The global natural language processing market size was estimated at around USD 27.78 billion in 2022 and it is projected to hit around USD 828.57 billion by 2032, growing at a CAGR of 40.43% from 2023 to 2032.
|Market Size in 2022||USD 27.78 billion|
|Revenue Forecast by 2032||USD 828.57 billion|
|Growth rate from 2023 to 2032||CAGR of 40.43%|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Companies Covered||3M; Apple; AWS; Baidu; Google LLC; IBM Corporation; Meta; Microsoft; Oracle Inc.; Inbenta; IQVIA|
Natural language processing (NLP) is a prominent component of artificial intelligence, it has applications in consumer chatbots and digital assistants and commercial applications like sentiment analysis, text analysis, voice sense (speech analysis), and change effect analysis. The NLP market is witnessing rapid growth owing to the rapid acceptance of novel technology advancements. Additionally, the growing requirement for data management and increased complexity in major businesses is also fostering the growth of the industry.
Increased customer demands for cloud-based technology and advancements in communication infrastructure are accelerating market growth. NLP is the interface between humans and machines, and it comprises executing computer programs and analyzing data. Low cost, high scalability, and high usage of smart devices across industries are expected to contribute to the industry’s expansion over the forecast period. Moreover, the expansion of the e-commerce industry and perception of online sales channels is projected to ascend the demand for NLP for enhancing consumer experience through personal attention and query handling.
Increasing demand for sentiment analytics and content management is augmenting the market expansion. Businesses can utilize sentiment analytics to offer their clients customized deals and discounts based on previous trends. Sentiment analytics is essential for examining consumer behavior and gauging the type of consumers. Moreover, Social media platforms are used by the retail and e-commerce industries because they are a major source of data for sentiment analytics, the anticipation of demand and supply, and enhancement in the consumer experience.
The global COVID-19 outbreak has significantly impacted businesses worldwide. However, the COVID-19 pandemic has positively influenced the adoption of NLP-based services due to the nationwide lockdowns imposed by governments in countries across the globe. Post-COVID-19, enterprises are focused on cutting-edge technology to undertake contactless operations, including artificial intelligence (AI), machine learning (ML), analytics, and computing technology, across industries like BFSI, healthcare, IT, & telecommunication. This contributes to the demand for Al-driven NLP technology, which propels the global natural language processing (NLP) market growth.
North America is estimated to hold the largest revenue share of 30.77% in 2022. The region dominates AI and machine learning technologies, making it one of the key marketplaces for natural language processing technologies. Further, the prevalence of key market participants in the U.S. drives innovation in the region subsequently fueling the natural language processing market growth. Regional governments are also increasingly encouraging the use of AI, ML, and NLP technologies, which is allowing market participants to expand their presence in the region.
Asia Pacific is projected to expand at the highest CAGR of 42.71% during the forecast period. The growth is attributable to increasing smartphone usage, rapid technological advancements, the digitalization of economies, and government initiatives in developing countries from the region. Furthermore, this region holds leading positions in cutting-edge industries like robotics and has a strong IT infrastructure, software, and service offerings. These factors would create profitable growth prospects for the market.
Natural Language Processing Market Segmentations:
|By Component||By Deployment||By Enterprise Size|
Small & Medium Enterprises
|By Type||By Application||By End-use|
Rule Based NLP
Risk And Threat Detection
Others (Portfolio Monitoring, HR & Recruiting, And Branding & Advertising)
IT & Telecommunication
Media & Entertainment
Retail & E-commerce