IDC Forecasts APeJ Spending on Cognitive Systems to Exceed US$1.9 Billion in 2019
16 Mar 2016
SINGAPORE, March 17, 2016 – According to the new Worldwide Semiannual Cognitive Systems Spending Guide, IDC forecasts spending on cognitive systems in Asia Pacific excluding Japan (APeJ) will reach over US$1.9 billion in 2019 at a compounded annual growth rate (CAGR) of 65.36% from 2014 - 2019.
The report highlights that more than 40% of all cognitive systems spending throughout the forecast will go to software, which includes both cognitive applications (e.g. text and rich media analytics, tagging, searching, machine learning, categorization, clustering, hypothesis generation, question answering, visualization, filtering, alerting, and navigation) and cognitive software platforms, which facilitate the development of intelligent, advisory, and cognitively enabled solutions.
"The barriers of artificial intelligence, machine and deep learning are rapidly dropping. As such, cognitive systems will soon be powering data-driven applications across a wide spectrum of solutions. This new generation of tools and capabilities is capable of offering intelligent assistance, advice, and recommendations to end users; thus enhancing their competitive edge or supplementing information for better decision making," said Chwee Chua, AVP, Big Data and Analytics and Cognitive Computing at IDC Asia/Pacific.
Cognitive applications is the largest and fastest-growing category in cognitive systems in APeJ, with spending expected to reach US$909.33 million by 2019. Cognitive-related services (e.g. business services and IT consulting) represent the second largest spending category while hardware spending, which is mostly on servers and storage, will grow nearly as fast as software spending.
"Cognitively enabled solutions are the next evolution in analyzing structured and unstructured data. Cognitive platforms are offering innovators the ability to build new products and services that would have been previously impossible without large resources."
The manufacturing industry currently spends the most on cognitive systems, representing nearly 32% of the total APeJ spend throughout the forecast. Leading uses in manufacturing include quality management, recommendation systems, and research. Other verticals actively leveraging on cognitive systems are the retail and healthcare industries with an estimated combined spending on cognitive systems over US$675 million in 2019. The leading use cases in retail are automated customer service agents and merchandising for omni-channel operations while the leading use case in healthcare is diagnosis and treatment systems.
"We are already seeing use cases for cognitive systems being implemented in Asia/Pacific to address problems across verticals. For instance, banks are using cognitive applications to improve customer experiences with recommendations based on customer profile and changing market conditions. And with the strong emphasis on education in the region, adoption of adaptive learning in the classrooms to assist teachers is emerging," said Qiao Li, Senior Market Analyst, Asia/Pacific Big Data and Analytics at IDC Asia/Pacific. "With the proliferation of data producers such as IoT devices, cognitive systems will help organizations to decode, understand, and extract value from data."
The new Worldwide Semiannual Cognitive Systems Spending Guide expands on IDC's previous cognitive software forecasts by including expenditures for cognitive-related hardware and services. The spending guide quantifies the cognitive computing opportunity by providing data for more than 20 use cases across 19 industries in eight regions. Data is also available for the related hardware, software, and services categories. Unlike any other research in the industry, the detailed segmentation and timely global data is designed to help suppliers targeting the market to identify market opportunities and execute an effective strategy.
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
For more information about IDC's Spending Guides, please contact Rubal Sabharwal email@example.com
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and Events Company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
ContactFor more information, contact:
Chwee Kan Chua