Natural Language Processing Market Size, Share & Trends 2031

Report Description

The global natural language processing market is estimated to expand at a substantial CAGR during the forecast period, between 2021 and 2028. Natural language processing serves as a link between humans and technology. It is an Artificial Intelligence (AI)-based component that understands human language and then converts it to machine language. So, NLP is also regarded as a subfield of AI that translates, comprehends, and manipulates human languages. The language processing is becoming more popular as the need for enhancing communication of human-to-machine connections and analysis of big data technology are extensively required in several industries. Computers can easily interpret the input instruction given by humans with their assistance.

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Market Trends, Drivers, Restraints, and Opportunities:

• Increasing demand for cloud-based NLP solutions to lower overall costs and improve scalability is expected to propel the market expansion during the forecast period.
• Growing use of smart devices to enable smart environments and rising demand for improved customer experience are projected to fuel the market growth in the coming years.
• Growing needs for technology to ensure digital data analysis as well as technical innovations and improvements of NLP are key drivers of the market.
• Complexities caused by the use of code-mixed language when implementing NLP solutions are estimated to hinder market expansion throughout the projection period.
• Reliability issues, the need for effective predictive technologies, and lack of skilled labour are the main constraints hampering the growth of the market.
• Increased investments and wide use of technology in advertising, media & entertainment, and healthcare industries are expected to create lucrative opportunities for the market expansion.

Scope of the report:

The report on the global natural language processing market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Natural Language Processing Market Segment Insights:

Solutions segment is projected to hold significant market share

Based on components, the natural language processing market is bifurcated into solutions and services. The solutions segment is further classified as software tools and platform while the services segment is sub-categorized as managed services and professional services. The IT professional services is further sub-divided into consulting, support & maintenance, and system integration & implementation. The solutions segment is projected to hold significant market share owing to the growing demand for real-time insights from voice or speech data across several industries. Moreover, the increasing demand for NLP software tools and platforms present another key factors driving the segment.

Statistical NLP segment is anticipated to account for a substantial share

On the basis of types, the market is segmented into hybrid-based NLP, statistical NLP, and rule NLP. The statistical NLP segment is anticipated to account for a substantial share of the market due to its superior advantages and features over traditional ways. The statistical method makes use of powerful machine learning methods to create statistical models from multilingual parallel corpora that aid in precise and speedy translation. Furthermore, statistical methods are data-driven and can successfully handle ambiguity, making them an excellent alternative for NLP solutions.

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Cloud-based segment to expand at a robust pace during the forecast period

In terms of deployment modes, the natural language processing market is bifurcated into cloud-based and on-premises. The cloud-based segment is further segmented into hybrid cloud, private cloud, and public cloud. The cloud-based segment is expected expand at a robust pace during the forecast period. Users may analyse and consume multilingual content, user-generated information, and other web-content in a more secure manner using a cloud-based NLP platform. Moreover, the service can be accessed from anyone anywhere across the globe. For large data applications, cloud technology is adaptable and scalable.

Large enterprises segment to register substantial growth

Based on organization sizes, the market is bifurcated into large enterprises and small & medium-sized enterprises. The large enterprises segment is anticipated to register substantial growth in the coming years owing to high use of the platforms by big companies. When these firms adopt deep learning and supervision for a number of applications, the utilization of this technology is widely required. Cost-effective and wide technological improvements are key factors that influence large firms to increase adoption of NLP.

Text & speech analytics segment to expand rapidly

On the basis of technology, the natural language processing market is segregated into auto coding, classification & categorization, interactive voice response, optical character recognition, pattern & image recognition, professional services, text & speech analytics, and others. The text & speech analytics segment is expected to expand rapidly during the projection period. Text and speech analytics are becoming popular and increasingly adopted across various industries including finance, marketing, BFSI, retail, and others. This is due to the extraction and analysis of massive amounts of text that might assist organisations in drawing meaningful insights to understand market dynamics and manage risks. Although voice remains the primary route for imparting a benefit, clients are increasingly preferring speech-based communication methods. Speech analytics can perceive the underlying concepts of a sound and understand languages through linguistics. They can also deliver intelligent information even if the translation is incorrect.

Machine translation segment is anticipated to hold substantial market share

In terms of applications, the market is segmented into automatic summarization, branding & advertising, content management, data extraction, HR & recruiting, information extraction, language scoring, machine translation, sentiment analysis, portfolio monitoring, report generation, risk & threat detection, question answering, and others. The machine translation segment is anticipated to hold substantial market share due to wide adoption of the NLP process for machine translation as the NLP solution converts speech and text inputs from one language to another. Furthermore, the growing need to localize material into more languages is expected to increase demand for the solutions. Moreover, the requirement for high-speed translation and cost-effectiveness are key factors propelling the segment growth.

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BFSI segment to account for a significant market share

Based on end-users, the natural language processing market is fragmented into automotive, academia & education, BFSI, defense & aerospace, energy & utilities, government & public sector, healthcare & life sciences, IT & telecom, manufacturing, media & advertisement, retail & ecommerce, and travel & hospitality. The BFSI segment is estimated to account for a significant market share during the targeted period. Various financial institutions are utilizing advanced technologies for cross-border payments, insurance query resolution, text mining, foreign exchange, and a variety of other applications. Furthermore, financial institutions employ these technologies in contact centres to process client paperwork and voice.

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North America is expected to dominate the market

In terms of regions, the market is classified as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. North America is expected to dominate the market owing to the wide range of participants and early adoption of new technology by leading players based in the region. Increasing use of smart devices and rising investment in AI technology by several key players is another key factor, expected to boost the regional market growth.