Text Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Text Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global text analytics market was valued at USD 5.46 billion in 2020 and is expected to reach a value of USD 14.84 billion by 2026 at a CAGR of 17.35% over the forecast period (2021-2026). Some cloud-based applications, including predictive analytics, fraud management, risk management, business intelligence, cybercrime prevention, etc., use text analytics.

Key Highlights

• Text analytics tools are being increasingly used by organizations to aid their business-making process by offering actionable insights from various forms of text sources, such as client interaction, e-mails, blogs, product reviews, tweets, and center logs.
• The primary objective of text analytics is to accumulate different forms of data, including structured and unstructured, which are further utilized for the analysis, thereby fueling the organization’s business decisions.
• Some of the primary benefits of text analytics include cost reduction, enhanced processing speed, integration of big data, and better consistency.
• Nowadays, there is a large amount of unstructured data generated, such as user’s tweets and e-mails. This information is bundled by organizations to understand consumer behavior toward the company and its products, which adds value to the firm’s growth.
• Data generated by enterprises mainly consists of unstructured data (80%), while only 20% of the data is structured. Data comes in various types of formats, from structured, numeric data in traditional databases to unstructured text documents, like videos, audio, e-mails, stock ticker data, and financial transactions.
• The rising demand for machine learning and big data analytics is expected to propel the text analytics market across the globe. COVID-19 is expected to increase the demand for text analytics further as people continue to work from home and are expected to heavily use social media platforms and e-mails for interacting with the brands.

Key Market TrendsRetail and E-commerce to Hold a Significant Share in Text Analytics Market

• In retail, text analytics plays an important role in analyzing customer behavior and predicting consumer nature, which is likely to drive the market in the industry. By adopting text analytics, organizations can provide personalized schemes and discounts to their customers by making use of their historical trends.
• Retailers use social media platforms as a key source to acquire data to utilize text analytics, anticipate the demand and supply, and enhance the customer experience.
• In order to meet increased expectations and direct communication from consumers, retailers should implement the technology and processes that enable them to manage the volume, variety, access, and governance of consumer data.
• Retailers need the integration of insights and AI necessary for perceiving intent and prescribing targeted responses. Retail companies need to centralize access to a vast amount of data siloed across IT, marketing, sales, call centers, and third-party sources to identify their customer's behaviors, wants, and needs.
• According to a report by Hitachi Solution, AI generated USD 40 billion in additional revenue in the retail market over the past three years. An AI-text analytics solution can help in analyzing customers' behavior. The help of the online chat program helps the company display their feedbacks, demands, common questions, and answers without even interacting with them directly.
• This helps the retailer understand the shift toward customers' behavior, their demands, the pattern of what they need, and customers' emotions. Moreover, it helps to make data-driven decisions for enhancing customer services.

North America to Execute a Significant Market Share

• The United States is a prominent market in the North American region due to the growing adoption of text analytics solutions across end-user industries, such as BFSI, retail, and healthcare. The region is a pioneer in adopting advanced technologies, thereby, driving the market's growth.
• The rising investments in emerging technologies, like AI and machine learning, among others, are expected to create scope for the market.
• Additionally, the United States has a strong foothold of text analytics vendors, which contributes to the market's growth. Some of them include IBM Corporation, SAS Institute Inc., Luminoso Technologies Inc., and Microsoft Corporation, among others.
• On November 5, 2020, Microsoft, a US-based company, announced Hindi's addition as the latest language under its text analytics service to support businesses and organizations with customer sentiment analysis. Text analytics is part of the company's Azure Cognitive Services.
• Using this service, organizations can find out what people think of their topic, brand, or topic. This enables analyzing Hindi text for clues about positive, neutral, or negative sentiment. The text analytics service can be combined with the Azure Speech-to-Text service for any textual/audio input or feedback.
• Academic institutions have become involved in the text mining initiative in the country. For instance, in the United States, the School of Information at the University of California, Berkeley, is developing a program known as BioText, to assist biology researchers in text mining and analysis.

Competitive Landscape

The text analytics market is a propelling market with several players in the market. However, the major players such as IBM Corporation, SAP SE dominate the market. Therefore, the market is consolidated.

• May 2021 – TCS and Microfocus’s unified analytics platform, Vertica, announced a strategic partnership to accelerate the process of modernization in enterprise data warehouses for various data-driven companies using Unified Analytics Platform.
• July 2020 - Microsoft Corporation announced the inclusion of text analytics capabilities within its Azure Cognitive Services product. According to the company, text analytics for health features can process various data types and tasks, including extracting more than 100 types of personally identifiable information (like protected health information) from unstructured texts.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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