Global Natural Language Processing Market Size, Share, and COVID-19 Impact Analysis, By Offering (Solution (Interactive Voice Response (IVR), Optical Character Recognition (OCR), Pattern and Image Recognition, Autocoding, Classification and Categorization, Text & Speech Analytics) & Service (Professional Services & Managed Services)), By Organization Size (Small & Medium Enterprises, Large Enterprises, Others), By Deployment (On-Premise, Cloud, Hybrid), By End User (Banking, Financial Services and Insurance (BFSI), IT and Telecommunication, Government, Retail, Healthcare, Education, Automotive, Media and Entertainment & Others) and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The global Natural Language Processing Market was valued at USD 10.7 Bn in 2021. The market is projected to grow USD 48.4 Bn in 2030, at a CAGR of 25.4%. Natural Language Processing (NLP) is a type of artificial intelligence (AI) that enables humans to converse with computers using natural language. Syntactic and semantic analysis are the two main methods for processing speech in Natural Language Processing (NLP). Syntactic analysis uses principles about sentence form (syntax) to deduce a portion of what is being said. Semantic analysis, which aims to distil the meaning of the words, is supplemented by Natural Language Processing (NLP). Algorithms convert spoken words into a computer-readable representation. NLP's ultimate goal is to bridge the gap between how people interact in natural language and how computers perceive machine language.

NLP solutions/services are widely used in a variety of industries, including healthcare, manufacturing, BFSI, advertising, and automotive. Manufacturing, robotics, and process automation are all examples of this. NLG has been integrated into robots, which helps the manufacturing industry enhance production efficiency and workflow. As a result, usage of these solutions is expected to increase in the near future.

COVID-19 ANALYSIS

The COVID-19 has impacted with a significant slowdown along with numerous businesses experiencing a financial crisis and a negative impact on revenue growth. Because of COVID-19's severe health repercussions and public health measures to prevent its spread, the pandemic has had a major impact on civilization. Many of these problems are the result of increased information demand and efforts to address it, which has led to information fatigue among academics and the general public. Natural language processing, a subset of artificial intelligence that translates human language, could be used to satisfy many of the knowledge requirements increased by the COVID-19 pandemic.

LATEST TREND

Surging Urbanization along with High Speed Internet

Rapid urbanization in developing countries along with high speed internet connectivity is likely to fuel the growth of the global natural language processing market. Increasing usage of smart and connected devices among population is benefitting the market growth. The internet, as one of the major factor of technical advancement, has an impact on the volume of data generated by internet services.

DRIVING FACTORS

Proliferation of Smart Devices along with the Integration of Smart Assistant

With the enhancement of IoT and other technologies, it’s been convenient to establish up connection across diverse devices. A smart home environment and connected automobiles have benefited from such a notion. The industries have started to operate and connect with the customers through technological innovation and digital transformation. Natural language processing has shown to be incredibly useful in facilitating communication between humans and computers. Moreover, the increasing usage of smart assistant across smart devices are likely to propel the growth of the global natural language processing market.

Growing Demand for the Improvement of Customer Experience

Technological integration can provide recommendations based on previous data, consumer data, or the client's immediate responses. The usage of sophisticated technology allows for seamless connection between the client and the system. The systems can preserve these communications for future reference. AI and NLP can provide customers with unique and personalised recommendations that are more tailored to their needs.

RESTRAINTS

Interoperability and Lack of Vocabulary Will Hamper the Market Growth

The issues regarding interoperability and lack of vocabulary will likely to hamper the growth of the global natural language processing market. Most businesses don't have the resources to develop the entire NLP framework, as well as software components like task-specific lexicons, semantic interpreters, and knowledge representation systems. As a result, a mismatch between human workers and the lack of software capable of evaluating algorithms might be viewed as a commercial barrier. To employ NLP approaches efficiently, a computer system must be able to read data in a range of languages, as well as analyse and assimilate the extended discussion.

SEGMENTATION

Based on the offering, the market is categorized into solution & service. Based on organization size, the market is categorized into small & medium enterprises and large enterprises. Based on deployment, the market is categorized into on-premise, cloud & hybrid. Based on end user, the market is categorized into banking, financial services and insurance (bfsi), It and telecommunication, government, retail, healthcare, education, automotive, media and entertainment & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.

By Offering

Based on offering, is categorized into solution & service. The solution is further bifurcated into interactive voice response (IVR), optical character recognition (OCR), pattern and image recognition, autocoding, classification and categorization, text & speech analytics. The text and speech analytics segment is expected to dominate the market share of global natural language processing market. Text and speech analytics is essential for monitoring customer behaviour and gauging consumer nature, both of which contribute to market expansion. Based on previous tendencies, businesses can utilise text analytics to deliver customised schemes and discounts to their clients. Furthermore, social media networks are used by the retail and ecommerce industries as a key source of data for text analytics, estimating demand and supply, and improving customer experience. Tata Consultancy Services (TCS) teamed with Vertica, Microfocus' unified analytics platform, in May 2021 to improve the process of modernisation in business data warehouses for various data-driven organisations using the unified analytics framework.

By Deployment

Based on deployment, the market is categorized into on-premise, cloud & hybrid. The cloud is expected to dominate the market share of global natural language processing market owing to the leading players are launching a number of initiatives to integrate cloud-based solutions. SAS Viya, for example, is a new engine for the SAS platform. SAS is growing into a self-learning platform by releasing this engine, which will take advantage of the company's AI and cognitive capabilities, such as natural language processing and machine learning. SAS, for example, is working on initiatives to integrate its cloud-based analytics tools with natural language interface. Users will be able to communicate with the software using this cloud-based programme.

REGIONAL INSIGHTS

The global Natural Language Processing market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. North America region is expected to dominate the market share of global natural language processing market owing to the huge number of companies are substantially investing in the evolution of NLP and applications in order to improve customer service programmes by offering extra incentives, attracting more customers, and, as a result, contributing to regional market growth. The expanding advances in the sector, which are being examined by global players situated in the United States, are propelling this market forward and hastening the pace of product launches. The region's rapidly developing tendency can be ascribed to the region's increasing use of patient health record systems as well as digital developments in the healthcare and life sciences industries. The demand for NLP solutions and services in the region is likely to increase as the number of new product launches continues to rise. For instance, Inference Solutions, a U.S.-based intelligent virtual agents for sales and service provider, launched Studio 6.0 in March 2019, which integrates Google and IBM's NLP and conversational artificial intelligence (AI) technologies to help businesses eliminate complex interactive voice response (IVR) menus and simple speech-enabled, directed dialogue systems.

However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global natural language processing market due to the increased expanding income among the region's middle-class people is a crucial component driving the region's total economic growth, which is moving it from the developing to the developed phase, thanks to rapid technology advancements, digitization of economies, and government initiatives. Furthermore, this region has a strong IT infrastructure and reliable software and service offerings, as well as leading positions in new fields such as robotics, all of which will help the natural language processing (NLP) market grow.

INDUSTRY PLAYERS

· Google Inc.

· Microsoft Corporation

· Hewlett Packard Enterprise Development LP

· SAS Institute Inc.

· IBM Corporation

· NetBase Solutions Inc.

· Verint System Inc.

· Genpact Limited

· Adobe Inc.

· Intel Corporation

· NVIDIA Corporation

· Amazon Web Services Inc.

· App Orchid Inc.

· Inbenta Technologies Inc.

· Veritone Inc.

· SAP SE

· Salesforce.com Inc.

· Rasa Technologies GmbH

· Klevu Oy

KEY INDUSTRY DEVELOPMENTS:

March 2021- Amazon Web Services (AWS) launched Lookout for Metrics, a new ML service that helps SMEs and large enterprises to monitor the most important business parameters such as transaction volume, revenue, web page views with greater speed and accuracy. 
August 2020 – Google has launched Language Interpretability Tool (LIT) which is an open-source model that can audit, understand, and visualize NLP algorithms. 

SEGMENTATION:

By Offering

• Solution
• Interactive Voice Response (IVR)
• Optical Character Recognition (OCR)
• Pattern and Image Recognition
• Autocoding
• Classification and Categorization
• Text & Speech Analytics
• Service
• Professional Services
• Managed Services

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By Deployment

• On-Premise
• Cloud
• Hybrid

By End User

• Banking, Financial Services and Insurance (BFSI)
• IT and Telecommunication
• Government
• Retail
• Healthcare
• Education
• Automotive
• Media and Entertainment
• Others

By Region

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