"Smart Strategies, Giving Speed to your Growth Trajectory"

Natural Language Processing (NLP) Market Size, Share & Industry Analysis, By Deployment (On-Premises, Cloud, and Hybrid), By Enterprise Type (Small & Medium-sized Enterprises and Large Enterprises), By Technology (Interactive Voice Response, Optical Character Recognition, Text Analytics, Speech Analytics, Classification and Categorization, Pattern and Image Recognition, and Others), By Industry (Healthcare, Retail, High Tech and Telecom, Banking, Financial Services, and Insurance, Automotive & Transportation, Advertising & Media, Manufacturing, and Others), and Regional Forecasts, 2024-2032

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

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global Natural Language Processing (NLP) market size was valued at USD 24.10 billion in 2023. The market is projected to grow from USD 29.71 billion in 2024 to USD 158.04 billion by 2032, exhibiting a CAGR of 23.2% during the forecast period.


Natural language processing consists of the combination of the computational rule-based modeling of the human language that represents data in machine learning, statistical, and deep learning models. The report comprises various Natural Language Processing products from key players such as Hewlett Packard Enterprise Development LP, Amazon.com, Inc., Google, LLC (Alphabet), SAP SE, IBM Corporation, and others. These players offer NLP applications such as speech recognition, sentiment analysis, virtual agents & chatbots, and text analytics to provide meaningful sentences and phrases from internal representations in the form of natural language.


NLP is required when an intelligent system such as a robot performs as per user instructions. Interactive voice response is an automated phone system that interacts with callers, routes calls to appropriate recipients, and collects information. The IVR system takes action based on the caller’s response via voice output or telephone keypad. Optical character recognition technology extracts and uses data from camera images and scanned documents.


Rising digital transformation and adopting these tools allow businesses to transform business modules, driving the natural language processing market growth.


The leading players are developing advanced NLP technology for the healthcare and automotive industries. For instance,



  • March 2022 – Enterpret launched NLP technology to decipher customer feedback. With the help of this technology, Enterpret deployed customer-specific models, based on customer feedback.


The COVID-19 pandemic has negatively impacted the global economy as governments worldwide have imposed lockdowns and restrictions. However, the COVID-19 pandemic has pushed businesses worldwide to shift to digital platforms and implement digital technologies-based solutions to streamline their business operations. Enterprises implemented digital strategies for automating their business processes. Globally, market revenue slightly increased by 0.2%, showing USD 13.55 billion in 2020 amid pandemic.


Natural Language Processing (NLP) Market Trends


Rising Digitalization and Adoption of Advanced Technologies to Aid Market Growth


The rising adoption of digital technology-based software among enterprises and global businesses is driving the market growth. Several leading players are investing in developing advanced technology-based NLP software to optimize business operations. Conversational AI, powered by NLP technologies, is becoming increasingly prevalent in customer service, virtual assistants, and chatbots. Businesses are leveraging conversational AI to provide personalized customer experiences, enhance engagement, and drive sales. NLP enables these systems to understand and respond to natural language queries, leading to more effective communication and interactions with users. For instance,



  • In February 2023, Bain & Company made alliances with OpenAI, the R&D company behind the AI systems ChatGPT, Codex, and DALL·E. With this partnership, Bain combined its digital capabilities with OpenAI’s AI tools to help its global clients identify and implement the value of AI.

  • In April 2021, Apple Inc. planned to launch next generation 5G infrastructure. The company announced an investment of around USD 430 billion to develop 5G for the U.S. economy for the next five years. 


Due to such increasing demand for these tools amid COVID-19 pandemic, market players are likely to increase spending on advanced technologies and protocols. This factor is likely to encourage the market player’s revenue to expand the product portfolio, increase brand awareness, and partner with established companies to stay competitive in the market post-COVID-19 outbreak.


Request a Free sample to learn more about this report.


Natural Language Processing (NLP) Market Growth Factors


Growing Popularity of Cloud-based NLP Solutions and AI-based Software among SMEs to Boost the Market Growth


Enterprises are adopting cloud-based solutions to provide better scalability and reduce overall costs. Such solutions reduce the time required for data collection and processing. AI powered chatbots and cloud based interactive voice recognition systems aids in automating business operations and making data-driven decisions. The chatbots collect data and help businesses with predictive and market analyses for a particular product.


Technological advancements in AI has transformed the way businesses operate. Companies especially start-ups and SMEs are obtaining tailored solutions based on their requirements. For instance,



  • In November 2022, IBM expanded its AI software portfolio by launching three natural language processing libraries. This expansion helped IBM ecosystem partners and global clients to build cost effective AI applications across multi-cloud and hybrid environment.


The rapid advancements in Artificial Intelligence (AI) and Machine Learning (ML) algorithms have significantly improved the accuracy and performance of NLP models. Deep learning techniques, such as neural networks have enabled the NLP system to understand and generate human-like language with greater precision, leading to breakthroughs in tasks, such as sentiment analysis, language translation, and chatbots.


RESTRAINING FACTORS


Data Security Concerns is Likely to Hinder the Market Growth


Rising data security concern with limited interoperability of the NLP-based software among enterprises hinders the market growth. The use of NLP technologies raises concerns about data privacy and security, especially when dealing with sensitive or personal information. Organizations must ensure compliance with regulations, such as General Data Protection Regulation (GDPR) and Health Insurance Portability and Accountability Act (HIPAA) to protect user data and mitigate the risk of data breaches or misuse of information. This software is used for performing authorship attribution and sentiment analysis as a core function of Apple’s Siri and IBM’s Watson. However, these are subjected to security concerns that hinder the market growth. The average cost of cybersecurity and malware attacks of any firm is around USD 2.6 million, which is likely to decline the market growth.


Natural Language Processing (NLP) Market Segmentation Analysis


By Deployment Analysis


 Cloud Segment to Dominate Owing to Rising Adoption of Cloud Software and Services


The market scope includes on-premises, cloud, and hybrid based on deployment. Cloud is expected to have the largest share in 2022 and is growing with the highest CAGR during the forecast period due to the rising adoption of cloud-based services among enterprises around the globe. According to the Flexera State of the Cloud Report in 2022, around 81% of enterprises adopted a multi-cloud strategy for their businesses. Also, in 2021, more than 67.0% of all enterprises have used cloud-based infrastructure as per the report.


Further, hybrid segment is expected to grow with a moderate CAGR during the forecast period owing to a surge in AI-based tools and software adoption. Also, increased annual spending on artificial intelligence & emerging technology by developing countries is driving the market globally.


By Enterprise Type Analysis


Large Enterprises to Dominate Owing to Rising Development of NLP Tools


Based on enterprise type, the market scope includes small & medium-sized enterprises (SMEs) and large enterprises. Large enterprises segment had the largest NLP market share in 2022. This factor is primarily owing to the rising development of advanced NLP platforms among large enterprises. For instance,


Also, SMEs are expected to grow at the highest CAGR during the forecast period. This factor is primarily owing to the rising adoption of digital transformation by digital tech start-ups and SMEs around the globe.


By Technology Analysis


Text Analytics Segment to Hold Dominant Market Share Owing to Rising Development of Consumer Analytics


The market is segmented into interactive voice response, optical character recognition, text analytics, speech analytics, classification and categorization, pattern and image recognition, and others (auto coding, professional services, and others) based on technology. Text analytics segment is expected to have the largest share in 2022 due to the rising development of these analytics tools by the key players in the market. For instance, in February 2022, Qina launched the QinaVer text analytical tool to help companies to innovate personalized nutrition. Text analytics tools use machine learning and natural language processing to use unstructured data and analyze data sentiments, topics, and key phrases. Such rising use and development of the next-generation text analytics tools are expected to strengthen the market growth.


Interactive voice response segment is expected to grow with the highest CAGR during the forecast period owing to rising adoption during the COVID-19 pandemic. During the pandemic, interactive voice response is used by healthcare providers to assist the patients in providing necessary treatment to cure COVID-19-infected patients. Also, several countries’ governments are developing advanced technology-based interactive voice recognition systems for assistance during the pandemic. For instance,


By Industry Analysis


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


High Tech and Telecom Segment to Dominate Backed by Rising Advanced AI-based Tools Adoption by Companies


The market scope includes healthcare, retail, high tech and telecom, Banking, Financial Services & Insurance ((BFSI), automotive & transportation, advertising & media, manufacturing, and others (government, energy & power, and others) based on industry. Among these, high tech and telecom segment is expected to have the largest share owing to rising investments and development of the IT companies with AI-based tools for the digital transformation of businesses. For instance,



  • In March 2023, Kensho Technologies launched a Natural Language Processing Solution, Kensho Classify that conceptually understands and classifies documents. It makes content more discoverable and enables analysis of text.


The healthcare sector is expected to grow at the highest CAGR during the forecast period owing to the rising adoption of mature technologies and IT software such as predictive analytics, automation tools, NLP tools, and cloud-based software in the healthcare sector. Using NLP, medical researchers can monitor popular online comment boards and better understand public concerns during the COVID-19 pandemic, which helped develop the COVID-19 vaccine.


REGIONAL INSIGHTS


Geographically, the market is fragmented into five chief regions; Asia Pacific, North America, the Middle East & Africa, Europe, and Latin America.


North America Natural Language Processing (NLP) Market Size, 2023 (USD Billion)

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


North America is expected to dominate the global natural language processing market share during the forecast period, owing to the presence of leading players such as IBM Corporation, Alphabet LLC, Oracle Corporation, Microsoft Corporation, and others. These players are developing advanced technology-based NLP platforms for optimizing business operations by adopting several strategies such as mergers, acquisitions, and partnerships.



  • In July 2022, Reddit acquired MeaningCloud, a NLP company to support machine learning (ML) projects across its advertising teams. It aided the understanding of unstructured data to provide relevant information for Reddit users.


Europe is expected to grow at a moderate CAGR during the forecast period due to the rising cloud computing adoption among enterprises in Europe. According to the European Commission Organization, around 42% of European enterprises adopted cloud-based services in 2021 and are proliferating. Such an increase in the adoption of cloud services is expected to strengthen the market growth. 


Asia Pacific is expected to grow with the highest CAGR due to rising NLP in Asia Pacific, which is anticipated to show significant growth in coming years, owing to the growing focus on adopting AI, deep learning, and machine learning technologies by countries. The Japanese government is taking various initiatives to encourage NLP across the country, along with the surge in adoption of machine learning services, which play a vital role in driving the market in Japan. Players in the region focus on offering open-source platforms for building custom these solutions according to customer requirements and offering advanced software tools or API solutions with advanced features per user requirements.


Latin American countries, such as Mexico, Brazil, and others are expected to grow with moderate CAGR owing to the rising adoption of the advanced NLP platform among large and small-scale enterprises.


The Middle East & Africa is growing with moderate CAGR owing to the rising digitalization of and adoption of advanced technologies in the Gulf countries. GCC governments’ ambitious plans to position themselves at the forefront of the digital revolution will positively impact this market. According to a survey by Microsoft Corporation, 30% of companies in the region have started using NLP to improve customer experience.


List of Key Companies in Natural Language Processing (NLP) Market


Key Players Are Investing in Adopting Advanced NLP through Several Strategies


The global market is consolidated with leading players such as Hewlett Packard Enterprise Development LP, Amazon.com, Inc., and Google, LLC. (Alphabet), SAP SE, IBM Corporation, and others. These crucial players are investing and inventing advanced products by adopting corporate strategies such as partnerships, mergers, acquisitions, and collaborations. For instance,



  • In July 2022, SAP SE acquired Askdata (search-driven analytics company) to assist organisations in making better decisions with the help of AI-driven natural language searches.

  • In July 2021, SAP SE and Google Cloud declared a strategic collaboration to assist customers in transferring critical business systems to the cloud, accomplish business transformations, and increase existing business systems with Google Cloud’s competency in machine learning and artificial intelligence.


List of Key Companies Profiled:



KEY INDUSTRY DEVELOPMENTS:



  • March 2023 – Kensho Technologies launched a novel NLP solution, named Kensho Classify. This solution derives values from a large volume of text and documents by making content easily discoverable, smart search, and streamlined research & analysis.

  • March 2023 – Amazon collaborated with IIT Bombay and launched Amazon IIT–Bombay AI-ML Initiative. This programme is facilitating advance machine learning and artificial intelligence research within language, speech, and multimodal-AI domains.

  • February 2023 - Amazon Web Services (AWS) collaborated with Hugging Face, a natural language processing model provider, to accelerate training and deployment of large language.

  • July 2022 - SoundHound collaborated with LG to develop Voice AI Technology for next-gen in-vehicle infotainment systems, which will encourage OEMs to create new revenue streams.

  • April 2022 - Technology Innovation Institute (TII), a Abu Dhabi’s research launched NOOR, an Arabic natural language processing model to handle tasks beyond the domain of language.

  • March 2022 - Cerebras Systems partnered with nference, an AI-driven health technology company, to accelerate NLP for biomedical research and development with the help of Cerebras CS-2 system implemented at the nference headquarters.


REPORT COVERAGE


An Infographic Representation of Natural Language Processing (NLP) Market

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



The report offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments. It also elaborates on market research, dynamics, emerging trends, and the competitive landscape. Key insights offered in the report are the adoption of automation by individual segments, market intelligence, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.


REPORT SCOPE & SEGMENTATION










































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 23.2% from 2024 to 2032



Unit



Value (USD billion)



Segmentation



By Deployment



  • On-Premises

  • Cloud

  • Hybrid


By Enterprise Type



  • 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, and Others)


By Industry



  • Healthcare

  • Retail

  • High Tech and Telecom

  • Banking, Financial Services, and Insurance (BFSI)

  • Automotive & Transportation

  • Advertising & Media

  • Manufacturing

  • Others (Government, Energy & Power, and Others)


By Region



  • North America

    • U.S.

    • Canada



  • Europe

    • U.K.

    • Germany

    • France

    • Scandinavia

    • Rest of Europe





  • Asia Pacific


    • China

    • Japan

    • India

    • Southeast Asia

    • Rest of Asia Pacific




  • Middle East & Africa

    • GCC

    • South Africa

    • Rest of the Middle East & Africa



  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America





Frequently Asked Questions

The global market value is predicted to reach USD 158.04 billion by 2032.

In 2023, the market value stood at USD 24.10 billion.

The market is projected to register a CAGR of 23.2% during the forecast period of 2024-2032.

The cloud segment is expected to show the highest CAGR during the forecast period.

North America dominated the market owing to rising investment in digitalization and the presence of several leading players in the market.

By technology, text analytics segment leads the market owing to the huge amount of data from social media, websites, and others.

Data security concerns and limited interoperability with existing software and its infrastructure restrain the market growth.

Rising adoption of cloud-based NLP and AI-based software among small & medium businesses is the critical factor driving the market.

Some of the top players in the market are Hewlett Packard Enterprise Development LP, Amazon.com, Inc., Google, LLC (Alphabet), SAP SE, IBM Corporation, and Inbenta Holdings Inc.

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

Speak to an Expert
  • Mar, 2024
  • 2023
  • 2019-2022
  • 180

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $6850

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

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“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.
X