PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423507
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423507
Global Cognitive Automation Market reached US$ 11.1 Billion in 2023 and is expected to reach US$ 26.0 Billion by 2031, growing with a CAGR of 11.6% during the forecast period 2024-2031.
Cognitive automation is a comprehensive term that refers to the utilization of Machine Learning technologies for automating tasks that would typically demand manual labor to be completed. Consequently, businesses can optimize their workflows beyond the capabilities of existing automation technologies, achieving a higher level of operational efficiency. Cognitive automation helps to decrease labor expenditure by 20-30% and also reduces data processing time by 50-60%.
The growing availability of cognitive automation solutions in the market helps to boost the market growth of the global cognitive automation market. For instance, on July 20, 2023, Bautomate launched a business process automation solution to empower organizations to streamline operations and drive growth. The product seamlessly combines artificial intelligence, business process management, robotic process automation and optical character recognition to boost the effectiveness of a wide range of business processes. It presents an innovative solution tailored to empower businesses across different sizes and industries, allowing them to achieve exceptional levels of productivity and success.
North America is a dominating region in the market due to the early adoption of the technologies. Some of the major key players in the region follow a merger and acquisition strategy that helps to boost regional market growth. For instance, on January 23, 2024, Zuci Systems, a digital consulting and solutions company completed a collaboration with UiPath, a titan in the RPA industry. Due to the collaboration, customers are now able to leverage UiPath automation platform expertise offered by Zuci, the implementation partner to enterprises across the North America.
Growing Technological Advancements
The growing advancements in machine learning techniques and artificial intelligence significantly improve the cognitive abilities of automation systems. The capability helps to enhance learning from data, comprehension and the ability to make more informed decisions, contributing to widespread adoption across various industries. Advancements in natural language processing, a vital element of cognitive automation, further improve the system's capacity to comprehend and generate language that resembles human communication. The is especially beneficial in applications like chatbots, customer service and content generation.
The growing availability of technologically advanced cognitive automation solutions helps to boost market growth over the forecast period. For instance, on May 04, 2021, Kanverse.ai, a cognitive automation company launched a next-generation cognitive automation platform in the market. The Kanverse Intelligent Document Processing is constructed on the foundation of the Kanverse Cognitive Automation platform. It combines Artificial Intelligence with Optical Character Recognition, a Business Rule Framework and Automation to provide a holistic solution.
Growing Adoption of Automation in the Manufacturing Industry
Cognitive automation plays a pivotal role in streamlining and optimizing diverse manufacturing processes. Machinery embedded with cognitive capabilities can analyze extensive datasets, recognize patterns and make instantaneous decisions, resulting in heightened operational efficiency. The enhanced efficiency frequently manifests in accelerated production cycles and diminished lead times.
Cognitive automation facilitates predictive maintenance in manufacturing equipment. Through the analysis of data derived from sensors and various sources, machines can anticipate potential equipment failures, enabling timely maintenance and minimizing downtime. The proactive maintenance strategy has the potential to generate cost savings and enhance overall productivity.
Some of the major key players in the market adopted cognitive automation for the manufacturing industry. For instance, on July 18, 2023, Jidoka Technologies launched Fujin, an avant grade hardware unit. The unit is designed to detect small and minor defects in the flat surface that require crupulous inspection and are imperceptible to the human eye. Fujin can be leveraged by the electronics industry for printed circuit boards. Fujin can detect anomalies in products with a speed of 3 to 5 ppm and an accurate rate of 98%.
High Initial Cost
Small organizations face constraints in allocating significant budgets for adopting cognitive automation solutions. The limitation may result in delayed or scaled-down adoption plans. Businesses often weigh the initial investment against the expected return on investment (ROI). The perceived risk and uncertainty regarding the speed of realizing positive returns can make organizations hesitant to commit to the high upfront costs.
Major key players in the market who are unable to make substantial upfront investments may lag behind competitors who can afford to adopt cognitive automation more readily. The competitive disadvantage can affect market positioning and long-term sustainability. The substantial initial costs can strain an organization's financial resources, affecting its ability to invest in other critical areas such as innovation, research and development. The strain may impact overall business growth and competitiveness.
The global cognitive automation market is segmented based on type, deployment, organization size, end-user and region.
Growing Demand for Monitoring Services Globally
Based on the type, the cognitive automation market is segmented into robotic process automation and intelligent automation. Organizations can automate rule-based and repetitive operations by combining robotic process automation (RPA) with cognitive capabilities. The reduces human labor requirements, which boosts efficiency.
It also results in considerable cost savings since procedures can be completed more quickly and accurately. Cognitive automation technologies, such as natural language processing and machine learning, let robots understand and analyze complicated data. The skill offers insights that might not be immediately obvious through conventional approaches, which helps promote more informed decision-making.
The growing adoption by the major key players of robotic cognitive automation helps to boost segment market growth over the forecast period. For instance, on March 09, 2023, Compass UOL launched an accelerator that integrates ChatGPT to robotic process automation platforms. The company offers two new technologies such as API and RPA.
ChatGPT stands out as a highly robust Generative AI application in the global technology market. Its foundation lies in OpenAI's GPT-3.5, boasting an impressive 175 billion parameters. The extensive parameter count empowers ChatGPT to excel in diverse interactions, including extracting and summarizing information seamlessly in a chat format, as well as generating texts across various genres and purposes.
North America is Dominating the Cognitive Automation Market
North America accounted for the largest market share in the global cognitive automation market due to the early adoption of new technologies that play an important role in the cognitive automation ecosystem. North America generally has a robust and well-developed IT infrastructure. The includes high-speed internet, data centers and cloud computing services, which are crucial for the deployment and operation of cognitive automation systems.
Growing research and development activities by the cognitive automation by major key players in the region help to boost regional market growth over the forecast period. For instance, on December 14, 2023, ArisGlobal, a creator of LifeSphere today launched LifeSphere NavaX, a cutting-edge cognitive computing engine to expedite R&D IT Digitization by leveraging advanced technologies including Large Language Models (LLM) and Generative AI (Gen AI).
The major global players in the market include Automation Anywhere, Inc., Blue Prism Limited., EdgeVerve Systems Limited, FPT Software, KOFAX, Inc., NICE, NTT Advanced Technology Corporation, OnviSource, Inc., Pegasystems Inc. and UiPath.
The availability of hardware components and IT infrastructure was affected by disruptions in the global supply chain. The influenced the deployment and implementation of cognitive automation solutions for some organizations, as they faced challenges related to procurement and logistics. Cognitive automation tools are helpful to support remote work processes and have become increasingly prominent.
The COVID-19 epidemic brought to light the importance of implementing strong organizational procedures. Cognitive automation solutions are growing useful for companies that face uncertainty because they boost decision-making, reduce manual participation and increase efficiency in operations. The pandemic's effects on global supply chains disrupted hardware components and IT infrastructure availability. The impacted the deployment and implementation of cognitive automation solutions for some organizations.
Geopolitical conflicts disrupt supply chains and affect the production and distribution of technology components and solutions. Major key players in the market depend on hardware or software components from the affected regions that face supply chain disruption challenges. Economic uncertainties frequently arise from geopolitical tensions, potentially causing businesses to exhibit reluctance in investing in new technologies or extending their operations. The hesitation can have repercussions on the expansion of the cognitive automation market.
Fluctuations in currency values resulting from geopolitical events can influence the pricing of technology products and services. Businesses that operate with various currencies may encounter financial obstacles, impacting their capacity to invest in cognitive automation solutions. Geopolitical occurrences may trigger modifications in regulations, influencing the compliance obligations for enterprises. Alterations in laws related to data protection, export/import regulations or intellectual property can exert an impact on the cognitive automation market.
The global cognitive automation market report would provide approximately 70 tables, 65 figures and 204 Pages.
Target Audience 2024
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