Natural Language Processing Market (By Component; By Deployment Model; By Enterprise Size; By Type; By Application; By End-use) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

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.

Key Pointers

• The solution segment accounted for the dominant revenue share of 72.64% in 2022.
• The on-premise segment is estimated to account for the leading share of 59.82% in 2022.
• The large enterprise's segment held the leading revenue share of 61.93% in 2022.
• The statistical NLP segment held the largest revenue share of 39.36% in 2022.
• The automatic summarization segment is expected to account for the leading share of 17.61% revenue share in 2022.
• The healthcare segment is expected to account for a leading share of 22.95% in 2022.
• The IT & telecommunication segment is projected to witness the highest growth rate during the forecast period.
• North America is estimated to hold the largest revenue share of 30.77% in 2022.
• Asia Pacific is projected to expand at the highest CAGR of 42.71% during the forecast period.

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.

Regional Insights

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: