The global natural language processing (NLP) market was valued USD 13.9 billion in 2021 and is expected to rise to USD 44.79 billion by 2030 at a CAGR of 22.96%.
Natural Language Processing (NLP) Market
The global natural language processing (NLP) market size was worth around USD 13.9 Billion in 2021 and is predicted to grow to around USD 44.79 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 22.96% between 2022 and 2030. The report analyzes the global natural language processing (NLP) market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the natural language processing (NLP) market.
Natural language processing (NLP) is a segment of artificial intelligence (AI) in the computer science industry. It deals with providing computers with the necessary tools or the capability to listen and understand spoken words or texts in a way that another human being can interpret or understand.
It works with the combination of computational linguistics with other advanced systems like deep learning, machine learning, and statistical models. When these technologies work in synchronization, they can process human language, either in voice or text format, and understand it completely along with acknowledging the speaker’s emotion or intention.
NPL runs programs that can efficiently translate a given text from one language to another while also assisting in summarizing high volumes of the largest texts rapidly along with generating sensible responses to any command. NLP systems have already created a space for themselves in everyday lives in the form of digital assistance, voice-operated global positioning systems, or chatbots used by customer service teams of many organizations.
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Growing applications in developing smart assistants to propel market demand
The global natural language processing (NLP) market is projected to grow owing to the rising applications of AI in the development of smart assistants that have become a common part of the everyday lives of the general population. Smart assistants like Alexa, developed by Amazon, or Siri by Apple are prime examples of how NLP is currently being leveraged by technology companies to provide an improved consumer experience. Another prime example of NLP use in every task is to obtain relevant search data without having to type the entire query on the search section of a browser.
Google can now predict and automatically type the entire query in its search dialogue once the user types a few words related to the question. The current search options are highly optimized since all a user needs to input are a few logical words and the application will automatically predict the entire question and deliver optimum results. Furthermore, the growing use of NLP in data analysis workflows could act as the global market driver during the projection period.
Inaccuracy in speech or text to restrict market expansion
One of the major growth restraints for the natural language processing industry players is related to achieving essential accuracy in cases where there are misused or misspelled words from the user’s end. Such issues can have a drastic impact on the final text analysis and response. Although grammar correcting applications or autocorrect may resolve the issue of misspelled words, the chances of the system not being able to understand the intention of the writer are really high.
Growing research & product innovation to provide growth opportunities
The global natural language processing market is anticipated to register high growth opportunities owing to the rising investment in product development and innovation along with the increasing launch of supportive tools that can help the NLP technologies perform better. Companies working in the segment are working toward developing advanced versions of existing systems that can conduct higher levels of text classification, sentiment analysis, auto-correction, and other essential features. Additionally, the growing reliance on technical giants like Amazon and Google could lead to higher investments in the coming years, especially in voice recognition intelligence.
Lack of skilled professionals to challenge the market expansion
NLP’s are extremely complex to program and develop owing to a large number of natural languages each with its set of syntax rules. The ambiguity of words makes undertaking language even more difficult. The natural language processing industry is currently witnessing a significant gap in the supply and demand of skilled professionals that can help companies meet the vision for the advanced versions of NLP.
The global natural language processing (NLP) market is segmented based on industry vertical, enterprise size, deployment, technology, and region
Based on industry vertical, the global market is divided into retail, healthcare, banking, high tech & telecom, automotive & transportation, financial services, manufacturing, media, and others.
Based on deployment, the global market is segmented into cloud, on-premises, and hybrid.
Based on technology, the global market is segmented into speech analytics, interactive voice responses, text analytics, optical character recognition, and image & pattern recognition.
Based on enterprise size, the global market is segmented into large enterprises and small & medium-sized enterprises.
|Natural Language Processing (NLP) Market Research Report
|Market Size in 2021
|USD 13.9 Billion
|Market Forecast in 2030
|USD 44.79 Billion
|Compound Annual Growth Rate
|CAGR of 22.96%
|Number of Pages
|Value (USD Billion), and Volume (Units)
|Key Companies Covered
|Google Inc., Microsoft Corporation, SAS Institute Inc., NVIDIA Corporation, Baidu Inc., Qualcomm Incorporated, Texas Instrument, Micro Focus International PLC (HPE), NetBase Solutions Inc., Genpact Limited, Adobe Inc., Amazon Web Services, Inc., 3M, Inbenta, Meta Platforms Inc., IQVIA, Crayon Data, Facebook, Hewlett-Packard Enterprise, Apple Inc., Intel Corporation, Narrative Science, Verint Systems, Inc., and IBM Corporation.
|By Industry Vertical, By Enterprise Size, By Deployment, By Technology, And By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)
|North America: U.S and Canada
Europe: Germany, Italy, Russia, U.K, Spain, France, Rest of Europe
APAC: China, Australia, Japan, India, South Korea, South East Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Chile
The Middle East And Africa: South Africa, GCC, Rest of MEA
|2016 to 2020
|2022 - 2030
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North America to lead with the highest CAGR
The global natural language processing (NLP) market is projected to be led by North America during the forecast period, majorly driven by the already existing dominant consumer and provider database in the regions of the US and Canada. The former is home to some of the biggest names working in the global market operating at the multi-regional level and constantly using NLP technologies to upgrade associated systems along with innovating the technology itself for further use.
The growth in the number of small and mid-size players leveraging the advantages of NLP like makers of autocorrect applications, chatbots, and other segments could further drive regional growth. Growth in Europe is anticipated to be driven by the growing adoption of AI technologies coupled with machine learning across the industrial sector, especially driven by the regional marketing and advertising sector. During the projection period, the region’s digital marketing sector is expected to grow at a CAGR of 8.6%.
The global natural language processing (NLP) market is dominated by players like:
By Industry Vertical
By Enterprise Size
The global natural language processing (NLP) market is projected to grow owing to the rising applications of AI in the development of smart assistants that have become a common part of the everyday lives of the general population.
According to study, the global natural language processing (NLP) market size was worth around USD 13.9 billion in 2021 and is predicted to grow to around USD 44.79 billion by 2030 with a compound annual growth rate (CAGR) of roughly 22.96% between 2022 and 2030.
The global natural language processing (NLP) market is projected to be led by North America during the forecast period, majorly driven by the already existing dominant consumer and provider database in the regions of the US and Canada.
The global natural language processing (NLP) market is dominated by players like Facebook, Hewlett-Packard Enterprise, Apple Inc., Intel Corporation, Narrative Science, Verint Systems, Inc., and IBM Corporation.