Natural Language Processing Market To Demonstrate CAGR of 19.7% during 2019–2024
The growing focus on enhancing the customer experience, rising need to manage large volumes of data, surging demand for these solutions in contact centers, and rapid automation of repetitive processes across industries are expected to drive the growth of the natural language processing (NPL) market at a CAGR of 19.7% during the forecast period (2019–2024). According to P&S Intelligence, the market generated revenue... moreNatural Language Processing Market To Demonstrate CAGR of 19.7% during 2019–2024
The growing focus on enhancing the customer experience, rising need to manage large volumes of data, surging demand for these solutions in contact centers, and rapid automation of repetitive processes across industries are expected to drive the growth of the natural language processing (NPL) market at a CAGR of 19.7% during the forecast period (2019–2024). According to P&S Intelligence, the market generated revenue of $8.3 billion in 2018, and it is projected to reach $22.9 billion by 2024.
One of the major factors leading to the increasing demand for NLP solutions is the increasing need to manage large volumes of data. Over 2 quintillion bytes of data are generated in the structured and unstructured forms every day around the world. Companies are in a need for solutions that can resolve business-related issues by scrutinizing the extracted data. Most enterprises are still using traditional procedures to collect the structured data from spreadsheets and relational databases. Thus, NPL solutions are used to manage the data efficiently, especially that obtained in the unstructured form.
Another key factor driving the demand for NLP solutions is the numerous initiatives being taken to automate the mundane business processes. Companies in today’s competitive world want to retain their position in their respective industry with the use of automated solutions for improving human–machine interactions. Furthermore, these solutions help consumers in receiving quick replies through seamless discussions. Enterprises are using NLP solutions, including chatbots, to study consumers’ inputs and automatically provide appropriate answers.
The application segment of the natural language processing market is categorized into machine translation, report generation, information extraction, question answering, and text processing. Among these, the machine translation category generated the highest market revenue in 2018. This is ascribed to the surging adoption of advanced solutions that translate text into several languages, to address various queries of customers who speak, different languages.
Moreover, the natural language processing market is classified into banking, financial services, and insurance (BFSI), automotive, retail, healthcare, information technology (IT) & telecommunications, and others, based on industry. In this segment, the BFSI industry accounted for the largest revenue share in 2018 due to the fact that financial service providers are using NLP solutions to examine data, take effective decisions, and provide quality products and services to customers.
Geographically, the natural language processing market in the Asia-Pacific (APAC) region is expected to witness the most-rapid advance during the forecast period. This can be ascribed to the technological advancements, surging adoption of cloud-based solutions, increasing number of customer contact centers, and growing number of small and medium-sized enterprises (SMEs) in the region. In APAC, in 2018, China accounted for the largest share due to the several innovation programs introduced for the deployment of advanced technologies, such as NLP, artificial intelligence (AL), machine language (ML), and deep learning.
Thus, the increasing need to manage large volumes of data and growing automation of repetitive work are projected to drive the market growth during the foreseeable period.
