PUBLISHER: The Business Research Company | PRODUCT CODE: 1676046
PUBLISHER: The Business Research Company | PRODUCT CODE: 1676046
Natural Language Processing (NLP) is an artificial intelligence field that empowers computers to comprehend and scrutinize human language. NLP enables computers, using artificial intelligence, to interpret real-world input and comprehend it in a manner akin to human understanding. Computers acquire information through microphones and programs.
NLP encompasses primary types such as text, speech/voice, and image processing. Text analytics, an artificial intelligence (AI) technique within NLP, transforms unstructured text in documents and databases into normalized, structured data, suitable for analysis or input to machine learning (ML) algorithms. NLP deployment options include on-premise, cloud, or a hybrid approach, with statistical components applicable in automatic summarization, sentiment analysis, risk, and threat detection. Various end-user sectors, including education, BFSI, healthcare, IT and telecom, retail, manufacturing, media and entertainment, among others, benefit from NLP applications.
The natural language processing (NLP) market research report is one of a series of new reports from The Business Research Company that provides natural language processing (NLP) market statistics, including natural language processing (NLP) industry global market size, regional shares, competitors with a natural language processing (NLP) market share, detailed natural language processing (NLP) market segments, market trends and opportunities, and any further data you may need to thrive in the natural language processing (NLP) industry. This 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 scenario of the industry.
The natural language processing (NLP) market size has grown exponentially in recent years. It will grow from $30.45 billion in 2024 to $38.55 billion in 2025 at a compound annual growth rate (CAGR) of 26.6%. The growth in the historic period can be attributed to increasing volume of unstructured data, demand for advanced data analytics, enhanced customer experience, rise of social media and online content, healthcare information extraction.
The natural language processing (NLP) market size is expected to see exponential growth in the next few years. It will grow to $114.44 billion in 2029 at a compound annual growth rate (CAGR) of 31.3%. The growth in the forecast period can be attributed to continued growth in digital assistants, expanding use in business intelligence, multilingual NLP solutions, focus on regulatory compliance. Major trends in the forecast period include integration with big data analytics, cross-channel and cross-platform NLP, emphasis on privacy and ethical NLP, integration with virtual and augmented reality, continuous learning and adaptive NLP models.
The surge in the utilization of smart devices is fueling the expansion of the Natural Language Processing (NLP) market. Smart devices, characterized by their connection to networks or other devices through wireless modes, leverage NLP to interpret and analyze voice commands provided by users. As an illustration, DataReportal, an online data and insights agency, reports a consistent 5.7% annual growth rate in the number of smartphones in use, with an average addition of 1 million new smartphones daily. This upward trend in smart device usage is anticipated to be a significant driver for the continued growth of the NLP market in the future.
The burgeoning e-commerce sector is poised to be a significant driver for the growth of the Natural Language Processing (NLP) market in the foreseeable future. E-commerce, involving the online buying and selling of goods and services, is instrumental in propelling the NLP market forward. NLP finds extensive application in the e-commerce domain, facilitating sentiment analysis, customer support chatbots, personalized recommendations, and efficient product searches. These NLP-driven functionalities contribute to an enhanced user experience, fostering seamless interactions, and elevating customer satisfaction and engagement. Notably, a report from the International Trade Administration in October 2021 anticipates that e-commerce for consumer goods will represent approximately 22% of global retail sales by 2024, exhibiting a steady average growth rate exceeding 1%. Furthermore, retail e-commerce sales are expected to maintain a consistent long-term increase of 8% in the overall global retail e-commerce sales through 2024. Consequently, the expanding e-commerce sector stands as a driving force behind the growth of the Natural Language Processing (NLP) market.
Technological advancements have become a significant trend in the NLP market. Leading companies in this sector are upgrading and introducing advanced NLP software to drive market growth. For example, in March 2023, Kensho Technologies, a US-based artificial intelligence company, launched a new Natural Language Processing (NLP) solution called Kensho Classify. This innovative tool is designed to conceptually understand and classify documents, simplifying the process for users to extract insights from large volumes of text. The solution improves the discoverability of text and documents, facilitating more efficient analysis and streamlined research.
Leading enterprises in the natural language processing (NLP) market are actively pursuing advanced technologies, including NLP solutions, to broaden their customer base, boost sales, and augment overall revenue. NLP solutions, in this context, refer to technologies or systems designed to empower computers in understanding, interpreting, and generating human-such as language. A noteworthy example is Kensho Technologies Inc., a US-based artificial intelligence company, which introduced Kensho Classify in March 2023. Kensho Classify distinguishes itself as a robust solution adept at extracting value from extensive text and document datasets, elevating content discoverability, and facilitating sophisticated text analysis. Its distinctive features encompass intelligent search functionality, content recommendations, and efficient research and analysis tools. Whether employed by document platforms such as Virtual Data Rooms (VDRs) and Content Management Systems (CMSs) or by finance professionals seeking market signals within vast document repositories, Kensho Classify streamlines the process, ensuring that content becomes more organized, discoverable, and actionable.
In March 2022, Microsoft Corp., a technology company based in the United States, successfully acquired Nuance Communications Inc. for an undisclosed sum. This strategic acquisition positions Microsoft to contribute to the advancement of more efficient, cost-effective, and accessible healthcare solutions, as well as facilitate the creation of highly personalized customer experiences across various industries. Nuance Communications, a U.S.-based company specializing in ambient intelligence, natural language processing (NLP), and conversational artificial intelligence (AI), operates in diverse sectors such as financial services, healthcare, retail, and telecommunications. The integration of Nuance's expertise into Microsoft's portfolio enhances the capabilities of both entities, fostering innovation and addressing evolving needs in the technology landscape.
Major companies operating in the natural language processing (NLP) market include Google LLC, Microsoft Corporation, Alibaba Group, Dell Technologies Inc., Intel Corporation, The Hewlett-Packard Company, IBM, Cisco Systems Inc., NVIDIA Corp, Salesforce.com Inc., Toshiba Corporation, Baidu Research, Adobe Inc., SAS Institute Inc., OpenAI, Amazon.com Inc., Apple Inc., Meta Platforms Inc., NetBase Quid Inc., Observe.AI, Allen Institute for AI, Gnani Innovations Private Limited.
North America was the largest region in the NLP market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the natural language processing (nlp) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the natural language processing (nlp) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The natural language processing market includes revenues earned by entities by providing software tools that automate the processes for text summarization, text extraction, text classification, analyzing user language partners, and smart assistance using machine learning and artificial intelligence technology. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Natural Language Processing (NLP) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on natural language processing (nlp) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for natural language processing (nlp) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The natural language processing (nlp) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.