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    US Text Analytics Market

    ID: MRFR/ICT/12892-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Text Analytics Market Research Report: By Component (Software, Services), By Application (Customer Experience Management, Workforce Management), By Deployment (On-Premise, Cloud) and By Vertical (BFSI, Manufacturing, Government, Retail, E-Commerce) - Forecast to 2035

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    US Text Analytics Market Infographic
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    US Text Analytics Market Summary

    As per MRFR analysis, the US text analytics market size was estimated at 1009.8 USD Million in 2024. The US text analytics market is projected to grow from 1160.56 USD Million in 2025 to 4664.24 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 14.93% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US text analytics market is poised for substantial growth driven by technological advancements and evolving consumer needs.

    • The integration of AI and Machine Learning is transforming the capabilities of text analytics solutions.
    • Real-time analytics capabilities are becoming increasingly essential for businesses seeking timely insights.
    • The largest segment in the market is customer experience analytics, while the fastest-growing segment is competitive intelligence.
    • Key market drivers include the growing demand for customer insights and advancements in Natural Language Processing.

    Market Size & Forecast

    2024 Market Size 1009.8 (USD Million)
    2035 Market Size 4664.24 (USD Million)

    Major Players

    IBM (US), Microsoft (US), SAS (US), Oracle (US), SAP (DE), Google (US), Amazon (US), Clarabridge (US), Lexalytics (US)

    US Text Analytics Market Trends

    The text analytics market is currently experiencing a dynamic evolution, driven by the increasing demand for data-driven insights across various sectors. Organizations are recognizing the value of extracting meaningful information from unstructured data sources, such as social media, customer feedback, and online reviews. This shift towards data-centric decision-making is fostering innovation in text analytics technologies, enabling businesses to enhance customer engagement and improve operational efficiency. Furthermore, advancements in natural language processing (NLP) and machine learning are facilitating more sophisticated analysis, allowing for deeper understanding of consumer sentiment and behavior. In addition, the regulatory landscape is evolving, with a growing emphasis on data privacy and security. Companies are compelled to adopt robust text analytics solutions that not only comply with regulations but also protect sensitive information. This trend is likely to drive investment in advanced analytics tools that prioritize ethical data usage. As organizations continue to harness the power of text analytics, the market is poised for substantial growth, reflecting the increasing importance of data in strategic planning and execution.

    Integration of AI and Machine Learning

    The incorporation of artificial intelligence and machine learning technologies is transforming the text analytics market. These advancements enable more accurate data interpretation and predictive analytics, allowing businesses to anticipate trends and consumer needs effectively.

    Focus on Data Privacy and Compliance

    With heightened awareness surrounding data privacy, organizations are prioritizing compliance in their text analytics strategies. This trend emphasizes the need for solutions that ensure data protection while still delivering valuable insights.

    Real-time Analytics Capabilities

    The demand for real-time analytics is rising, as businesses seek immediate insights from text data. This capability allows organizations to respond swiftly to market changes and customer feedback, enhancing their competitive edge.

    US Text Analytics Market Drivers

    Emergence of Multilingual Analytics

    The emergence of multilingual analytics is reshaping the text analytics market, as businesses expand their operations globally. Organizations are increasingly recognizing the importance of analyzing text data in multiple languages to cater to diverse customer bases. This trend is supported by data indicating that 40% of US companies are investing in multilingual text analytics solutions to enhance their global reach. As the demand for language diversity in analytics grows, the text analytics market is expected to evolve, with a projected growth rate of 20% over the next few years. This development underscores the necessity for businesses to adapt their analytics strategies to accommodate linguistic variations.

    Growing Demand for Customer Insights

    The text analytics market is experiencing a notable surge in demand for customer insights, driven by businesses seeking to enhance their understanding of consumer behavior. Companies are increasingly leveraging text analytics tools to analyze customer feedback, social media interactions, and online reviews. This trend is underscored by a report indicating that 70% of organizations in the US prioritize customer experience, leading to a projected growth rate of 25% in the text analytics market by 2026. As organizations strive to tailor their offerings to meet customer expectations, the text analytics market is positioned to play a crucial role in providing actionable insights that inform strategic decision-making.

    Rising Adoption of Cloud-Based Solutions

    The rising adoption of cloud-based solutions is transforming the text analytics market landscape. Organizations are increasingly migrating their analytics operations to the cloud, driven by the need for scalability, flexibility, and cost-effectiveness. Cloud-based text analytics platforms offer enhanced collaboration and accessibility, allowing teams to analyze data from anywhere. This shift is evidenced by a report indicating that 55% of US enterprises have adopted cloud-based analytics solutions. As cloud technology continues to evolve, the text analytics market is likely to experience accelerated growth, with an anticipated market size of $4 billion by 2026. This trend suggests a paradigm shift in how organizations approach data analysis.

    Advancements in Natural Language Processing

    Advancements in Natural Language Processing (NLP) technologies are significantly influencing the text analytics market. The integration of sophisticated algorithms enables organizations to extract meaningful information from unstructured data sources, such as emails, chat logs, and documents. As NLP capabilities improve, the accuracy and efficiency of text analytics solutions are expected to enhance, potentially increasing market adoption rates. The text analytics market is projected to reach a valuation of $5 billion by 2027, reflecting the growing reliance on NLP-driven insights for competitive advantage. This evolution suggests that businesses are likely to invest heavily in text analytics tools to harness the power of language data.

    Increased Focus on Competitive Intelligence

    The text analytics market is witnessing an increased focus on competitive intelligence as organizations strive to gain an edge in their respective industries. By analyzing competitors' communications, marketing strategies, and customer sentiments, businesses can identify trends and opportunities for differentiation. This strategic approach is reflected in a survey indicating that 60% of US companies utilize text analytics for competitive analysis. As the need for real-time insights intensifies, the text analytics market is expected to expand, with a projected CAGR of 22% over the next five years. This growth highlights the critical role of text analytics in shaping business strategies.

    Market Segment Insights

    By Components: Software (Largest) vs. Services (Fastest-Growing)

    In the US text analytics market, the distribution of market share between Software and Services reveals Software as the dominant player, commanding a significant part of the overall market. This segment benefits from the integration of advanced technologies and analytics tools that enhance performance and usability. The Services, while comparatively smaller in share, are rapidly gaining traction as enterprises seek specialized solutions tailored to their unique needs, driving increased demand in this category. Growth trends in the Components segment show a robust trajectory, particularly for the Services segment, which is emerging as a fast-growing area due to increasing investments in data-driven decision making. The technological advancements and increasing adoption of AI in analytics are key drivers propelling demand for both Software and Services. The growing complexity of data analysis tasks further underscores the need for comprehensive solutions, fueling growth across the board.

    Software (Dominant) vs. Services (Emerging)

    The Software segment in the US text analytics market is characterized by its large-scale adoption across various industries that are leveraging data analytics to improve operational efficiency and decision-making processes. This segment includes a range of products that utilize AI and machine learning to provide insights and automate workflows. On the other hand, the Services segment is emerging as a critical component as businesses increasingly seek customized solutions and consulting services to navigate the complexities of data analytics. This segment includes implementation, training, and ongoing support services, highlighting the collaborative approach businesses are taking to harness the power of analytics effectively.

    By Applications: Customer Experience Management (Largest) vs. Workforce Management (Fastest-Growing)

    In the applications segment of the US text analytics market, Customer Experience Management (CEM) holds a significant share, dominating the space by facilitating brands in understanding customer feedback and improving interactions effectively. Meanwhile, Workforce Management has emerged as a challenger with its innovative applications that leverage text analytics to optimize employee performance and operational efficiency, thus expanding its footprint in the market. The growth trends in this segment are primarily driven by increasing demands for enhanced customer engagement strategies and employee productivity tools. Businesses are recognizing the importance of text analytics in unlocking actionable insights from unstructured data, which fuels the growth of both CEM and Workforce Management. The competitive landscape indicates a shift towards integrated solutions that blend these applications for a holistic approach to management.

    Customer Experience Management (Dominant) vs. Workforce Management (Emerging)

    Customer Experience Management represents the dominant force in the US text analytics market, characterized by its ability to transform raw data into meaningful customer insights. Companies are utilizing advanced text analytics tools to refine their customer experiences, making data-driven decisions that enhance satisfaction and loyalty. In contrast, Workforce Management is rapidly emerging, appealing particularly to organizations focused on maximizing employee efficiency and optimizing workforce operations. This application utilizes text analytics to assess employee feedback, identify performance trends, and inform strategies designed to enhance overall productivity. The juxtaposition of these applications indicates a dynamic market where understanding both customer and employee experiences is crucial for sustained business success.

    By Deployment: Cloud (Largest) vs. On-Premise (Fastest-Growing)

    The deployment segment in the US text analytics market is characterized by a significant preference for cloud solutions, which hold the largest share. Businesses increasingly favor the flexibility and scalability offered by cloud deployments, leading to broader adoption across various industries. In contrast, on-premise solutions, once dominant, are now declining in popularity as organizations seek real-time analytics and lower overhead costs associated with cloud services. Growth trends in this segment indicate a robust shift towards cloud deployments, driven by the rising need for advanced analytics capabilities and the demand for remote accessibility. The acceleration of digital transformation initiatives is pushing organizations to adopt cloud-based platforms, which provide enhanced functionalities and collaborative features. In particular, the emergence of AI-driven analytics is further propelling this trend, making cloud the preferred choice among data-driven enterprises.

    Cloud (Dominant) vs. On-Premise (Emerging)

    Cloud solutions in the US text analytics market present a dominant position due to their scalability, cost-effectiveness, and ease of integration into existing systems. These solutions allow businesses to process large volumes of data efficiently while ensuring access to real-time insights. In contrast, on-premise solutions, although considered emerging, are witnessing renewed interest as organizations prioritize data privacy and regulatory compliance. This segment is characterized by businesses looking for tailored solutions that provide control over their data environment, thus promoting a niche market for on-premise deployments. The competitive landscape shows that while cloud is leading in adoption, on-premise remains a viable option for sectors with stringent data governance demands.

    By Vertical: BFSI (Largest) vs. E-Commerce (Fastest-Growing)

    In the US text analytics market, the BFSI segment holds the largest market share due to its critical need for data-driven insights to enhance decision-making processes, risk assessment, customer service, and regulatory compliance. The Manufacturing and Government sectors also represent substantial portions of the market, driven by their incorporation of analytics to improve operational efficiency and public service delivery, respectively. Retail sector stands out by adopting text analytics to refine supply chain strategies and customer engagement. Growth trends are being influenced by the increasing digitization of businesses and the rising importance of customer insights across all sectors. The BFSI sector is leveraging advanced analytics to refine financial forecasting and compliance, while the E-Commerce sector is expected to exhibit the fastest growth as businesses seek to enhance consumer experience through personalized services and predictive analytics. Additionally, advancements in artificial intelligence (AI) and machine learning (ML) are further propelling the adoption of text analytics in these sectors.

    BFSI: Dominant vs. E-Commerce: Emerging

    The BFSI segment is characterized by its maturity and significant investment in text analytics to enhance customer relationship management and risk management strategies. Organizations in this sector utilize analytical tools to parse vast amounts of unstructured data, identify fraud patterns, and predict customer needs, thus maintaining a competitive edge. On the other hand, the E-Commerce sector represents an emerging segment that is rapidly adopting text analytics for real-time customer insights and trend analysis. The surge in online shopping has strained traditional analytical approaches, prompting E-Commerce companies to implement text analytics for better inventory management, customer sentiment analysis, and targeted marketing strategies, making it a vital area of growth within the overall market.

    Get more detailed insights about US Text Analytics Market

    Key Players and Competitive Insights

    The text analytics market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for data-driven insights across various sectors. Key players such as IBM (US), Microsoft (US), and Google (US) are at the forefront, leveraging their technological prowess to enhance their offerings. IBM (US) focuses on integrating AI capabilities into its text analytics solutions, aiming to provide more nuanced insights and predictive analytics. Microsoft (US) emphasizes partnerships and cloud-based solutions, positioning itself as a leader in providing scalable analytics tools. Meanwhile, Google (US) is investing heavily in natural language processing (NLP) technologies, which enhances its competitive edge in delivering real-time analytics. Collectively, these strategies foster a competitive environment that is increasingly reliant on innovation and technological advancement.

    In terms of business tactics, companies are increasingly localizing their operations to better serve regional markets, optimizing supply chains to enhance efficiency. The competitive structure of the market appears moderately fragmented, with several players vying for market share. However, the influence of major companies is substantial, as they set industry standards and drive technological advancements that smaller firms often follow.

    In October 2025, IBM (US) announced a strategic partnership with a leading healthcare provider to develop tailored text analytics solutions aimed at improving patient outcomes. This collaboration underscores IBM's commitment to applying its analytics capabilities in critical sectors, potentially revolutionizing how healthcare data is interpreted and utilized. The strategic importance of this move lies in its potential to enhance IBM's market position by demonstrating the practical applications of its technology in real-world scenarios.

    In September 2025, Microsoft (US) launched an upgraded version of its Azure Text Analytics service, incorporating advanced machine learning algorithms to improve sentiment analysis accuracy. This upgrade is significant as it not only enhances the user experience but also positions Microsoft as a frontrunner in the cloud-based analytics space. By continuously innovating its offerings, Microsoft is likely to attract a broader customer base, thereby solidifying its competitive stance.

    In August 2025, Google (US) unveiled a new suite of NLP tools designed for enterprise applications, aimed at streamlining data processing and enhancing user engagement. This initiative reflects Google's strategy to integrate AI more deeply into its analytics offerings, potentially reshaping how businesses interact with their data. The introduction of these tools may provide Google with a competitive advantage, as organizations increasingly seek sophisticated solutions to manage vast amounts of textual data.

    As of November 2025, the text analytics market is witnessing trends such as digitalization, AI integration, and a growing emphasis on sustainability. Strategic alliances among key players are shaping the competitive landscape, fostering innovation and collaboration. Looking ahead, it appears that competitive differentiation will increasingly hinge on technological innovation and supply chain reliability, rather than merely price-based competition. Companies that prioritize these aspects are likely to thrive in an evolving market that demands agility and forward-thinking solutions.

    Key Companies in the US Text Analytics Market market include

    Industry Developments

    The US Text Analytics Market is witnessing significant developments, with companies like IBM, Microsoft, Oracle, and SAP enhancing their capabilities through advancements in natural language processing and machine learning. RapidMiner has launched new features aimed at improving data processing efficiency, emphasizing the increasing demand for real-time analytics. In recent months, BuzzSumo has expanded its offerings to cater to social media insights, reflecting the importance of sentiment analysis in marketing strategies. Notably, SAP announced an acquisition in June 2023 to bolster its data analytics capabilities, prompting further consolidation in the market.

    On the financial front, the market is projected to grow as organizations increasingly invest in Text Analytics to optimize their operations. According to recent valuation reports, leading companies like Salesforce and Google are expanding their footprints, indicating robust growth potential. The past few years have seen innovations, particularly during 2021 and 2022, with enhanced features in AI-driven analytics becoming more mainstream. These factors contribute to a dynamic landscape where businesses seek advanced analytics solutions to improve decision-making and customer engagement.

    Future Outlook

    US Text Analytics Market Future Outlook

    The text analytics market is projected to grow at a 14.93% CAGR from 2024 to 2035, driven by advancements in AI, increased data generation, and demand for actionable insights.

    New opportunities lie in:

    • Development of AI-driven sentiment analysis tools for real-time customer feedback.
    • Integration of text analytics in healthcare for patient data interpretation.
    • Creation of industry-specific text analytics solutions for finance and legal sectors.

    By 2035, the text analytics market is expected to be robust, driven by innovative applications and increasing demand.

    Market Segmentation

    US Text Analytics Market Vertical Outlook

    • BFSI
    • Manufacturing
    • Government
    • Retail
    • E-Commerce

    US Text Analytics Market Components Outlook

    • Software
    • Services

    US Text Analytics Market Deployment Outlook

    • On-Premise
    • Cloud

    US Text Analytics Market Applications Outlook

    • Customer Experience Management
    • Workforce Management

    Report Scope

    MARKET SIZE 2024 1009.8(USD Million)
    MARKET SIZE 2025 1160.56(USD Million)
    MARKET SIZE 2035 4664.24(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 14.93% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Million
    Key Companies Profiled IBM (US), Microsoft (US), SAS (US), Oracle (US), SAP (DE), Google (US), Amazon (US), Clarabridge (US), Lexalytics (US)
    Segments Covered Components, Applications, Deployment, Vertical
    Key Market Opportunities Integration of artificial intelligence enhances insights and efficiency in the text analytics market.
    Key Market Dynamics Growing demand for real-time insights drives innovation and competition in the text analytics market.
    Countries Covered US

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    FAQs

    What is the market size of the US Text Analytics Market in 2024?

    The US Text Analytics Market is expected to be valued at 1.01 billion USD in 2024.

    What is the projected market size for the US Text Analytics Market by 2035?

    By 2035, the market is anticipated to grow to 4.59 billion USD.

    What is the expected CAGR for the US Text Analytics Market from 2025 to 2035?

    The market is projected to have a CAGR of 14.749% during the period from 2025 to 2035.

    Which segment of the US Text Analytics Market is expected to lead in value by 2035?

    The Software segment is expected to be valued at 2.73 billion USD by 2035, leading the market.

    What will be the market size for the Services segment of the US Text Analytics Market in 2024?

    The Services segment is projected to be valued at 0.4 billion USD in 2024.

    Who are the major players in the US Text Analytics Market?

    Key players include SAP, IBM, Microsoft, Oracle, and Google among others.

    What are the growth drivers of the US Text Analytics Market?

    Key growth drivers include increasing data usage, demand for real-time analytics, and advancements in AI technologies.

    What challenges does the US Text Analytics Market currently face?

    The market faces challenges related to data privacy and the complexity of integrating analytics with existing systems.

    What are the key applications of text analytics in the US market?

    Key applications include sentiment analysis, customer feedback analysis, and content categorization.

    How is the US Text Analytics Market affected by current global trends?

    The market is influenced by global digital transformation trends and increased focus on data-driven decision-making.

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