Cognitive Assessment and Training Market Size, Share & Trends Analysis Report By Application (Data Analysis and Reporting, Data Management, Cognitive Training, Consulting Services), By Industry Verticals (Healthcare, Corporate Businesses, Government and PSUs, Education), By Organization Size (Small and Medium-scale Enterprises (SMEs), Large Enterprises) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global cognitive assessment and training market size was valued at USD 6.4 billion in 2023 and is projected to reach a value of USD 52.2 billion by 2032, registering a CAGR of 26.2% during the forecast period 2024-2032. The Cognitive Assessment and Training market growth is anticipated to be driven by developments in the healthcare sector and increased awareness of mental fitness.

Cognitive evaluation evaluates an individual's cognitive processes, such as memory, attention, problem-solving abilities, language skills, and executive functions. These exams assist in identifying cognitive strengths and deficits, diagnosing cognitive disorders, and developing therapy or intervention programs.

The market is primarily driven by an increasing geriatric population and a greater appreciation of the need to maintain brain health. The rising prevalence of dementia among the elderly facilitates the development of cognitive evaluation and training solutions since these instruments simplify and efficiently diagnose and cure dementia. Another aspect that promotes growth is using instruments to detect learning abnormalities and obstacles in children, such as dyslexia and dyscalculia.

Highlights

• Cognitive Training generates the highest revenue share by application.
• Healthcare is a significant contributor to the market by industry verticals.
• Large Enterprises influence market growth based on organization size.

Market Dynamics

Global Cognitive Assessment and Training Market Drivers

Aging Population and Increased Cognitive Disorders

The worldwide aging population is a major cognitive assessment and training market driver. Individuals age naturally, increasing their susceptibility to cognitive decline and illnesses such as Alzheimer's disease and dementia. The demand for cognitive diagnostic instruments and training programs has increased to meet the need for early detection, intervention, and treatment of age-related cognitive deficits.

In Japan, which has one of the greatest rates of senior inhabitants, there is a strong emphasis on cognitive health. In 2020, the number of individuals aged 75 and over was 18.6 million, predicted to rise to 22.58 million by 2030. By 2060, the Japanese government expects one older adult for every working-age individual. The number of people with dementia in Japan is expected to reach 7 million by 2025. 

The Japanese government has launched measures encouraging healthy aging, such as cognitive evaluations for older people. For example, Japan's Ministry of Health, Labour, and Welfare runs programs encouraging regular cognitive check-ups for older people.

According to the World Health Organization, dementia affects approximately 55 million people globally, with more than 60% residing in low- and middle-income nations. In 2023, 62% of people aged 65 and up who are thought to have dementia have a recorded diagnosis. The aging population is a major factor in the rising incidence of cognitive problems. As the world's population ages, the demand for cognitive testing instruments and interventions will increase.

The aging population not only contributes to the increased prevalence of cognitive diseases but also emphasizes the necessity of early detection and prevention strategies. This demographic shift has encouraged the creation of innovative cognitive testing instruments and Training programs tailored to the unique demands of older persons. This has an impact on the Cognitive Assessment and Training Market trend.

Global Cognitive Assessment and Training Market Restraints

Limited Scientific Validation of Cognitive Training Efficacy

One of the issues confronting the cognitive assessment and Training business is the ongoing controversy about the scientific validity of cognitive training programs. While some research indicates encouraging results, there are worries about the long-term viability of cognitive benefits and how improvements translate into real-world circumstances. The Advanced Cognitive Training for Independent and Vital Elderly (ACTIVE) study is frequently quoted when discussing the efficacy of cognitive Training. This large-scale, multi-site clinical experiment sought to determine the long-term effects of cognitive Training on older persons. While the study found some beneficial cognitive effects, skeptics have questioned the transferability of these gains to everyday life tasks and the long-term sustainability of changes.

According to a 2014 open letter signed by over 70 scientists, there is no scientific basis or evidence to support the usefulness of brain training. In 2023, Psychol Bull released a systematic review and meta-analysis evaluating the efficacy of combining cognitive Training with noninvasive brain stimulation. 

Hence, The argument over scientific validation of cognitive training efficacy has the potential to influence consumer trust and acceptance of these programs. Users, healthcare professionals, and institutions may be skeptical, limiting the adoption of cognitive training solutions.

Global Cognitive Assessment and Training Market Opportunity

Expansion in Corporate Wellness Program

Integrating cognitive testing and Training into corporate wellness programs provides a unique opportunity to reduce workplace stress, improve cognitive function, and contribute to overall employee well-being. As employers become more aware of the value of mental health in the workplace, cognitive Training becomes an important component of overall wellness initiatives. For example, workplace stress has reached an all-time high since the outbreak. In 2023, 94% of workers report work-related stress, while 55% of Americans experience stress during the day. 63% of employees claim they will quit their jobs to avoid work-related stress.

A multinational firm may establish a comprehensive wellness program incorporating cognitive testing tools and employee training platforms. These capabilities might be available through a dedicated employee health app that provides individualized cognitive workouts to reduce workplace stress, improve focus, and increase cognitive resilience.

According to a World Economic Forum report, mental health issues, especially cognitive impairments, account for a considerable reduction in worldwide economic productivity. Stress and cognitive strain can have a significant impact on productivity in the workplace. Incorporating cognitive evaluations and Training into business wellness programs is consistent with the larger trend of treating mental health in the workplace.

Cognitive training companies may build strategic alliances with corporate wellness service suppliers to seize this potential. These collaborations can seamlessly integrate cognitive evaluation technologies into existing wellness platforms, making it easier for companies to implement and employees to use.

Regional Analysis

The global cognitive assessment and training market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global cognitive assessment and training market shareholder and is estimated to grow at a CAGR of 26.5% over the forecast period. Adopting Artificial Intelligence and Cognitive Assessment and Training in industries like e-learning and healthcare is consolidating the market's growth. North America is also recognized as a leader in the development of neurological treatment and dementia treatment. Such chances are expected to help it retain its strong sales presence worldwide.

Furthermore, the number of patients with cognitive impairment in the region has been steadily increasing, driving up the need for cognitive assessments. Government initiatives like Aging's Alzheimer's Disease Supportive Services Program help states establish flexible, comprehensive, and long-term treatment delivery systems for Alzheimer's patients. In June 2022, LifeWorks started an internet-based cognitive behavioral treatment (CBT) program in Canada and the United States to address burnout symptoms among healthcare workers. In North America, the gamification of mental evaluation and training services is becoming more popular among children and high school students. The evaluation results help parents determine their children's level of psychological development.

Europe is anticipated to exhibit a CAGR of 26.8% over the forecast period. Training gamification also saw a significant increase in the European market. This invention enabled Europe to gain a substantial portion of the worldwide market. According to research released by MyCognition Inc., which primarily works in the United Kingdom, patients treated with video games for 90 minutes per week significantly increased verbal memory function. Patients treated with different treatments experienced no substantial improvement in their diseases. Using video games for cognitive testing and Training is predicted to increase market share. These locations have a high proliferation and popularity for video game applications. Therefore, this aspect is expected to impact the regional market significantly.

Moreover, as of March 31, 2023, 62% of patients aged 65 and up who are suspected of having dementia had a recorded diagnosis. In 2019, the incidence of dementia in Europe was approximately 188 per 100,000 individuals. These figures show that the market will likely grow throughout the predicted period.

Asia-Pacific is predicted to be the fastest-growing region in the industry, according to cognitive assessment and training industry insights. The growth is linked to the greater desire of private and public sector businesses to employ cognitive assessment and training. India, China, and Japan dominate the Asia-Pacific market. Furthermore, these countries will present a big consumer market as governments work to integrate digitization into the education and healthcare sectors. Alzheimer's Disease International (ADI) predicts that the number of dementia patients in Asia and the Pacific will triple by 2050. 

The Middle East and Africa are seeing weak market expansion. The United Arab Emirates dominates the cognitive assessment and training market due to its leadership in technological innovation and digital development. South Africa is the fastest-growing country in the cognitive assessment and training market, owing to its relatively sophisticated education industry and an increasing emphasis on improving educational outcomes.

Segmental Analysis

The global cognitive assessment and training market is segmented based on application, industry verticals, and region.

The market is further segmented by application into Data Analysis and Reporting, Data Management, Cognitive Training, and Consulting Services.

Cognitive Training generates the highest revenue share. The cognitive training section develops and delivers programs to improve cognitive functions. These programs may include interactive exercises, games, and activities focusing on specific cognitive abilities like memory, concentration, and problem-solving. Cognitive Training tries to increase overall cognitive ability and treat areas of deficiency discovered during cognitive exams. The cognitive training software can help elderly persons preserve their cognitive vibrancy and independence. These programs can be adjusted based on cognitive testing results, providing specialized exercises to address specific cognitive issues while promoting overall cognitive health.

The data analysis and reporting section includes using cognitive assessment tools to analyze collected data and provide valuable reports. This technique aids in identifying actionable insights, patterns, and trends from cognitive testing data. Data analysis is essential for recognizing cognitive strengths and limitations, evaluating growth over time, and making informed decisions based on collected cognitive data.

The market by Industry verticals can be bifurcated into Healthcare, Corporate businesses, Government and PSUs, and Education.

Healthcare is a significant contributor to the market. In the healthcare industry, cognitive assessment and Training are critical for diagnosing and managing cognitive problems, monitoring patients' cognitive health, and developing personalized solutions. Healthcare practitioners utilize cognitive evaluation tools to measure cognitive performance, detect early indicators of illnesses such as Alzheimer's disease, and monitor changes over time. Cognitive training programs help patients maintain cognitive abilities and improve their overall well-being. Individuals with neurological diseases, older adults at risk of cognitive decline, and those recuperating from brain injuries can benefit from cognitive testing and Training in the hospital setting. It also helps to advance cognitive health research by allowing healthcare providers to conduct preventive measures and therapies.

In the business world, cognitive assessments and Training are used to improve employee well-being, productivity, and performance. Employers use cognitive exams to better understand their workforce's cognitive strengths and limitations. Cognitive training programs are performed to reduce workplace stress, improve focus, and build cognitive resilience in employees.

Based on organization size, the market is fragmented into Small and Medium-scale enterprises (SMEs) and large Enterprises.

Large Enterprises influenced the market growth. Large businesses often have more broad resources and a larger workforce. Larger firms prefer complete solutions integrated into more considerable employee wellness and talent management programs. The size of operations in large businesses may necessitate complex cognitive tools adapted to various roles and responsibilities. With their more extensive infrastructure, large organizations may be more likely to invest in comprehensive mental evaluation and training systems. These platforms might effortlessly interface with existing personnel management systems, allowing for a more holistic approach to employee development.

Small and medium-sized businesses (SMEs) have distinct organizational structures and resource constraints. In the cognitive testing and Training framework, SMEs may seek cost-effective solutions that address their employees' mental well-being. These firms could profit from scalable and easily accessible cognitive solutions catering to a smaller workforce's needs.

Impact of covid-19

The pandemic has far-reaching ramifications in all aspects of society. Compared to other industries, the impact on the credit card industry has been relatively mild, and the value of on-demand liquidity is more clear to customers. However, the industry's profitability has suffered significantly. Reduced international travel has impacted the foreign currency fees, which are a primary source of revenue for credit card companies.

Similarly, borrowers' stresses have resulted in significant increases in bad debt. Since the lockdown, consumers have shifted their spending from credit cards to debit cards as they pause larger purchases and use debit cards to pay for groceries, utilities, and other essential products and services.

According to the Reserve Bank of India data, credit card spending was Rs. 42,818 crores in June 2020, i.e., lower than the value of debit card Point of Sale (PoS) transactions, which was Rs 47,255 crore (RBI). For a prolonged period, only the sale of essential items was permitted. However, as the lockdowns were eased and the travel and retail activities increased, the market growth is expected to spur.

Recent Developments

• February 2024- Quest Diagnostics introduced the MelaNodal Predict™ test, personalizing melanoma risk prediction to help patients avoid invasive surgery.
• December 2023- Pearson introduced generative AI to millions of US college students.