Natural Language Processing (NLP) Market:

The natural language processing (NLP) market size is projected to grow from USD 64.94 Billion in 2022 to USD 357.7 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 27.6% during the forecast period (2022 - 2030).

Market Overview

North America accounted for the largest share of around 48% in the global NLP market in 2021, followed by Europe and APAC. High adoption of AI and analytics solutions among enterprises in North America is contributing to the region's significant market share.

Based on component, the NLP market is segmented into solutions, services and managed services. The solutions segment accounted for the dominant revenue share in 2021 owing to the surging demand for NLP-powered software platforms and applications.

In terms of deployment mode, the market is bifurcated into on-premise and cloud-based deployment. The cloud segment is anticipated to grow at a higher CAGR during 2022-2028 due to the increasing preference for cloud-based NLP solutions.

Key Market Segments

The key application areas of NLP covered in the report include sentiment analysis, data extraction, risk and threat detection, automatic summarization, content management, language scoring, and others. Sentiment analysis accounted for the largest share of the global NLP industry in 2021.

Based on type, the market is categorized into statistical NLP, hybrid NLP, rule NLP and deep learning NLP. Deep learning NLP is expected to exhibit the fastest growth rate over the forecast period.

Key Companies

Leading companies operating in the NLP market include Google, Microsoft, IBM, AWS, Facebook, Intel, Apple, SAS Institute, Baidu, Inbenta, Veritone, among others. These players are adopting strategies like partnerships, mergers & acquisitions, and new product development to gain a competitive edge.

Market Drivers

• Increasing use of smart devices, adoption of NLP-enabled chatbots and virtual assistants like Alexa, Siri, Cortana etc. is driving the growth of the NLP industry.
• Rising need to analyze and derive insights from huge volumes of multilingual data across businesses is further fueling NLP adoption globally.
• Integration of NLP with other emerging technologies like big data, AI, IoT, blockchain etc. is opening new areas for NLP applications.
• Enterprises are using NLP for customer experience enhancement, market and competitor research, risk management and sales process improvement.

Browse In-depth Market Research Report (100 Pages, Charts, Tables, Figures) on Natural Language Processing (NLP) Market

Regional Insights

North America will retain its dominance in the global NLP market during 2022-2028 driven by the early adoption of NLP solutions in the region.

Asia Pacific is expected to exhibit the fastest growth over the forecast period fueled by rising investments in AI and acceptance of advanced technologies in China, India, Japan and Australia.

Europe will hold the second largest share of the NLP industry owing to the growing focus on hyperautomation and presence of leading automobile companies in the region.

Industry Latest News

• Google acquired Siemplify, an Israeli cybersecurity startup, in January 2022 to enhance its NLP capabilities for threat analysis.
• In September 2021, SAS acquired Momenta to strengthen its NLP offerings for automotive, pharmaceutical and financial services industries.
• IBM launched Project CodeNet dataset with 14 million code samples in August 2021 to advance AI models that can process programming language concepts.
• Microsoft updated its Azure Cognitive Services platform in May 2021 with new NLP features like custom neural voices and enhanced speech recognition.

The global NLP market outlook remains positive driven by increasing adoption across industry verticals. With exponential data growth, NLP is expected to become integral for businesses over the next few years.