Cloud Natural Language Processing (NLP) Market Report 2025

The cloud natural language processing (NLP) market size has grown rapidly in recent years. It will grow from $16.69 billion in 2024 to $19.53 billion in 2025 at a compound annual growth rate (CAGR) of 17.1%. During the historic period, growth was driven by the expansion of big data analytics, increased adoption of cloud computing, accelerated digital transformation across industries, heightened focus on optimizing customer experiences, and the rise of e-commerce and online services.

The cloud natural language processing (NLP) market size is expected to see rapid growth in the next few years. It will grow to $36.22 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. In the forecast period, growth is expected to be driven by the rising adoption of voice-enabled applications, expanded multilingual support in global markets, increased use in financial fraud detection, growth in personalized marketing and customer engagement, and demand for regulatory compliance and sentiment monitoring. Key trends during this period include advancements in transformer-based language models for higher accuracy, development of low-code platforms for easier NLP deployment, integration of NLP with predictive analytics for business intelligence, progress in privacy-preserving NLP techniques for secure data handling, and innovation in domain-specific NLP applications for sectors such as healthcare and finance.

The growing adoption of artificial intelligence (AI) among large enterprises is expected to drive the growth of the cloud natural language processing (NLP) market. AI adoption involves integrating AI technologies into business operations to enhance automation, decision-making, and efficiency. As organizations increasingly face large volumes of unstructured data, such as customer feedback and social media content, they require scalable solutions to analyze and extract actionable insights. Cloud NLP supports these needs by automating text analysis and enabling efficient data processing, which improves decision-making and customer engagement. For example, the United States Census Bureau reported in December 2024 that AI adoption among the largest businesses rose to 7.8% in 2024 from 5.2% in 2023, with usage increasing by 0.11 percentage points every two weeks. This trend highlights how AI adoption is driving demand for cloud NLP solutions.

Companies in the cloud NLP market are increasingly focusing on generative AI to enhance data analytics and query capabilities. Data analytics involves examining raw data to uncover trends and actionable insights, while query systems allow users to efficiently retrieve and analyze specific information from large datasets. In August 2025, US-based Amazon Web Services Inc. introduced natural language query generation powered by generative AI for OpenSearch Piped Processing Language (PPL) and SQL. This feature enables users to analyze log data using plain English queries, automatically converted into PPL or SQL. It allows both novice and advanced users to explore data, refine queries iteratively, and troubleshoot efficiently, improving accessibility and real-time insights within CloudWatch Logs Insights.

In January 2024, QlikTech International AB, a US-based data analytics and AI company, acquired Kyndi Limited for an undisclosed amount. This acquisition strengthens Qlik’s analytics platform by integrating Kyndi’s AI-powered reasoning and natural language processing capabilities. Kyndi Limited specializes in cloud NLP solutions, and the integration is aimed at accelerating AI-driven business outcomes and enhancing enterprise-level data analysis.

Major players in the cloud natural language processing (nlp) market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, NVIDIA Corporation, Tencent Cloud Computing Beijing Co. Ltd., International Business Machines Corporation, Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, Baidu Inc., OpenAI LP, Alibaba Cloud Computing Ltd., ServiceNow Inc., Adobe Inc., Twilio Inc., Mistral AI, Grammarly Inc., Deepgram Inc., Lexalytics Inc, Explosion AI GmbH.

North America was the largest region in the cloud natural language processing (NLP) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in cloud natural language processing (NLP) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the cloud natural language processing (NLP) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

Cloud natural language processing (NLP) is a cloud-based technology that enables machines to interpret, analyze, and generate human language. It can handle large volumes of text or speech to detect meaning, sentiment, entities, and intent. The technology provides scalable, cost-effective, and accessible language processing for applications such as chatbots, machine translation, sentiment analysis, and content moderation.

The primary components of cloud NLP are software and services. The software consists of cloud-based modules that deliver natural language understanding and generation via APIs, allowing faster insights without infrastructure management. It leverages technologies such as speech recognition, natural language understanding (NLU), and natural language generation (NLG), and can be deployed on public, private, or hybrid clouds. Applications include sentiment analysis, text classification, machine translation, and information extraction, serving industries such as banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, media and entertainment, IT, and telecommunications.

The cloud natural language processing (NLP) market research report is one of a series of new reports that provides cloud natural language processing (NLP) market statistics, including the cloud natural language processing (NLP) industry global market size, regional shares, competitors with the cloud natural language processing (NLP) market share, detailed cloud natural language processing (NLP) market segments, market trends, opportunities, and any further data you may need to thrive in the cloud natural language processing (NLP) industry. This cloud natural language processing (NLP) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cloud natural language processing (NLP) market consists of revenues earned by entities by providing services such as emotion detection, automatic summarization, multilingual text processing, keyword extraction, topic modeling, and contextual intent recognition. The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud natural language processing (NLP) market also includes sales of artificial intelligence (AI)-powered chatbots, cloud-based text analytics software, sentiment analysis platforms, machine translation engines, and language understanding development kits. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.