The natural language processing market was valued at USD 3.73 billion in 2017 and is expected to reach USD 12.88 billion with a CAGR of over 22.5%, during the forecast period of 2018-2023.
The increasing use of NLP in healthcare and call centers, rising demand for advanced text analytics, and growing machine-to-machine technology are the primary factors responsible for the growth of the natural language processing market. NLP has witnessed significant growth over the past few years, owing to affordable, scalable, and computational power, increase in digitization of data, and merger of NLP with deep learning (DL) and machine learning (ML). NLP has found increasing applications across various end-user industries, thus boosting the market’s growth. However, the implementation of stringent government regulations is projected to hinder the market’s growth, during the forecast period.
Rising Demand for Advanced Text Analytics to Fuel the Market’s Growth
Advanced text analytics has witnessed considerable growth, due to the integration of NLP with text analytics. NLP converts human language into machine language. This helps in the analysis of data and the translation of insights back to the spoken language, for an improved understanding. In the era of Big Data, the right platform enables businesses to utilize their data lake and take complete advantage of text analytics and NLP algorithms. Besides, text analytics solutions have been in demand, as most of the modern-day organizations can gain better market insights. Several companies have started focusing on keeping track of the market’s pulse, by aligning their product and services accordingly. They focus on products and service offerings, for higher profitability. Integrating text analytics enables companies to gain better market insights. This helps organizations to compete in the market, and thereby increase their market shares and presence.
A typical text analytics application in the finance industry focuses on compliance and fraud prevention. For instance, electronic communications at financial institutions (chats, emails, and instant messages) need to be monitored, to reduce the risk of fraudulent account activities, external business activities, and sharing sensitive customer information. The purpose of natural language processing, in this case, is to understand the content of communication threads through the semantic interpretation and identify relationships and entities, across multiple threads.
North America is the Major Contributor for Natural Language Processing Market
The North American region dominated the natural language processing market, in 2017, with the United States leading the market. The region accounted for the largest market share, due to the presence of a considerable number of natural language processing companies. Besides, the region has an advanced infrastructure capability, thus leading to the rapid adoption of NLP, across different end-user industries and fueling the growth of the market studied. The increasing inflow of investments in artificial intelligence technology by several companies is also anticipated to augment the growth of the market studied. Further, the rapid adoption of the smart devices is contributing toward the market’s growth.
The Asia-Pacific segment is anticipated to witness robust growth over the forecast period, due to the rising disposable incomes and increasing use of voice recognition, in numerous industries.
Key Developments in the Natural Language Processing Market
- Jun 2018 - Salesforce.com Inc. added natural language support to its artificial intelligent services, for developers. The company announced that it is focusing on a trio of services, based on natural language understanding and object recognition, as a part of its Einstein portfolio.
- Jan 2018 - SAS Institute Inc., a leader in the analytics domain, announced plans to make it easy for customers to build artificial intelligence solutions, by leveraging machine learning (ML) and natural language processing software. The company’s latest SAS platform includes a new offering, SAS Visual Text Analytics, and significant enhancements to the SAS Visual Data Mining and Machine Learning platforms.
- IBM Corporation
- 3M Co.
- Microsoft Corporation.
- NetBase Solutions Inc.
- SAS Institute Inc.
- Verint Systems Inc.
- Google LLC
- Veritone Inc.
- Salesforce.com Inc.
- Inbenta Technologies Inc.
- Current and future natural language processing market outlook in the developed and emerging economies
- Analyzing various perspectives of the market, with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market studied
- The regions that are expected to witness the fastest growth, during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in Excel).
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1.1. Scope of the Study
1.2. Study Assumptions
1.3. Study Deliverables
2. Research Methodology
2.1 Research Phases
2.2 Analysis Methodology
3. Executive Summary
4. Market Insights
4.1. Market Overview
4.2. Industry Attractiveness - Porter's Five Forces Analysis
4.2.1. Bargaining Power of Suppliers
4.2.2. Bargaining Power of Consumers
4.2.3. Threat of New Entrants
4.2.4. Threat of Substitute Products and Services
4.2.5. Competitive Rivalry in the Industry
4.3. Industry Value Chain Analysis
4.4. Technology Roadmap
5. Market Dynamics
5.1. Market Drivers
5.1.1 Shifting Trend from Product-centric to Customer-centric Experience
5.1.2 Increasing Demand for Smart Devices across Industrial Internet of Things (IIoT)
5.1.3 Significant Advancement in Machine-to-Machine Communication Technology
5.1.4 Increasing Amount of Digital Data with the Rise in Use of Smart Devices
5.2. Market Restraints
5.2.1 Lack of Skilled Professionals Across the Industry
5.2.2 Complexity in the Shift from Traditional to Advanced Technology, due to Fluctuating Customer Adoption Trends.
5.2.3 Need for Effective Predictive Technologies, to Narrow the Gap between Machines and Humans
5.3 Market Opportunities
5.3.1 Increasing Application of NLP in the Healthcare Industry
5.3.2 Increasing Adoption of Cognitive Technology in the field of Artificial Intelligence
6. Market Segmentation
6.1. By Application
6.1.1 Speech Analytics
6.1.2 Text Analytics
6.1.3 Sentiment Analysis
6.1.4 Pattern and Image Recognition
6.1.5 Interactive Voice Response (IVR)
6.1.6 Optical Character Recognition (OCR)
6.2 By Deployment
6.2.1 Public Cloud
6.2.2 Private Cloud
6.2.3 Hybrid Cloud
6.3 By Services
6.4 By End-user Industry
6.4.1 IT and Telecom
6.4.5 Other End-user Industries (Manufacturing, Media and Entertainment, Research and Education)
6.5 By Region
6.5.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
6.5.4 Rest of the World
6.6 By Technology
7. Natural Language Processing Market Companies
7.1. IBM Corporation
7.2. 3M Company
7.3. Apple Inc.
7.4. Dolbey Systems Inc.
7.5. Microsoft Corporation
7.6. NetBase Solutions Inc.
7.7. SAS Institute Inc.
7.8. Verint Systems Inc.
7.9. Google LLC
7.10. Hewlett-Packard Enterprise Company
7.11. Nuance Communications Inc.
7.13. Veritone Inc.
7.14. Salesforce.com Inc.
7.15. Inbenta Technologies Inc.
*(List Not Exhaustive)
8. Investment Analysis
9. Future of the Market