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The global natural language processing (NLP) market size was valued at USD 8.61 billion in 2018 is projected to reach USD 80.68 billion by 2026, exhibiting a CAGR of 32.4% during the forecast period
Natural language processing is a communication bridge between technology and humans. With the help of NLP, the input instructions provided by humans are easy to understand by the computers. Natural language processing is also considered to be a branch of artificial intelligence (AI) that understands, interprets, and manipulates human languages. The adoption of natural language processing is rapidly increasing owing to the rising interest in human-to-machine communications, along with increasing demand for big data, powerful computing, and enhanced algorithms.
Machine learning approaches also require a proper understanding of the input data provided in the human languages. Thus, adoption of natural language processing will rise in the coming years. It also provides valuable numeric structure to the information for numerous applications, such as speech acknowledgment or content analytics.
Common language handling is integrated with content analytics which tallies, bunches or bundles, and categorizes words to extricate structure and meaning from an expansive volume of substance. Content analytics is utilized to investigate mass data and determine unused factors from the basic content. This data is visualized, shifted, or utilized as inputs to models or other measurable strategies. Interactive voice response (IVR) system offers services which provides less response time for customer queries. IVR with the help of AI, identifies the requests and proceeds them instantly.
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The natural language processing market trends are highly adopted in the industry verticals such as healthcare, manufacturing, BFSI, advertising, automotive, and others. In manufacturing, robotics and process automation sector NLP capabilities are expected to be the promising applications. For instance, NLP helps robots on the manufacturing and production floor to interact with the human operators and process instructions for assembly and movement of machines and products. To improve the efficiency of production workflow in the industries, the adoption of NLP is increasinge at a high rate.
“Rising Need for Enhanced Customer Experience to Boost the Natural Language Processing Market Demand”
Understanding the clients’ 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 that are 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 will aid in analyzing the clients’ inquiry or comments and further, convert them into individual solutions.
The integration of AI along with NLP can make suggestions based on the history of information, available customer data, or from the instant responses by the client. 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 along with NLP, can offer unique and customized recommendations that are more specific to the customers’ queries. The platform is able to 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 Likely to Boost the Growth of NLP Market”
NLP is one of the primary AI-driven capabilities that include the Internet of Things (IoT), computer vision, and document understanding. The organizations leverage these 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 has transformed the NLP applications. Moreover, growing adoption of virtual assistants, namely, Alexa and Siri, as well as advanced search engines, such as Google have provided a comprehensive platform for the applications of NLP. Similarly, chatbots are being used across several industries. Also, Siri, Alexa, and Google Home are incorporating natural language conversations between artificial intelligence and humans into day to day interactions.
For instance, RAVN Systems, a provider of AI, search, and knowledge management launched RAVN, an applied cognitive engine. It is a software-powered robot that facilitates the general data protection regulation compliance. The robot is programmed by using natural language processing.
Furthermore, Capital One, a provider of financial services, launched a chatbot named ‘Eno’ for its customers. Eno is a NLP chatbot that helps people communicate through texting. Further, the SMS chatbot enables the customers to ask questions in natural language. Thus, such innovations and research and developments are likely to drive the NLP market growth during the forecast period.
“Cloud Segment to Exhibit High Growth Backed by Possession of Numerous Benefits”
In terms of deployment, the market is segmented into on-premise, cloud, and hybrid. The 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 NLP 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 the NLP 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 NLP platform enables the users to utilize and analyze multilingual content and user-generated content and other web content. Hybrid deployment is expected to exhibit moderate adoption during the forecasted period. Thus, all the above factors are set to drive the adoption of cloud-based deployment of natural language processing solutions.
“Text and Speech Analytics Segments to Grow Rapidly Owing to Increasing Application”
On the bases 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 NLP in two ways to understand the query or to understand the content. NLP 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 that would remain hidden beneath massive quantities of data.
Text analytics segment is anticipated to exhibit a remarkable CAGR during the forecast period. Text and speech analytics is gaining importance in many industries, such as marketing & finance, retail, BFSI, and others owing to the process of extracting and analyzing heaps of texts that can help the businesses to draw useful insights to understand the market dynamics and manage risks.
Although, voice remains a primary channel for conveying a benefit, clients are progressively choosing 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 the companies to develop new approaches towards digital commerce. They are incorporated with text and other visual content for providing a better customer experience. Optical character recognition (OCR), on the other hand, denotes the analysis of images as alphanumeric text into machine-encoded text. It is one of the most common applications of NLP.
“Retail Segment Will Show Astonishing Growth Stoked by Rising Usage of Virtual Assistant”
Based on industry vertical, the natural language processing market is segmented into healthcare, retail, high tech and telecom, BFSI, automotive & transportation, manufacturing, advertising & media, and others (government).
The healthcare industry is expected to showcase high adoption of NLP technology across the applications. Tasks such as scheduling appointments and registration of patients are handled by virtual assistants. Moreover, NLP in healthcare can be used in three different ways, namely, predictive analytics, prescriptive analytics, and intelligent voice support systems. For instance, Pennsylvania Well Span Health, an integrated health system located in South-Central Pennsylvania, leverages voice-based tools for dictating the patient-provider information.
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Similarly, a set of analysts from France worked on creating another NLP-based calculation that would screen, distinguish, and avoid hospital-acquired diseases (HAI) among patients. NLP made a difference in rendering unstructured information, which was, at that point, utilized to distinguish early signs and hint clinicians regarding the same.
Furthermore, in the retail industry, a virtual assistant placed at the shop can identify and know the requirements of the customers and provide them quick information and promotional offers. 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 some of the key factors driving the global natural language processing market.
The global natural language processing market growth has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
North America has the maximum NLP market share. The enterprises are investing in the advancement of NLP and its applications. With the increasing unstructured data by the start-ups in the U.S., they are also deploying natural language processing services. Furthermore, many start-up companies are entering in the NLP market, especially in the U.S., China and Europe. This is occurring because of the increasing demand for AI and NLP enabled products & solutions that are available in the market, as well as good return on investments.
North America Natural Language Processing (NLP) Market Size, 2018, (USD Billion )
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Asia Pacific is the fast-growing region in the natural language processing market. It is estimated that the adoption of AI would increase across the APAC region in the coming years, owing to the government initiatives for the implementation of AI in the business processes. China is expected to witness 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 in the forecasted period. EU announced an investment of USD 24 billion in AI research by 2020. This will boost the natural language processing market revenue during the coming years. Latin America and the the Middle East and Africa are expected to show significant adoption of NLP owing to the increasing demand for human-machine communication applications.
“Market Players to Invest in the Development and Advancement of NLP for Gaining Competitive Edge”
Some of the key players in the 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 in the natural language processing 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. For instace, Alphabet acquired DeepMind and Salesforce acquired Tableau.
In addition, Amazon Web Services is offering Amazon Comprehend, a natural language processing service that uses machine learning to find insights. This can be used to analyze medical and heathcare data to provide insights of drug quality and its benefits. Also, in the healthcare industry, implementation of natural language processing helps to interact with doctors during emergency situations and also on a daily basis to provide helath related suggestions. Apart from that, artificial intelligence is playing a major role in the healthcare industry. This would support to generate maximum NLP market revenue in the coming years.
The natural language processing market report provides qualitative and quantitative insights on the global natural language processing market and detailed analysis of the NLP market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the global NLP market dynamics and competitive landscape. Various key insights presented in the report are recent industry developments in the global natural language processing market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and competitive landscape, and company profiles.
An Infographic Representation of Natural Language Processing (NLP) Market
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Value (USD billion)
By Industry Vertical
Fortune Business Insights says that the natural language processing (NLP) market is projected to reach USD 80.68 billion by 2026
In 2018, the natural language processing (NLP) market was valued at USD 8.61 billion
The natural language processing (NLP) market will exhibit 32.4% CAGR in the forecast period (2019-2026)
Healthcare and retail industries are expected to be the leading segments in the natural language processing (NLP) market
Growing need to understand the customers’ behavior and the emergence of advanced technologies, such as machine learning and big data analytics are the key factors driving the natural language processing (NLP) market
Amazon Web Services, Intel, Google, Apple, IBM, and SAS are the top players in the natural language processing (NLP) market
North America is expected to hold the highest market share in the natural language processing (NLP) market
The increasing adoption of AI for better communication between humans and machines is the natural language processing trend
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