Natural Language Processing Market Forecasts to 2028 – Global Analysis By Product (Solutions, Services and Other Components), Type, Technology, End User and By Geography

Natural Language Processing Market Forecasts to 2028 – Global Analysis By Product (Solutions, Services and Other Components), Type, Technology, End User and By Geography

According to Stratistics MRC, the Global Natural Language Processing Market is accounted for $26.4 billion in 2022 and is expected to reach $79.2 billion by 2028 growing at a CAGR of 20.1% during the forecast period. A component of artificial intelligence (AI), natural language processing enables the computer to comprehend human speech, derive meaning, and facilitate communication utilising voice-activated artificial intelligence (AI) and conversational intelligence technologies. Natural language processing also helps to order and organise the processes by automating a large portion of the physical process and offering analytics and business intelligence for growth.

According to the Flexera State of the Cloud Report in 2022, around 81% of enterprises adopted a multi-cloud strategy for their businesses. Also, in 2021, more than 67.0% of all enterprises will use cloud-based infrastructure.

Market Dynamics:

Driver:

Increasing use of cloud-based NLP and AI software

Organisations are implementing cloud-based NLP systems to reduce the time necessary for data collection and processing. Natural language processing techniques for chatbots and voice searches capture data utilising a variety of cloud-based and AI-powered tools. By automating labour-intensive data gathering operations, technological innovation in AI has fundamentally changed big data analytics and driven an efficient service, which is fueling the market's expansion.

Restraint:

Limitations in the development of NLP technology

Neural networks and deep learning methods are used in the field of natural language processing to process sequential data. The most cutting-edge technologies that enable it to take off are neural networks and deep learning. But because the creation of these technologies is expensive and takes a lot of time and money for research and development, the market's expansion is restricted.

Opportunity:

Rising demand for cutting-edge text analytics

Text analytics is essential for examining consumer behaviour and gauging consumer nature, two factors that advance the market's expansion. Businesses can utilise text analytics to offer their clients personalised deals and discounts based on past trends. Additionally, social media platforms are used by the retail and e-commerce industries as a major data source for text analytics, which is the main driver of the market's expansion.

Threat:

Privacy and regulatory issues with data security

Data privacy has continued to be a significant barrier to business adoption of AI. Technologies for facial recognition, emotion detection, machine learning, and deep learning draw on the stored data to provide insightful extracts. Along with other important information like location and spending patterns, this data reveals a customer's private information. Therefore, these elements are impeding the market's expansion.

Covid-19 Impact

Because of the worldwide lockdowns and limitations brought on by the COVID-19 epidemic, the global economy has suffered. Nevertheless, the COVID-19 pandemic has compelled companies all over the world to switch to digital platforms and implement digital technology-based solutions to streamline their business operations. Furthermore, the pandemic has created significant difficulties for businesses that are trying to carry out crucial processes, accurately report on data dispersed across numerous locations, run complex systems, and effectively collaborate with partners; particularly where they lack the necessary infrastructure.

The text analytics segment is expected to be the largest during the forecast period

The text analytics segment is estimated to have a lucrative growth, due to rising development of these analytics tools by the key players in the market. To leverage unstructured data and analyse sentiments, subjects, and key phrases, text analytics technologies combine machine learning and natural language processing. The market growth is anticipated to be strengthened by the increased use and development of next-generation text analytics tools.

The employee onboarding & recruiting segment is expected to have the highest CAGR during the forecast period

The employee onboarding & recruiting segment is anticipated to witness the fastest CAGR growth during the forecast period, due to rising investments and development of the IT companies. The standard that candidates must meet in order to be considered for the post is established through the extraction of all requirements and criteria. As soon as the requirements are determined, the AI system checks database candidates and distinguish qualified talent from the others. The segment's revenue growth is mostly being driven by these factors.

Region with Largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the growing focus on adopting AI, deep learning, and machine learning technology. The region's middle-income population saw a growth in expandable income as a result of the quickening pace of technology innovation, the digitization of businesses, and government programmes. Additionally, this region has a strong IT infrastructure, solid software, and service offerings, all of which would present the market with profitable growth opportunities.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the presence of leading players. The area is one of the major markets for AI and machine learning technologies. Additionally, the growing popularity of using smart speakers to find information on a variety of topics is anticipated to encourage businesses to invest in the technology. Other application developers now have a huge window of opportunity to reach out to potential clients.

Key players in the market

Some of the key players profiled in the Natural Language Processing Market include Google Inc., SAS Institute Inc., NetBase Quid, Inc., Microsoft Corporation, IBM Corporation, Amazon.com, Inc., Micro Focus International PLC (HPE), SAP SE, Hewlett Packard Enterprise Development LP, Inbenta Holdings Inc., SoundHound AI, Inc., Linguamatics, Apple Inc., 3M and Automated Insights.

Key Developments:

In July 2022, SoundHound collaborated with LG to develop Voice AI Technology for next-gen in-vehicle infotainment systems, which will encourage OEMs to create new revenue streams.

In July 2022, SAP SE acquired Askdata, a search-driven Analytics Company. With this acquisition, the company will assist businesses in making well-informed choices with the support of AI-driven natural language searches.

Components Covered:
• Solutions
• Services
• Other Components

Types Covered:
• Statistical
• Hybrid
• Rule-based
• Other Types

Technologies Covered:
• Speech Analytics
• Optical Character Recognition (OCR)
• Text Analytics
• Image & Pattern Recognition
• Simulation & Modeling
• Interactive Voice Response (IVR)
• Auto Coding
• Classification and Categorization
• Other Technologies

Applications Covered:
• Text Classification & Summarization
• Employee Onboarding & Recruiting
• Social Media Monitoring
• Virtual Assistants/Chatbots
• Customer Experience Management
• Sentiment Analysis
• Other Applications

End Users Covered:
• Transportation & Logistics
• Media & Entertainment
• Government & Public Sector
• Retail and eCommerce
• Healthcare and Life Sciences
• High Tech and Telecom
• Manufacturing
• Banking, Financial Services, and Insurance (BFSI)
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements