IBM Watson Services Market
IBM Watson Services Market By Service Type (IBM Watson Language Services, Support, IBM Watson Vision services), By Vertical Type (Healthcare, BFSI, Retail, Discrete & Process Manufacturing)- Global Market Insights 2021 to 2031
Analysis of IBM Watson Services market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
IBM Watson Services Market Outlook
The global IBM Watson services market analysis shows that global demand enjoyed year-on-year (YoY) growth of 27% in 2021, to total a market valuation of around US$ 3.2 Bn. IBM Watson language services are expected to dominate the landscape over the coming years. Under end use, the hospital and pharmaceutical sectors are set to experience a growth rate of more than 30% through 2031.
Demand Analysis of IBM Watson Services from 2016 to 2020 Compared to Market Outlook for 2021 to 2031
As per Fact.MR - a market research and competitive intelligence provider, historically from 2016 to 2020, global market valuation of IBM Watson services increased at nearly 27% CAGR, wherein, countries such as the U.S., Germany, China, Japan, India, and South Korea held significant revenue share in the global market.
- The global market is projected to expand at 30% CAGR in terms of value during the forecast period (2021 – 2031).
- The market is projected to be valued at US$ 44.6 Bn by the end of 2031.
- North America is projected to create the highest absolute $ opportunity of US$ 20 Bn over the forecast period.
- Europe and North America contributed significantly to the growth of the IBM Watson services market, and account for around 24% and 45% market share, respectively.
- Demand for IBM Watson language translators and language processing services will accelerate rapidly.
- Top 5 providers of IBM Watson services held more than 20% market share in 2020.
- Demand for IBM Watson data insights to increase at a fast pace.
- Demand for IBM Watson text-to-speech services surging.
- IBM Watson vision services gain popularity.
- IBM Watson services for prevention of cyber-attacks to gain traction.
- IBM Watson services for diagnostic procedures being sought-after.
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What are the Driving Factors Facilitating Opportunities for IBM Watson Service Providers?
With growing understanding and interest of organizations towards cognitive technology, adoption of IBM Watson services has been surging consequently. Watson is a disruptive technology that processes accurate information at a high pace. The three distinct capabilities of Watson, including natural language processing (NLP), hypothesis generation and evaluation, and dynamic learning, have been increasing its popularity.
The healthcare industry has been the leading end user of IBM Watson services, where it is being used in drug discovery, social program management, oncology, and automated care management. BFSI, being the second-largest end user of IBM Watson services, has also been adopting it at a significant pace.
According to the Financial Times, certain regulatory changes can cost each bank up to around US$ 4 billion annually. Furthermore, increasing complexity in security landscape has been putting customer data and the brand reputation of banks under constant threat. Disruptive technologies and competition have been targeting most profitable parts of the businesses. IBM Watson’s Virtual Agent Solution and Digital Wealth Advisor stand as an answer to these prevailing challenges.
In the retail sector, IBM Watson’s application has been leading to customer satisfaction, as it has eased several customer handling issues of some of the major retail chains. A recent example is from The North Face, a retail clothing company started to use an app developed by Fluid Inc., which provides customers with patient and expert personal salesperson who can answer their common questions. This has reduced this clothing retail chain’s issues of losing customers due to lack of real-time sales associates.
Why is Demand for IBM Watson Products & Services Surging from the Healthcare Sector?
Biotech and pharmaceutical companies have been taking an average of around 10 years to develop a drug. Often, most experimented drugs are not able to hit the market shelves, which incurs huge losses to these companies. However, with the implementation of IBM Watson in drug discovery, the process has been accelerating.
Recently, IBM Health partnered with Barrow Neurological Institute, under which the latter used the former’s artificial intelligence to rank 1,500 proteins for its prediction-based association with amyotrophic lateral sclerosis (ALS). In this assignment, eight out of the 10 proteins ranked by IBM Watson proved to be linked to ALS.
Around 20% of patients bear 80% of the complete medical services industry costs, where these 20% address those people who need close consideration the executives. After computerized reasoning and intellectual processing has become an integral factor, experience of this cross part of patients appears to have changed to a great extent. As of now, IBM's Watson Care Manager have been overseeing around 147,000 patients' consideration plans around the world.
The BFSI is another sector that has started to see transformation set forth by IBM Watson. The concept of cognitive bank will end the process of customers repeating their queries to different customer care executives numerous times. A cognitive bank will not only recognize its customer’s voice individually, but also answer the questions during the first call.
Finance organization are seeking collaboration with IBM in order to leverage the company’s Watson technology for the development of effective consumer banking solutions. After developing cognitive technologies for providing consumer insights, IBM has offered Watson services for enabling financial institutions to manage compliance & regulatory controls.
Insurance employees also have the scope of banking on IBM Watson services for speeding the claim eligibility & percentile determination process, which, in turn, would help them in making better decisions and achieving improved results. At present, IBM Watson services for the finance industry include wealth management, insurance, and financial risk management.
What Restraints Do Providers of IBM Watson Services Encounter?
IBM Watson services comprise time-intensive laborious training, driven by the requirement for experts to feed large quantity of well-organized and structured data into platforms for drawing insightful conclusions. In addition, it is capable of only drawing conclusions based on the data’s body on which it has been trained on. 'Well-organized' requirement is a key challenge constraining IBM Watson service penetration, as unprepared data sets are insufficient.
Another major drawback of IBM Watson services is their inability of making connections with different corpora, making extracting even basic insights a challenging task. Training IBM Watson on oncology has provided no insights on heart diseases – a limitation drastically confining its deployment in the clinical settings.
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Which Regions Offer Large Opportunities for IBM Watson Service Providers?
North America is expected to incline at nearly 33% CAGR and is expected to corner more than 50% market share by 2031. In 2021, the IBM Watson language processing market value grew year on year 25%.
The U.S. is expected to be turn out as the most promising country in North America and hold more than 90% market throughout the forecast period.
In the U.S., IBM Watson services are seeing high demand across various industries, including healthcare, BFSI, retail, government, manufacturing, and education, wherein, the healthcare segment captures a significant market share, followed by the BFSI industry.
In Latin America, IBM has been entering into strategic alliances with the region’s leading IT companies for accelerating the penetration of its Watson services, and expand the application scope of these services’ cognitive computing capabilities.
IBM’s collaboration with Latin America’s leading IT integration company, GBM, sets a prime example of its efforts toward increasing its footprint in Latin America. Software developing companies in Latin America, such as Logiety, have created a digital platform on the IBM Cloud for boosting the speed of international customs processes.
Why Do IBM Watson Service Providers Have an Eye on APAC?
Disruptive technologies such as blockchain and cognitive computing have been driving dramatic shifts in industrial sectors such as healthcare, finance, and tourism, in several regions, and emerging countries of APAC are no exception.
Recognizing the immense potential of its clients in APAC in shaping their business future, IBM has planned to help in commercialization and rapid prototyping of these clients’ solutions that are based on blockchain and cognitive computing.
IBM’s new APAC headquarters, based in Singapore, aims at bringing all types of organizations in the region together, for creating business solutions by leveraging Watson services’ cognitive and design capabilities. APEJ is expected to endure as a remunerative region for IBM Watson services over the coming years.
However, the U.S. is seen leading in IBM Watson services at a global level due to the presence of a large number of tech giants in the country.
How Has IBM Watson Services Been Shaping across Established & Emerging Markets?
- Japan: Owing to technological advancements, Japan holds a notable value market share of around 5.6% on global scale.
- Germany: Germany is one the most prominent countries in Europe, and grew 25% year on year in 2021. Germany has captured a dominant market share in Europe of more than 25% in 2021.
- U.K: The U.K is expected to be one of the most lucrative regions in Europe, followed by Germany. The U.K is presumed to corner around 20% share in Europe by the end of 2031, and is estimated to be valued around US$ 1.9 Bn.
- U.S: The U.S is one of the prominent countries responsible for generating gradual demand owing to mature end-use industries and technological developments. The U.S is expected to account for nearly 90% share in North America by the end of 2031.
Why Do Brushless IBM Watson Services Witness High Demand across the World?
Brushless IBM Watson services are estimated to be valued around US$ 8.5 Bn with a gain of more than 200 BPS by 2031.
Brushless IBM Watson services offer various advantages over brushed IBM Watson services, such as high efficiency producing more torque per watt, reduced noise, comparatively longer lifetime, high torque to weight ratio, and absence of ionizing spark from commutators.
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Majority of companies considered in the report lean towards both, organic and inorganic growth strategies. Moreover, prominent players are interested in acquisitions, collaborations, and product innovation, along with providing the option of customized services to clients.
Some of the key developments are:
- Year 2020: In January, IBM and Salesforce partnered to integrate IBM Cloud, Watson Services; and Salesforce Quip and Services Cloud Einstein.
- Year 2019: In February, the company and Unity partnered to launch the IBM Watson Unity SDK.
- Year 2018: Contracts/Agreements; In January, the company collaborate to sign a MoU with Faurecia recreate product and services for connected and autonomous vehicles.
- Year 2018: Contracts/Agreements; In January, TCS was selected by Modell’s Sporting Goods, to deploy TCS OmniStore Unified Store Commerce suite, for its store transformation and deliver an omnichannel experience to its customers.
- Year 2018: Contracts/Agreements; In January, TCS entered into a partnership with Transamerica, to transform its insurance and annuities administration.
- Year 2018: In February, the company announced that its TCS BaNCS product deployed again by IDBI Capital Markets and Securities on the Apple watch.
Similarly, recent developments related to companies offering IBM Watson services have been tracked by the team at Fact.MR, which are available in the full report.
IBM Watson Market Report Scope
Historical Data Available for
US$ Mn for Value
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
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Segments Covered in IBM Watson Services Market Analysis
- IBM Watson Language Services
- Integration Services
- Custom Application Development
- Application Modernization & Data Migration
- Testing Services
- IBM Watson Data Insights Services
- IBM Watson Speech Services
- IBM Watson Vision Services
- IBM Watson Language Services
- IBM Watson Services for Healthcare
- IBM Watson Services for BFSI
- IBM Watson Services for Retail
- IBM Watson Services for Discrete & Process Manufacturing
- IBM Watson Services for Telecom, Media & Entertainment
- IBM Watson Services for Transportation and Logistics
- IBM Watson Services for Governments
- IBM Watson Services for Travel and Tourism
- IBM Watson Services for Education
- FAQs -
The global IBM Watson services market is worth more than US$ 3.2 Bn at present.
Sales of IBM Watson services are projected to increase at a CAGR of over 30% during 2021 – 2031.
Value sales of IBM Watson services increased at a CAGR of 27% during 2016 – 2020.
Demand for natural language processing services is soaring owing to their efficiency, and is one of the key trends being observed in the market.
Growing demand for sustainable and reliable computing structure across multitude avenues stands as the core driver for the market.
Top 5 providers IBM Watson services account for around 20% share in the market.
Top 5 countries driving demand for IBM Watson services are the U.S., Germany, China, Japan, and India.
North America accounted for over 45% of global IBM Watson service demand in 2020.
The European market for IBM Watson services is projected to expand at a CAGR of more than 26% during 2021 – 2031.
The United States, Germany, and China are key providers of IBM Watson services.
The market in Japan will expand at over 26% CAGR, with the country accounting for 5.6% share in the global market.