The global natural language processing (NLP) market size is projected to reach USD 80.68 billion by 2026. The market is expected to gain momentum from an urgent need to understand the ever-increasing requirements and feedback of consumers. Fortune Business Insights™, published this information in a recent report, titled, “Natural Language Processing (NLP) Market Size, Share & Industry Analysis, By Deployment (On-Premises, Cloud, and Hybrid), By Technology (Interactive Voice Response (IVR), Optical Character Recognition (OCR), Text Analytics, Speech Analytics, Classification and Categorization, Pattern and Image Recognition, and Others), By Industry Vertical (Healthcare, Retail, High Tech and Telecom, BFSI, Automotive & Transportation, Advertising & Media, Manufacturing, and Others) and Regional Forecast, 2019-2026.” The report further mentions that the market value stood at USD 8.61 billion in 2018. NLP market is set to exhibit a CAGR of 32.4% during the forecast period between 2019 and 2026.
Rising R&D Activities of AI-based Technologies to Propel Growth
NLP includes several features, namely, document understanding, computer vision, and the internet of things (IoT). Companies operating in this market are leveraging these capabilities to develop business values. Additionally, the introduction to smart assistants and devices, such as Apple’s Siri and Amazon’s Alexa, is affecting the NLP market growth positively. As per one of our lead analysts, “Research and development activities in AI-equipped technologies, such as deep learning, machine learning, and cognitive search, have remolded the natural language processing industry. Nowadays, chatbots are also implemented frequently by various companies.” All these factors would contribute to market growth.
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Key Segments of Natural Language Processing Market
- By deployment: The market is fragmented into hybrid, cloud, and on-premises. The cloud segment is anticipated to grow considerably as this technology is flexible and scalable for big data applications. Many machine learning and AI-based projects fall into the big data category. Prominent vendors are also taking multiple initiatives to promote the usage of cloud-based NLP solutions. Apart from that, these solutions allow users to analyze and adopt user-generated, web, and multilingual content. The hybrid segment would grow moderately in the coming years.
- By technology: The market is divided into pattern and image recognition, interactive voice response (IVR), speech analytics, optical character recognition (OCR), classification and categorization, text analytics, and others (auto coding, professional services, etc.). The text analytics segment is expected to grow remarkably. The speech analytics segment would also follow its footsteps. In industries, namely, BFSI, retail, and marketing & finance, both these features are gaining more importance. It is occurring because the process of analyzing and extracting tons of texts can aid the companies in drawing useful insights to manage risks and understand market dynamics. The OCR and IVR segments would also exhibit good growth owing to their ability to assist companies in developing new approaches towards digital commerce.
- By industry vertical: The market is grouped into manufacturing, retail, advertising & media, healthcare, automotive & transportation, high tech and telecom, BFSI, and others (government). The healthcare segment is anticipated to experience high growth owing to the increasing adoption of NLP solutions. Tasks, such as registration of patients and scheduling appointments, are handled completely by virtual assistants. The NLP solutions can be used in three ways, namely, intelligent voice support, prescriptive analytics, and predictive analytics systems. The retail segment, on the other hand, is set to showcase a steady growth backed by the usage of virtual assistants at the shops. They are capable of identifying and evaluating the requirements of the consumers and offering them promotional offers, as well as brief information. The high tech and telecom segment had generated a 19.4% NLP market share in 2018.
- By region: The market is segregated into Latin America, North America, the Middle East and Africa, Europe, and Asia Pacific. North America's natural language processing market size was USD 4.12 billion in 2018. The companies present in this region are also investing huge sums in innovating NLP and its applications. The U.S. houses several start-up companies that possess a vast amount of unstructured data. That’s why they are using NLP solutions. Asia Pacific, on the other hand, is set to be one of the fastest-growing regions stoked by the rising government initiative to encourage the usage of AI-based NLP solutions in the business. Europe, the Middle East and Africa, and Latin America would also exhibit significant growth backed by the increasing investment by key players and high demand for human-machine communication applications.
Key Players Focus on Novel Product Launches & Acquisitions to Stay Ahead of Competition
The market consists of many organizations that are persistently focusing on acquisitions and new product launches to keep up with the latest natural language processing market trends and serve their consumer bases efficiently.
Fortune Business Insights™ lists out some of the major companies present in the NLP market. They are as follows:
- 3M Company
- Adobe Systems Inc.
- Amazon Web Services Inc.
- Apple Inc.
- Google (Alphabet Inc.)
- Hewlett-Packard Enterprise Company
- Intel Corporation
- International Business Machine (IBM) Corporation
- Microsoft Corporation
- SAS Institute Inc.
- Other key market players
Latest Industry Developments
- November 2019: Amazon Comprehend have begun supporting real-time custom classification that would help the users in routing, labeling, and understanding information based on their business rules.
- July 2017: The State Council of China released its ‘New Generation Artificial Intelligence Development Plan.’ It is planning to create a domestic AI industry and become the leading AI power by 2030.
The global natural language processing market can be segmented in the following way:
Value (USD billion)
- 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
- High Tech and Telecom
- Automotive & Transportation
- Advertising & Media
- Others (Government,etc.)
- North America (U.S. and Canada)
- Europe (U.K., Germany, France, Scandinavia, and Rest of Europe)
- Asia Pacific (Japan, China, India, Southeast Asia, and Rest of Asia Pacific)
- The Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)
- Latin America (Brazil, Mexico, and Rest of Latin America)