The NLP market is expected to generate revenue of USD 112.0 billion by 2030, registering a CAGR of 29.4% during the forecast period (2024–2030). This can be ascribed to the increasing use of chatbots for assisting customer services. Enterprises have already started to adopt cloud-based solutions to provide better stability and reduce the overall time required for data collection and processing. Thus, AI-powered chatbots and cloud-based voice-recognizing systems aid in most business operations and help in making data-driven decisions.
In today’s world, AI-powered bots are being adopted across various industries, as they are playing a vital role in transforming customer satisfaction in terms of service and support. Also, they efficiently handle customer inquiries, troubleshoot issues, and provide personalized assistance, reducing the need for human intervention. Moreover, in the e-commerce and retail sectors, AI bots have enhanced the user experience by offering product recommendations and order tracking.
In addition, healthcare institutions rely on them for appointment scheduling and patient engagement. Financial institutions use AI bots for fraud detection and account management, while content creators benefit from their ability to generate articles and descriptions. Moreover, NLP used in these bots is essential for language translation, market research, and accessibility improvements for individuals with disabilities. Thus, NLP demand continues to evolve and grow significantly with AI-based bots becoming more sophisticated.
Based on industry, the healthcare category is the market leader. This is attributed to the increasing adoption of NLP in the healthcare industry and recently experiencing a hike in data generation due to the increased digitalization in hospitals and healthcare facilities. Moreover, NLP has emerged as a crucial technology to extract valuable insight from large volumes of textual healthcare data. As a result, there is a growing demand for sophisticated data management and advanced data analytics solutions in this sector.
In addition, recording of personal health data and making records 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.
Globally, the natural language processing market is expected to witness the fastest growth in the APAC region, advancing at a CAGR of 30.2%, during the forecast period. The APAC market is majorly driven by technological advancements in China, India, Japan, and other countries, with the increasing number of SMEs and customer contact centers, and the surging adoption of cloud-based applications and services. In the APAC market, China accounted for the largest share, as the country is working on several innovation programs for the deployment of AI technologies, such as NLP, ML, and deep learning.
Some of the key players in the market are Alphabet Inc., SAS Institute Inc., International Business Machines (IBM) Corporation, 3M Company, Apple Inc., Microsoft Corporation, Hewlett Packard Enterprise Data Science Institute, Enterprise (HPE) Company, Dolbey Systems Inc., and AWS Inc.