Market Size of NLP Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 31.76 Billion |
Market Size (2029) | USD 92.99 Billion |
CAGR (2024 - 2029) | 23.97 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Natural Language Processing Market Analysis
The NLP Market size is estimated at USD 31.76 billion in 2024, and is expected to reach USD 92.99 billion by 2029, growing at a CAGR of 23.97% during the forecast period (2024-2029).
- Over the past few years, deep learning architectures and algorithms have made impressive advances in image recognition and speech processing. The application of natural language processing (NLP) has made significant contributions, yielding state-of-the-art results for some complex NLP application tasks. NLP has witnessed considerable growth over the past few years, owing to the affordable, scalable, and computational power, increased digitization of data, and the merger of NLP with deep learning (DL) and machine learning (ML).
- The increasing use of NLP in healthcare and call centers, rising demand for advanced text analytics, and growing machine-to-machine technology are the primary factors responsible for the market studied.
- NLP is witnessing growth in healthcare centers, as many organizations use the technology to ingest and analyze massive amounts of patient data. Additionally, the growing use of the internet and connected devices, along with the enormous volume of patient data, is driving the growth of the market studied. Apart from this, the rapidly increasing data security issues, along with the minimal accessibility of NLP-based software among organizations, are hampering industry expansion.
- During the pandemic, the market witnessed high growth in the healthcare sector. For instance, in response to the COVID-19 pandemic, the White House and a coalition of leading research groups 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 was provided to the global research community to apply recent advances in natural language processing and other AI techniques to generate new insights supporting the fight against this infectious disease.
Natural Language Processing Industry Segmentation
Natural Language Processing (NLP) is a component of artificial intelligence (AI) that allows computers to assess and interpret both written and spoken human language.
The Natural Language Processing Market is Segmented by Deployment (On-premise and Cloud), Organization Size (Large Organizations and Small and Medium Organizations), Type (Hardware, Software, and Services), Processing Type (Text, Speech/Voice, and Image), End-user Industry (Education, BFSI, Healthcare, IT and Telecom, Retail, Manufacturing, Media, and Entertainment), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Deployment | |
On-premise | |
Cloud |
By Organization Size | |
Large Organizations | |
Small and Medium Organizations |
By Type | |
Hardware | |
Software | |
Services |
By Processing Type | |
Text | |
Speech/Voice | |
Image |
By End-user Industry | |
Education | |
BFSI | |
Healthcare | |
IT and Telecom | |
Retail | |
Manufacturing | |
Media and Entertainment | |
Other End-User Industries |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle-East and Africa |
NLP Market Size Summary
The Natural Language Processing (NLP) market is experiencing significant growth, driven by advancements in deep learning and the increasing digitization of data. The integration of NLP with machine learning and deep learning technologies has enhanced its capabilities, making it a crucial tool in various sectors. The healthcare industry, in particular, has seen substantial adoption of NLP for analyzing vast amounts of patient data, while call centers and machine-to-machine technologies are also contributing to market expansion. Despite challenges such as data security concerns and limited accessibility of NLP-based software, the market continues to thrive, with large organizations leading the charge in adopting these technologies to improve operational efficiencies.
In the United States, innovations in NLP are propelling market growth, with major players like IBM, Google, and Microsoft investing heavily in research and development. These companies are focusing on expanding their customer base globally through strategic partnerships and product launches. The demand for NLP applications is also rising in sectors like e-commerce, where smart speakers and virtual assistants are becoming increasingly popular. Additionally, social media platforms are leveraging NLP for content moderation and analytics. The competitive landscape is marked by collaborations and the introduction of new solutions, such as IBM's AI-driven tools and Red Hat's Project Wisdom, aimed at making NLP more accessible to a broader audience.
NLP Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Intensity of Competitive Rivalry
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1.3.5 Threat of Substitute Products
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1.4 Impact of COVID-19 on the Market
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1.5 Market Drivers
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1.5.1 Shifting Trend from Product-centric to Customer-centric Experience
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1.5.2 Increasing Demand for Smart Devices Across Industrial Internet of Things (IIoT)
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1.6 Market Restraints
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1.6.1 Lack of Skilled Professionals Across the Industry
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2. MARKET SEGMENTATION
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2.1 By Deployment
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2.1.1 On-premise
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2.1.2 Cloud
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2.2 By Organization Size
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2.2.1 Large Organizations
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2.2.2 Small and Medium Organizations
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2.3 By Type
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2.3.1 Hardware
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2.3.2 Software
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2.3.3 Services
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2.4 By Processing Type
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2.4.1 Text
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2.4.2 Speech/Voice
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2.4.3 Image
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2.5 By End-user Industry
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2.5.1 Education
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2.5.2 BFSI
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2.5.3 Healthcare
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2.5.4 IT and Telecom
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2.5.5 Retail
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2.5.6 Manufacturing
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2.5.7 Media and Entertainment
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2.5.8 Other End-User Industries
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2.6 By Geography
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2.6.1 North America
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2.6.2 Europe
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2.6.3 Asia-Pacific
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2.6.4 Latin America
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2.6.5 Middle-East and Africa
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NLP Market Size FAQs
How big is the NLP Market?
The NLP Market size is expected to reach USD 31.76 billion in 2024 and grow at a CAGR of 23.97% to reach USD 92.99 billion by 2029.
What is the current NLP Market size?
In 2024, the NLP Market size is expected to reach USD 31.76 billion.