Natural Language Processing (NLP) Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

NLP Market Trends & Drivers

Enormous Rise in Healthcare Sector Drives the Market

The healthcare industry holds the largest market share, as it is currently experiencing a hike in data generation due to the increased digitalization in hospitals and healthcare facilities. The healthcare sector finds it difficult to operate without sophisticated systems, as it is challenging to analyze the text data and is eager to leverage analytics to gain meaningful insights. Thus, natural language processing (NLP) has emerged as a crucial technology to extract valuable insight from this large volume of textual healthcare data. As a result, there is a growing demand for sophisticated data management and advanced data analytics solutions within the healthcare sector.

Moreover, personal health records (PHRs) have become widely accepted, and therefore new initiatives have been taken to make it easier to download and share medical records with different medical departments. Thus, NLP in healthcare has enabled predictive analysis and helped minimize population health concerns. Also, the adoption of NLP is rising in this field, due to the recognized potential to search, analyze, and interpret massive amounts of potential datasets.

Natural Language Processing Market Analysis

Rule-Based Category To Record Significant Growth

Based on type, the rule-based category is expected to witness significant growth in the coming years. This can be because rule-based NLP places a strong emphasis on pattern matching, a crucial skill in the healthcare industry. The technique proves valuable in healthcare by improving the electronic health record (EHR) process through the identification of specific phrases, thereby enhancing data management efficiency.

Also, the hybrid category holds a significant share. This is because the hybrid approach represents a fusion of strengths of rule-based and machine-learning NLP methods, incorporating NLP, ML, and human inputs. With the help of human expertise, it guides accurate analysis, while ML simplifies the scalability of this analysis. By combining rule-based and statistical NLP technologies in a hybrid manner, organizations can harness the benefits and approaches of both. When implementing the hybrid NLP approach, there are various options available to select the most suitable path for managing data and expediting business decisions.

Cloud Category Dominates the Market

Based on deployment, the cloud category held the largest share, of 65%, in 2023, and it is expected to grow at the highest CAGR during the forecast period. This is due to the rising adoption of cloud-based software and services.

The public cloud deployment holds a significant market share, as it offers full control, visibility, and authentication security controls over data. In addition, the hybrid category is expected to witness significant growth in the coming years. This can be because hybrid cloud deployment combines the benefits of both public and private cloud deployment models, enjoys the benefits of both, and supports AI-based tools and technology adoption.

Solution Category Leads the NLP Market

Based on component, the solution category is expected to maintain its dominance in the future, due to its capabilities, such as ensuring businesses enhance financial processes, boosting operational efficiency, and reducing operational costs. Further, engines, tools, interfaces, and platforms that make up an NLG program process translate computer code into language.

On the other hand, the service category is projected to witness a higher growth rate in the coming years, as it allows organizations to integrate artificial intelligence-driven NLP services for building AI chatbots, entity recognition, extracting data from PDF, intent classification, and text categorization. Moreover, this is due to the rapid implementation of software, it helps in reducing the development expenses and risk, and the optimization of existing installations.

In addition, the service sector encompasses a variety of services tailored for businesses utilizing natural language generation tools. Thus, the demand for these services is rising, as the adoption of NLP generation software expands across various industries. Also, these services play a crucial role in enabling businesses to effectively implement and harness the full potential of natural language generation tools.

Report Generation Category Dominates the Application Segment

The report generation category holds the largest market share, accounting for 35% of the total revenue in 2023. This is attributed to the role of NLP in helping compliance teams in their analysis of critical information within structured data and in uncovering abnormal and hidden patterns within extensive datasets. Also, NLP tools are increasingly finding applications in risk and threat detection activities.

The process of text summarizing involves developing algorithms or software that can condense textual data and generate concise summaries. The primary challenge in text summarization is to distill the essence of a document into fewer sentences and words. Methods for extracting information from unstructured text data and utilizing it for summarization purposes can broadly be categorized into two approaches: extractive and abstractive methods.

Geographical Analysis

North America Is the Market Leader

North America holds the largest revenue share in the market for NLP, and it is expected to witness the same trend in the coming years. This dominance can be due to several factors such as rapid innovation and advancement in AI technology and the presence of major market players in the region.

Additionally, leading companies, such as Google, IBM, Microsoft, and Meta, have been instrumental in introducing various innovations in NLP Technology. These innovations have led to enhancement in precision, speed, and problem-solving methods, making NLP an increasingly value tool for computer scientists and professionals dealing with complex challenges.

Furthermore, the European market is projected to witness a high growth rate during the forecast period. This can be due to the increasing adoption of cloud computing among enterprises in the region.

Whereas, the APAC market is projected to record the highest CAGR in the coming years. This can be ascribed to the surging focus on the adoption of AI and ML technologies, the increasing usage of smartphones, the rapid advancement in the technology sector, the digitalization of economies, and government initiatives. Also, the region holds a leading position in cutting-edge technology and industries like robotics, which in basic has a strong infrastructure, information technology, software, and service offerings.

Market Breakdown

This report offers deep insights into the natural language processing industry, with size estimation for 2019 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Type

• Statistical
• Rule-Based
• Hybrid

Based on Deployment

• Cloud
  • Public
  • Private
  • Hybrid
• On-Premises

Based on Component

• Solutions
• Services

Based on Application

• Information Extraction
• Question Answering
• Machine Translation
• Report Generation
• Text Processing

Based on Industry

• Banking, Financial Services, and Insurance (BFSI)
• Automotive
• Healthcare
• Retail
• IT and Telecommunications

Based on Technology

• Interactive Voice Response
• Optical Character Recognition
• Text Analytics
• Speech Analytics
• Classification and Categorization
• Pattern and Image Recognition

Based on Organization Size

• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia-Pacific
  • China
  • Japan
  • Australia
  • India
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Natural Language Processing Companies