Natural Language Processing (NLP) for Customer Service Market By Component (Solution, Services) , By Application (Language Translation, Speech Recognition, Chatbots and Virtual Assistants, Text Generation, Multimodal Interaction, Analytics and Insights, Compliance and Regulatory Monitoring, Others) By Enterprise Size (Large Enterprise, Small and Medium-sized Enterprise) By Deployment Mode (On-premise, Cloud) By End User (BFSI, IT and Telecom, Healthcare, Education, Media and Entertainment, Retail and E-commerce, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Natural Language Processing (NLP) for Customer Service Market
The natural language processing (NLP) for customer service market was valued at $10.2 billion in 2023 and is projected to reach $106.9 billion by 2033, growing at a CAGR of 26.8% from 2024 to 2033.
Natural language processing (NLP) is a subfield of AI that enables the processing of bulks of text and speech data in machines such that they become useful for different applications. The usage of NLP algorithms in customer service facilitates the automated handling of customer queries, complaints, and feedback. Through NLP, businesses are able to offer instant & accurate responses, improve customer satisfaction, and reduce their operational costs.
As various businesses strive to offer 24/7 availability to their customers and scale their operations without increasing human resources, the growth of the natural language processing (NLP) for customer service market is being propelled significantly. Moreover, rise in the adoption of omnichannel customer services, which include email, chat, and social media is driving the development of the market. In recent times, the usage of sentiment and emotion analysis tools in NLP for customer services has become a prominent trend. These tools enable NLP to recognize the tone & intent of customers over texts & voice calls, which results in precisely tailored responses and improved customer satisfaction.
However, the installation of NLP infrastructure is a capital-intensive process as it requires powerful servers, cloud computing resources, and specialized talent. This deters several small-sized organizations from adoption, thereby restraining the development of the market. On the contrary, rise in the adoption of voice assistants is projected to present lucrative opportunities for the natural language processing (NLP) for customer service market. According to WebFX—a proprietary digital marketing platform—voice assistants, Siri by Apple and Google Assistant hold 36% of the market share and Alexa holds a 25% stake currently. The assimilation of NLP with these voice assistants has the ability to create voice-powered customer service solutions with the potential to handle complex tasks such as service booking, device troubleshooting, and account management.
Segment ReviewThe natural language processing (NLP) for customer service market is segmented into component, application, enterprise size, deployment mode, end user, and region. On the basis of component, the market is bifurcated into solution and services. Depending on application, it is classified into language translation, speech recognition, chatbots & virtual assistants, text generation, multimodal interaction, analytics & insights, compliance & regulatory monitoring, and others. According to enterprise size, it is divided into large enterprise and small- & medium-sized enterprise. By deployment mode, it is categorized into on-premise and cloud. By end user, it is segregated into BFSI, IT & telecom, healthcare, education, media & entertainment, retail & e-commerce, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Key FindingsOn the basis of component, the services segment is expected to be the highest shareholder during the forecast period.
Depending on application, the analytics & insights segment is projected to account for the highest share of the market by 2033.
According to enterprise size, the small- & medium-sized enterprise segment is predicted to dominate the market from 2024 to 2033.
By deployment mode, the cloud segment is anticipated to acquire a notable stake in the market by 2033.By end user, the IT & telecom segment is expected to garner a significant market share throughout the forecast period.Region wise, Asia-Pacific is anticipated to be the highest revenue generator by 2033.
Competition AnalysisThe major players in the global natural language processing (NLP) for customer service market include Google LLC, IBM Corporation, Amazon Web Services (AWS), Inc., Microsoft Corporation, Genesys Cloud Services, Inc., Zendesk, Inc., Twilio Inc., Rasa Technologies Inc, Apple Inc., and Meta Platforms Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy ComponentSolution
Services
By ApplicationLanguage Translation
Speech Recognition
Chatbots and Virtual Assistants
Text Generation
Multimodal Interaction
Analytics and Insights
Compliance and Regulatory Monitoring
Others
By Enterprise SizeLarge Enterprise
Small and Medium-sized Enterprise
By Deployment ModeOn-premise
Cloud
By End UserBFSI
IT and Telecom
Healthcare
Education
Media and Entertainment
Retail and E-commerce
Others
By RegionNorth America
U.S.
Canada
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East and Africa
GCC Countries
South Africa
Rest of Middle East and Africa
Key Market PlayersGoogle LLC
IBM Corporation
Amazon Web Services (AWS), Inc.
Microsoft Corporation
Genesys Cloud Services, Inc.
Zendesk, Inc.
Twilio Inc.
Rasa Technologies Inc
Apple Inc.
Meta Platforms Inc.