Text Analytics Market Report, published by Allied Market Research, forecasts that the global market is expected to garner $6.5 billion by 2020, registering a CAGR of 25.2% during the period 2014-2020. Predictive analytics is the most attractive application within text analytics, which provides insights on unstructured text and helps the companies to formulate business strategies accordingly. Retail sector largely uses text analytics software, which approximately contributes 1/3rdof revenue amongst all industries. Use of text analytics in Healthcare accelerates Health-Care research, which eventually adds to the rapid growth of the healthcare and pharmaceutical sector.
Comprehending the benefits of the text analytics in predicting and forecasting consumer behavior, the technology is gaining ground and helping corporations to strategically position themselves in the competitive market. The capability of the technology to deduce trends from the unstructured text and single out rationale is the driving force for the market. The upsurge in the adoption of social networking platforms for conversations, rising adoption of cloud computing technologies and the ability of text analytics to move beyond sentiment analysis are some major driving factors for text analytics industry. Nevertheless, despite the finer and profitable aspects, the technology has some vices posing as obstacles for the growth of the market. The expensive analytic software and lack of awareness among the stakeholders about the advantages of text analytics in the pivotal regions would impede the growth of the market.
Text analytics finds wide acceptance in regions such as North America due to the early adoption of big data analytics in the region. North American region approximately holds 40% of global text analytics market amongst all regions. Till 2012, North American region generated about 2.5 exabyte (2.5 million gigabytes) of data per day and the number is anticipated to double every 40 months. For instance, Walmart collect 2.5 petabytes of data from their customers' transactions. Therefore, the use of text analytics software to analyze customers' demands is on the higher side, as compared to other regions. Substantial amount of data is generated in the region on a daily basis, which is a gold mine for companies that understand the importance of historical data. Historical data trend is further used to forecast the trend of the market in the coming years. Therefore, predictive analytics is also increasingly used to forecast the market trend and formulate the business strategies.
Predictive analytics is gaining ground in the field of healthcare and Banking Financial Services and Insurance industries (BFSI). The ability of Predictive analytics application to track the incidences of diseases and forecast the reoccurrence in the future is a boon for the healthcare sector. On the other hand, financial forecasting is accomplished very effectively using text analytics. The forecast could assist BFSI's in tracking loan trends and gain insights on the potential client base that demand banking services in the future. Retail sector has large customer base and has sizable number of reviews on their products. Analyzing the voice of the customers helps the retail companies to improve their products, by considering the customer demands. Therefore, retail sector majorly uses text analytics software compared to other sectors.
Key Findings of Text Analytics Market:
- Global market for Text analytics deployment models is gaining prominence with cloud based models, which is the growing at a rapid rate for the forecast period (2014-2020)
- Predictive analytics is the major application segment that uses text analytic software to forecast the market trend, which is growing at a CAGR of 21.3% during the forecast period
- Based on the geographic examination, North America would be the highest revenue-generating region, confers the report
- Text analytics software is widely used in customer relationship management applications, where the analyzed information is prominently used to take strategic business decisions
- Small scale enterprises still rely on-premise model and is growing at a CAGR of 16.6% during 2014-2020
Continuous innovations in the text analytics industry is leading to upgrade the existing versions of text analytics software. Therefore, product launch is the major developmental strategy that is widely adopted by the text analytics market players. In June 2014, Linguamatics launched I2E Semantic Enrichment that uses natural language processing technology for analysis of text, and offer insights at a much faster rate. The report expounds on the strategies of top players such as IBM, Attensity, Microsoft, Clabridge, SAS, HP, Tibco Software, Oracle, Tableau Software and SAP.