New York, Aug. 15, 2023 (GLOBE NEWSWIRE) -- The global natural language processing (NLP) market size is slated to expand at ~28.7% CAGR between 2023 and 2035. The market is poised to garner a revenue of USD 345.7 billion by the end of 2035, up from a revenue of ~USD 16.7 billion in the year 2022. The growth of the market is attributed to the increasing use of chatbots to support customer service and to promote the business. Customer service uses NLP tools as a first port of call to answer simple questions about products and features. About 75% of Chinese sellers are willing to use chatbots to promote their products and businesses.
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Additionally, nearly 54% of respondents in China believe chatbots can provide intelligent solutions to customer complaints. Additionally, around 62% of customers would rather use a customer support bot than wait for their questions to be answered by human agents. Other factors believed to be driving the growth of the natural language processing market include the increasing adoption of automation and the increasing implementation of multiple languages on machines. For example, in August 2022, Ameca, founded by British company Engineered Arts, showed a wide range of human-like expressions. The creators of Ameca have now released a new video in which the robot demonstrates its polyglot abilities and speaks numerous languages, including Japanese, German, Chinese, French, British English and American. Additionally, the growth of the market is attributed to increased spending on AI-related technologies. In 2021, end-user spending on artificial intelligence (AI) systems in Japan surpassed USD 2 billion.
Natural Language Processing (NLP) Market: Key Takeaways
- Market in North America to propel highest growth
- The small & medium segment to garner the highest growth
- Market in Asia Pacific to grow at a highest rate
Increasing Sector of E-Commerce across the Globe to Boost Market Growth
NLP allows machines to quickly recognize which phrases and terms people commonly use when searching for a specific product. Global e-commerce grew from about 15% of total retail sales in 2019 to nearly 21% in 2021. Additionally, it's expected to account for 22% of total sales by 2022. More than 75% of organizations in the UK with active
Natural Language Processing (NLP) efforts intend to increase their spending over the next 12-18 months. NLP is used to measure sentiment on social media. Additionally, content analysis is an NLP-driven video categorization strategy. One of the most popular activities on the Internet is using social networks. In 2021, over 4 billion people worldwide used social media, and by 2027 that number is expected to grow to over 6 billion.
Natural Language Processing (NLP) offers solutions to the difficulties associated with social media. Unstructured data created by digital transformation. There are around 5 billion active internet users worldwide. This corresponds to almost 62% of the world population. More than 500,000 new Internet users are added every day. NLP is an artificial intelligence (AI) program that helps your chatbot evaluate and understand natural human language communication with consumers and develop conversational systems.
Natural Language Processing (NLP) Market: Regional Overview
The global natural language processing (NLP) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Expanding Demand for AI-Powered Solutions to Drive the Market Growth in North America Region
The natural language processing (NLP) market in North America region is estimated to garner the largest revenue by the end of 2035. The rising adoption of artificial intelligence (AI) technologies across various industries has fueled the demand for NLP solutions. NLP enables machines to understand, interpret, and respond to human language, enhancing the capabilities of AI systems.
The demand for AI-powered applications and services, such as chatbots, virtual assistants, and sentiment analysis, has significantly contributed to the growth of the NLP market. NLP technology has transformed the customer service and support landscape by enabling automated and intelligent interactions. Chatbots and virtual assistants powered by NLP are increasingly being used to handle customer inquiries, provide real-time support, and enhance customer experience. According to a report, by 2022, 70% of customer interactions will involve emerging technologies like machine learning applications, chatbots, and mobile messaging, indicating the growing significance of NLP in customer service. The digital transformation and the proliferation of online content have resulted in an explosion of data generation.
NLP techniques play a crucial role in processing and extracting insights from vast amounts of unstructured data, including social media posts, emails, customer reviews, and documents. NLP enables organizations to extract valuable information, perform sentiment analysis, and gain actionable insights, driving the demand for NLP solutions.
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Growing E-commerce and Online Content to Propel the Growth in the Asia Pacific Region
The Asia Pacific natural language processing (NLP) market is estimated to garner the highest CAGR by the end of 2035. The rapid growth of e-commerce platforms and online content generation in the Asia Pacific region has created a vast amount of unstructured textual data. NLP technology plays a crucial role in analyzing and extracting insights from this data, enabling businesses to understand customer behavior, perform sentiment analysis, and improve personalized marketing strategies.
The increasing demand for NLP solutions in the e-commerce sector has driven market growth. Governments in the Asia Pacific region have been actively promoting digital transformation and investing in AI technologies. Initiatives that focus on AI research and development, smart city projects, and digital infrastructure development have provided significant impetus to the NLP market. For example, initiatives like China's Next Generation Artificial Intelligence Development Plan and India's National AI Strategy have accelerated the adoption of NLP technologies in the region. Businesses in the Asia Pacific region are increasingly focusing on improving customer experience to gain a competitive edge. NLP technology enables automated and intelligent interactions with customers through chatbots, virtual assistants, and voice assistants, enhancing customer support and engagement.
Natural Language Processing (NLP), Segmentation by Enterprise Size
- Large Enterprise
- Small & Medium Enterprise
Amongst these segments, the small & medium enterprise segment is anticipated to hold the largest share over the forecast period. The growth of the segment can be attributed to the increasing acceptance of digitization by small and medium-sized companies. According to a survey, digitization is steadily increasing, with up to 70% of small businesses worldwide making greater use of digital technologies due to the pandemic.
On the other hand, the growth of the segment is also attributed to an increase in the number of small companies. According to the World Economic Forum, small businesses are the foundation of the global economy. They represent 90% of all companies, around 60-70% of total employment and 50% of global GDP. In addition, there are currently around 400 million SMEs worldwide. They are responsible for the majority of new job creation and account for around 99% of all companies.
Natural Language Processing (NLP), Segmentation by Deployment
- On-Premise
- Cloud
Amongst these segments, the cloud segment is anticipated to hold a significant share over the forecast period. The extraordinary circumstances caused by the epidemic led to the use of the cloud. By 2020, more than 80% of enterprise workloads will have migrated to the cloud. On the other hand, many companies have made significant investments to modernize their cloud computing infrastructures.
In addition, around 94% of all companies worldwide use cloud computing in their operations. On the other hand, the increased use of cloud-based natural language processing services is likely to fuel the growth of the segment. A cloud NLP service is used by more than three quarters of NLP (Natural Language Processing) users worldwide. Additionally, the cloud-based NLP solution offers multiple pricing options based on usage and needs.
Natural Language Processing (NLP), Segmentation by Deployment
- Solutions
- Services
Natural Language Processing (NLP), Segmentation by Processing Type
- Text
- Voice
- Image
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Natural Language Processing (NLP), Segmentation by Application
- Education
- Healthcare
- BFSI
- IT & Telecom
- Media & Entertainment
- Retail & Manufacturing
Few of the well-known market leaders in the global natural language processing (NLP) market that are profiled by Research Nester are Apple Inc., Amazon Web Services, Inc., Baidu Inc., Crayon AS, Google LLC, Meta Platforms Inc., IBM Corporation, Inbenta Holdings Inc., SAP SE, Lexicala, and other key market players.
Recent Development in the Market
- SAP SE announced the acquisition of Askdata to strengthen its ability to help companies make informed decisions about AI-powered natural language search.
- Lexicala K Dictionaries introduced a new set of services for the academic and business world of language technology. The focus is on multilingual lexical data solutions that combine human-created and curated language resources with auto-generated content.
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