Natural Language Processing Market

Rising adoption of cloud-based NLP and AI-based software among small & medium businesses to aid market growth

Organizations are adopting cloud-based NLP solutions to reduce the time required for the collection of insightful data and processing. Chabots and voice search natural language processing technology collect data using various AI-powered and cloud-based tools such as interactive voice recognition systems. This data helps process various predictive and market analyses for a particular product.

On the other hand, technological advancement in AI has drastically transformed Big Data analytics and has driven efficient services by automating time-consuming data collection tasks. Several leading players are launching AI-based software tools for automating businesses around the globe. For instance, in July 2022, SecureKloud Technologies introduced DataEdge, a cloud-based and AI-powered data analytics platform that enables organizations to power insights for decision-making. Rising cloud transformation solutions with the DataEdge platform provide scalable, highly modular, and API-driven solutions for unlocking data-powered insights.

Natural Language Processing Market Industry News

Argilla supports the user at every stage of MLOps cycle, from model monitoring through data labeling. Data annotation and labeling are essential steps in the training of supervised NLP models because they provide high-quality labeled datasets from the annotation and labeling of raw textual data. On the contrary, model monitoring is indeed an essential phase that keeps the model's dependability and consistency by continuously observing the performance and behavior of deployed models.

Argilla offers a variety of cutting-edge data annotation techniques, going beyond conventional hand-labeling operations.

In addition to supporting data curation, assessment, model monitoring, debugging, & explainability, Argilla is a framework that is ready for production. It streamlines tool integration and automates operations involving humans in the loop. The Docker command "docker run -d -name argilla -p 6900:6900 argilla/argilla-quickstart:latest" may be used to locally install it on the device.

The Global Natural Language Processing Market Industry is characterized by dynamic growth trends, as illustrated in the accompanying charts. These visual representations highlight the projected market size, growth rates, and key segments driving the industry forward. The charts depict a clear upward trajectory, with significant milestones anticipated in the coming years, reflecting the increasing adoption of NLP technologies across various sectors. This visual data serves as a valuable tool for stakeholders to understand market dynamics and make informed decisions.

The growing need for multilingual support is significantly influencing the Global Natural Language Processing Market Industry. As businesses expand globally, the demand for tools that can understand and generate multiple languages is increasing. NLP technologies are being employed to create applications that facilitate communication across language barriers, enhancing user experience and accessibility. For example, translation services powered by NLP are becoming essential for companies operating in diverse markets. This trend is likely to drive market expansion, as organizations recognize the importance of effective communication in a globalized economy.

The Global Natural Language Processing Market Industry is experiencing a surge in demand for AI-powered solutions, driven by the increasing need for automation across various sectors. Businesses are leveraging NLP technologies to enhance customer service, streamline operations, and improve decision-making processes. For instance, chatbots and virtual assistants are becoming commonplace in customer support, enabling companies to handle inquiries efficiently. This trend is expected to contribute to the market's growth, with projections indicating a market size of 120.2 USD Billion in 2024, reflecting the industry's potential to transform business operations globally.

Advancements in machine learning algorithms are propelling the Global Natural Language Processing Market Industry forward. Enhanced algorithms enable more accurate language understanding and generation, allowing for improved sentiment analysis, language translation, and content generation. For example, transformer-based models like BERT and GPT have revolutionized how machines process language, leading to more nuanced interactions. As these technologies evolve, they are likely to attract further investment and innovation, which could significantly expand the market, potentially reaching 1210.0 USD Billion by 2035, indicating a robust growth trajectory.

Increased investment in research and development is a critical driver for the Global Natural Language Processing Market Industry. Governments and private entities are allocating substantial resources to explore new applications of NLP, particularly in healthcare, finance, and education. For instance, NLP is being utilized to analyze patient data for better health outcomes and to automate financial reporting. This focus on innovation is expected to yield new products and services, fostering market growth at a compound annual growth rate of 23.36% from 2025 to 2035, as organizations seek to harness the full potential of NLP technologies.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American natural language processing (NLP) market is anticipated to expand at a significant CAGR during the study period, accounting for USD 21.68 billion in 2021. The region dominates AI and machine learning technologies, making it one of the key marketplaces for natural language processing technologies. Further, the prevalence of key market participants in the U.S. drives innovation in the region subsequently fueling the natural language processing market growth.

Regional governments are also increasingly encouraging the use of AI, ML, and NLP technologies, which is allowing market participants to expand their presence in the region.

Figure 3: Natural Language Processing Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The European natural language processing market is the world's second-largest due to the rising cloud computing adoption among enterprises in Europe. According to the European Commission Organization, around 42% of European enterprises have adopted cloud-based services in 2021 and are proliferating. Such an increase in the adoption of cloud services is expected to strengthen the market growth. The improved focus and increased spending on IT infrastructure are expected to drive the growth of the NLP market in the UK. The government has also laid high emphasis on new software.

France is increasing its focus on developing artificial intelligence through regular investments, attracting new consumers. This will likely have a positive impact on the growth of the NLP market.

Moreover, companies such as Facebook and Google are planning to invest in expanding and creating new facilities related to AI in Paris, bolstering the adoption of NLP. Further, the German NLP market held the largest market share, and the France natural language processing (NLP) market was the fastest-growing market in the European region.

The Asia Pacific natural language processing market is expected to grow at the fastest rate of CAGR during the forecast period. The growth is attributable to increasing smartphone usage, rapid technological advancements, the digitalization of economies, and government initiatives in developing countries from the region. Furthermore, this region holds leading positions in cutting-edge industries like robotics and has a strong IT infrastructure, software, and service offerings. These factors would create profitable growth prospects for the market.

The regional dominance in the semiconductor industry also helps the companies gain a position in the NLP market, as many NLP chips and hardware manufacturers are Asia-based. Moreover, China’s natural language processing market held the largest market share, and the Indian NLP market was the fastest-growing market in the Asia-Pacific region.

The key industry vendors focus on the expansion of their consumer base to obtain a competitive advantage. Therefore, key companies take several strategic actions, including mergers & acquisitions, new product/technology development partnerships, and collaborations. Stakeholders can also emphasize product differentiation and technological advancements. Intensive efforts on organic and inorganic growth strategies are likely to help companies expand their penetration across untapped areas.

SAP SE is a European multinational software company based in Walldorf, Baden-Württemberg. It develops enterprise software to manage business operations and customer relations. The company is the world's leading enterprise resource planning software vendor. In July 2022, SAP SE acquired Askdata, a data interaction, and collaboration platform. The key objective of the acquisition is to assist consumers in making appropriate choices with AI-driven natural language searches.