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Base Year
Historical Year
Forecast Year
Global Natural Language Processing (NLP) Market Summary | Description | Value |
Base Year | USD Billion | 2023 |
Historical period | USD Billion | 2018-2023 |
Forecast Period | USD Billion | 2024-2032 |
Market Size 2023 | USD Billion | 20.66 |
Market Size 2032 | USD Billion | 117.46 |
CAGR 2018-2023 | Percentage | XX% |
CAGR 2024-2032 | Percentage | 21.3% |
CAGR 2024-2032 - Market by Region | Asia Pacific | 24.5% |
CAGR 2024-2032 - Market by Country | India | 28.2% |
CAGR 2024-2032 - Market by Country | China | 23.5% |
CAGR 2024-2032 - Market by Component | Hardware | 23.9% |
CAGR 2024-2032 - Market by Industry Vertical | Healthcare | 24.3% |
Market Share by Country 2023 | UK | 3.7% |
Cloud Computing, Smart Devices, and Voice-Based Solutions Aiding the Natural Language Processing (NLP) Market Growth
Natural language processing (NLP) is a branch of computer science and artificial intelligence. It is derived from various subjects, such as computational linguistics and computer science, in its search to know the difference between computer understanding and human communication. NLP is likely to be used in various ways like prescriptive analytics, predictive analytics, and intelligence voice support systems, which is expected to fuel the natural language processing (NLP) demand growth across the globe.
The surging adoption of cloud computing is projected to boost the global natural language processing (NLP) market in the forecast period. The growing utilisation of smart devices like mobile phones, industrial devices installed in a plant, or devices operating in the home/building environment are propelling the market growth. With growing technological advancements in IoT and communication along with digital transformation, the market is likely to bolster in the upcoming years. The escalating demand for voice-based solutions interfaces and the NLP-based applications offer consumers improved functionalities. These functionalities include verbal command capability and instant query management, which are expected to aid the market growth.
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Easy implementation, low cost, and increasing use in end-use industries to shape the natural language processing (NLP) market dynamics and trends.
May 2023
One AI Inc. was launched from stealth mode with a funding of USD 8 million to assist businesses in integrating natural language processing capabilities into their applications.
Easy NLP Implementation
It is easy to implement NLP with the surging need for text analytics and speech analytics. This is likely to add to the expansion of the market and become a key trend of the natural language processing (NLP) market.
Cost Effectiveness
Employing NLP is less expensive than hiring an employee because a machine can complete any task more quickly than the employee. This is expected to increase the growth opportunities for the market.
Use of NLP in Various Industries
The growing consumption of NLP in end-user industries and the increasing investment in the healthcare industry is likely to provide further impetus to the natural language processing (NLP) market opportunities.
Increasing Demand for NLP in Healthcare Segment to Augment the Market Growth
The increasing number of virtual assistants handling tasks in the healthcare industry, like registration of patients and scheduling appointments, are expected to boost the healthcare sector in the natural language processing (NLP) industry growth.
The IP and telecom segment in the NLP market indicates the capability of machines to cooperate with humans by employing natural language that is very particular to this field. The segment has supported the department of artificial intelligence in its various forms creating the path for NLP-based tools that were later consumed by other industries.
Rising Adoption of Technology in the Banking Sector and an Expanding Manufacturing Sector Aid the Market Growth.
In November 2023, private banking accounted for 27% of the sales of banking technology. Risk Management systems hold a share of 20%, which means that technologies that manage financial risk are of utmost importance. At this place, NLP acts really crucially; it basically facilitates real-time data analysis with pattern recognition, an important constituent in terms of forecasting and limiting financial risks.
Wholesale banking and lending account for 13% each. Integration of NLP into these aspects is quite crucial for personalised customer interaction and seamless digital banking services. NLP enhances customer support through chatbots and voice recognition systems becoming integral to digital banking platforms. Payments, CRM, Digital Banking, and Universal Banking have the share of each at 7%. It thus provides support for both personalised financial advisories, advanced payment processing, and insight-driven customer relationship management in these fields. Generally speaking, the increase in the usage of NLP technologies in various banking systems indicates that the industry is moving toward a trend of leveraging AI for better operational efficiency and improved customer engagement. The industrial goods sector shows very positive growth: with an estimated global sale of $9.073 billion in 2019, it is expected to increase to $15.757 billion by 2030, which is a compound annual growth rate of 7.4% from 2019 to 2030. China is on track to grow from $4.030 billion in 2019 to $8.226 billion in 2030. Uch factors lead to new trends in the natural language processing (NLP) market.
Western Europe follows with a significant compound annual growth rate of 2.0% from 2019 to 2030. Meanwhile, more modest increases in output are expected in the NAFTA regions, at a growth rate of 3.3% from 2019 to 2030. The Rest of Asia Pacific and the rest of the world continue with consistent growth patterns, with the Rest of Asia Pacific growing to provide $1.478 billion in 2019 and an expected $2.356 billion in 2030. It talks about the mounting complexity and increased scale of industrial operations, which further raises the demand for the application of advanced technologies, like NLP, to ensure efficient management.
NLP has the potential to contribute much to optimise supply chain management, improve predictive maintenance, and enhance human-machine interaction for better productivity, along with reducing the operational cost of the industry.
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“Natural Language Processing (NLP) Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
By components, the market is divided into:
On the basis of deployment, the market can be categorised into:
On the basis of processing type, the market is segregated into:
Based on enterprise size, the market is categorised into:
By industry vertical, the market is divided into:
By region, the market can be divided into:
Rapid Growth in NLP Solution Segment to Dominate the Market Growth
As per natural language processing (NLP) market analysis, NLP solutions are likely to improve the business as they offer the ability to rapidly develop while making full usage of the data. It offers the essential tools to analyse both numerical and linguistic data.
NLP services offer the high-quality data required to make the models powering the analytical or speech-based applications more accurate. The NLP services adoption offers several grants to end-users like speeding up software implementation, enlarging the value of current installation by optimising and minimising the deployment cost and risks, among other services.
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North America to be a Significant Regional Market in the Coming Years as Well
The natural language processing (NLP) industry in North America is expected to hold a significant share in the natural language processing (NLP) market owing to the high investment in technologies like AI, analytics, and ML. The United States is further expected to lead the market growth in North America due to the huge developments in IT infrastructure and the high adoption of digital technologies.
CAGR 2024-2032 - Market by | Country |
India | 28.2% |
China | 23.5% |
UK | 19.5% |
USA | 19.0% |
Germany | 17.5% |
Canada | XX% |
France | XX% |
Italy | XX% |
Japan | 14.7% |
Australia | XX% |
Saudi Arabia | XX% |
Brazil | XX% |
Mexico | XX% |
The market is likely to grow with an increase in the use of health record systems for patients as well as surging digital innovation across the healthcare and life sciences industries. Moreover, the growing advancements in NLP and the increasing popularity of technology are likely to boost the market growth in the region.
Meanwhile, the natural language processing (NLP) market share in Asia Pacific region is expected to witness robust market growth over the coming years due to rapid technological advancements, coupled with digitisation in emerging economies. The growing government initiatives and the rising focus on defence infrastructure among the middle-income population are further expected to drive the market growth in the forecast period.
Key players in the natural language processing (NLP) market are working to enhance the scalability of algorithms, extend them for multilingual applications, and make machine learning APIs more usable. Major players develop NLP-driven tools that empower different industries with advanced business automation and insights.
Google LLC, established in 1998 and headquartered in Mountain View, California, organises its business via internet-related products and services. These main activities of the company involve web-based search, display advertising tools, cloud computing, search engines, hardware, and software. Other aims of this research on NLP at Google are to invent algorithms which could be used en masse across languages, and in multiple fields.
Amazon Web Services, Inc., headquartered in Seattle, Washington, and established in 2006, offers cloud computing services that enable companies to implement IT infrastructure. The other facility offered by the company is machine learning-based language services, which make it easy for enterprise companies to add intelligence to their AI apps using pre-trained APIs.
Baidu, Inc. is a leading AI company with strong internet fundamentals founded in 2000 and headquartered in Beijing, is the major internet search engine company in China, since it dominates the Chinese search engine market by providing services similar to those of Google, though mainly focused on the Chinese market.
Microsoft Corporation, established in 1975 and headquartered in Redmond, Washington, is one among the renowned American companies for its software products. The company's focus on digital transformation through technologies ranging from the intelligent edge to the cloud aims to democratise AI for more rampant accessibility.
Other key players in the natural language processing (NLP) market report include IBM Corporation, SAP SE, SAS Institute Inc., Intel Corporation, NVIDIA Corporation, and Adobe Inc., among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the global market for natural language processing (NLP) attained a value of nearly USD 20.66 billion.
The market is assessed to grow at a CAGR of 21.30% between 2024 and 2032.
The major market drivers are the growing usage of NLP in the healthcare industry, increasing investments in research and development in advanced technology, surging adoption of cloud computing, and growing government initiatives.
NLP aids with audience identification for focused messaging and helps with better keyword detection in SEO techniques thus helping in efficient marketing strategies.
NLP helps with resolving uncertainty in language as well as combines beneficial numeric structure to the data for several downstream applications, like text analytics or speech recognition.
The key market trends include the increasing penetration of information technology and the surging adoption of smart devices in several applications.
The major regions in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
The several components in the market include solutions and services.
Based on deployment, the market includes on-premises and cloud.
The different processing types of NLP include text, speech/voice, and image.
Based on enterprise size, the market includes small and medium-sized enterprises (SMEs) and large enterprises.
The major industry verticals in the market include healthcare, IT and telecom, banking financial services and insurance (BFSI), retail and e-commerce, transportation and logistics, energy and utilities, and manufacturing, among others.
The major key players in the market are Google LLC, Amazon Web Services, Inc., Baidu, Inc., Microsoft Corporation, IBM Corporation, SAS Institute Inc., Intel Corporation, NVIDIA Corporation, Adobe Inc., and SAP SE, among others.
By 2032, the market is likely to attain a valuation of USD 117.46 billion.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Component |
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Breakup by Deployment |
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Breakup by Processing Type |
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Breakup by Enterprise Size |
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Breakup by Industry Vertical |
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Breakup by Region |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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