Global Natural Language Processing (NLP) Market to Generate $44.79 Bn By 2030

The global natural language processing (NLP) market size was worth around USD 13.9 Billion in 2021 and is predicted to grow to around USD 44.79 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 22.96% between 2022 and 2030.

Natural language processing (NLP) is an interdisciplinary field that works as a combination of computer science, linguistics, and artificial intelligence concerning itself with the connection between the human language and computers. NLP works toward developing programs that can efficiently analyze and process natural language data while also understanding the human intention or emotion that the words are spoken or written.

It is an important component of artificial intelligence (AI) and has existed for more than 5 decades with its roots lying in linguistics which deals with the scientific study of language. In the modern technically revolutionized world, NLP has found applications across industries including medical research, business intelligence, and search engines. NLP has allowed computers to evolve to a state where they can recognize natural language as close as a human would.

Language can be in different forms including written or spoken. There are two main aspects of NLP that include algorithm development and data processing.

The global natural language processing (NLP) market is expected to be driven by the growing adoption of the technology in the healthcare sector which has recognized several benefits that are associated with the use of advanced technology. NLP can help doctors and other medical professionals effectively interpret, search, or analyze the massive amount of patient data.

A lot of medical information may go unnoticed when it is simply put in text format. This aspect can be greatly dealt with by using NLP. For instance, the burden on the doctors to input the medical history of patients can be easily overtaken by NLP systems that can not only record the data but analyze it as well.

Furthermore, the high applications of NLP in email sorting are expected to act as a growth contributing factor for the natural language processing industry. Gmail, email by Google, is already using the technology where an email received in a Gmail inbox directly gets classified between ‘Promotions, Social, or Primary’ depending on certain phrases or words used in the email. Other factors like use in the development of predictive text technology, language translation, and digital phone calls could lead to higher revenue during the forecast period. Companies in the service industry are leveraging NLP-powered chatbots to provide an unmatched customer experience.

One of the major growth limitations in the natural language processing industry is the building of the technology mostly on widely-used languages which means that there are a restricted number of languages that inspire the functioning of NLP. This is mostly applicable to languages that are spoken by less number of people and the ones that do not have larger access to technology. For instance, studies have shown that there are more than 3000 languages in Africa but there is not enough information on them. However, companies are working on the development of multilingual sentence embeddings and transformers that can identify similarities between languages.

The growing research & product innovation could provide growth opportunities whereas the lack of skilled professionals may challenge the natural language processing industry expansion.

The global natural language processing (NLP) market is segmented based on industry vertical, enterprise size, deployment, technology, and region

Based on deployment, the global market is segmented into cloud, on-premises, and hybrid. 

• In 2021, the global market registered the highest growth in the cloud segment and is projected to grow at the fastest CAGR during the forecast period
• The segmental growth can be attributed to the advantages of cloud technology in terms of data safety and convenience of data sharing
• As cloud technology is projected to cross its previous records in terms of investments and product adoption, the global market may also benefit from this trend
• As per the 2022 Flexera State of the Cloud report, more than 81.1% of the companies adopted a multi-cloud strategy to run the business

Based on enterprise size, the natural language processing market is segmented into large enterprises and small & medium-sized enterprises.

Based on industry vertical, the natural language processing market is divided into retail, healthcare, banking, high tech & telecom, automotive & transportation, financial services, manufacturing, media, and others.

Based on technology, the global market is segmented into speech analytics, interactive voice responses, text analytics, optical character recognition, and image & pattern recognition.

• Text analytics was the leading segment in 2021 driven by the growing number of players operating in the segment
• Furthermore, the interactive voice responses segment is anticipated to be led by the rising applications of software and smart device developers to improve user experience. For instance, in 2016, Amazon spent around USD 330 million for research & development activities to develop Alexa, virtual assistant technology

North America is anticipated to lead the global natural language processing (NLP) market due to the technologically advanced infrastructure of the region, with the US acting as the major regional revenue contributor. The supportive architecture in these countries allows businesses and service providers to invest in new technology. The presence of key players that are consistently working toward the development of higher technologies. Growth in Europe is anticipated to be led by the rising adoption of cloud computing technology across industrial sectors. Asia-Pacific may also register a significant CAGR in the natural language processing industry mainly due to the growing application of NLP in the e-commerce and service industry adopting these systems for customer-oriented chatbots.

This review is based on a report by Zion Market Research, titled “Natural Language Processing (NLP) Market By Industry Vertical (Retail, Healthcare, Banking, High Tech & Telecom, Automotive & Transportation, Financial Services, Manufacturing, Media, and Others), By Enterprise Size (Large Enterprises and Small & Medium-Sized Enterprises), By Deployment (Cloud, On-Premises, and Hybrid), By Technology (Speech Analytics, Interactive Voice Responses, Text Analytics, Optical Character Recognition, and Image & Pattern Recognition), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2030.”- Report at https://www.zionmarketresearch.com/report/natural-language-processing-market

Recent Developments:

• In May 2020, Inductive, a Canadian machine-learning company was acquired by Apple for its AI capabilities. The engineers from Inductive started working with Apple for introducing more developments in Siri
• In September 2022, The University of California, Irvine (UCI) announced a partnership with Melax Tech, an artificial intelligence (AI) software company. The partnership will work toward analyzing Electronic Health Record (EHR) data using NLP

The global natural language processing (NLP) market is dominated by players like:

• Google Inc.
• Microsoft Corporation
• SAS Institute Inc.
• NVIDIA Corporation
• Baidu Inc.
• Qualcomm Incorporated
• Texas Instrument
• Micro Focus International PLC (HPE)
• NetBase Solutions Inc.
• Genpact Limited
• Adobe Inc.
• Amazon Web Services Inc.
• 3M
• Inbenta
• Meta Platforms Inc.
• IQVIA
• Crayon Data, Facebook
• Hewlett-Packard Enterprise
• Apple Inc.
• Intel Corporation
• Narrative Science
• Verint Systems Inc.
• IBM Corporation.

The global natural language processing (NLP) market is segmented as follows:

By Industry Vertical

• Retail
• Healthcare
• Banking
• High Tech & Telecom
• Automotive & Transportation
• Financial Services
• Manufacturing, Media
• Others

By Enterprise Size

• Large Enterprises
• Small & Medium-Sized Enterprises

By Deployment

• Cloud
• On-Premises
• Hybrid

By Technology

• Speech Analytics
• Interactive Voice Responses
• Text Analytics
• Optical Character Recognition
• Image & Pattern Recognition

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

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