Natural Language Processing Market - Forecasts from 2023 to 2028

The natural language processing market is projected to grow at a CAGR of 26.98% to reach US$11.468 billion in 2028 from US$2.155 billion in 2021.

Natural language processing (NLP) is the study of how computers interact with human language, particularly designing computers to process and analyze huge amounts of natural language data. It is an interdisciplinary subject of linguistics, computer science, and artificial intelligence. The objective is to create a computer system that can comprehend document content, including the intricacies of language used within it in different contexts.

The systems can then precisely extract data and insights from the documents, as well as classify and arrange the documents themselves. NLP powers computer programs that summarize massive amounts of text quickly, even in real-time, and convert text between languages. It is utilized in digital assistants, chatbots for customer service, speech-to-text dictation software, voice-activated GPS devices, and other consumer conveniences. Additionally, NLP is increasingly being used in enterprise solutions to improve employee productivity, simplify mission-critical business processes, and expedite business operations.

Audio detection, word concept interpretation, sentiment analysis, and natural language synthesis are just a few of the tasks that NLP systems can handle. Speech recognition, often known as speech-to-text, is the process of accurately translating audio input into text. NLP is used for any program that receives voice commands or responds to questions that need speech recognition. The process of choosing the meaning of a word with numerous meanings by a process of semantic analysis that determines the word that makes the most sense in the current context is known as word concept interpretation. Sentiment analysis focuses on intangible elements in the text, such as attitudes, feelings, sarcasm, bewilderment, and mistrust.

Initiatives to enhance and incorporate NLP in several applications by key firms have been major drivers for the natural language processing market.

One of the main market drivers in the NLP space is large enterprises. The usage of NLP has grown in recent years as these firms increasingly use certified and unstructured machine learning techniques, including deep learning, for a variety of applications. Major firms are adopting these technologies for a variety of reasons, including cost and risk. These technologies are primarily used by the majority of large end-user businesses across a variety of industries to improve their corporate and global operations.

Investment and funding received by companies specializing in NLP have also boosted the growth of this market. For instance, Kognitos, a San Jose, California-based corporation that specializes in employing Large Language Models (LLMs) for generative AI for business automation, received $6.75M in Seed funding in February 2023. Engineering Capital and Wipro Ventures joined the investment, which was led by Clear Ventures. The 2020-founded startup enables business users to create automated workflows using common English employing large language models (LLMs) like ChatGPT and natural language processing automation (NLPA). They have two components to their platform that includes Koncierge, an interface that lets business users plan automated procedures, and BrainAI, a serverless technology that carries out the action plan specified in Koncierge.

Key Developments

In February 2023, Expert.ai, a pioneer in artificial intelligence (AI) for language operations and comprehension, recently released new capabilities for its Natural Language (NL) platform that improve workflow support for natural language processing (NLP). The expert.ai Platform makes the most of unstructured data, like text in documents, applications, and tools, by using a hybrid approach that combines state-of-the-art NL techniques, including machine learning and knowledge-based, symbolic AI. This enables organizations to develop new business models, hasten time to value, and optimize processes. The platform's main features are deployment, taxonomy, and wand integration. Companies can adopt the expert.ai platform for on-premise installations as it allows them to expedite their AI ambitions while securely monitoring the efficiency, privacy, and flexibility of their datasets and infrastructure.

In February 2023, Benchmark announced a US$16.5M Series A investment in MindsDB, one of the most popular open-source applied machine learning (ML) systems in the world. The goal of MindsDB was to significantly accelerate the creation of AI-powered applications. This additional investment was secured following MindsDB's most recent integrations with Hugging Face and OpenAI, which enable anybody to quickly add cutting-edge natural language processing and generative AI models into their system. Developers can utilize Hugging Face to obtain NLP models that have already been trained and use them on their data for use cases including sophisticated text classification, sentiment analysis, emotion detection, translation, and more.

Based on industry verticals, healthcare is expected to account for a significant share of the natural language processing market.

Due to various advantages, including faster clinical trial matching, better clinical documentation, and support for clinical decisions, NLP is vastly employed in the healthcare industry. At the point of care, NLP uses speech-to-text dictation and structured data entry to extract crucial data from the EHR rather than wasting time manually examining it. Healthcare professionals can use NLP to automatically examine enormous amounts of unstructured clinical and patient data and find patients who qualify for clinical trials. Physicians may access health-related information quickly, easily, and efficiently with the help of NLP, allowing them to make better judgments at the point of care.

North America holds a significant share of the natural language processing market.

Based on geography, the NLP market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. Customers in North America are inclined to utilize numerous virtual assistant platforms, such as Siri, Alexa, and Google Assistant, to use them for a variety of digital applications, such as reminders and work assignments as well as connect and use them with home appliances. Additionally, the use of smart speakers and their systems is gaining rising prominence, which is projected to push corporations to invest in NLP technology. The market for natural language processing in North America has grown tremendously as a result, particularly in nations like the United States and Canada. Furthermore, the presence of several key firms involved in AI and NLP technology like IBM, Google, and Microsoft has also fuelled the growth of the natural language processing market in this region.

Market Segmentation:

By Application

• Information Extraction
• Automatic Summarization
• Text Classification
• Translation
• Sentiment Analysis
• Others

By Deployment

• Cloud
• On-Premises

By Industry Vertical

• BFSI
• Retail
• IT and Telecom
• Media & Entertainment
• Education
• Healthcare
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Other
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others