Report Overview

The Global Natural Language Processing Market size is expected to be worth around USD 453.3 Billion by 2032, from USD 37.1 Billion in 2023, growing at a CAGR of 33.1% during the forecast period from 2024 to 2033.

Natural Language Processing (NLP) refers to the branch of artificial intelligence that enables computers to understand, interpret, and respond to human language in a way that is both meaningful and useful. This technology encompasses a range of computational techniques that bridge human communication and machine understanding, allowing for the facilitation of tasks such as translation, sentiment analysis, and topic segmentation.

The market for Natural Language Processing is experiencing substantial growth, driven by the increasing demand for enhanced customer experiences, the proliferation of digital data, and advancements in machine learning technologies. The NLP market is segmented across various applications including voice recognition, chatbots, and predictive text, demonstrating its broad impact on industries ranging from healthcare to finance. As businesses continue to adopt NLP solutions to gain insights from unstructured data and improve operational efficiencies, the market is expected to witness continued expansion

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Note: Actual Numbers Might Vary In The Final Report

The global market is expected to enjoy a valuation of US$ 3.5 Billion by the end of the year 2023, and further expand at a CAGR of18.0%to reach a valuation of~US$ 18.5 Billionby the year 2033. According to the recent study by Future Market Insights, text and voice processing technologies are leading the market with an expected share of about34.7%in the year 2023,within the global market.

H1-H2 Update

Country-wise Insights

Report Scope as per Healthcare Natural Language Processing Industry Analysis

The book series Natural language processing was published in 2004 by Sandra Kübler. It has a BNB ID of GBA635165 and includes the book Memory-based parsing.

Natural Language Processing (NLP) Market Size:

The global natural language processing (NLP) market size reached US$ 22.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 153.9 Billion by 2032, exhibiting a growth rate (CAGR) of 22.9% during 2024-2032. The market is primarily driven by the growing e-commerce sector, the expanding use of natural language processing in the healthcare industry, and the growing acceptance of artificial intelligence and machine learning technologies across the globe.

Natural Language Processing Market Analysis:

• Major Market Drivers: Data extraction is driving the market growth for natural language processing (NLP) solutions. Other factors include sentiment analysis, deep learning algorithms, the growing need for automated language processing in customer service, and rising demand for artificial intelligence (AI)-powered solutions.
• Key Market Trends: The development of sentiment analysis and contextual understanding to extract deeper insights from textual material, and the fusion of NLP with other technologies like machine translation and speech recognition to achieve full language comprehension is contributing to the market growth. Also, the natural language processing market overview presents insightful information about the new low-code and no-code NLP technologies that are democratizing language processing capabilities and encouraging wider usage.
• Geographic Trends: North America continues to dominate the NLP industry due to the early adoption of AI technology and the existence of large tech businesses. Additionally, Europe is growing steadily due to the growing use of NLP in the government, banking, and healthcare sectors, while Asia Pacific is driven by expanding investments in AI research and development, particularly in nations like China and India.
• Competitive Landscape: Some of the major natural language processing companies include 3M Company, Apple Inc., FUJIFILM Holdings Corporation, Google LLC (Alphabet Inc.), Intel Corporation, International Business Machines Corporation, Meta Platforms Inc., Microsoft Corporation, NetBase Solutions Inc., Nokia Corporation, SAS Institute Inc. and Verint Systems among many others.
• Challenges and Opportunities: The market expansion and acceptance are challenged by ethical worries about data privacy, bias in algorithms, and exploitation of NLP technology. Additionally, businesses using NLP technologies face challenges due to integration complexity and the requirement for domain-specific customization. The natural language processing recent opportunities, include NLP for improved decision-making, individualized consumer experiences, and the automation of repetitive work in a variety of sectors.
  

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Natural Language Processing Market Trends:

Increasing Adoption of AI and Machine Learning Technologies

The natural language processing market is growing with the increasing use of artificial intelligence (AI) and machine learning (ML) technologies. Additionally, NLP technologies are proficient at tasks like sentiment analysis, translation, and personal assistants due to AI and machine learning (ML) algorithms, enabling them to learn from data inputs and improve over time without human interaction. For instance, new Horizon Europe funding strengthens European research in AI and quantum technology under the 2023-2024 Horizon Europe Digital, Industry, and Space work program. A new series of calls has been released, providing approximately €112 million in funding for creative initiatives. Additionally, the European Commission opened new financing avenues and committed over €112 million to promote innovative initiatives in quantum and artificial intelligence (AI) through Horizon Europe. Moreover, €50 million portion of the funds is designated for the development of large-scale AI models. The purpose of these improvements is to expand the models' functionality and support additional data types to create generative AI systems that can process and produce multimodal data, including text, photos, audio, video, and 3D models. These systems are produced to adjust to different settings and jobs. Hence, as businesses continue to focus on digital transformation, the reliance on data-driven decision-making further drives the adoption of NLP technologies, thus positively generating natural language processing market revenue.

E-commerce Growth

The global e-commerce market was valued at US$ 21.1 trillion as per the IMARC Group. It is also projected to grow to US$ 183.8 trillion by 2032, with an anticipated compound annual growth rate (CAGR) of 27.16% from 2024 to 2032. The e-commerce sector adopts natural language processing market growth for improving customer experience and optimizing their operations. These technologies are employed to understand and reply to client questions, automate customer support, and provide more user-friendly search functions. E-commerce companies may analyze vast amounts of client data, comprehend consumer behavior, and offer tailored shopping experiences by utilizing NLP to retain and satisfy customers. Moreover, NLP technologies are also used for sentiment analysis, which aids businesses in determining customer thoughts and comments on goods and services which allows for more focused marketing campaigns and product modifications. Thus, NLP has completely changed how e-commerce websites work, allowing customers to locate items using ordinary language, which increases user engagement and boosts sales conversions.

Increasing Adoption in the Healthcare Sector

The natural language processing (NLP) industry is growing with the healthcare sector's increasing dependence on these technologies. NLP makes it possible to analyze and handle enormous volumes of unstructured clinical data such as patient feedback, medical research articles, and electronic health records (EHRs) efficiently. According to the World Economic Forum AI spending in India will amount to $11.78 billion by 2025, and by 2035, it will contribute $1 trillion to the GDP of the country. Moreover, as per the National Institutes of Health (NIH) in an April 2023 published article, artificial intelligence is transforming clinical research and enhancing data quality. The aggregation and analysis of extensive clinical and biological data enhance patient enrollment, engagement, trial efficiency, and the quality of outcomes. Additionally, robust clinical and molecular datasets have significantly improved the predictive modeling of pharmaceuticals and biological functions. Even the largest datasets are useless if individuals can't understand them well enough. The capacity to recognize important patterns and trends in health data is a must for analysts. Thus, software for natural language processing (NLP) becomes essential in this situation for narrative text detection, extraction, and systematization into structured data using machine learning (ML) in NLP to be used in research for simplifying procedures. For instance, as per Coursera, AI in healthcare is expected to be worth $208.2 billion in 2030, which is higher than its $15.4 billion market size in 2022. Thus, this growing investment and adoption in the healthcare sector underscores the pivotal role of NLP technologies, which is creating a positive natural language processing market outlook.

The Natural Language Processing Market size was valued at USD 31.76 Billion in 2023 and is projected to reach USD 92.99 Billion by 2031, with a growth rate (CAGR) of 23.97 % from 2024 to 2031. The growing use of NLP technology in a variety of industries, including healthcare, banking, retail, and customer service, has contributed significantly to market growth. NLP’s ability to evaluate and extract insights from massive volumes of unstructured data has become critical for businesses looking to improve decision-making processes and gain a competitive advantage. The rise of voice-activated virtual assistants and chatbots has increased demand for NLP applications in the consumer market, accelerating growth.

Natural Language Processing Market: Definition/Overview

Natural language processing (NLP) is a computer application that uses artificial intelligence to interpret human language. This computerized technique allows the computer to examine and interpret human communication using a collection of technologies and theories. The purpose of natural language processing is to reduce the time required to grasp computer languages like Ruby, C, C++, and Java. NLP is used in big data analysis because huge amounts of data are generated in today’s business scenarios from sources such as audio, emails, web blogs, documents, social networking sites, and forums.

Optical character recognition (OCR), auto coding, text analytics, interactive voice response (IVR), pattern and image recognition, classification and categorization, and speech analytics are all examples of natural language processing technology. Natural language processing (NLP) can be cloud-based or on-premise, and it is used for applications such as information extraction, question answering, machine translation, and report generation in a variety of industries, including automotive, retail, and consumer goods, high-tech and electronics, government, banking, financial services, and insurance (BFSI), health care and life sciences, research and education, and media and entertainment.

The global natural language processing market is estimated to expand at a substantial CAGR during the forecast period, between 2021 and 2028. Natural language processing serves as a link between humans and technology. It is an Artificial Intelligence (AI)-based component that understands human language and then converts it to machine language. So, NLP is also regarded as a subfield of AI that translates, comprehends, and manipulates human languages. The language processing is becoming more popular as the need for enhancing communication of human-to-machine connections and analysis of big data technology are extensively required in several industries. Computers can easily interpret the input instruction given by humans with their assistance.

Market Trends, Drivers, Restraints, and Opportunities:

• Increasing demand for cloud-based NLP solutions to lower overall costs and improve scalability is expected to propel the market expansion during the forecast period.


• Growing use of smart devices to enable smart environments and rising demand for improved customer experience are projected to fuel the market growth in the coming years.


• Growing needs for technology to ensure digital data analysis as well as technical innovations and improvements of NLP are key drivers of the market.


• Complexities caused by the use of code-mixed language when implementing NLP solutions are estimated to hinder market expansion throughout the projection period.


• Reliability issues, the need for effective predictive technologies, and lack of skilled labour are the main constraints hampering the growth of the market.


• Increased investments and wide use of technology in advertising, media & entertainment, and healthcare industries are expected to create lucrative opportunities for the market expansion.

Scope of the report:

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Natural Language Processing (NLP) Market Outlook 2032

The global Natural Language Processing (NLP) Market size was USD 19 Billion in 2023 and is likely to reach USD 293.5 Billion by 2032, expanding at a CAGR of 29.2% during 2024–2032. The market is propelled by increasing adoption of smart devices enhancing voice recognition technologies and the surge in demand for enhanced customer experience through automated and personalized communication.



Increasing reliance on voice-activated systems propels the market. Major tech companies have significantly invested in enhancing voice recognition technologies, leading to highly sophisticated virtual assistants and smart home devices.





This trend reflects a shift toward intuitive human-computer interactions, reducing the learning curve for technology adoption. Government initiatives aimed at integrating voice-activated systems in public services further validate this trend, ensuring wider acceptance and integration across various sectors.

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  In May 2023, Microsoft introduced Jugalbandi, a multilingual chatbot powered by generative AI, available on WhatsApp, targeting rural India to bridge the gap in media reach and access to government welfare initiatives. The company stated that this app integrates AI models from AI4Bharat with Microsoft Azure OpenAI Service, facilitating smooth interactions between the chatbot and users.

  
  

Enhanced customer experience through personalized communication stands as a pivotal trend in the market. Businesses across industries leverage NLP tools to analyze customer feedback and tailor services accordingly.



This approach improves customer satisfaction and boosts loyalty and retention rates. Recent launches of NLP-based analytics platforms by leading firms underscore the commitment to harnessing the power of natural language understanding in crafting personalized customer journeys. </s

Natural Language Processing Market Size, Share, Forecast, & Trends Analysis Offering (Solutions, Services), Organization Size, Application (Sentiment Analysis, Chatbots & Virtual Assistant, Others), Sector (IT & Telecom, BFSI, Retail & E-commerce, Others), Geography - Global Forecast to 2031

The growth of the natural language processing market stood at over 30 percent globally in 2023. This was in recovery from a near 29 percent slump in 2022. The NLP market is then expected to grow at a decent rate, never less than 10 to 15 percent, through the decade until 2030. This however, is nowhere near the best market growth year of 2021 when the market grew a staggering 100 percent.

The global natural language processing market size is expected to hit around USD 413.11 billion by 2032, growing at a CAGR of 38.4% from 2023 to 2032.

As of 2023, the global natural language processing (NLP) market boasts an impressive valuation of US$ 17.08 billion. Businesses across different sectors increasingly recognize the transformative potential of NLP. This lays the groundwork for substantial growth, with estimates suggesting the market could surpass US$ 140.23 billion by 2033.

Natural Language Processing Market Growth Analysis by Key Country

Natural Language Processing Market Growth Analysis by Key Segment

Natural language processing (NLP) is one of the most important technologies of the information age. Understanding complex language utterances is also a crucial part of artificial intelligence. Applications of NLP are everywhere because people communicate most everything in language: web search, advertisement, emails, customer service, language translation, radiology reports, etc. There are a large variety of underlying tasks and machine learning models powering NLP applications. Recently, deep learning approaches have obtained very high performance across many different NLP tasks. These models can often be trained with a single end-to-end model and do not require traditional, task-specific feature engineering. In this spring quarter course students will learn to implement, train, debug, visualize and invent their own neural network models. The course provides a deep excursion into cutting-edge research in deep learning applied to NLP. The final project will involve training a complex r

The statistic shows the size of the natural language processing market worldwide from 2017 to 2025, by segment. In 2019, the services segment of the natural language processing market is expected to be worth approximately 3.26 billion U.S. dollars.

Course Description: COMS W4705 is a graduate introduction to natural language processing, the study of human language from a computational perspective. We will cover syntactic, semantic and discourse processing models. The emphasis will be on machine learning or corpus-based methods and algorithms. We will describe the use of these methods and models in applications including syntactic parsing, information extraction, statistical machine translation, dialogue systems, and summarization. Syllabus: Here is a tentative syllabus for class: Introduction Estimation techniques, and language modeling Tagging, hidden Markov models Statistical parsing Machine translation Log-linear models Conditional random fields, global linear models Unsupervised and semi-supervised learning in NLP

Report Scope:

[Coursera] Natural Language Processing (Stanford University) (nlp)

The global natural language processing market size was worth USD 13.5 billion in 2021. It is estimated to reach an expected value of USD 91 billion by 2030, growing at a CAGR of 27% during the forecast period (2022–2030). Natural languag Report Scope:

The global natural language processing (NLP) market is anticipated to grow at a substantial CAGR of 26.90% in the upcoming years.