The global NLP market size to grow at a CAGR of 21.0% during the forecast period
MarketsandMarkets forecasts the global Natural Language Processing (NLP) market size to grow from USD 10.2 billion in 2019 to USD 26.4 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 21.0% during the forecast period 2019–2024. The major growth factors of the NLP market include the increase in smart device usage, growth in the adoption of cloud-based solutions and NLP-based applications to improve customer service, as well as the increase in technological investments in the healthcare industry.
Services segment to grow at a higher CAGR of during the forecast period
The NLP market, by component, has been segmented into solutions and services. Professional and managed services enable organizations to maintain healthy consumer relationships. Additionally, these services assist enterprises in maximizing their resource usage, effectively executing the activities, which enhance business operations. The need for services, such as support and maintenance, would grow, as the adoption of NLP solutions increase.
Banking, financial services and insurance industry vertical to hold the largest market size during the forecast period
Companies across the BFSI sector need to retain customers, cut costs, and increase profits and comply with the changing rules and regulations. NLP-based products are helping companies in the BFSI industry mitigate risks through applications majorly in information retrieval, intent parsing, and customer service and compliance process automation applications, among others. Automating the processes using solutions based on NLP has not only helped firms in the BFSI sector improve productivity, but made the interpretation process less prone to errors, optimized the way companies deal with structured and unstructured data, and acquired important customer data that they may not have had otherwise.
North America to hold the largest market size during the forecast period
North America is the highest revenue-generating region in the global NLP market, with the US constituting the highest market share, during the forecast period. Rapid developments in infrastructure and the high adoption of digital technologies are the 2 major drivers of the NLP market growth in the region. Additionally, the region, a well-established economy, has also seen large-scale investments in AI-enabled infrastructure, as a result of which, both startups and well-established companies are concentrating more on developing innovative AI-enabled solutions to cater to the various verticals. The region has witnessed favorable conditions for market growth on account of government regulations, startup funding, established player presence, and interest from enterprises to apply machine learning and NLP-based solutions.
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the NLP market.
? By Company: Tier I: 15%, Tier II: 25%, and Tier III: 60%
? By Designation: C-Level Executives: 25%, Director-Level: 45%, and Others: 30%
? By Region: North America: 60%, Europe: 20%, APAC: 10%, and RoW: 10%
The report includes the study of the key players offering NLP solutions and services. It profiles major vendors in the NLP market. The major vendors include Google (US), IBM (US), Microsoft (US), Intel (US), Apple (US), AWS (US), Facebook (US), Inbenta Technologies (US), 3M (US), Veritone (US), Dolbey (US), Narrative Science (US), Bitext (US), Health Fidelity (US), Linguamatics (UK), Conversica (US), SparkCognition (US), Automated Insights (US), SAS Institute (US), and Baidu (China). It also includes an in-depth competitive analysis of the key players in the NLP market, along with their company profiles, business overviews, product offerings, recent developments, and market strategies.
The report segments the global NLP market by component (solution and services), application, type, deployment mode, organization size, vertical, and region. The NLP market by industry vertical is divided into BFSI, retail and eCommerce, manufacturing, healthcare and life sciences, government and defense, media and entertainment, IT and telecommunications, travel and hospitality, and others (research and education, and energy and utilities). The component segment comprises solutions and services. While the solution segment is divided into software tools and platform, the services segment is divided into managed services and professional services (support and maintenance, consulting, and deployment and integration). The NLP market by deployment mode is segmented into cloud and on-premises. On the basis of organization size, the NLP market is divided into large enterprises and Small and Medium-sized Enterprises (SMEs). The NLP market by application is segmented into machine translation, information extraction, automatic summarization, question answering, text classification, sentiment analysis and others (spam recognition and language detection). The report also covers the NLP market with respect to 5 major regions, namely North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA).
The report would help the market leaders and new entrants in the global NLP market in the following ways:
1. The report segments the market into various subsegments; hence, it covers the market comprehensively. It provides the closest approximations of the revenue numbers for the overall market and its subsegments. The market numbers are further split across verticals and regions.
2. It helps in understanding the overall growth of the market. It also provides information about key market drivers, restraints, challenges, and opportunities.
3. It helps stakeholders in understanding their competitors better and gaining more insights to strengthen their position in the market. The study also presents the positioning of the key players based on their product offerings and business strategies.