Global Natural Language Processing (NLP) Market

World NLP Market Size, 2030

The global NLP Market Size was valued at $11.1 billion in 2020, and is projected to reach $341.5 billion by 2030, growing at a CAGR of 40.9% from 2021 to 2030.

COVID-19 is an incomparable global public health emergency that has affected almost every industry, and the long-term effects are projected to impact the industry growth during the forecast period. Moreover, increasing adoption of technology and increasing initiatives to adoption of automation in the industry vertical in developing nations of Asia-Pacific has boosted the growth of food delivery mobile application market.

The Natural Language Processing (NLP) is a part of artificial intelligence (AI) that enable the computer to interpret human language, obtains meaning, and make communication more convenient by using voice enabled artificial intelligence (AI) and conversational intelligence technologies. In addition, the NLP features such as autocorrect and autocomplete tool help to analyze personal language patterns and identify the most appropriate suggestions for the individual users or public. Furthermore, natural language processing automates much of the physical process, provides analytics and business intelligence for growth and helps to order and organize the processes. In addition, growing data and increasing complexities in large businesses would open numerous opportunities for natural language processing market

Factor such as rising usage of smart devices to facilitate smart environments, which drive the market growth. In addition, increasing demand for advanced text analytics and the growing use of internet and connected devices, which drive the natural language processing market growth. Furthermore, growing adoption of NLP-based applications across industries to boost customer experience. In addition, increasing investments in the healthcare sector are expected to provide lucrative growth opportunities for the market. However, complexities due to the usage of code-mixed language while implementing NLP solutions and limitations in the development of NLP technology using neural networks are restricting the usage of cloud-based services, which can hamper the market growth

Segment Review

The natural language processing market is segmented on the basis of component, deployment mode, type, organization size, industry vertical, and region. By component, it is bifurcated into software and services. By deployment mode, it is segregated into cloud and on-premises. On the basis of type, it is segregated into rule-based NLP, statistical NLP and hybrid NLP. By industry vertical, it is classified into BFSI, retail & e-commerce, IT & telecom, healthcare, education, media and entertainment, and others. By enterprise size, it is categorized into small to medium enterprise (SMEs) and large-scale enterprise. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of component, the solution segment dominated the overall natural language processing (NLP) industry in 2020, and is expected to continue this trend throughout the forecast period. Factors such as increase in competition in businesses, legislation, user needs, and project risks, the adoption of NLP increases, which drives the growth of the market. In addition, NLP solutions offer the necessary tools to analyze both numerical and linguistic data, which is beneficial for the market. However, the services segment is expected to witness highest growth in the upcoming years. The adoption of NLP services provides numerous benefits to the industry verticals such as speeds up software implementation, maximizes the value of existing installation by optimizing it, and minimizes the deployment cost & risks, and others, which further fuels the market growth.

On the basis of deployment mode, the on-premise segment captured the largest share in 2020 and is expected to continue this trend during the forecast period. The on-premise NLP deployment provides complete control and visibility over data as well as strong authentication security measures. In addition, easy scale to meet business demand and increase efficiency with built-in redundancy, which drives the growth of this segment. However, the cloud segment is expected to witness the highest growth in the upcoming years, owing to rise in adoption of cloud-based NLP, due to low cost and easier maintenance, which is projected to propel the growth of the natural language processing market in the upcoming years.

The natural language processing market trends in Asia-Pacific is expected to exhibit the highest growth during the forecast period. Owing to rapid technological advancements, digitization of economies, and government initiatives increased expandable income among the region's middle-income population are the key factor that powering the overall economy's growth of Asia-Pacific region, which is propelling it from the developing to developed phase. In addition, this region has a robust IT infrastructure and solid software and service offerings, as well as leadership positions in emerging fields including robotics, which would provide the lucrative growth opportunities for the natural language processing (NLP) market. Furthermore, key players in Asia-Pacific are focusing on enhancing their operations and increasing their overall efficiency to stay competitive in the market, which is expected to provide lucrative opportunities for the growth of the market during the forecast period.

Impact of COVID-19 on the Natural language processing (NLP) market trends

As per natural language processing market forecast. post COVID-19, the Natural language processing (NLP) market size was valued at $15,554.31 million in 2021 and is projected to reach $341,530.29 million by 2030, growing at a CAGR of 40.9% from 2020 to 2030.

The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. The global COVID-19 pandemic has drastically affected businesses across the world. COVID-19 pandemic has positively impacted the adoption of NLP based services due to lockdown imposed by governments of different countries. Post COVID-19 situation, companies are focusing on advanced technology such as artificial intelligence (AI), machine learning (ML), computing technology and analytics across industries such as BFSI, healthcare, IT and telecom and others, to perform contactless operation. This factor also creates demand for AI-driven NLP technology, which drive the adoption of natural language processing (NLP) market globally.

Moreover, the pandemic has introduced considerable challenges for companies that are trying to execute key processes, report accurately about data spread over multiple locations, operate complex systems, and efficiently communicate with teammates; particularly where they don’t already have the infrastructure for such processes. Hence, a greater number of companies are investing in natural language processing (NLP). NLP provides the limitless scalability and continual enhancement of functionality, which are critical in accomplishing digital transformation, which boost the growth of the market. For instance, in June 2020; IBM Data and artificial intelligence (AI) team resolution collaborated to consolidate state and county-level information across websites, and local government sites around 50 states of the U.S. The IBM Watson NLP, and IBM Data & Governance (IDG) help to create clean, and easily understandable insights source that enabled people or individuals to understand COVID-19 activity in their communities.

Increasing demand for advanced text analytics

In NLP technology market, text analytics is crucial for analyzing customer behavior and estimating consumer nature, which further drive the market growth. Enterprises can use text analytics to provide personalized schemes and discounts to their customers based on historical trends. Furthermore, the retail and ecommerce sector use social media platforms, as they are a primary source of data for text analytics, estimate demand and supply, and improve the customer experience. For instance, in May 2021, Tata Consultancy Services (TCS) partnered with Vertica, Microfocus’s unified analytics platform, to enhance the process of modernization in business data warehouses for various data-driven enterprises using unified analytics framework. Such partnership creates enormous potential for text analytics in the NLP market.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the world natural language processing market analysis from 2020 to 2030 to identify the prevailing world natural language processing (nlp) market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the world natural language processing industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global NLP market size.
• Natural language processing industry player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global world natural language processing market share, trends, key players, market segments, application areas, and market growth strategies.

 Global Natural Language Processing (NLP) Market Report Highlights