The Natural Language Processing (NLP) Market was valued for $16.21 billion in 2022 and is estimated to reach $239.88 billion by 2032, exhibiting a CAGR of 31.3% from 2023 to 2032. The natural language processing (NLP) is a part of artificial intelligence (AI) that enables the computer to interpret human language, obtain meaning, and make communication more convenient by using voice enabled artificial intelligence (AI) and conversational intelligence technologies. In addition, the NLP features such as autocorrect and autocomplete tool help analyze personal language patterns and identify the most appropriate suggestions for the individual users or public. Furthermore, natural language processing automates much of the physical process, and provides analytics and business intelligence for growth and helps to order and organize the processes. In addition, growing data and increasing complexities in large businesses would open numerous opportunities for natural language processing (NLP) in the market. Factors such as rising usage of smart devices to facilitate smart environments drive the market growth. In addition, increasing demand for advanced text analytics and the growing use of internet and connected devices drive the growth of the market. Furthermore, growing adoption of NLP-based applications across industries to boost customer experience. In addition, increasing investments in the healthcare sector is expected to provide lucrative growth opportunities for the market. However, complexities due to the usage of code-mixed language while implementing NLP solutions and limitations in the development of NLP technology using neural networks are restricting the usage of cloud-based services, which can hamper market growth..
Surge in increasing automation as a result of the integration of NLP with deep learning (DL) and machine learning (ML), drive the market growth. In addition, growing demand for smart devices, and increasing demand for advanced text analytics drive the growth of the market. However, complexities due to the usage of code-mixed language while implementing NLP solutions is expected to hamper the growth of the market. Furthermore, increase in automation as a result of the integration of NLP with deep learning and machine learning (ML) and rise in investments in the healthcare sector are expected to create lucrative growth opportunities for the market.
On the basis of deployment mode, on premise segment dominated the natural language processing market in 2022 and is expected to maintain its dominance in the upcoming years owing to provides complete control and visibility over the data, as well as strong authentication security measures propels the market growth significantly. However, the service segment is expected to witness the highest growth, owing to lower deployment costs, predictable running expenses, increased flexibility and scalability in AI-driven NLP, and risk reduction for system downtime.
Region-wise, the natural language processing market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to increase in adoption and growth of advanced and latest technologies, such as cloud computing, AI, and ML, also increasing usage of NLP in BFSI, IT and government sector to improve businesses and customer experience aiding the growth of the natural language processing market. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to adoption of process automation across all industry verticals to enhance customer engagement and increase effectiveness of IT infrastructure to which is expected to fuel the market growth in this region. Furthermore, several major natural language processing solution providers including Apple Inc., Intel Corporation, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, and Amazon Web Services, Inc., are introducing new products and services to natural language processing.
The report focuses on growth prospects, restraints, and analysis of the natural language processing market trend. The study provides Porter’s five forces analysis to understand the impact of numerous factors, such as the bargaining power of suppliers, the competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and the bargaining power of buyers on the natural language processing market share.
The key players operating in the market include Apple Inc., Intel Corporation, SAS Institute Inc., SAP SE, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, Amazon Web Services, Inc., and Hewlett Packard Enterprise Development LP. Furthermore, it highlights the strategies of the key players to improve the market share and sustain competition.
Surge in increasing automation as a result of the integration of NLP with deep learning (DL) and machine learning (ML), drive the market growth. In addition, growing demand for smart devices, and increasing demand for advanced text analytics drive the growth of the market. However, complexities due to the usage of code-mixed language while implementing NLP solutions is expected to hamper the growth of the market. Furthermore, increase in automation as a result of the integration of NLP with deep learning and machine learning (ML) and rise in investments in the healthcare sector are expected to create lucrative growth opportunities for the market.
On the basis of deployment mode, on premise segment dominated the natural language processing market in 2022 and is expected to maintain its dominance in the upcoming years owing to provides complete control and visibility over the data, as well as strong authentication security measures propels the market growth significantly. However, the service segment is expected to witness the highest growth, owing to lower deployment costs, predictable running expenses, increased flexibility and scalability in AI-driven NLP, and risk reduction for system downtime.
Region-wise, the natural language processing market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to increase in adoption and growth of advanced and latest technologies, such as cloud computing, AI, and ML, also increasing usage of NLP in BFSI, IT and government sector to improve businesses and customer experience aiding the growth of the natural language processing market. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to adoption of process automation across all industry verticals to enhance customer engagement and increase effectiveness of IT infrastructure to which is expected to fuel the market growth in this region. Furthermore, several major natural language processing solution providers including Apple Inc., Intel Corporation, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, and Amazon Web Services, Inc., are introducing new products and services to natural language processing.
The report focuses on growth prospects, restraints, and analysis of the natural language processing market trend. The study provides Porter’s five forces analysis to understand the impact of numerous factors, such as the bargaining power of suppliers, the competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and the bargaining power of buyers on the natural language processing market share.
Segment review
The global natural language processing market is segmented on the basis of component, deployment mode, enterprise size, type, industry vertical, and region. By component, it is bifurcated into solution and services. By deployment mode, it is segregated into on-premise and cloud. By enterprise size, it is categorized into large enterprise and small and medium-sized enterprise. On the basis of type, it is segregated into statistical NLP, rule-based NLP, and hybrid NLP. By industry vertical, it is segregated into BFSI, IT and telecom, retail and e-commerce, healthcare, education, media and entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.The key players operating in the market include Apple Inc., Intel Corporation, SAS Institute Inc., SAP SE, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, Amazon Web Services, Inc., and Hewlett Packard Enterprise Development LP. Furthermore, it highlights the strategies of the key players to improve the market share and sustain competition.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the world natural language processing (nlp) market analysis from 2022 to 2032 to identify the prevailing world natural language processing (NLP) market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the world natural language processing (NLP) market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global world natural language processing (NLP) market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Deployment Mode
- On-premise
- Cloud
By Enterprise Size
- Large Enterprise
- Small and Medium-sized Enterprise
By Type
- Statistical NLP
- Rule-based NLP
- Hybrid NLP
By Industry Vertical
- BFSI
- IT and Telecom
- Retail and E-commerce
- Healthcare
- Education
- Media and Entertainment
- Others
By Component
- Solution
- Service
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Intel Corporation
- Google LLC
- Hewlett Packard Enterprise Development LP
- Microsoft Corporation
- International Business Machines Corporation
- Apple Inc.
- SAP SE
- Oracle Corporation
- SAS Institute Inc.
- Amazon Web Services, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: WORLD NATURAL LANGUAGE PROCESSING (NLP) MARKET, BY COMPONENT
CHAPTER 5: WORLD NATURAL LANGUAGE PROCESSING (NLP) MARKET, BY DEPLOYMENT MODE
CHAPTER 6: WORLD NATURAL LANGUAGE PROCESSING (NLP) MARKET, BY ENTERPRISE SIZE
CHAPTER 7: WORLD NATURAL LANGUAGE PROCESSING (NLP) MARKET, BY TYPE
CHAPTER 8: WORLD NATURAL LANGUAGE PROCESSING (NLP) MARKET, BY INDUSTRY VERTICAL
CHAPTER 9: WORLD NATURAL LANGUAGE PROCESSING (NLP) MARKET, BY REGION
CHAPTER 10: COMPETITIVE LANDSCAPE
CHAPTER 11: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the world natural language processing (NLP) market was valued at $16.2 billion in 2022, and is estimated to reach $239.9 billion by 2032, growing at a CAGR of 31.3% from 2023 to 2032.Rise in penetration of internet is increasingly encouraging the creation and usage of innovative material, as well as the development of new technologies in PC and computing devices. These developments have resulted in the rapid development of natural language processing (NLP) services. Furthermore, the availability of advanced and robust IT infrastructure opens up numerous possibilities for natural language processing technology, which is expected to provide lucrative opportunities for market growth. However, the lack of skilled workforce and reliability issue can hamper market growth. For instance, in January 2022, Intel Corporation launched the 'OpenVINO™ toolkit” to accelerate artificial intelligence (AI) across almost all imaginable use cases, including automatic speech recognition, emulation of human vision, NLP, recommendation systems, and among others.
Furthermore, Surge in increasing automation as a result of the integration of NLP with deep learning (DL) and machine learning (ML), drive the market growth. In addition, growing demand for smart devices, and increasing demand for advanced text analytics drive the growth of the market. However, complexities due to the usage of code-mixed language while implementing NLP solutions is expected to hamper the growth of the market. Furthermore, increase in automation as a result of the integration of NLP with deep learning and machine learning (ML) and rise in investments in the healthcare sector are expected to create lucrative market growth during the forecast period.
On the basis of type, , statistical NLP segment dominated the NLP market in 2022 and is expected to maintain its dominance in the upcoming years owing to offers quantization, maximum likelihood & related rules and class conditional density function, such advantageous features. propels the market growth significantly. However, the rule-based NLP segment is expected to witness the highest growth, owing to offer advantages such as availability, cost efficient and enhance Speed.
Region-wise, the natural language processing market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to increase in adoption and growth of advanced and latest technologies, such as cloud computing, AI, and ML, also increasing usage of NLP in BFSI, IT and government sector to improve businesses and customer experience aiding the growth of the natural language processing market. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to adoption of process automation across all industry verticals to enhance customer engagement and increase effectiveness of IT infrastructure to which is expected to fuel the market growth in this region.
The global COVID-19 pandemic has drastically affected businesses across the world. It has positively impacted the adoption of NLP based services due to lockdown imposed by governments of different countries. Post COVID-19 situation, companies are focusing on advanced technology such as artificial intelligence (AI), machine learning (ML), computing technology and analytics across industries such as BFSI, healthcare, IT and telecom and others to perform contactless operation. This factor also creates demand for AI-driven NLP technology, which drives the adoption of Natural language processing (NLP) market globally. Moreover, the pandemic has introduced considerable challenges for companies which are trying to execute key processes, report accurately with data spread over multiple locations, operate complex systems, and efficiently communicate with teammates; particularly where there don’t already have the infrastructure for such processes.
Technological Trends
In the past year, major technological advances have influenced the development and use of natural language processing (NLP). NLP has undergone a revolution owing to deep learning techniques, particularly neural networks. In several NLP applications, including machine translation, sentiment analysis, and named entity recognition, neural networks have demonstrated exceptional success. The performance and accuracy of NLP systems have considerably increased with the inclusion of deep learning models, such as recurrent neural networks (RNNs) and transformer models like BERT (Bidirectional Encoder Representations from Transformers). These models can capture intricate linguistic patterns and contextual data, improving our knowledge and ability to produce human language. Additionally in NLP, transfer learning has emerged as a key trend. Pre-trained models can be adjusted for certain NLP tasks because they have been trained on big datasets, like Google's BERT and OpenAI's GPT (Generative Pre-trained Transformer). These models can be used for a variety of applications, saving time and computational resources while capturing general language knowledge. NLP has become more accessible due to transfer learning, which enables programmers to create effective applications even with little training data.The market players operating in the natural language processing market are Apple Inc., Intel Corporation, SAS Institute Inc., SAP SE, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, Amazon Web Services, Inc., and Hewlett Packard Enterprise Development LP. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the natural language processing market globally.
Key Finding of the Study
By component, the solution segment accounted for the largest natural language processing market share in 2022.On the basis of deployment, the on premises segment generated the highest revenue in 2022.
On the basis of enterprise size, the large enterprise segment generated the highest revenue in 2022.
On the basis of type, the statistical NLP segment generated the highest revenue in 2022.
On the basis of industry vertical, the BFSI segment generated the highest revenue in 2022.
Region-wise, North America generated the highest revenue in 2022.
Companies Mentioned
- Intel Corporation
- Google LLC
- Hewlett Packard Enterprise Development LP
- Microsoft Corporation
- International Business Machines Corporation
- Apple Inc.
- SAP SE
- Oracle Corporation
- SAS Institute Inc.
- Amazon Web Services, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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