Product Code: 62339
The global natural language processing (NLP) market (henceforth, referred to as the market studied) was valued at USD 13.16 billion in 2020, and it is expected to be worth USD 42.04 billion by 2026, registering a CAGR of 21.5% during 2021-2026 (henceforth, referred to as the forecast period). It is expected that 85% of business engagement will be done without human interaction over the forecast period. Also, by 2020, it is estimated that Chatbots will save over USD 8 billion dollars to organizations globally. Many industry experts are also claiming that 25% of all enterprises will incorporate a chatbot or virtual customer assistant utilizing NLP technologies into their customer services by the end of 2020.
Vanguard piloted an intelligent agent that helps its customer service staff answer the frequently asked questions. It plans to eventually allow customers to engage with the cognitive agent directly, rather than with the human customer-service agents.
Furthermore, Financial institutions are utilizing NLP for various text mining, cross-border payments, foreign exchange, and many other applications. For instance, Citibank is using NLP for text mining and in biometric security applications. Text analytics is also helping in compliance and fraud prevention. For instance, electronic communications in banking(chats, emails, and instant messages) need to be monitored to reduce the risk of fraudulent account activities, external business activities, and sharing sensitive customer information.
The United Services Automobile Association, collaborated with IBM Global Services for developing text analytics solution for detecting fake insurance claims. US-based startup, VoiceBase also started offering Text Analytics functionality in parallel with voice data.
Due to the ongoing Covid-19 pandemic the market is witnessing growth in healthcare sector. For instance, In response to the COVID-19 pandemic, the White House and a coalition of leading research groups have prepared the COVID-19 Open Research Dataset (CORD-19). CORD-19 is a resource of over 200,000 scholarly articles, including over 100,000 with full text, about COVID-19, SARS-CoV-2, and related coronaviruses. This freely available dataset is provided to the global research community to apply recent advances in natural language processing and other AI techniques to generate new insights in support of the ongoing fight against this infectious disease. Such developments are further expected to drive the growth of the market during the forecast period.
Key Market Trends
Large Organizations are Expected to Register a Significant Growth
- Large organizations are one of the primary drivers and investors in the NLP market. As these organizations are increasingly adopting deep learning, along with supervised and unsupervised machine learning technologies for various applications, the adoption of NLP is likely to increase. Cost and risk are some of the major factors driving the adoption of these technologies among large organizations.
- Additionally, many small enterprises are dependent on large enterprises. This is due to some of the broad platform offerings from Amazon, Google, or Microsoft that are way too general, wherein, they still may be used in the industry verticals.
- Most of the large end-user organizations across various industries are mainly utilizing these technologies to enhance their internal and external operations. Moreover, the ROI of the technology is not always in the monetary form, hence, most of the small organizations find it risky to invest in.
- Moreover, Social media companies are also utilizing text analytics and NLP technologies for monitoring and tracking social media activities, such as political reviews and hate speeches. Platforms like Facebook and twitter are managing the published content with the help of these tools. The demand for information extraction product application is also anticipated to increase due to the growing importance of the web data for effective marketing and decision-making. Within the next few years, mobile chatbots are anticipated to revolutionize the marketing and commerce sectors.
- Many big European retailers harnessed the power of NLP and text mining, for customer feedback sentiment analysis and hired a dedicated AI development team in Ukraine to build a solution. By integrating the sentiment analysis tool into their processes, these retailers increase customer loyalty, drive business changes, and achieve an appropriate return on sales and marketing investments.
North America to Witness the Highest Market Growth
- According to RichRelevance, online shoppers in the United States are more inclined to use Google Assistant than the other platforms. Additionally, the utilization of smart speakers to obtain results on diverse topics is gaining increasing popularity, which, in turn, is expected to compel the companies to invest in the technology. This creates an immense opportunity for other application developers to target potential customers.
- NLP may also enhance the customer experience programs with various added benefits, thereby attracting more consumers, which, in turn, is projected to have a positive impact on the market growth in the country. The growing innovations in the market studied, by the global players based in the United States, are bringing advancement into the NLP market and fueling the rate of product launch in the region.
- For instance, IBM Research AI is exploring various applications of NLP for enterprise domains. For this, the company developed three programs, the first being advance AI where systems can learn from fewer amounts of data, leverage external knowledge, and use techniques that include neurosymbolic approaches to language, which combine neural and symbolic processing. The second program is an analyzing AI, which focuses on how a system reaches a decision. The third is scaling AI, which enables continuous adaptation, and better monitoring and testing of systems, in order to support the deployment of language systems under the rigorous expectations of enterprises.
- In September 2019, NeuralMetrics Inc., a US company, announced the commercialization of its SmartRatio SaaS platform. It uses NLP and machine learning to extract actionable insights from hard-to-access and unstructured public data for better decision making, with increased revenues. The company's platform is currently live in production environments with several commercial lines that P&C insures.
The natural language processing market is highly competitive and consists of several major players who have been trying to gain larger shares. These major players with prominent shares in the market have been focusing on expanding their customer base across foreign countries and are also providing new innovative solutions, along with deals and mergers to increase their market shares and profitability. Key players include Google Inc. and Microsoft Corporation, among others. The recent developments in the market include
- January 2020 - NetBase announced the merger with Quid, which is one of the prominent companies in AI-driven text analytics. As a result of this merger, the combined company will have an enhanced portfolio in the next generation consumer and market intelligence solution. The merged company will deliver contextual insights that reveal business trends across all forms of structured and unstructured data.
- January 2020 - The Royal Wolverhampton NHS Trust and Babylon entered a 10-year partnership to create an integrated digital health system to serve the Wolverhampton city's population. Babylon's Artificial Intelligence will help to provide live monitoring of patients with chronic conditions, and personalized care plans.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
- 4.3 Industry Attractiveness
- Porter's Five Forces
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Technology Snapshot
5 MARKET DYNAMICS
- 5.1 Market Drivers
- 5.1.1 Shifting Trend from Product
centric to Customer
- 5.1.2 Increasing Demand for Smart
Devices Across Industrial Internet of
- 5.1.3 Advancement in Machine
machine Communication Technology
- 5.1.4 Increasing Amount of Digital Data
with the Rise in Use of Smart Devices
- 5.2 Market Challenges
- 5.2.1 Lack of Skilled Professionals Across
- 5.2.2 Complexity in the Shift from
Traditional to Advanced Technology
- 5.3 Market Opportunities
- 5.4 Impact of COVID-19 on the Natural Language Processing (NLP) Market - Key themes covered include growing focus on useof NLP for tracking scientific & disease-relateddatasets and public interest monitoring forformulating policy decisions
6 MARKET SEGMENTATION
- 6.2 By Size of the Organization
- 6.2.1 Large Organizations
- 6.2.2 Small and Medium Organizations
- 6.3 By Type
- 6.3.1 Hardware
- 6.3.2 Software
- 6.3.3 Services
- 6.4 By Processing Type
- 6.4.1 Text
- 6.4.2 Speech/Voice
- 6.4.3 Image
- 6.5 By End
- 6.5.1 Education
- 6.5.2 BFSI
- 6.5.3 Healthcare
- 6.5.4 IT and Telecom
- 6.5.5 Retail
- 6.5.6 Manufacturing
- 6.5.7 Media and Entertainment
- 6.5.8 Other End
- 6.6 By Geography
- 6.6.1 North America (US & Canada)
- 6.6.2 Europe (UK, Germany, France, etc.
- 6.6.3 Asia Pacific (China, Japan, South Korea, India, etc.)
- 6.6.4 Rest of the World (Latin America and Middle East and Africa)
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 HARDWARE PROVIDERS
- 126.96.36.199 NVIDIA Corporation
- 188.8.131.52 Intel Corporation
- 184.108.40.206 Baidu Inc.
- 220.127.116.11 Qualcomm Incorporated
- 18.104.22.168 Texas Instrument
- 7.1.2 SOFTWARE AND SERVICE PROVIDERS
- 22.214.171.124 Google Inc.
- 126.96.36.199 Microsoft Corporation
- 188.8.131.52 Micro Focus International PLC (HPE)
- 184.108.40.206 SAS Institute Inc.
- 220.127.116.11 IBM Corporation
- 18.104.22.168 NetBase Solutions Inc.
- 22.214.171.124 Verint System Inc.
- 126.96.36.199 Genpact Limited
- 188.8.131.52 Adobe Inc.
- 184.108.40.206 Intel Corporation
- 220.127.116.11 NVIDIA Corporation
- 18.104.22.168 Amazon Web Services Inc
- 22.214.171.124 App Orchid Inc.
- 126.96.36.199 Inbenta Technologies Inc.
- 188.8.131.52 Veritone Inc.
- 184.108.40.206 SAP SE
- 220.127.116.11 Salesforce.com Inc.
- 18.104.22.168 Rasa Technologies GmbH
- 22.214.171.124 Babylon Healthcare Services Limited
- 126.96.36.199 Klevu Oy
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET