Spending on cognitive systems will reach nearly $31.3 billion in 2019 — with a five year compound annual growth rate (CAGR) of 55 percent, according to IDC.
Software will consume more than 40 percent of all cognitive systems spending. Software related cognitive spending includes cognitive applications such as text and rich media analytics, tagging, searching, machine learning, categorization, clustering, and cognitive software platforms, which facilitate the development of intelligent, advisory, and cognitively enabled solutions.
Cognitive applications spending will approach $13.4 billion in 2019, said IDC. Cognitive-related services like business services and IT consulting represent the second largest spending category while hardware spending primarily on servers and storage will grow nearly as fast as software spending.
David Schubmehl, research director, Cognitive Systems and Content Analytics at IDC, said: “Markets for cognitively enabled applications and cognitive software platforms is just beginning, and spending will accelerate throughout the forecast period.”
Banking vertical will have nearly 20 percent share in cognitive systems spending. Banking will use cognitive systems for fraud analysis and investigation, automated threat intelligence and prevention, and program advisors and recommendations.
Retail and healthcare will be spending more than $10 billion for cognitive systems in 2019.
Retail will be using cognitive systems for automated customer service agents and merchandising for omni-channel operations, while healthcare will be looking at diagnosis and treatment systems, said IDC.
North America — the United States and Canada – will account for 80 percent of the cognitive systems spending worldwide. Europe, the Middle East and Africa (EMEA) is currently the second largest region. Cognitive systems spending in Asia Pacific including Japan will overtake EMEA by the end of the forecast.
The image by IBM is for illustrative purpose