Published: December 2019 | Report Code: IM11791 | Available Format: PDF | Pages: 217
The natural language processing (NLP) market revenue stood at $8.3 billion in 2018, and it is set to reach $22.9 billion by 2024, witnessing a CAGR of 19.7% during 2019–2024.
In the coming years, Asia-Pacific (APAC) would exhibit the fastest growth due to the increasing adoption of artificial intelligence (AI), rising research and development (R&D) activities, and surging number of collaborations among governments.
The natural language processing industry is observing the rising deployment of semantic search platforms. Semantic search refers to the attempts of a search engine to offer accurate results by understanding the intent of searchers and context of the query and matching the stored data with the input received. The analysis of keyboard-based search platforms is difficult as they leave most of the data unstructured. This has resulted in the emeregence of semantic platforms that use the NLP, AI, and machine learning (ML) technologies.
NLP allows machines to decode human inputs and study unstructured data to offer filtered information, to improve human–machine interaction. The results obtained with the usage of NLP are more specific and appropriate. Some of the technological solutions where NLP is used to enhance the semantic search experience are Alexa, Cortana, and Siri.
The natural language processing market growth is driven by the large volume of unstructured data being generated by business entities. More than two quintillion bytes of data are generated every day in the structured and unstructured forms across the globe. Organizations are looking for solutions that can deal with business-related problems by analyzing the extracted data. Enterprises use traditional methodologies to obtain structured data from relational databases and spreadsheets. However, the high volume of unstructured data obtained through videos and images, documents and blogs, and social media remains unused, as it is difficult to manage.
To ensure the optimum use of structured and unstructured data, enterprises are opting for NLP solutions. This technology assists organizations in prioritizing the extracted data for business purposes, by using applications such as speech processing, natural language generation (NLG), sentiment analysis, and automatic translation.
The rapid shift of industries toward automated solutions also acts as a key growth driver. Automated solutions help companies remain competitive, by enhancing human–machine interactions. Moreover, these solutions aid customers in getting a quick response through seamless conversations. Solutions equipped with NLP, such as chatbots, study customers’ inputs and automatically offer an appropriate response.
The increasing usage of these solutions will drive the natural language processing market in the coming years. The NLP technology aids chatbots by matching the input with the stored data, or by forwarding the request to a human agent, to go ahead with the conversation. These features enable companies to engage with potential clients and improve the user experience.
The statistical category, under the type segment, generated the highest revenue in 2018, statistical NLP solutions offer several advantages over conventional rule-based solutions.
The hybrid category, within the deployment segment, is expected to register the fastest growth in the coming years. This is because several organizations have started deploying AI-enabled technologies for data translation and preferring to segregate data on public and private clouds based on its importance and confidentiality.
The services category, under the component segment, is expected to exhibit the faster growth in the coming years owing to the high demand for training services regarding NLP, as it is a new technology and not many people are proficient in it.
In 2018, the machine translation category accounted for the largest share within the application segment. This was due to the rising adoption of solutions that can facilitate the translation of the text into multiple languages.
The banking, financial services, and insurance (BFSI) category, under the industry segment of the natural language processing market, generated the highest revenue in 2018. Financial service providers are deploying NLP solutions to analyze data, take effective decisions, and offer quality products and services to consumers.
The North American market for natural language processing solutions and services generated the highest revenue in 2018 due to the soaring data volume across industries, spurring demand for enhanced customer experiences, and escalating investments in research and development (R&D) in AI-enabled technologies by companies, academia, and non-profit organizations. In 2018, the U.S. accounted for the larger share in the North American region due to the presence of an umpteen number of financial institutions that are using this technology for higher efficiency.
APAC is expected to showcase the fastest growth in the market for natural language processing solutions and services in the foreseeable future due to the technological advancements in India, Japan, China, and other countries, increasing adoption of cloud-based applications and services, and booming number of customer contact centers and small and medium-sized enterprises (SMEs). Among APAC nations, China held the largest share in 2018 owing to the various innovation programs initiated for the deployment of AI technologies, including NLP, ML, and deep learning.
The global natural language processing market is highly competitive in nature, with the presence of several players, including Alphabet Inc., SAS Institute Inc., International Business Machines (IBM) Corporation, 3M Company, Verint Systems Inc., Apple Inc., Microsoft Corporation, Hewlett Packard Enterprise (HPE) Company, Dolbey Systems Inc., Genpact Ltd., and AWS Inc.
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