Natural Language Processing (NLP): Global Market Analysis and Insights

Natural Language Processing (NLP): Global Market Analysis and Insights

Summary:

The importance of NLP techniques, a subset of artificial intelligence, is rising as its sub-technologies develop. Language is the main tool for interaction and communication. Communication is vital for the efficient completion of processes, and language is necessary for communication. NLP is a quickly developing technology due to the vast amount of Big Data, customized algorithms and powerful tools at disposal. NLP can be tackled using various techniques, including rule-based, algorithmic, statistical and machine learning approaches. This is yet another factor contributing to the rising use of NLP across numerous industries. The use of NLP is expanding the reach of other disciplines. Domains integrating NLP include business, recruitment, finance, healthcare and sports trading.

The global market for NLP was estimated to be valued at $REDACTED billion in 2022. It is projected the NLP market will grow at a compound annual growth rate (CAGR) of REDACTED%, and it is forecast to reach $REDACTED billion by 2028. Increasing demand for intelligent virtual assistants such as Siri, Alexa and Google Assistant, a growing volume of unstructured data, advancement in machine learning and deep learning and increasing use of application areas are some of the key factors driving the growth of the current NLP market. Data piracy and security concerns, a lack of skilled professionals, language and cultural barriers, and ethical and bias concerns, however, are hindering the market growth. Apart from drivers and restraints, increasing adoption in healthcare, customer experience enhancement, improving sentiment analysis and social listening, multilingual and cross-cultural applications, compliance and regulatory will create huge opportunities for vendors in the market.

In this report, the NLP market has been segmented based on component, deployment, organization size, type, application, industry vertical and geography. Based on component, the NLP market has been categorized into solution and services. Solution currently dominates the market, and the segment was valued at $REDACTED billion in 2022. It is estimated the NLP market for solution will grow at a CAGR of REDACTED%, and it is forecast to reach $REDACTED billion by 2028.

Based on deployment, the NLP market has been segmented into cloud and on-premises. Based on organization size, the NLP market has been segmented into large enterprises and SMEs. Based on type, the NLP market has been segmented into rule-based, statistical and hybrid. Based on application, the NLP market has been segmented into sentiment analysis, social media monitoring, automatic summarization, content management and virtual assistants/chatbots. Based on industry vertical, the NLP market has been segmented into BFSI, education, healthcare, retail and e-commerce, IT and telecommunication, media and entertainment, and others.

By geography, the NLP market has been segmented into North America, Europe, Asia-Pacific and Rest of World (RoW). North America is currently the most dominant global NLP market. In 2022, total revenue from the North America NLP market reached $REDACTED billion, which is REDACTED% of the global market. The presence of leading global companies, robust technology infrastructure, favorable political and economic environment, and high adoption of advanced technologies (e.g., AI, IoT, cloud) are among the key factors driving the North American market. Asia-Pacific is currently the fastest-growing market for NLP. The Asia-Pacific NLP market was valued at $REDACTED billion in 2022. It is projected to grow at a CAGR of REDACTED%, and it is forecast to reach $REDACTED billion by 2028.