"Smart Strategies, Giving Speed to your Growth Trajectory"

Natural Language Processing (NLP) Market Size, Share & COVID-19 Impact Analysis, By Deployment (On-Premises, Cloud, Hybrid), By Enterprise Size (SMEs, and Large Enterprises), By Technology (Interactive Voice Response (IVR), Optical Character Recognition (OCR), Text Analytics, Speech Analytics, Classification and Categorization), By Industry Vertical (Healthcare, Retail, High Tech, and Telecom, BFSI) and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI101933



Play Audio Listen to Audio Version

The global natural language processing (NLP) market size was USD 16.53 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with NLP solutions/services witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 26.5% in 2020 compared to year-on-year growth during 2017-2019. The market is projected to grow from USD 20.98 billion in 2021 to USD 127.26 billion in 2028 at a CAGR of 29.4% during the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Natural language processing is a communication bridge between technology and humans. With its help, the input instructions provided by humans are easy to understand by computers. It is also considered a branch of artificial intelligence (AI) that understands, interprets, and manipulates human languages. The adoption of natural language processing is rapidly increasing due to the rising adoption of human-to-machine communications and the demand for big data technology.

Machine learning approaches also require a proper understanding of the input data provided in human languages. Thus, the adoption of natural language processing will rise in the coming years. It also provides valuable numeric structure to numerous applications, such as speech acknowledgment or content analytics.

The NLP solutions/services are highly adopted in the industry verticals such as healthcare, manufacturing, BFSI, advertising, automotive, etc. In the manufacturing, robotics, and process automation sector. Robots have integrated NLG that helps to improve production efficiency and workflow in the manufacturing industry. Therefore, the adoption of these solutions are likely to rise in the near future.

COVID-19 Impact

Spread of COVID-19 Pandemic to Create Unprecedented Market Opportunities

The market is expected to witness a slowdown in 2020, with several players witnessing a financial downturn and an adverse impact on revenue growth. The pandemic has had a huge influence on civilization, both because of COVID-19's severe health consequences and public health efforts put in place to contain its spread. Many of these issues stem from information demand and efforts to solve them that have resulted in information fatigue for academics and the general public. Many of the knowledge requirements exacerbated by the COVID-19 pandemic may be addressed using natural language processing, a subset of artificial intelligence that interprets human language.

Healthcare companies and research institutes are using NLP solutions and services to analyze large datasets. For instance, in October 2020, The Journal of Medical Internet Research collected 204,597 Instagram posts and 6,029,323 tweets to filter terms associated with sales and marketing of COVID-19 healthcare products. The institute discovered 1271 tweets and 596 Instagram posts attributed to questionable sales of COVID-19-related products using these solutions and services.

Meanwhile, as governments contain the virus spread, and with the increased demand for improving consumer interactions and customized relationships, several industries aim to implement a variety of NLP technologies and services to support digital transformation programs that resolve mission-critical procedures, optimize organizational problems, and distinguish consumer experiences.

Many healthcare institutions and organizations are implementing NLP solutions to process large volumes of patient data, causing the application to rise in popularity. Furthermore, the increasing use of the internet and connected devices, as well as the tremendous amount of patient data during the spread of COVID-19, is expected to create numerous opportunities for key players. Market players such as Amazon Web Services, Inc. Baidu, Inc., Microsoft Corporation, and IBM Corporation, among others are planning to launch differentiated solutions in the post-COVID scenario.


Request a Free sample to learn more about this report.

Increasing Adoption of NLP Technology in Healthcare Industry is a Prominent Trend

With the increased speed of digitalization among hospitals and other healthcare facilities, the healthcare industry is producing a massive amount of data. With the analytics-driven NLP methodologies, healthcare companies rely heavily on such vast amounts of valuable data to gain actionable insights.

Over the recent years, the healthcare sector has seen a substantial increase in the need for efficient data storage and sophisticated data processing as the amount of data generated has been increased due to the massive amount of patient data and electronic health records.

Furthermore, over the forecast period, NLP innovations are projected to provide a wide array of opportunities in the healthcare industry. Personal Health Records (PHRs) are becoming more widely embraced, and NLP methodologies have made it easy to download and exchange patient records with various medical and insurance companies. With the rising trend of superior data processing and analytics smartphone applications, this market is expected to expand further.


Rising Need for Enhanced Customer Experience to Boost Demand

Understanding the client’s feedback or requirement is becoming very difficult day by day because of the increasing number of channels through which the clients provide their requirements or feedback. To understand these requirements associated with products or services, companies need a platform to manage business processes. Hence, they are constantly looking for an opportunity to enhance customer experience (CX) capabilities. AI and NLP integration will aid in analyzing the clients’ inquiries or comments and, further, convert them into individual solutions.

This technological integration can make suggestions based on the history of information, available customer data, or the client's instant responses. With the use of advanced technologies, seamless communication can be established between the client and the system. These communications can be saved for further references by the systems. AI and NLP can offer unique and customized recommendations that are more specific to the customers’ queries. The platform can solve multiple channel management problems as it can be integrated with more than one channel. Also, this generates more interactions between the client and the company.

Increasing Adoption of Smart Devices to Aid Growth

NLP is one of the primary AI-driven technologies that include automatic manipulation of speech and text, computer vision to recognize images and videos, and document understanding. The organizations leverage these characteristics to create business values. The emergence of smart devices and smart assistants such as Amazon Alexa, Apple’s Siri, and others have been fueling the demand for natural language processing solutions.

Research and developments in AI-based technologies, such as cognitive search, machine learning, and deep learning, have transformed NLP applications. Moreover, the growing adoption of virtual assistants, namely, Alexa and Siri, and advanced search engines, such as Google, have provided a comprehensive platform. Similarly, chatbots are being used across several industries and center of attraction among BFSI, healthcare, and retail verticals. Also, Siri, Alexa, and Google Home incorporate natural language conversations between artificial intelligence and humans into day-to-day interactions.

Moreover, key players operating in the market are launching different solutions that help enterprises add AI capabilities into existing business suits. For instance, In January 2021, Pryon Inc, an AI company, launched a platform that enables leading companies to add no-code AI capabilities and deploy projects easily. Thus, such innovations and research and developments are likely to drive the NLP market growth during the forecast period.


Reliability Issues and Lack of Skilled Workforce Would Impede the Natural Language Processing Market Growth

Building an NLP solution requires several years and a skilled workforce that can efficiently manage the complete system. Most organizations lack resources to create the complete NLP framework and software components such as task-specific lexicons, semantic interpreters, and knowledge representation systems. As a result, a disparity between human workers and less availability of software that can evaluate algorithms can be seen as a business obstacle. To effectively use NLP methods, a computer system must interpret information in a variety of languages and evaluate and assimilate the expanded conversation.


By Deployment Analysis

Cloud Segment to Exhibit High Growth Due to its Numerous Benefits

In terms of deployment, the market is segmented into on-premise, cloud, and hybrid.

Cloud technology is scalable and flexible for big data applications. Also, many AI and machine learning projects fall into the big data category. The key vendors in the market are taking several initiatives to implement cloud-based solutions. For instance, SAS Viya is the new engine for the SAS platform. By offering this engine, SAS is evolving into a self-learning platform that will leverage the company’s AI and cognitive capabilities, including natural language processing and machine learning. For example, SAS works on projects to provide natural language interaction by integrating with its cloud-based analytics software. This cloud-based software will enable users to communicate with the software.

Besides, a cloud-based platform enables the users to utilize and analyze multilingual content and user-generated content, and other web content. A hybrid deployment is expected to exhibit moderate adoption during the forecasted period. Thus, all the above factors drive the adoption of cloud-based deployment of natural language processing solutions.

By Enterprise Size Analysis

Large Enterprises to Register Strong Growth

By enterprise size, the global market is bifurcated into small and mid-sized enterprises and large enterprises.

Large enterprises are one of the key adopters of this technology. The use of this technology is expected to grow when these organizations embrace deep learning and supervise and unsupervised machine learning approaches for a variety of applications. The implementation of these innovations by large organizations is influenced by many factors, including cost and constant technical upgrades.

Text analytics is now being used widely by SMEs to monitor and track social media events, such as discussing particular products and brand mentions. Companies use these tools to manage written content and make business strategies according to global trends. The growing relevance of online data for successful marketing and decision-making is expected to drive NLP applications among SMEs.  

By Technology Analysis

Text and Speech Analytics Segments to Grow Rapidly Owing to Increasing Application

On the basis of technology, the NLP market is segmented into interactive voice response (IVR), optical character recognition (OCR), text analytics, speech analytics, classification and categorization, pattern and image recognition, and others such as auto coding, professional services.

NLP uses a combination of techniques, including segmentation and parsing, to construct an analytical model. Supervised and unsupervised machine learning algorithms are primarily involved in natural language processing.

Organizations can leverage it in two ways: to understand the query or to understand the content. It enables an improved understanding of queries put forward by the users and enterprise content. This allows the organizations to assure that every user is connected to a relevant resource hidden beneath massive quantities of data.

The text analytics segment is anticipated to exhibit a remarkable CAGR during the forecast period. Text and speech analytics are gaining importance in many industries, such as marketing & finance, retail, BFSI, and others. This is due to extracting and analyzing heaps of texts that can help businesses draw useful insights to understand the market dynamics and manage risks.

Although voice remains a primary channel for conveying a benefit, clients progressively choose speech-based channels for communication. Speech analytics understand languages through linguistics and can perceive the fundamental concepts of a sound. They can also provide smart data even when the translation is flawed. Hence, the speech analytics segment is projected to experience significant growth, followed by the text analytics segment.

Other technologies, such as interactive voice response (IVR) integrated with the NLP, enable companies to develop new approaches towards digital commerce. They are incorporated with text and other visual content to provide an enhanced customer experience. Optical character recognition (OCR), on the other hand, denotes the analysis of images as alphanumeric text into machine-encoded text.

By Industry Vertical Analysis

To know how our report can help streamline your business, Speak to Analyst

Healthcare Industry to Show Astonishing Growth Stoked by Rising Usage of Virtual Assistant

Based on industry vertical, the market is segmented into healthcare, retail, high tech and telecom, BFSI, automotive & transportation, manufacturing, advertising, media and entertainment & others.

NLP in healthcare can be used in three ways such as predictive analytics, prescriptive analytics, and intelligent voice support systems. The healthcare industry is expected to showcase high adoption across the applications. Virtual assistants handle tasks such as scheduling appointments and registration of patients. For instance, Pennsylvania WellSpan Health, an integrated health system located in South-Central Pennsylvania, leverages voice-based tools to dictate patient-provider information. Similarly, a set of analysts from France created another NLP-based calculation that would screen, distinguish, and avoid hospital-acquired diseases (HAI) among patients. It has made a difference in rendering unstructured information, which was, at that point, utilized to distinguish early signs and hint clinicians regarding the same.

A virtual assistant placed at the shop can identify and know the customers' requirements and provide them with quick information and promotional offers in the retail industry. The specialized virtual assistant equipped with NLP solutions can understand the shopper’s requirements and queries regarding the products, and it can provide a quick direction for resolution. The e-commerce industry is currently using conversational agents for customer support. The media and data-driven decision-making processes are key factors driving the global market.


North America Natural Language Processing Market Size, 2020 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

North America held maximum market share in 2020. The companies operating in the region are heavily investing in the advancement of NLP and applications to improve customer service programs by providing additional incentives, attracting more customers, and, as a result, contributing to the growth of the regional market.

The increasing developments in the industry studied by global players based in the United States are advancing this market and accelerating the pace of product launches in the area. The fast-growing trend in the region can be attributed to the region's growing usage of patient health record systems and the digital innovations in the healthcare and life sciences industries. The maintenance of these health records using automated technologies focused on machine learning and natural language processing is a major driver of business development.

Asia Pacific is expected to grow at the highest CAGR during the forecast period. It is estimated that the adoption of AI would increase across the APAC region in the coming years, owing to the government initiatives for implementing AI in the business processes. China is expected to witness the high implementation of NLP in the market. The Government of China introduced AI plans in their 13th five-year plans, running from 2016 to 2020, to implement advanced technology in the country’s development plan.

Europe is expected to have a moderate growth rate during the forecast period. European Union announced an investment plan of USD 24 billion in AI research by 2020, which is further expected to boost technological advancement in the region.

Latin America and the Middle East and Africa are expected to showcase significant adoption owing to the increasing demand for human-machine communication applications.


Market Players to Invest in the Development and Advancement of NLP to Gain Competitive Edge

Some of the key players in the global natural language processing market, such as Apple Inc., Microsoft Corporation, Google Inc., Hewlett-Packard Enterprise Company, Adobe Systems, Inc., International Business Machine (IBM) Corporation, SAS Institute, Inc., have contributed majorly to the market.  Furthermore, some of the established players in the market are acquiring start-ups that are providing AI-enabled products and solutions to expand their product portfolio and maintain their dominance in the AI market.

  • March 2021 – Amazon Web Services (AWS) launched Lookout for Metrics, a new ML service that helps SMEs and large enterprises to monitor the most important business parameters such as transaction volume, revenue, web page views with greater speed and accuracy.


  • Amazon Web Services, Inc. (Washington, United States)

  • Baidu, Inc. (Beijing, China)

  • Microsoft Corporation (Washington, United States)

  • Hewlett Packard Enterprise Development LP (HPE) (California, United States)

  • IBM Corporation (New York, United States)

  • Google, Inc. (California, United States)

  • Intel Corporation (California, United States)

  • Inbenta (California, United States)

  • SAS Institute Inc. (North Carolina, United States)

  • Veritone Inc. (California, United States)

  • SAP SE (Walldorf, Germany)

  • Narrative Science (Narrative Science)

  • Linguamatics (Cambridge, United Kingdom)

  • Conversica (Washington, United States)

  • SparkCognition, Inc. (Texas, United States)


  • August 2020 – Google Corporation launched Language Interpretability Tool (LIT), an open-source model that can understand, audit, and visualize NLP models. The tool is a browser-based GUI that allows for quick discovery and review of errors.

  • February 2020 – Kore.Ai launched, a leading conversational AI solution provider launched enterprise-grade VA platform. The recently released platform allows developers to create virtual assistants using conversational AI techniques such as NLP, NLU, Machine Learning, Deep Learning, and Predictive Analytics.


An Infographic Representation of Natural Language Processing (NLP) Market

To get information on various segments, share your queries with us

The market research report provides an in-depth analysis of the market and focuses on key aspects such as leading companies, applications, and advanced technologies among several industry verticals. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation



Study Period

  2017 – 2028

Base Year


Forecast Period

  2021 – 2028

Historical Period

  2017 – 2019


  Value (USD Billion)


   By Deployment; Enterprise Size; Technology; Industry Vertical; and Region


By Deployment

  • On-Premises

  • Cloud

  • Hybrid

By Enterprise Size

  • Small and Medium-sized Enterprises (SMEs)

  • Large Enterprises

By Technology

  • Interactive Voice Response (IVR)

  • Optical Character Recognition (OCR)

  • Text Analytics

  • Speech Analytics

  • Classification and Categorization

  • Pattern and Image Recognition

  • Others (Auto Coding, Professional services, etc.)

By Industry Vertical

  • Healthcare

  • Retail

  • High Tech and Telecom

  • Banking, Financial Services and Insurance (BFSI)

  • Automotive & Transportation

  • Advertising & Media

  • Manufacturing

  • Others (Government, Energy & Power, Etc.)

By Region

  • North America (By Deployment, Enterprise Size, Technology, Industry Vertical)

    • United States

    • Canada

  • Europe (By Deployment, Enterprise Size, Technology, Industry Vertical)

    • UK

    • Germany

    • France

    • Scandinavia

    • Rest of Europe

  • Asia Pacific (By Deployment, Enterprise Size, Technology, Industry Vertical)

    • China

    • Japan

    • India

    • Southeast Asia

    • Rest of APAC

  • The Middle East & Africa (By Deployment, Enterprise Size, Technology, Industry Vertical)

    • GCC

    • South Africa

    • Rest of MEA

  • Latin America (By Deployment, Enterprise Size, Technology, Industry Vertical)

    • Brazil

    • Mexico

    • Rest of Latin America

Frequently Asked Questions

According to Fortune Business Insights, the global market size is expected to reach USD 127.26 billion by 2028.

Fortune Business Insights says that the market value stood at USD 16.53 billion in 2020.

By 2028, the market size is expected to reach USD 127.26 billion.

The market is expected to grow at a CAGR of 29.4% during the forecast period (2021-2028).

By technology, the text analytics segment is expected to lead the market during the forecast period.

The rising need for enhanced customer experience is one of the key drivers for market growth.

Google, Inc., Intel Corporation, Inbenta, SAS Institute Inc., Veritone Inc., Amazon Web Services, Inc., Baidu, Inc., Inc., Microsoft Corporation, SAP SE, and Hewlett Packard Enterprise Development LP (HPE) are the top companies in the market.

By vertical, the high tech and telecom segment holds the major market share.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Jun, 2021
  • 2020
  • 2017-2019
  • 160


  • $4850
    Buy Now

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.