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Surging Demand For Automation And Efficiency Propels Growth In The Cognitive Systems Market: Critical Driver Shaping the Global Cognitive Systems Market in 2025
Cognitive Systems Market
What Is the Expected CAGR for the Cognitive Systems Market Through 2025?
The dimension of the cognitive systems market has experienced swift expansion in the past few years. The market size, which was $42.5 billion in 2024, is projected to climb to $46.87 billion in 2025, indicating a compound annual growth rate (CAGR) of 10.3%. The historic period's growth can be traced back to the escalation in crime rates, regulatory compliance obligations, heightened consciousness about security threats, amalgamation with building management systems, and the capability for remote monitoring and management.
What's the Projected Size of the Global Cognitive Systems Market by 2029?
Strong expansion is anticipated in the cognitive systems market over the coming years, with projections indicating a rise to $65.69 billion in 2029. This rise, at a compound annual growth rate (CAGR) of 8.8%, is because of several factors such as the integration of artificial intelligence (AI), adoption of cloud-based solutions, the onset of smart city projects, and increased biometric access control. During the forecast period, the market is also expected to be influenced by growing cybersecurity concerns, advancing technology, integration with access control systems, biometric authentication, and the application of artificial intelligence (AI) in video analytics.
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Top Growth Drivers in the Cognitive Systems Industry: What's Accelerating the Market?
The growth of the cognitive systems market is anticipated to be fueled by the escalating demand for automation. Automation entails the development and use of tools and systems that require minimal or no manual intervention. Cognitive systems, playing a crucial role in robotics and automation, allow machines to execute intricate tasks in a more effective and efficient way by offering the feature to scrutinize and monitor multifaceted processes and manage disorganized data, further improving their performance as time passes. To exemplify, the International Federation of Robotics (IFR), a professional non-profit organization based in Germany, reported that in June 2023, the 27 member states of the European Union (EU) installed close to 72,000 units in 2022, a 6% increase from the 67,000 units installed the previous year. Thus, the climbing demand for automation is steering the expansion of the cognitive systems market.
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What Trends Will Shape the Cognitive Systems Market Through 2029 and Beyond?
Leading businesses active in the cognitive systems market are putting an emphasis on forming strategic alliances in order to deliver reliable services to their clientele. A strategic partnership generally refers to a formal cooperation between two or more parties, usually businesses, with the intention of attaining shared long-term objectives. For instance, Burson Cohn & Wolfe, a public relations and communications firm based in the US, teamed up with Limbik, a US cognitive AI company proficient in predicting future worldwide trends via artificial intelligence, in November 2023. They unveiled Decipher Index, a novel platform that employs cognitive AI to forecast the most impactful themes for the future. This platform uses cognitive AI to spot and forecast key themes and trends anticipated to fuel worldwide interest and involvement. It aids clients in predicting emerging trends and possible impacts on their enterprises. The platform, empowered by AI, offers a complete overview of worldwide trends, thereby helping organizations make well-informed decisions.
What Are the Main Segments in the Cognitive Systems Market?
The cognitive systemsmarket 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 Top Companies are Driving Growth in the Cognitive Systems Market?
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 Will Dominate the Cognitive Systems Market Through 2029?
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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