Natural Language Processing Market (2024-2031)
The Natural Language Processing Market is expected to reach $164.9 billion by 2031, at a CAGR of 29.2% from 2024 to 2031.
- Published
- Sep 2024
- Pages
- 200
- Format
- PDF + Excel
- Report ID
- MRICT - 104821
- Base year
- 2023
- 2031 · FORECAST
- $164.9B
- 2031
- $164.9B
- CAGR 2024–2031
- 29.2%
2023 baseline · 2024–2031 forecast at 29.2% CAGR · hover a bar for the value
Key highlights
By Offering: In 2024, the Solutions Segment to Dominate the Natural Language Processing Market
By Organization Size: In 2024, the Large Enterprises Segment to Dominate the Natural Language Processing Market
By Application: In 2024, the Speech Recognition Segment to Dominate the Natural Language Processing Market
By Sector: In 2024, the IT & Telecommunications Segment to Dominate the Natural Language Processing Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 200 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR | 29.2% |
| Market Size (Value) | USD 164.9 Billion by 2031 |
| Segments Covered | By Offering · Solutions · Optical Character Recognition Solutions · Interactive Voice Response Systems · Autocoding Systems · Document Analytics Solutions · Speech Analytics Solutions · Simulation & Modeling Solutions · Customer Experience Management Solutions · Digital Assistants and Chatbots · Other NLP Solutions · Services · Professional Services · Managed Services · By Organization Size · Large Enterprises · Small & Medium-sized Enterprises · By Application · Sentiment Analysis · Chatbots & Virtual Assistants · Text Classification · Text Extraction · Machine Translation · Text Summarization · Market Intelligence · Speech Recognition · Other Applications · By Sector · IT & Telecommunications · BFSI · Retail & E-commerce · Healthcare & Life Sciences · Transportation & Logistics · Government & Public Sector · Media & Entertainment · Manufacturing · Education · Food & Beverages · Other Sectors |
| Countries Covered | North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and the Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and the Middle East & Africa (UAE, Israel, Rest of Middle East & Africa) |
| Key Companies | Google LLC (U.S.), Microsoft Corporation (U.S.), Amazon Web Services, Inc. (a subsidiary of Amazon.com, Inc.) (U.S.), Oracle Corporation (U.S.), IBM Corporation (U.S.), NVIDIA Corporation (U.S.), QUALCOMM Incorporated (U.S.), Baidu, Inc. (China), Verint Systems Inc. (U.S.), SAP SE (Germany), Intel Corporation (U.S.), Adobe Inc. (U.S.), Genpact Limited (U.S.), SAS Institute Inc. (U.S.), and NetBase Solutions, Inc. (U.S.). |
Report overview
Segments covered: offering, solution, optical character recognition solution, interactive voice response system, autocoding system, document analytics solution, speech analytics solution, simulation & modeling solution, customer experience management solution, digital assistant, chatbot, other nlp solution, service, professional service, managed service, organization size, large enterprise, small & medium-sized enterprise, application, sentiment analysis, chatbots & virtual assistant, text classification, text extraction, machine translation, text summarization, speech recognition, other application, sector, it & telecommunication, bfsi, retail & e-commerce, healthcare & life science, transportation & logistic, government & public sector, media & entertainment, manufacturing, education, food & beverage, other sector. Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
Natural language processing (NLP) is the application of AI to process and analyze text or voice data in order to understand, interpret, categorize, or derive insights from the content. Examples of NLP include email spam filters, spell checkers, grammar checkers, autocorrect, language translation, sentiment analysis, semantic search, and more.
The growth of the market is driven by factors such as the rising adoption of smart devices, the growing demand for NLP-based applications for customer support, and the rising demand for NLP tools in call centers. Moreover, the rapid adoption of cloud-based technologies and increasing applications of NLP in the healthcare sector are expected to offer market growth opportunities.
However, the limitations in the development of NLP technology restrain the market's growth. Additionally, data privacy & security concerns pose challenges to the market's growth.
The adoption of virtual assistants & chatbots and the growing demand for speech analytics solutions are the key trends observed in the natural language processing market.
Report infographic
Market dynamics
4 factors across 4 forcesFollowing Are the Major Examples of NLP Applications in Customer Service
- Customer service chatbots
- Product recommendation conversational systems
- Customer sentiment analysis
- Customer satisfaction and trend spotting
Table of contents
12 chapters · 129 sections · 200 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Offering | Solutions | — |
| By Organization Size | Large Enterprises | — |
| By Application | Speech Recognition | Chatbots & virtual assistants |
| By Sector | — | Healthcare & life sciences |
By Offering
- The Solutions Segment to Dominate the Natural Language Processing Market
- The solutions segment is expected to account for the larger share of 72.0% of the global natural language processing market.
- The large market share of this segment is attributed to the rising adoption of NLP among enterprises to analyze data and discover insights, automate time-consuming processes, and help them gain a competitive advantage.
- However, the solutions segment is projected to register a higher CAGR during the forecast period.
- The rising focus of market players on product development and enhancement is expected to drive the growth of this segment.
- For instance, in December 2022, Kaleyra, Inc. (U.S.) launched a new lineup of chatbots for WhatsApp Business that will allow businesses to create advanced conversational experiences on the platform.
- With a daily volume of over 100 billion messages, WhatsApp provides a convenient and efficient way for businesses to connect with their customers in real time.
By Organization Size
- The large enterprises segment is expected to account for the larger share of 62.0% of the global natural language processing market.
- The large market share of this segment is attributed to factors such as the strategic IT initiatives developed by large enterprises, the increasing demand for managing large volumes of customer-level data, the early adoption of advanced technologies across retail, manufacturing, healthcare, and automotive sectors, and the rising need for improved insights into customer responses.
- However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period.
- The growth of this segment is driven by the increasing need for contact center analytics solutions among small organizations, notable benefits offered by NLP solutions for small & medium-sized enterprises, and the growing adoption of cloud-based NLP solutions & services among these enterprises.
By Application
- The speech recognition segment is expected to account for the largest share of 40.0% of the global natural language processing market.
- The large market share of this segment is attributed to the rising use of NLP for improving the accuracy, robustness, and features of speech recognition systems.
- However, the chatbots & virtual assistants segment is expected to register the highest CAGR during the forecast period.
- The increasing need to capture valuable customer data and insights, provide brands with actionable feedback to optimize their products, services, and marketing strategies, and deliver personalized recommendations, content, and offers tailored to individual preferences and behavior are expected to drive growth in this segment.
By Sector
- The IT & telecommunications segment is expected to account for the largest share of 23.0% of the global natural language processing market.
- The segment's large market share can be attributed to the rising adoption of speech analytics and sentiment analysis solutions in IT & telecom call centers to analyze business conversations, the increasing need to gather actionable information, and the increasing demand for NLP-based network solutions in the telecommunications sector.
- However, the healthcare & life sciences segment is expected to register the highest CAGR during the forecast period.
- The growth of this segment is driven by the rising applications of NLP in healthcare, including areas such as clinical trial matching and clinical documentation, the widespread adoption of AI chatbots and virtual scribes, and initiatives by governments and companies to deploy chatbot solutions for providing healthcare data.
Geographic analysis
North America
Largest shareIn 2024, North America is expected to account for the largest share of 35.0% of the natural language processing market. North America's significant market share can be attributed to the growing adoption of digital assistants and chatbots in the BFSI, retail, and IT & telecommunications sectors, the rising demand for cloud-based NLP solutions & services, the presence of well-established NLP solution providers, and the growing demand for speech analytics solutions.
Asia-Pacific
Fastest growthHowever, the market in Asia-Pacific is projected to register the highest CAGR of 31.0% during the forecast period. The growth of this regional market is driven by government initiatives aimed at increasing the adoption of digital assistants, chatbots, sentiment analytics solutions, OCR solutions, and IVR systems, along with market players' efforts to launch NLP solutions such as chatbots and emotional intelligence solutions. Furthermore, the growing popularity of cloud-based NLP solutions and NLP-based applications across the region contributes to the growth of this market. For instance, in May 2021, Pluszero Inc. (Japan) launched "Nekonote," a data creation service to improve its accuracy in Japanese natural language processing. Additionally, in February 2021, ITOCHU Techno-Solutions Corporation (Japan) launched SmartBERT, an AI natural language processing engine, utilizing the deep learning technology of Intumit Inc. (Taiwan).
Competitive landscape
- March 2023
Microsoft Corporation (U.S.) launched its Dragon Ambient eXperience (DAX) Express. This solution represents the next breakthrough for healthcare and a major milestone in Microsoft's journey to automate clinical documentation at scale. DAX Express is an automated clinical documentation application integrated into the workflow that is the first to combine proven conversational and ambient AI with the advanced reasoning and natural language capabilities of OpenAI's GPT-4.
- July 2022
SAP SE (Germany) acquired Askdata (U.S.), a startup focused on search-driven analytics, to strengthen its ability to help organizations make better-informed decisions by leveraging AI-driven natural language searches.
- November 2021
IBM Corporation (U.S.) introduced natural language processing (NLP) enhancements for its IBM Watson Discovery. These planned updates are designed to help business users in industries such as financial services, insurance, and legal services enhance customer care and accelerate business processes by uncovering insights and synthesizing information from complex documents.
- November 2021
QUALCOMM Incorporated (U.S.) launched the world's most advanced mobile platform, Snapdragon 8 Gen 1.
- Google LLC (U.S.)
- Microsoft Corporation (U.S.)
- Oracle Corporation (U.S.)
- IBM Corporation (U.S.)
- NVIDIA Corporation (U.S.)
- QUALCOMM Incorporated (U.S.)
- Baidu, Inc. · China
- Verint Systems Inc. (U.S.)
- SAP SE · Germany
- Intel Corporation (U.S.)
- Adobe Inc. (U.S.)
- Genpact Limited (U.S.)
- SAS Institute Inc. (U.S.)
- NetBase Solutions, Inc. (U.S.)
Frequently asked questions
This study focuses on market assessment and opportunity analysis by analyzing the sales of natural language processing solutions & services across various regions and countries. This study also offers a competitive analysis of the natural language processing market based on an extensive assessment of the leading players' product portfolios, geographic presence, and key growth strategies.
Cite this report
Meticulous Research. (2024). Natural Language Processing Market - Global Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MRICT - 104821). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/natural-language-processing-market-5505