Global Natural Language Processing (NLP) Market Size, Share, Growth, Forecast: By Component: Hardware, Software, Services; By Deployment: On-Premises, Cloud; By Processing Type; By Enterprise Size; By Industry Vertical; Regional Analysis; Market Dynamics; Competitive Landscape; Industry Events and Developments; 2024-2032

Global Natural Language Processing (NLP) Market Outlook

The global natural language processing (NLP) market size attained a value of nearly USD 20.66 billion in 2023. The market is further estimated to grow at a CAGR of 21.30% in the forecast period of 2024-2032, owing to the surging adoption of cloud computing.

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News and Developments in the Market

In 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. Ariel Maislos, Tech Aviv, and SentinelOne Inc., among other venture capital firms and investors contributed to the project. Natural language processing models that are optimised for business use cases are available from One AI. They are accessible through an API, which makes it relatively simple for developers to incorporate the startup's technology into their product.

In November 2021, IBM Corporation announced the new NLP developments planned for IBM Watson Discovery. Such planned updates are created to aid business users in industries like insurance and financial services, among others, to boost customer care and enhance business processes. Such updates will also help in revealing insights and synthesis information from complex documents, thereby increasing the natural language processing market share.

In August 2020, Baidu, a leading artificial intelligence company launched Qian Yan, referred to as the largest Chinese database for NLP, among other AI-related products. The company has also been looking to expand its revenue mix because of the changing internet consumption patterns to take away its search engine control.

Cloud Computing, Smart Devices, and Voice-Based Solutions Aiding the Natural Language Processing 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 system, which is expected to fuel the market demand for NLP across the globe.

The key natural language processing market trends are as follows:

• The surging adoption of cloud computing is projected to boost the global natural language processing market demand 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.

Easy Implementation, Low Cost, and Increasing Use in End-Use Industries to Provide Lucrative Growth Opportunities for Growth

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.

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 natural language processing 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 market growth.

Data Complexity, Extraction of Correct and Relevant Information, and Limited Functions May Pose as Major Challenges for the Market

Complexity of Data Sets

The complex variety and extensive characteristics of the data sets may create a barrier for the simple implementation of NLP.

Information Extraction Techniques

The extraction of correct and relevant information from semi-structured or unstructured data is one of the major challenges for the market.

Creation of Specific Task

The system is created for a specific and single task only, it is not capable of adapting to new domains and problems due to limited functions. This is further anticipated to obstruct the growth of the market over the forecast period.

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Natural Language Processing Market Analysis

By components, the market is divided into hardware, software, and services. On the basis of deployment, the market can be categorised into on-premises and cloud. On the basis of processing type, the market is segregated into text, speech/voice, and image. Based on enterprise size, the market is categorised into small and medium-sized (SMEs) enterprises, and large enterprises.

By industry vertical, the market is divided into IT and telecom, healthcare, retail, banking, financial services, and insurance (BFSI), manufacturing, media and entertainment, and education, among others.

The regional markets can be categorised into North America, Latin America, the Asia Pacific, Europe, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following major NLP companies, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Google LLC

• Amazon Web Services, Inc.

• Baidu, Inc.

• Microsoft Corporation

• IBM Corporation

• SAS Institute Inc.

• Intel Corporation

• NVIDIA Corporation

• Adobe Inc.

• SAP SE

Rapid Growth in NLP Solution Segment to Dominate the Market Growth

As per natural language processing market research, NLP solution is 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.

Growing Demand for On-Premises Segment Likely to Increase the Market Demand

The on-premises segment is expected to increase the natural language processing market value. This can be attributed to the data protection offered by the on-premises infrastructure. The data is stored locally on the premises, and an individual has full control over it and its security. This is a traditional method that requires an organisation to accommodate its data centre on-site.

The surge in adoption of cloud-based NLP owing to low cost and easier maintenance is likely to drive the cloud segment growth. NLP cloud focuses on reducing the obstacles for developers seeking to produce apps for organising support tickets, analysing social networks, and extracting leads, as well as developing tools for economic intelligence.

Statistical Segment Aiding the Growth of the Natural Language Processing Market

The statistical segment is driving the market growth as it merges algorithms of computers with deep learning and machine learning models. This merger helps to automatically obtain, classify, and label elements of voice and text data and then give a statistical possibility to each workable meaning of individual elements.

Rule based natural processing learning improves the accuracy relative to keyword extraction. It influences large libraries of human language regulations to label with more precision. Consequently, the rule-based segment is anticipated to witness significant growth in the coming years.

The hybrid NLP approach refers to the rules of the ML model. Such regulations are standards that are followed in a language. These rules and patterns aid the process of linking categorisation more strongly to human intuition.

Rising SMEs Anticipated to Bolster the Demand for Market

Small and medium-sized enterprises (SMEs) are likely to drive the market growth due to the widespread applications of AI and NLP in these enterprises. The focus of SMEs is to give ease to consumers and take the business to the next level with help of smart marketing, targeting, and communication.

The large enterprises segment is anticipated to grow further owing to the surging data and rising complexities in large businesses. These are likely to open several opportunities for the natural language processing (NLP) market.

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 NLP market 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.

Banking, financial services, and insurance sector has been producing data-driven decisions for a long time. This sector has been one of the early adopters of big data. The use of structured data such as transactional history or CRM history in banking, financial services, and insurance industries (BFSI) is expected to fuel the growth of the segment.

The retail and e-commerce segment is likely to propel the market growth due to technological innovations in communication and interactions. The adoption of NLP is aiding the retail industry in numerous ways that are positively influencing the demand among consumers. This includes text recognition, sentiment analysis, personalised bots, customer service centres dynamics, and cost-effectiveness, among others.

The transportation and logistics segment is expected to fuel the market growth due to the surging adoption of artificial intelligence (AI). Going further, artificial intelligence logistics solutions and NLP technologies are expected to aid in working with immense volumes of unstructured data. Moreover, extracting critical information through received billing, dates, and addresses, among others is further anticipated boost the segment growth in the market.

The energy and utility segment is likely to boost the market growth owing to the increasing use of AI along with machine learning involving NLP for field service as well as predictive analysis. Moreover, with the implementation of NLP solutions like Aveni Detect, the energy and utility companies can monitor consumer interaction more accurately. This is further gaining consumer traction and is expected to enhance the growth of the global natural language processing market over the coming years.

There is an increasing demand for NLP in the manufacturing industry as the organisations deploy data analysis during multiple manufacturing processes. NLP helps in eliminating the middleman and inventory management which further saves time and cost. This is likely to fuel the global market growth.

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North America to be a Significant Regional Market in the Coming Years as Well

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.

The market is likely to grow wiith 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 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.

Competitive Landscape

Google LLC is a worldwide technology multinational company that aims at internet-related products and services. The Company is mainly focused on web-based search as well as display advertising tools, cloud computing, search engines, hardware, and software. Google serves customers globally. NLP research at Google aims at algorithms that are used at scale, across languages, and across fields.

Amazon Web Services, Inc. offers IT infrastructure services to leading companies in the form of web services or cloud computing. The company gives a range of machine learning-based language services that permit various companies to simply add intelligence to their AI applications with the help of pre-trained APIs.

Baidu, Inc. is a leading artificial intelligence company with strong internet foundation. It is the major internet search engine company across China. Although it offers similar features and services to Google, its primary market is China, where it monitors the majority of the search engine market.

Microsoft Corporation is a leading American technology company that provides software products. The company empowers the digital transformation of an intelligent edge and an intelligent cloud. The company aims to democratise artificial intelligence to make it available to every individual.

International Business Machines (IBM) Corporation is a leading United States-based technology company. IBM has modernised the artificial intelligence space by establishing NLP-driven services and tools that enable organisations to automate their complex business processes while obtaining essential business insights.

SAP SE is one of the top enterprise application software, aiding corporations of all industries and all sizes to run. The company’s Internet of Things (IoT), machine learning, and advanced analytics technologies support turning customers’ firms into intelligent enterprises. Their comprehensive set of tools and services gives users the ability to run profitable businesses, change constantly, and have an impact.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.