The global natural language processing market size was estimated at USD 18.6 billion in the year 2021 and is expected to hit around USD 361.6 billion by 2030 with a registered CAGR of 39.06% during the forecast period 2022 to 2030.
Increased demand for the natural language processing with cloud-based techniques with increased communication have accelerated the market growth of natural language processing with decreased costing, high scalability, high usage of smart devices in various sectors with increased customer demands with developed technologies increased the market growth during the forecast period. Natural language processing (NLP) is the connection between the human and machines (computers and other smart devices) includes processing of the computer programs and analyzing the information involved in natural language processing data.
Smart device (computer) can understand the language and the information included in the documents and can itself arrange the documents in sequence. With increased contact of humans and machines with increased demands have raised the market of natural processing language. Impact of covid-19 on NLP slow down the market rate due to widespread of corona virus across various regions has witnessed the market declined various rules and regulations imposed by the government social distancing, lock down and shut down of many industries. Large number of companies are using the NLP method in processing of the language and for analyzing the data. Improved digitalization for updating the information from the government. Drives the growth of NLP in health sectors with increased number of patients. Thus NLP has seen both the upward and downward growth of market in NLP.
The rapidly increasing technology and wide developments with increased demands from the market with high connectivity and cloud-based systems have driven the market growth of natural processing language with increased interaction between humans and machines. While increased digitalization across the various regions and industries with wide amount of information stored in the smart device with easy access to the information.
Increased demands from health sector for NLP with easy storage of information over the software using the high connectivity such as Wi-Fi, 5G, 4G, 3G connections for communication of humans and machines. In last few years there is massive rise of natural processing language with the increased need and maintaining the large amount of patient’s history and recent information and maintaining the electronics health records. Moreover, increased natural language processing market during the forecast period and increased trend of analysing the data over a connectivity have accelerated the natural language processing market growth to a larger extent during the forecast period.
Increased government initiative to increase the NLP with increased benefits with ease of managing the data in the sophisticated manner and maintaining the patient health records with increased investments from the governments to create awareness about newly developed technologies and connectivity.
The key market players involved in introducing the NLP with new innovations and increased research and development with continuous developments striving the natural processing language market to grow at a larger extent.
Report Scope of the Natural Language Processing Market
|Market Size in 2022||
USD 25.86 Billion
|Market Size by 2030||
USD 361.6 Billion
|Growth Rate from 2022 to 2030||CAGR of 39.06%|
|Forecast Period||2022 to 2030|
|Segments Covered||Technology, Industry Vertical, Enterprise size, Type, Deployment, Component, Application and Geography|
|Companies Mentioned||Spark Cognition, Inc, Conversica, Linguamatics, Narrative science, SAP SE, Veritone Inc., SAS Institute Inc., Inbenta, Intel Corporation, Google, Inc, IBM Corporation, Hewlett Packard Enterprise Development LP, Microsoft Corporation, Biadu, Inc, Amazon Web Services, Inc, Facebook,Inc, Apple,Inc, Bitext, Health Fidelity, Linguamatics, Automated Insights, Gnani.ai, Niki, Mihup, Observe.Al, Hyro, Just Al, RaGaVeRa|
Key Market Drivers
Rising adaption of smart devices - Increased developments with new innovations and technologies in the market with improved internet of things and new advancements with the connectivity to transmission of information and for interconnections between human and machines. Natural language processing market has grown in various sectors such as home, industries, health care, education, transportation for sophisticated communication between the individuals and machines and maintaining the documents and the data. With new features such as verbal commanding and solving the query easily, easy access with the smart devices. Smart devices usually consist of mobile phone, computer, devices installed in the plant for easy work flow management.
Increased demands from the customers - Understanding the requirements from the customer and fulfilling the needs with improved technology and processing. To improve the technologies with new developments and new innovations and good connectivity. Increased government initiative for developing the natural language process with increased awareness among the people about the availability of the developed technology. Increased connection between the people and the data can be save for later reference.
Key Market Challenges
Key Market Opportunities
Based on components, the solution segment dominated the NLP market in 2021 due to an increase in competition in businesses, user needs, legislation, and project risks.
The service segment has contributed 24% market share in 2021. However, the service segment is growing at a significant CAGR over the forecast period 2022 to 2030 due to speeding up software implementation, minimizing the deployment cost & risks, maximizing the value of existing installation by optimizing it, and others.
Industry Vertical Insights
Segmentation of natural language processing on the basis of industry vertical segmented in to various parts such as manufacturing, advertising media, automotive and transportation, Banking financial services and insurance (BFSI), energy utilities, high tech telecom, government and public sector, education, transport and logistics, retail and ecommerce and health care.
Banking financial services and insurance hold the highest market. Which increases the market size with developed innovations with improved digitalization across the nation. Increased ease of searching the documents among the thousands of documents. Which enhanced the market growth with increase revenue share during the forecast period.
Segmentation of natural language processing on the basis of size of enterprises it involves small and medium sized enterprises and large size enterprises, Large size enterprises are rapidly accepting the new innovative technologies with increased utilization on the large scale with increased demand for the NLP with improved techniques and machine learning.
Segmentation of natural language processing on the basis of technology includes pattern and image recognition, classification and categorization text analytics, speech analytics, interactive voice response, character recognition, others include auto coding, professional services etc thrives the growth of the market.
Segmentation of natural language processing on the basis of applications such as language scoring, content management, automatic summarization, risk and threat detection, data extraction, sentiment analysis, others such as portfolio monitoring, HR ad recruiting, branding, advertising are the wide applications with the utilization of NLP.
Natural Language Processing Market Share, By Region, 2021 (%)
|Regions||Revenue Share in 2021 (%)|
North America to hold the largest position in the natural language processing with increased development and technologies with wide applications in the health sector and increased demand from the consumer which enhanced the market of NLP with increased connectivity, rapid research and development, highly developed infrastructures contributing to increase the market of NLP during the forecast period.
Other regions such as Europe with increased utilization and increased investments to grow the market of natural processing language. Other regions which contribute to boost the market such as Asia Pacific, Latin America, Middle East and Africa and rest of the world.
Key market players
Segments covered in the report
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By Industry Vertical
By Enterprise size
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