Cognitive Analytics Market Report 2025

The cognitive analytics market size has grown exponentially in recent years. It will grow from $9.56 billion in 2024 to $13.01 billion in 2025 at a compound annual growth rate (CAGR) of 36.1%. The growth in the historic period can be attributed to cost reduction strategies, talent retention and optimization, operational efficiency, big data proliferation, business intelligence evolution.

The cognitive analytics market size is expected to see exponential growth in the next few years. It will grow to $48.24 billion in 2029 at a compound annual growth rate (CAGR) of 38.8%. The growth in the forecast period can be attributed to cloud-based solutions, data privacy and governance, cost-saving opportunities, talent and workforce analytics, regulatory requirements, predictive analytics demand. Major trends in the forecast period include AI and ML advancements, industry-specific adoption, real-time decision-making, personalization and customer insights, IoT integration.

The increasing adoption of cloud technology is expected to drive the growth of the cognitive analytics market in the future. In recent years, cloud computing has emerged as a powerful force, capable of handling vast amounts of data while enabling global deployment, which allows organizations to develop more innovative and dynamic work methods. Internet-connected devices provide users access to servers, storage, data, software, and other resources. Cloud technologies facilitate cognitive analytics by securely storing and sharing these innovative data, applications, and APIs. For instance, a report by Flexera in July 2024 indicated that 94% of enterprises are utilizing cloud services, highlighting a significant trend toward cloud technology adoption for operational efficiency. Additionally, it is projected that approximately 53% of medium-sized businesses will embrace cloud computing by 2024, continuing the trend seen in previous years. This demonstrates a growing commitment among organizations to implement multi-cloud strategies to enhance their operations and address evolving business demands. Therefore, the rising use of cloud technology is fueling the growth of the cognitive analytics market.

The burgeoning healthcare industry is poised to contribute to the growth of the cognitive analytics market. The healthcare sector, encompassing a diverse range of organizations, professionals, products, and services dedicated to health maintenance and improvement, is undergoing digital transformation. The integration of cognitive analytics into healthcare processes enhances overall efficiency, patient care, and decision-making. A notable trend is reflected in the projected growth of national health spending, which is anticipated to increase by 5.1% annually between 2021 and 2030, reaching nearly $6.8 trillion, according to the 2021-2030 National Health Expenditure (NHE) report by the Centers for Medicare & Medicaid Services. This trajectory underscores the increasing significance of cognitive analytics in healthcare, contributing to the sector's digital evolution.

Major companies in the cognitive analytics market are creating innovative products, such as automation platforms, to cater to larger customer bases, boost sales, and increase revenue. An automation platform is a comprehensive software solution designed to simplify and manage various automated processes within an organization. For example, in May 2023, UiPath, a U.S.-based company specializing in robotic process automation, launched its 2023.4 platform. This cutting-edge platform incorporates AI-powered features aimed at streamlining automation across diverse business processes. A notable enhancement is in document understanding, which utilizes machine learning to improve the accuracy of document processing, significantly reducing the need for human intervention. This update underscores UiPath's dedication to enhancing operational efficiency through advanced automation technologies.

Major companies in the cognitive analytics market are investing in advanced technologies like composite AI solutions. Composite AI involves seamlessly integrating multiple AI technologies and techniques to create a more robust system. Tata Consultancy Services (TCS), an India-based information technology company, launched a 5G-enabled cognitive plant operations adviser in March 2023. This composite AI solution, integrated with the Microsoft Project Bonsai low-code AI platform, enables industries such as manufacturing, oil and gas, consumer packaged goods, and pharmaceuticals to revolutionize production processes. The solution enhances intelligence, agility, and resilience in plant operations, contributing to waste reduction, increased equipment uptime, and safety improvements. The development of advanced technologies like composite AI solutions reflects a strategic focus on meeting larger customer bases, driving sales, and increasing revenue in the cognitive analytics market.

In January 2022, ei3, a US-based provider of connected AI solutions for machine builders and manufacturers, successfully acquired Cognitive Solutions and Innovation AG (COGSI AG) for an undisclosed sum. This strategic acquisition is highly synergistic for ei3, offering an opportunity to enhance its Industrial Internet of Things (IIoT) product portfolio with cutting-edge data analytics capabilities. COGSI AG, a Switzerland-based company renowned for its expertise in advanced artificial intelligence solutions and cognitive analytics intelligence, brings valuable technological assets and intellectual capital to further strengthen ei3's position in the connected AI solutions market for both machine builders and manufacturers. The undisclosed transaction underscores the significance of expanding capabilities in the AI and IIoT domains within the manufacturing landscape.

Major companies operating in the cognitive analytics market are International Business Machines Corporation, Amazon Web Services Inc., Cisco Systems Inc., Cognizant Technology Solutions Ltd., Hewlett Packard Enterprise Co., Infosys Technologies Private Limited, Intel Corporation, Ipsoft Inc., Microsoft Corporation, Nokia Oyj, Oracle Corp., Persado Uk Ltd., Statistical Analysis Systems, Sinequa Co., Tech Mahindra Pvt. Ltd., Alteryx LLC, Ayasdi Inc., Cognitives Group Ltd., CognitiveScale Inc., Databricks Inc., DataRobot Inc., Expert System Ltd., Google LLC, Indico Data Solutions Inc., Informatica Inc., Kensho Technologies Inc., MicroStrategy Inc., Narrative Science Inc., Numenta Inc., Qlik Tech Inc., RapidMiner Inc., SAP SE, Sisense Ltd., Splunk Inc., Tableau Software Inc., ThoughtSpot Inc., The Information Bus Company.

North America was the largest region in the cognitive analytics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognitive analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cognitive analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cognitive analytics is an analytical strategy employed to identify business opportunities, assess emerging trends, streamline processes, mitigate risks, adapt to changing circumstances, and promptly address urgent process-related issues. The primary objective of cognitive analytics is to provide intelligent technology analysis that utilizes various analytic methods to examine massive data sets and interpret unstructured data structures.

The main components of cognitive analytics are tools and services. The tools component is used to aggregate data from various corporate systems into a repository. These tools encompass specific categories of application software designed to gather information from diverse business systems and consolidate it into a repository, such as a data warehouse, facilitating examination and analysis. The technologies involved include natural language processing (NLP), machine learning, automated reasoning, and technology snapshots, which can be deployed on-premise and in the cloud. Cognitive analytics finds application in asset maintenance, fraud and risk management, customer analysis and personalization, sales and marketing management, supply chain management, and other areas. It is utilized across various industries such as banking, financial services, and insurance (BFSI), telecommunications and IT, retail and consumer goods, healthcare and life sciences, manufacturing, government and defense, energy and utilities, media and entertainment, transportation and logistics, and more.

The cognitive analytics market research report is one of a series of new reports that provides cognitive analytics market statistics, including cognitive analytics industry global market size, regional shares, competitors with a cognitive analytics market share, detailed cognitive analytics market segments, market trends and opportunities, and any further data you may need to thrive in the cognitive analytics industry. This cognitive analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cognitive analytics market includes revenues earned by entities by providing text analytics, voice recognition and analytics, image and visual analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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