The global text analytics market is garnering momentum and it will experience commendable growth in the next few years. The technology is being widely adopted across various industry verticals as businesses aim to improve decision making and customer satisfaction.
Also known as text mining, text analytics refers to the automated translation of large volumes of unstructured text data into quantitative form to understand trends, patterns, and insights. Combined with data visualization tools, these techniques enable businesses to make smarter business decisions and improve business performance.
With the increasing adoption of the technology, leading industry players are working on developing text analytics solutions to provide support local languages. For instance, in November 2020, Microsoft announced that it had added Hindi as the latest language under its Text Analytics platform, which is part of the Microsoft Azure Cognitive Services, to support businesses with improved customer sentiment analysis.
Hindi is the latest addition to the number of languages supported by Microsoft’s Text Analytics API service. English as well as numerous European and Asian languages are currently supported by the platform.
Based on the component, the text analytics industry is bifurcated into software and services. Text analytics software solutions include tools for customer relation management (CRM), customer intelligence, governance, risk and compliance, and fraud detection, among others.
The adoption of fraud detection solutions is slated to increase at a robust 20% CAGR over 2021-2027. The BFSI sector will likely be among the key adopters of these solutions due to the increasing number of fraud incidents in the industry.
Text analytics services mainly include professional services and managed services. It is estimated that the demand for managed services will grow at a notable 24% CAGR up to 2027. A large number of enterprises, especially small and medium size businesses are adopting managed services for conversational AI and NLP functionalities.
Today, text analytics tools find application in BFSI, healthcare, retail, government & defense, IT & telecom, media & advertisement, travel & hospitality, and other areas. Travel and hospitality application segment is set to capture more than 15% revenue share of text analytics market by 2027 due to the growing importance of sentiment analysis in the industry.
Meanwhile, the demand for text analytics solutions in media and advertisement will rise at a healthy 23% CAGR in the coming years due to the widespread use of social media analytics in marketing and advertising.
Geographically, the market for text analytics in Latin America will record a notable CAGR of 18% through 2027. With increasing penetration of smartphones and availability of highspeed internet connectivity, consumer presence on social media platforms has increased significantly. Similar trends in the near future indicate a strong growth outlook for the regional market. The Middle East and Africa text analytics industry will expand at a steady 15% CAGR up to 2027.