intelligence (AI), enhanced adoption of cloud-based solutions, smart city drives, progression in biometric access control, and increased emphasis on sustainability. Notable trends expected during the prediction era incorporate potential issues around cybersecurity, technological progression, synergy with access control systems, biometric verification, and the employment of artificial intelligence (AI) in video analytics.
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What Are the Key Growth Drivers Fueling the Cognitive Systems Market Expansion?
The surge in automation needs is anticipated to boost the expansion of the cognitive systems market in the future. Automation involves the development and use of tools and systems capable of functioning with minimal or zero requirement for human intervention. Cognitive systems, utilized in robotics and automation, equip machines to execute sophisticated tasks more efficiently and effectively by affording them the capacity to scrutinize and evaluate intricate procedures and manage unstructured information to enhance their efficacy over time. For example, data from the International Federation of Robotics (IFR), a non-profit professional organization based in Germany, showed that in June 2023, the 27 EU member states completed the installation of nearly 72,000 units in 2022, jumping from 67,000 units in 2021, which is a year-on-year increase of 6%. Hence, the escalating need for automation is fueling the expansion of the cognitive systems market.
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What Are the Key Trends Driving Cognitive Systems Market Growth?
Key players in the cognitive systems industry are concentrating on forging strategic alliances in order to deliver dependable services to their client base. Strategic alliances are formal partnerships formed between two or more entities, typically business corporations, with the aim of achieving beneficial goals in the long run. Take for example, Burson Cohn & Wolfe, an American public relations and communications business, partnered with Limbik, a US-based cognitive AI company that excels at forecasting global trends using AI, in November 2023. They collaborated to introduce the Decipher Index, a novel platform that uses cognitive AI to forecast the top issues with the highest potential to significantly influence the future. This platform uses cognitive AI to detect and anticipate vital themes and trends that are predicted to spark global interest and engagement. It assists clients in predicting emerging trends and estimating their possible effects on their businesses. With the help of this AI-backed platform, organizations gain an extensive view of global trends, empowering them to make well-informed decisions.
How Is the Cognitive Systems Market Segmented?
The cognitive systems market covered in this report is segmented -
1) By Type: Hardware, Software, Services
2) By Deployment: On Premises, Cloud
3) By Application: Banking, Education, Government, Healthcare, Insurance, Manufacturing, Securities And Investment Services, Telecommunications, Transportation
Subsegments:
1) By Hardware: Cognitive Processors, Servers And Storage Solutions, Sensors And IoT Devices, Robotics And Automation Equipment
2) By Software: Cognitive Analytics Software, Machine Learning Platforms, Natural Language Processing (NLP) Software, Data Management And Integration Tools
3) By Services: Consulting Services, Implementation And Integration Services, Support And Maintenance Services, Training And Development Services
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Which Companies Are Leading the Charge in Cognitive Systems Market Innovation?
Major companies operating in the cognitive systems market report are Alphabet Inc., Microsoft Corporation, Dell Technologies Inc., General Electric Company, Intel Corporation, HP Inc., accenture* PLC, International Business Machines Corporation, Deloitte LLP, Cisco Systems Inc., Oracle Corporation, 3M, SAP SE, Hewlett Packard Enterprise Development LP, Tata Consultancy Services Limited, Salesforce Inc., Infosys Limited, Baidu Inc., Wipro Limited, SAS Institute Inc., Nuance Communications Inc., Tibco Software Inc., Synechron Inc., Amelia, Amazon.com Inc., CognitiveScale, Expert System S.p.A., Attivio, Enterra Solutions LLC, Numenta Inc.
Which Regions Are Leading the Global Cognitive Systems Market in Revenue?
North America was the largest region in the cognitive systems market in 2024. The regions covered in the cognitive systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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