Cognitive Systems Spending Market

Cognitive Systems Spending Market: Banking Application Segment Expected to Witness Significantly High Market Attractiveness During the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2016-2026

Banking segment expected to expand at a higher CAGR over the forecast period

In banking, cognitive systems are used for customer service, advisory and decision-making support, investment consulting, and others. The banking sector is the most attractive vertical segment in the global cognitive systems spending market. In terms of value, the banking segment is expected to gain a significant BPS in the global cognitive systems spending market over the forecast period. The banking segment was estimated to account for more than 20% value share towards the end of 2016 and is expected to expand at a high CAGR of 15.5% than other segments of the global cognitive systems spending market during the period of forecast. The banking segment is expected to represent absolute $ opportunity of more than US$ 400 Mn between 2016 and 2026. Our report also indicates that the banking segment is estimated to account for more than 30% value share in the global cognitive systems spending market by 2026 end, followed by the healthcare segment.

Ability to diffuse huge data in the banking sector likely to boost the global cognitive systems spending market

The global cognitive systems spending market is experiencing numerous technological advancements permitted with exceptional features for several industries especially in the banking sector. Cognitive systems with high-definition technology can help in determining the world’s most composite data analysis difficulties by entering into the complexity of exploiting the power of big data, machine learning, natural language processing, and automated reasoning technology. Some advances in technology would further benefit the diffusion of big data, thereby booming the growth of the global cognitive systems spending market in the forecast period. Another factor which is driving the growth of the global cognitive systems spending market is the challenge that most banks and financial institutions are facing in the present scenario. Banks have too much data and too little insight. That usually comes from using traditional analytical systems, which focus on examining historical data from relational databases and reporting answers to user queries. Cognitive analytics, in contrast, allows crunching a company’s big data as well as external information sources to forecast future events and behaviours as well as gives recommendations on the most rational behaviour in a given context. Cognitive systems allow conducting what-if analyses to predict the effect of potential changes in business strategies.

  • Natural language processing technology is the most adaptable technology in the banking sector for cognitive systems due to its easy and advanced language conversation process and is therefore boosting the growth of the global cognitive systems spending market

  • Improvements in the variety, efficiency, and reliability of machine learning will make cognitive systems more usable and stable in the banking segment and thereby help increase their popularity. This machine learning improvement is a step forward in directing non-human operating cognitive systems, which are contributing to the growth of the market.

  • The recognition and widespread acceptance of consumer-based intelligent assistant applications in the banking segment will drive sales of enterprise-based cognitive systems

North America expected to expand at a higher CAGR during the forecast period in the banking segment

In terms of value, the banking segment was estimated to account for more than 20% value share by 2016 end and is expected to expand at a CAGR of 15.5% during the forecast period in North America. Banking segment is expected to witness comparatively high Y-o-Y growth rates ranging from 14.3% to 15.5% over 2016–2026. In Latin America, the banking segment is lagging behind while healthcare and education sectors are ahead and expect to exhibit a higher CAGR during the forecast period. In Western Europe, the banking sector is the second largest segment in terms of value after the manufacturing segment, which is expected to exhibit a higher CAGR during the forecast period.

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IBM grabs more than 50% share in the global cognitive systems spending market

International Business Machines Corp (IBM) holds a market share in excess of 50% in the global cognitive systems spending market. The company is dominating the global market in banking along with hospital, manufacturing, and education cognitive systems. IBM Corporation aims to expand its presence in the Middle East and Africa having recently launched its offices in Kuwait, Saudi Arabia, Qatar, Angola, Nigeria, Kenya, Senegal, and Tanzania in order to strengthen its business in these regions.

In its recently published report, “Cognitive Systems Spending Market: Global Industry Analysis and Opportunity Assessment, 2016-2026,” Future Market Insights presents an outlook of the global cognitive systems spending market for a projected period of 10 years (2016 – 2026). The primary objective of the report is to offer updates on market opportunities and to understand the growth and performance of the key segments of the global cognitive systems spending market. Through extensive research, our analysts have studied how the different market dynamics are likely to impact the current and future scenario of the global cognitive systems spending market, thereby providing useful insights to market players to plan their differentiating strategies capable of evolving with the changing market landscape. We have analysed the key trends, drivers and restraints from the supply and demand perspectives. Impact analysis of key growth drivers and restraints based on the weighted average model is included in the report to better equip and arm clients with crystal-clear decision-making insights. While researching this report, our analysts have studied the market extensively and have identified multiple drivers, restraints, and trends that are expected to influence the global cognitive systems spending market and consequently the business operations of the leading and second-in-line players functioning in the global cognitive systems spending market.

Unique report structure

Our report on the global cognitive systems spending market for the period 2016-2026 starts with an overview of the market followed by definitions, cognitive systems’ process flow model and cognitive systems’ ecosystem. Our analysts present the executive summary along with market taxonomy where we segment the global cognitive systems spending market on the basis of product type, technology type, deployment type, verticals and region. We also offer our independent analysis of various factors, challenges, and market trends that we feel will define the market in the next few years. The following sections consist of parent market overview, value chain analysis and impact analysis.   

We have devoted the last section of the report to study the market performance of some of the top companies operating in the global cognitive systems spending market. We have profiled a few of the leading market players and presented a detailed analysis of their overall business performance and a comprehensive evaluation of their short-term and long-term business and go-to-market strategies. This section is intended to provide report audiences with a dashboard view of the competitive landscape of the global cognitive systems spending market.

The report is categorically divided into five sections namely – by product type, by deployment type, by technology type, by verticals, and by region – to understand and offer useful insights on the global cognitive systems spending market. The report provides analysis of the global cognitive systems spending market in terms of market value (US$ Mn).

Market segmentation

By Product Type

By Deployment Type

By Technology Type

By Verticals

By Region Type

  • Hardware

  • Software

  • Services

  • Public

  • On-Premise

  • Natural Language Processing

  • Machine Learning

  • Automated Reasoning

  •  Banking

  •  Education

  •  Government

  •  Healthcare

  •  Insurance

  •  Manufacturing

  •  Securities and Investment Services

  •  Telecommunications

  •  Transportation

  •  Other Industries (Cross industries, Discrete manufacturing, Process manufacturing, Retail)

  •  North America

  •  Latin America

  •  Eastern Europe

  •  Western Europe

  •  Asia Pacific Excluding Japan

  •  Japan

  •  Middle East and Africa

Our unique research methodology

Yearly change in inflation rate has not been considered while forecasting market numbers. The product-wise weighted Average Selling Price (ASP) has been considered to deduce market values. While researching this report a top-down approach has been used to assess market numbers for each product category, while bottom-up approach has been used to counter validate market estimations. Macro-economic indicators such as GDP, construction industry output, construction spending, packaging market, adhesive industry growth have also been considered while forecasting this market. We have done in-depth secondary research to ascertain overall market size, top industry players, and top products. In order to conduct expert industry interviews, Future Market Insights has formulated a detailed discussion guide, and our analysts have conducted one-on-one interviews with top industry experts, industry players and distributors.

Market analysis based on key growth parameters

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR but also analyse the market on the basis of key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities in the global cognitive systems spending market. Another key feature of this report is the analysis of the global cognitive systems spending market by region, applications deployment, technology, and product type and its revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, and also to identify potential resources from a sales perspective in the global cognitive systems spending market. Further, in order to understand the different market categories in terms of growth and performance of the global cognitive systems spending market, Future Market Insights has developed a unique market attractiveness index to help providers identify real market opportunities across the global cognitive systems spending market.