Market Trends of Cognitive Services Industry
IT and Telecommunication Segment to Grow Significantly
- The information technology (IT) and telecommunications industries significantly contribute to the growth of cognitive services globally. These industries provide the necessary infrastructure and platforms for developing, deploying, and disseminating cognitive services.
- IT companies are involved in the deployment of various software and hardware solutions that support cognitive services. They are developing advanced artificial intelligence and machine learning algorithms that can analyze vast amounts of data and provide meaningful insights. For example, IT companies like IBM, Microsoft, Google, and Amazon are investing heavily in cognitive services, offering cloud-based platforms for natural language processing, image and speech recognition, and decision-making algorithms.
- Moreover, the volume of big data in data storage centers is rapidly increasing in addition to its complexity leading to the adoption of cognitive services, as it helps optimize data storage, enhanced security, and accelerate business decision-making. According to Cisco Systems, this volume reached 124 Exabytes in 2018 and is estimated to reach 403 Exabytes by 2021.
- Many IT and telecommunication companies are adopting cognitive services to improve customer engagement, optimize operations, develop network infrastructure, and gain a competitive edge over others. For instance, in October 2022, Ericsson and Vodafone in Oman partnered to empower the telecom company's network infrastructure development across multiple domains. With this partnership, Ericsson would provide AI-based Cognitive Software solutions for network optimization to simplify data-driven decisions and support Vodafone in implementing zero-touch operations (ZTO).
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Europe is Expected to Grow Significantly
- The adoption and usage of cognitive services are growing rapidly across the region. Currently, North America holds the major market share in cognitive services. The region's growth is attributed to increased investment in research and development, the adoption of cloud-based services, and the growing popularity of smart devices and IoT-enabled technologies.
- The dominance of North America in cognitive services is primarily due to the high adoption of new and emerging technologies such as artificial intelligence, machine learning, and natural language processing. The region is also home to several major technology companies that are heavily investing in cognitive services, driving innovation and growth in the market.
- For instance, in May 2022, Microsoft Corporation launched a service for Azure Cognitive Services, expanding its long-running relationship with the artificial intelligence (AI) research outfit OpenAI Inc. The service will enable developers to gain limited access to a range of OpenAI's AI models, including the GPT-3 base series, Codex series, and embedding models.
- Furthermore, the presence of a large number of small and medium-sized enterprises, startups, and research organizations in the region has created a fertile ground for innovation and experimentation with cognitive services.
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