The natural language processing market size was 12.43 billion dollars in 2021 and is projected to reach $98.05 billion in 2030, a CAGR of 25.7%, according to the Emergent Research report published on December 22.
Emergen Research is a market research and strategy consulting firm whose expertise covers the technology environment of all major industries, including cutting-edge technologies: AI, ML, data analytics, IoT, blockchain, augmented reality, reality virtual, robotic process automation, intelligent production, nanotechnology, edge calculation, cloud computing…
It publishes reports on the size of the markets of many sectors, which also enable its clients to better understand the opportunities in their sector.
The NLP market
The strong growth of the NLP market can be explained by advances in AI and deep learning. We often use search engines like Google or Bing, we ask for virtual assistants like Siri or Alexa, we ask for real-time text translation from Google or Reverso translation, all of which are powered by NLP.
It enables companies to improve worker productivity, streamline business operations as well as critical business procedures.
The rise of enterprise solutions aimed at optimizing business operations to improve customer experience is another factor driving market revenue growth.
More and more companies are using AI and NLP in customer service and customer care to better understand and use all parts of customer relationship management. Thus, large amounts of unstructured text and voice data are collected by these organizations from various sources, such as complaint reports, social media and survey responses. By analyzing this data, they can adapt their business strategies, improve customer retention, create new connections and accelerate growth.
Lack of contextual awareness, a brake on market growth?
Uncertainty resulting from lack of contextual awareness is a major factor expected to restrain market revenue growth. Ambiguity, an essential part of human communication and one of the greatest challenges of NLP, causes problems in natural language understanding (NLU) scenarios.
Transfer learning is a recent market trend. It consists of using a previously trained model for one task and modifying it to apply it to another similar task. By avoiding building and training a model from scratch, which is expensive, time-consuming, and requires large amounts of data, companies then use less labeled data and can complete NLP tasks faster.
While first popular in computer vision, today it is used in NLP applications such as named entity identification, sentiment analysis, and intent categorization.
NLP Market Report
Emergen Research has segmented the report on the basis of component, type, application, vertical, region, the forecast period is 2030.
By components, the global NLP market is segmented into solutions and services.
The solutions segment is expected to account for a major share of the market revenue while the solutions segment is expected to register steady revenue.
This part of the report has 3 segments: rules, statistics and a hybrid segment.
Revenue from the rules-based segment is expected to account for a significant share of the market. Rules can allow NLP to classify the language it parses, but the system’s understanding of these rules depends on the accuracy of the instructions given to it. However, it is almost impossible to provide all the necessary rules when the business environment is specific and specific results are expected.
On the other hand, the statistical segment is expected to experience a rapid growth in revenue, owing to the increasing adoption rate of NLP and the statistical activities of the major players in the market.
The hybrid segment should bring much less revenue than the previous ones.
For applications, the report responds to different segments: customer experience, virtual assistants/chatbots, text classification and summarization, sentiment analysis, social media monitoring, employee recruitment….
Customer experience management is expected to generate a significant share of revenue as the demand is increasing while the employee onboarding and recruitment segment is expected to register a rapid growth rate.
The BFSI (Banking, Financial Services and Insurance) segment is expected to account for a large share of the market while the retail and e-commerce segment is expected to register a rapid growth rate.
North America is expected to hold the largest market share as compared to other regional markets owing to its increasing R&D efforts, Asia Pacific market revenue is expected to register higher CAGR for the same reason. Europe, for its part, should register a stable growth rate.
Large companies and the competitive landscape
The NLP market is fragmented, with medium and large enterprises making up the majority of the market. Major players are entering into strategic agreements and partnerships, mergers, acquisitions resulting in more effective NLP products.
Major companies included in the market report are IBM, Microsoft, Google, Amazon Web Services, Meta, 3M, Baidu, Apple, SAS Institute and IQVIA.
To request a free sample: https://www.emergenresearch.com/request-sample/1437