IBM Watson Services Market Outlook Bullish as a Resounding 49% Respondents Affirmative on Future Investments, Reveals Fact.MR Survey
Adoption of IBM Watson services continues to gain steady ground, with 19% respondents agreeing to use these services, according to a latest Fact.MR survey. The survey further found that challenges associated with effective integration of SBU and IBM Watson-based services, along with scant awareness on garnering value from advanced technology remain key impediments to widespread adoption. The silver lining from the survey was optimism and confidence among end-users, with nearly 49% of non-users showing an inclination to use these services in the future.
According to the Fact.MR survey, Watson Language Services were the most widely used services, whereas adoption of Watson Vision Services was the lowest. The motivations and end-goals of using IBM Watson Services varied from improvement in business agility, assistance with decision-making, and assistance in improving sales. Nearly 84% respondents cited ‘improve our business agility’ as the top reason for investing in IBM Watson services. Use of IBM Watson Services for sales improvement ranked lowest on the preference list of end-users.
The research study reveals that IBM Corp., Accenture PLC, and TCS Ltd. are among the frontrunners, whereas KPMG International, Deloitte, Capgemini SE, Tech Mahindra, Wipro, and DXC are among the key competitors in the IBM Watson Services market. Accenture PLC has strong agreements with IBM to deliver services mainly in banking, insurance, and IoT, whereas TCS Ltd. continues to consolidate its position by offering targeted services to BFSI industries across the Asia Pacific region.
The latest business intelligence study by Fact.MR is bullish on the prospects of IBM Watson services market. The study opines that global revenues will grow at 17X during the assessment period 2018-2028. The digital transformation in the healthcare industry, combined with BFSI industry growth are among the key factors driving adoption among end-users. The steady increase in IT spending, which is likely to grow at 4.5% CAGR, is also a key contributor to the growth of the market during the assessment period. The pervasiveness of IoT in manufacturing, telecom, automotive, and other industries is also likely to create sustained opportunities for the adoption of IBM Watson services among end-users.
According to the study, IBM Watson Language Services lead the way, accounting for over 50% revenue share of the market currently. Use of IBM Watson Language services in cancer treatment continues to be a key contributor to growth. The bullishness in the IBM Watson Language services can be gauged by the fact that an absolute $ opportunity of over US$ 8.6 Bn is likely to emerge during the assessment period 2018-2028. Among the various types of IBM Watson Language Services, adoption of implementation services is the highest, on account of high demand in commercial and industrial applications. Pervasiveness of enterprise digital transformation, combined with growing need of advisory services for enterprise mobility are also likely to create opportunities during the assessment period.
The report opines that adoption of IBM Watson Services is multi-pronged, and a range of end-users cutting across industries and sectors are investing in these services. Healthcare and BFSI are at the forefront of adoption, with these two verticals collectively accounting for over one-third revenue share of the market. The study expects healthcare and BFSI to lead the charge over the course of the assessment period, and increase their collective revenue share from over 35% in 2018 to over 50% in 2028.
Adoption of IBM Watson Services has remained robust in the US, as IBM has a robust network of efficient business partners in the country. The lucrativeness of the US in the global IBM Watson Services market can be gauged from the fact that the country accounts for nearly 38% revenue share of the global market currently.