Natural Language Processing Market Size is projected to reach USD 91 Billion by 2030, growing at a CAGR of 27%: Straits Research
New York, United States, Aug. 11, 2022 (GLOBE NEWSWIRE) --c Deep learning architectures and algorithms have significantly improved image identification and speech processing over the last few years. NLP applications have made substantial contributions, delivering state-of-the-art outcomes for several demanding NLP application jobs. NLP has grown significantly in recent years due to more affordable, scalable, and processing capacity, increased data digitalization, and the convergence of NLP with deep learning (DL) and machine learning (ML). The key drivers responsible for the market's growth include the increasing use of NLP in healthcare facilities and contact centers, expanding demand for advanced text analytics, and the development of machine-to-machine technologies.
Shift from Product-Centric to Customer-Centric Experience Drive the Global Natural Language Processing Market
As a communication, consumption, and interaction method, the internet has empowered consumers. Companies have had to reconsider their branding and business methods. Attracting customers away from competitors in today's competitive economy takes more than the dominant product-centric or company-centric paradigm. Many channels allow businesses to employ AI-powered chatbots adept at handling inquiries. In some circumstances, proactive communication can forecast a customer's next move and pre-empt queries. Customer engagement systems combine AI capabilities to allow end users to create scalable, personalized customer experiences without the need for human programming or logic construction. Such elements contribute to market expansion.
Increased Adoption of Cognitive Technology in the Field of Artificial Intelligence Creates Opportunities for the Global Natural Language Processing Market
Cognitive technology is the next generation of artificial intelligence to improve end-user industrial application-based usefulness. It is used to create new cognitive computing initiatives. AI may help businesses automate business processes, get insights through data analysis, and engage with consumers and workers.
According to the findings of a Harvard Business Review study, cognitive technologies (152); robotics, cognitive automation, and cognitive insights (57); cognitive engagement (24); and cognitive insights provided by machine learning differed from those available from traditional analytics in three ways: I they are more data-intensive and detailed; (ii) the models are typically trained on some portion of the data set; and (iii) the models improve. Amelia, a lifelike intelligent-agent avatar, is being used as an internal employee help desk for IT support by SEB bank in Sweden and Becton, Dickinson, and Company in the United States. Such occurrences generate enormous market growth potential.
Market Size USD 91 Billion by 2030
CAGR 27% (2022-2030)
Historical Data 2019-2020
Base Year 2021
Forecast Period 2022-2030
Forecast Units Value (USD Billion)
North America accounts for the largest market share and is expected to grow at a CAGR of 27.1% during the forecast period. Due to its supremacy in AI and machine learning (ML) technology, North America is one of the primary markets for natural language processing. Most of the key suppliers in the industry are situated in the United States, giving the region an advantage in terms of innovation. Furthermore, regional governments are progressively supporting the implementation of AI, ML, and NLP technologies, creating opportunities for market players to extend their presence in the region. Furthermore, firms are attempting to increase their footprint in Canada through merger and acquisition (M&A) methods, given the country's expanding potential. For example, Inspirata bought Artificial Intelligence in Medicine Inc. (AIM), a Toronto-based firm, to improve its position in the NLP and AI industries.
Europe is the second-largest market for natural language processing. It is expected to reach an estimated USD 23 billion by 2030, growing at a CAGR of 26.4%. The region's most important markets are the United Kingdom, Germany, and France. The increased emphasis and spending on IT infrastructure are projected to boost growth in the UK NLP market. Furthermore, the government has placed a high value on new software. France is expanding its focus on artificial intelligence development through regular investments, luring new customers. This is anticipated to influence the country's NLP market growth positively.
Asia-Pacific is the fastest-growing region. The region is seeing an increase in AI and ML technology usage, particularly among SMEs. Asia's voice assistance market is also thriving, and the region is home to many consumer electronics makers, including smart speakers and smartphones. Since many NLP chips and hardware makers are situated in Asia, the businesses' regional supremacy in the global semiconductor sector also helps them achieve a foothold in the NLP market.
The global natural language processing market size was worth USD 13.5 billion in 2021. It is estimated to reach an expected value of USD 91 billion by 2030, growing at a CAGR of 27% during the forecast period (2022–2030).
By deployment, the global natural language processing market is segmented into On-premise and Cloud. The On-premise occupied the most significant market share and is expected to grow at a CAGR of 23.5% over the forecast period.
By organization size, the global natural language processing market is segmented into Large Organizations and Small & Medium Organizations. Small & Medium Organizations occupy the largest market share, and it is expected to grow at a CAGR of 26% over the forecast period.
By type, the global natural language processing market is segmented into Hardware, Software, and Services. The Hardware segment occupies the largest market share and is expected to grow at a CAGR of 21.9% over the forecast period.
By processing type, the global natural language processing market is segmented into Text, Speech/Voice, and Image. The Text processing segment occupies the most significant market share and is expected to grow at a CAGR of 23.4% over the forecast period.
By end-user, the global natural language processing market is segmented into Education, BFSI, Healthcare, IT & Telecommunication, Retail, Manufacturing, Media & Entertainment, and Others. The IT & Telecommunication segment occupies the largest market share and is expected to grow at a CAGR of 26.1% over the forecast period.