The tremendous increase in digital data, the increased usability of smart devices, and the growing demand for improved customer experience are all driving the global market for natural language processing. Furthermore, the natural language processing market is expected to benefit from increased investments in the healthcare sector as well as the advent of various new application areas. The Global Natural Language Processing Market study offers a comprehensive analysis of the industry. The research includes a detailed analysis of key segments, trends, drivers, constraints, the competitive landscape, and other important market variables.
Covid-19 Impact & Market Status
Due to the global lockdown, the NLP market is likely to halt considerably in 2020. The COVID-19 pandemic has accelerated churn and shaken virtually every vertical. The lockdown is having a negative impact on global manufacturing, supply chain, and logistics, as well as the continuity of operations for numerous verticals. Manufacturing, transportation and logistics, and retail and consumer products are the verticals with the most challenges. The shortage of labour to operate on manufacturing lines, supply networks, and transportation has a negative influence on the availability of vital commodities, despite the fact that critical items are exempt from the lockdown. By early 2021, the condition should be under control, and demand for NLP solutions and services should rise as a result of the rising desire for bettering customer experiences and creating individualised relationships with prospects.
Several industries are aiming to use a wide range of NLP solutions and services to support digital transformation programs that address mission-critical procedures, improve operations, and differentiate customer viewing experiences. The adoption of NLP is projected to be driven by major business and operational needs such as lower operating costs, better customer experiences, and lower customer churn rates, increased visibility into processes and operations, and improved real-time decision-making.
The market is divided into three types: statistical NLP, rule-based NLP, and hybrid NLP. In 2018, the statistics category accounted for the largest portion of the natural language processing market. This is due to the advantages of statistical NLP solutions over traditional rule-based NLP solutions, which are driving up demand globally.
The market is divided into three categories based on deployment mode: private cloud, public cloud, and hybrid cloud. During the forecast period, the hybrid cloud category is predicted to develop at the quickest rate in the natural language processing market. This is because some firms have begun to install AI-based data translation technologies, and it is projected that these organisations will opt to separate data on private and public clouds based on secrecy and relevance.
The market is divided into four categories based on application: information extraction, machine translation, question answering, report production, and others. In 2018, machine translation accounted for the greatest portion of the natural language processing market. This is mostly due to an increase in demand in businesses for solutions that allow for text translation into numerous languages.
Healthcare, Banking, Financial Services, and Insurance (BFSI), Retail and Consumer Goods, Research and Education, High tech and Electronics, Manufacturing, Media and Entertainment, and Others are the several verticals in which the market is divided. In 2018, the BFSI sector had the greatest proportion of the natural language processing market. Financial service providers are using natural language processing (NLP) solutions to evaluate unstructured data in large numbers, make effective decisions, and provide high-quality products and services to their clients, resulting in market growth.
The Global Natural Language Processing Market is divided into four regions: North America, Europe, Asia Pacific, and the Rest of the World. In 2018, the natural language processing market in North America held the largest share. This is owing to rising data volumes across businesses, increased desire for improved customer experiences, and huge expenditures in AI-based technology R&D initiatives by various industries, nonprofit organisations, and academics. In 2018, the United States had a bigger share of the North American market. This can largely be attributed to the country's vast number of financial institutions that have implemented NLP solutions for more effective corporate operations.
Natural language processing (NLP) is an artificial intelligence-based computer programme that understands human language. On the basis of a set of technologies and theories, this computerised technique allows the computer to study and interpret human communication. Natural language processing aims to reduce the amount of time it takes to learn computer languages like Ruby, C, C++, and Java. Because huge amounts of data are generated in current business scenarios from sources such as audio, emails, web blogs, documents, social networking sites, and forums, NLP finds use in the study of big data. The global Natural Language Processing (NLP) market size to grow from USD 20.98 billion in 2021 to USD 127.26 billion by 2028, at a CAGR of 29.4% during the forecast period.
Statistical NLP, rule-based NLP, and hybrid NLP are the three main forms of natural language processing systems. Optical character recognition (OCR), auto coding, text analytics, interactive voice response (IVR), pattern and picture recognition, classification and categorization, and speech analytics are some of the recognition, analytics, and operational technologies used in natural language processing. Natural language processing is used in a variety of industries, including automotive, retail and consumer goods, high tech and electronics, government, banking, financial services, and insurance (BFSI), health care and life sciences, research and education, and media and entertainment, for applications such as information extraction, question answering, machine translation, and report generation.
The market for natural language processing is likely to benefit from rising demand for advanced text analytics. Advanced text analytics solutions have risen in popularity as natural language processing has been integrated into text analytics. Natural language processing aids in the translation of human to machine language. This aids in data analysis and the conversion of findings into human language for improved comprehension. The increasing demand for text analytics in various organisations in order to acquire better market insights has pushed the demand for text analytic solutions.
Companies in a variety of industries are concentrating their efforts on keeping a pulse on the market and, as a result, adjusting their product and service offerings to capitalise on emerging trends for increased profitability. Text analytics integration allows businesses to gain market insights about items and their descriptions, which helps them compete in the market and grow their market presence and share.
Furthermore, the social media channel is critical to the growth of the natural language processing business. The demand for real-time market insights relating to client wants and other aspects has grown as competition in numerous verticals has increased. Companies must examine massive volumes of unstructured data created in order to acquire real-time market insights. Natural language processing systems are needed to translate unstructured human language data into machine language, as well as to gain insights from attitudes and emotions expressed in human language. One of the key platforms that offers corporations with a big volume of unstructured data is social media.
Facebook, Twitter, Google+, Pinterest, Instagram, LinkedIn, YouTube, and other major social media platforms are just a few examples. For example, it is estimated that every 60 seconds, approximately 27,000 videos are streamed on YouTube, approximately 3 million posts are shared on Facebook, approximately 430,000 tweets are posted on Twitter, and approximately 120 new users are registered on LinkedIn, according to coherent market insights. Furthermore, the growing number of tools for social media analytics is driving up demand for NLP. For example, the NetBase solution analyses social media and other web information using natural language processing.
The requirement for effective predictive technologies, the necessity to close the gap between machine and man, the implementation of tight government laws, and changeable client adoption trends are among the major roadblocks. When implementing NLP solutions, there are complications owing to the use of code-mixed language. The alternation of languages within a conversation or utterance is known as code-switching or code-mixed (CM) language, and it is a widespread communicative phenomenon found in multilingual cultures all over the world. CM has traditionally been connected with informal or casual discourse.
The study of "Global Natural Language Processing Market" will provide useful information with a focus on the global market. IBM Corporation, Hewlett-Packard Enterprise Company, Microsoft Corporation, Apple Inc., Dolbey Systems Inc., Google, Netbase Solutions, SAS Institute, Inc., Verint System, and 3M Company are the leading participants in the industry. The competitive landscape section also contains a global study of the above-mentioned players' major development strategies, market share, and market position.
Natural Language Processing Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 127.26 billion|
|Growth Rate||CAGR of 29.4% during 2021-2028|
|Segment Covered||Type, Deployment Mode, Application, Vertical, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, The Middle East and South Africa|
|Key Players Profiled||IBM Corporation, Hewlett-Packard Enterprise Company, Microsoft Corporation, Apple Inc., Dolbey Systems Inc., Google, Netbase Solutions, SAS Institute, Inc., Verint System, and 3M Company|
Key Segments of the Global Natural Language Processing Market
Type Overview, 2018-2028 (USD Billion)
- Statistical NLP
- Rule Based NLP
- Hybrid NLP
Deployment Mode Overview, 2018-2028 (USD Billion)
- Private Cloud
- Public Cloud
- Hybrid Cloud
Application Overview, 2018-2028 (USD Billion)
- Information extraction
- Machine translation
- Question answering
- Report generation
Vertical Overview, 2018-2028 (USD Billion)
- Banking, Financial Services, and Insurance (BFSI)
- Retail and Consumer Goods
- Research and Education
- High tech and Electronics
- Media and Entertainment
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
Based on the type segment, the market is bifurcated into machine translation, information extraction, automatic summarization, text classification, sentiment analysis, others., the machine translation segment has a significant contribution toward Natural Language Processing (NLP) market revenue. Machine translation uses the source language and the target language, whereas information extraction automatically extracts the information in a structured format.
Data Type Segment
Based on the organization size, the market is segmented into text, voice/speech, and image. The market for text-based data and voice/speech-based data has a significant contribution to the natural language processing market. NLP helps in creating speech recognition, document summarization, spam detection, autocomplete, predictive typing and others.
In terms of end-user, the market is segmented into BFSI, Retail, IT and Telecom, Media, Education, and others. The BFSI industry dominated the market in 2019 and it is expected to do so throughout the forecast period. The key reason behind the dominance of this segment is the ability of natural language processing to mitigate application-based risks such as retrieval of the information, intent parsing, and customer service and compliance process automation applications, among others