Natural Language Processing (NLP) Market Statistics: 2032
The global natural language processing (NLP) market was valued at $16.2 billion in 2022, and is projected to reach $239.9 billion by 2032, growing at a CAGR of 31.3% from 2023 to 2032.
Surge in increasing automation as a result of the integration of NLP with deep learning (DL) and machine learning (ML), drive the market growth. In addition, growing demand for smart devices, and increasing demand for advanced text analytics drive the growth of the NLP market and increase the natural language processing market size. However, complexities due to the usage of code-mixed language while implementing NLP solutions is expected to hamper the growth of the market. Furthermore, increase in automation as a result of the integration of NLP with deep learning and machine learning (ML) and rise in investments in the healthcare sector are expected to create lucrative opportunities for natural language processing market forecast.
The natural language processing (NLP) is a part of artificial intelligence (AI) that enables the computer to interpret human language, obtain meaning, and make communication more convenient by using voice enabled artificial intelligence (AI) and conversational intelligence technologies. In addition, the NLP features such as autocorrect and autocomplete tool help analyze personal language patterns and identify the most appropriate suggestions for the individual users or public. Furthermore, natural language processing automates much of the physical process, and provides analytics and business intelligence for growth and helps to order and organize the processes. In addition, growing data and increasing complexities in large businesses would open numerous opportunities for NLP industry in the market. Advertising and branding are two highly important strategies used by the natural language processing industry to promote firms. It gives the companies an opportunity to connect with the right customers.
The natural language processing market is segmented into Component, Deployment Mode, Enterprise Size, Type, Industry Vertical.
The natural language processing market is segmented on the basis of component, deployment mode, enterprise size, type, industry vertical, and region. By component, it is bifurcated into solution and services. By deployment mode, it is segregated into on-premises and cloud. By enterprise size, it is categorized into large enterprise and small and medium-sized enterprise. On the basis of type, it is segregated into statistical NLP, rule-based NLP, and hybrid NLP. By industry vertical, it is segregated into BFSI, IT and telecom, retail and e-commerce, healthcare, education, media and entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in natural language processing industry include Apple Inc., Intel Corporation, SAS Institute Inc., SAP SE, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, Amazon Web Services, Inc., and Hewlett Packard Enterprise Development LP. Furthermore, it highlights the strategies of the key players to improve the market share and sustain competition for NLP industry.
On the basis of component, solution segment dominated the NLP market in 2022 and is expected to maintain its dominance in the upcoming years owing to allows businesses to improve financial workflows, increase efficiency, and lower expenses all at the same time propels the market growth significantly. However, the service segment is expected to witness the highest growth, owing to provide organizations to integrate the artificial intelligence (AI)-driven NLP services for building AI chat-bot, intent classification, entity recognition, extract data from PDF, text categorization, sentimental analysis, extract insights using NLP, and Internet of Things (IoT) development among others.
On the basis of region, North America region dominated the natural language processing market in 2022 and is expected to maintain its dominance in upcoming years owing to developed IT infrastructure in countries such as the U.S. and Canada, also increasing usage of NLP in BFSI, IT and government sector to improve businesses and customer experience. However, the Asia Pacific region is expected owing to adoption of process automation across all industry verticals to enhance customer engagement and increase effectiveness of IT infrastructure in Asia-Pacific.
The report focuses on growth prospects, restraints, and analysis of the global natural language processing market trend. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global natural language processing market share.
Top Impacting Factor
Increase in Automation as a Result of the Integration of NLP with Deep Learning (DL) and Machine Learning (ML)
The NLP has boomed as artificial intelligence (AI) and machine learning (ML) technologies become more widely used in various industries. The AI-driven NLP empowers businesses to keep up-to-date with the latest data, automate repetitive tasks, internal processes and improve productivity. In addition, it improves customer experience through predictive analytics and automate functions where manual processes were previously required and personalize user-interface capabilities. Enterprises are deploying AI as it provides personalization solutions through the use of technologies such as natural language processing (NLP), which can be engaged by human speech and voice commands. Moreover, artificial intelligence (AI) accelerates numerous operations across the business and internal processes to achieve faster responses, produce quick projections, and provide rapid responsiveness. Furthermore, for improved security, artificial intelligence (AI) uses its unique capability of machine learning (ML) to recognize patterns, the ability to quickly identify and remediate possible risks with built-in self-recovery improves NLP security. Furthermore, the integration of ML and deep learning (DL) with NLP automates all business operations, which helps to handle growing business concerns about cost, scalability, and security more easily while protecting vital data as well as enhances the economic infrastructure.
Growth in Use of Internet and Connected Devices
Technological advancement and digital transformation have altered industries to conduct business and communicate with their customers. NLP has been shown to be extremely useful in facilitating interactions between users and systems or machines. The growing demand for voice-based solutions that interface with NLP-based applications provides users with enhanced functionalities such as verbal command capability and instant query management, increases the demand for internet and connected devices.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current natural language processing market trends, estimations, and dynamics of the NLP market analysis from 2022 to 2032 to identify the prevailing world natural language processing (NLP) market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the world natural language processing (NLP) market segmentation assists to determine the prevailing market opportunities and NLP market size.
- Major countries in each region are mapped according to their revenue contribution to the global market and natural language processing market share.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the natural language processing market analysis of the regional as well as global world natural language processing (NLP) market trends, key players, market segments, application areas, and natural language processing market growth strategies.
World Natural Language Processing (NLP) Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 239.9 billion |
 Growth Rate | CAGR of 31.3% |
 Forecast period | 2022 - 2032 |
 Report Pages | 425 |
 By Deployment Mode |
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 By Enterprise Size |
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 By Type |
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 By Industry Vertical |
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 By Component |
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 By Region |
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 Key Market Players | Amazon Web Services, Inc., Google LLC, Oracle Corporation, Intel Corporation, International Business Machines Corporation, Apple Inc., SAS Institute Inc., Microsoft Corporation, SAP SE, Hewlett Packard Enterprise Development LP |
Analyst Review
Over time, businesses have seen various changes in the business processes, operations, and industrial automation. Moreover, businesses are shifting towards the digital platform and increasing implementation of Industry 4.0 to cope with ongoing tough business competition, which creates the need for seamless solutions and platforms to meet these requirements. This increases eventually escalates the adoption of NLP platform in manufacturing, healthcare, pharmaceutical, and among others industry sectors rapidly. Furthermore, the NLP has boomed as artificial intelligence (AI) and machine learning (ML) technologies become more widely used in various sectors. The AI-driven NLP empowers businesses to keep up to date with the latest data, automate repetitive tasks, internal processes and improve productivity. In addition, it improves customer experience through predictive analytics and automate functions where manual processes were previously required and personalize user-interface capabilities. In addition, it provides customized and healthcare specific applications that will help the industry by offering higher-level quality services to their customers. These advantages are expected to provide lucrative opportunities for the market growth in the upcoming years. Nevertheless, prominent market players are exploring new technologies and applications to meet the increase in customer demands. Product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. Emerging economies provide lucrative opportunities to market players for growth or expansion.
For instance, in June 2022, Apple introduced a plan to provide an open-source reference PyTorch version of the transformer architecture accessible, enabling developers globally to install Transformer models on Apple devices easily.
Increase in automation as a result of the integration of NLP with deep learning (DL) and machine learning (ML), rise in demand for predictive analytics to reduce risks and identify growth opportunities. and growth in use of internet and connected devices the upcoming trends of Natural Language Processing (NLP) Market in the world.
Rapid changes in business model technology due to geographical expansion the leading application of Natural Language Processing (NLP) Market.
North America the largest regional market for Natural Language Processing (NLP) Market.
The Natural Language Processing (NLP) Market was valued for $16,218.93 million in 2022 and is $239,887.81 million by 2032 the estimated industry size of Natural Language Processing (NLP).
Apple Inc., Intel Corporation, SAS Institute Inc., SAP SE, Google LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, Amazon Web Services, Inc., and Hewlett Packard Enterprise Development LP. are the top companies to hold the market share in Natural Language Processing (NLP)
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