The global neural network software market size is expected to grow at a CAGR of 33.5% during the forecast period, 2019–2026.
A neural network, also known as an artificial neural network, falls under the umbrella of artificial intelligence. It mimics the human brain learning process to extract patterns from historical data. The technology is fundamentally used to research, develop, simulate, and apply algorithmic concepts inspired by the biological neural network intended for practical applications focusing on data mining and forecasting. The potential of neural network technology has only begun to be tapped. It is extensively employed across business verticals to tackle various challenges — research, sales forecasting, data validation, risk management, among others. Against the backdrop of computing solutions becoming more sophisticated, the amount of data generated is cumbersome; hence, the need for a predictive and orderly approach to handle the data is imperative. According to Forbes, the emergence of the Internet of Things (IoT) has triggered off 2.5 quintillion bytes of data generation per day.
| Report Metric | Details |
|---|---|
| Base Year | 2017 |
| Study Period | 2016-2026 |
| Forecast Period | 2023-2031 |
| CAGR | 33.5% |
| Market Size | 1430 |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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Geographically, the global neural network software market is studied across North America, Europe, Asia-Pacific, and Latin America and the Middle East and Africa (LAMEA).
North America is expected to witness significant growth in the neural network software market during the forecast period (2019–2026) due to the widespread deployment of neural network technology by tech giants. For instance, in August 2019, Intel pioneered by launching two new processors powered by AI technology for large computing centers. The chips are the first offerings from the Nervana Neural Network Processor (NPP) line; Nervana NNP-T, codenamed Spring Crest — used to train AI systems, and Nervana NNP-I, codenamed Spring Hill — to handle inference. Such developments are anticipated to propel the market growth in the region.
Europe is expected to witness significant growth in neural network software market on account adoption of advancements in the aviation industry by integrating emerging technology into the autopilot system. For instance, in August 2019, Daedalean announced that it has generated USD 12 million in funding for the development of the autopilot system featuring deep convolutional feed-forward neural networks—an advanced form of AI. Thus, driving the growth of neural network software market in the European region.
Asia-Pacific is expected to grow at an accelerated pace in the neural network software market during the forecast period (2019–2026) on account of the developing enterprises in the region embracing emerging technologies to train deep learning models expeditiously. For instance, in July 2019, Baidu announced a collaboration with Intel on the development of Intel’s Nervana Neural Network Processor for Training (NNP-T). This collaboration appertains to hardware and software designs of the new custom accelerator aiming to train the deep learning models at lightning speed. Such collaborations are envisaged to boost the regional market growth.
LAMEA is expected to witness healthy growth in the neural network software market on account of cross border digital transformation strategies and adoption of emerging technologies across the globe offers potential growth opportunities for neural network software market in the region.
The global neural network software market is segmented by component, type, and industry.
The neural network consists of an algorithm capable of discerning the underlying relationship between data sets, which are otherwise under the wraps of unorganized data, by dint of a system that mimics the way the human brain works. The analytics software segment, among other type segments, is projected to receive a momentum of demand in the wake of the increasing popularity of artificial intelligence in trading systems. For instance, in September 2019, Deep Nexus Inc. announced the launch of AI-powered predictive analytics for financial markets. The company uses deep learning neural networks alongside time-series data for trading in equities, futures, commodities, and foreign exchange markets. Thus, developments into trading systems aided by AI technology is expected to drive the growth of analytics software segment in the neural network software market.
The neural network technology is employed in a variety of applications in financial services from forecasting, marketing research, to risk assessment. The BFSI segment, among other industry segments, is expected to hold the strongest market share as the implementation of AI technology in the BFSI industry streamlines the financial operations offering efficient procedural systems. For instance, in September 2019, Yes Bank partnered with Microsoft to strengthen its AI-enabled chatbot. The Yes Robot offers advanced NLP engine Language Understanding Intelligent Service (LUIS) and other cognitive services, which are capable to understand and resolve the evolving banking requirements of customers without human intervention. Thus, the deployment of neural network technology into the banking sector facilitates the operational efficiency of the BFSI segment in the neural network software market.
Some of the notable players in the global Neural network software market are
