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

The natural language processing market size is projected to grow from USD 25.98 billion in 2024 to USD 302.4 billion by 2035, representing a CAGR of 25%, during the forecast period till 2035.

The global market size in the 'Natural Language Processing' segment of the artificial intelligence market was forecast to continuously increase between 2024 and 2030 by in total 120.3 billion U.S. dollars (+330.31 percent). After the eighth consecutive increasing year, the market size is estimated to reach 156.76 billion U.S. dollars and therefore a new peak in 2030. Find more key insights for the market size in countries and regions like the market size in the 'Machine Learning' segment of the artificial intelligence market in Europe and the market size in the artificial intelligence market in the United States. The Statista Market Insights cover a broad range of additional markets.

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.

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Country-wise Insights

Report Scope as per Healthcare Natural Language Processing Industry Analysis

Japan natural language processing (NLP) market size reached USD 1,674 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 6,490 Million by 2033, exhibiting a growth rate (CAGR) of 16.3% during 2025-2033. Numerous advancements in the fields of image and speech recognition are primarily driving the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, application, type, deployment type, and industry vertical.

Explore the Natural Language Processing (NLP) Market trends! Covers key players, growth rate 31.3% CAGR, market size $114.44 Billion, and forecasts to 2034. Get insights now!

Worldwide revenue from the natural language processing (NLP) market is forecast to increase rapidly in the next few years. The NLP market is predicted be almost 14 times larger in 2025 than it was in 2017, increasing from around three billion U.S. dollars in 2017 to over 43 billion in 2025. Natural language processing (NLP) is a branch of artificial intelligence (AI) that helps computers understand, interpret and manipulate human language. Drawing from computer science and computational linguistics among other disciplines, NLP attempts to fill the gap between human communication and computer understanding.

Sustainable growth expected in worldwide artificial intelligence   

Artificial intelligence (AI) refers to the creation of intelligent hardware or software able to replicate human behaviors such as learning and problem solving. With year-on-year growth in the AI software market exceeding 100 percent, worldwide revenue from the AI software market is forecast to reach around 126 billion U.S. dollars in 2025. North America and Asia are the regions predicted to undergo the largest increases in revenue in the AI software market, with AI expected to contribute over ten percent to the GDP in both regions in 2030. China is expected to see the largest GDP growth - 26.1 percent - as a result of the implementation of AI.

The market size of the Healthcare Natural Language Processing Nlp Market is categorized based on Application (Hospitals, Clinics) and Product (Machine Translation, Information Extraction, Automatic Summarization, Text and Voice Processing) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

This report provides insights into the market size and forecasts the value of the market, expressed in USD million, across these defined segments.

Global Natural Language Processing (NLP) Market size was valued at USD 15.51 billion in 2021 and is poised to grow from USD 19.68 billion in 2022 to reach USD 112.28 Billion by 2030, at a CAGR of 24.6% during the forecast period 2023-2030.

[222+ Pages Report] The global cloud natural language processing (NLP) market size is expected to grow from USD 30.75 billion in 2023 to USD 106.28 billion by 2032, at a CAGR of 23.56% from 2024-2032

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Natural Language Processing Market Size 2024-2028

The natural language processing market size is forecast to increase by USD 125.82 billion at a CAGR of 42.93% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for NLP applications in various industries. The advancements in AI and machine learning technology are enabling machines to understand and interpret human language more accurately, making NLP an essential tool for businesses seeking to improve customer engagement and automate processes. However, the ambiguity and complexities of natural human language pose challenges for NLP systems, requiring continuous research and development to enhance their capabilities. Key trends in the market include the integration of NLP with machine learning algorithms, the use of deep learning techniques, and the adoption of cloud-based NLP solutions. These advancements are expected to drive market growth and provide opportunities for companies to offer innovative solutions to meet the evolving needs of businesses.

What will be the Size of the Natural Language Processing Market During the Forecast Period?

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The market is experiencing significant growth due to the increasing adoption of advanced technology, including speech recognition, sentiment analysis, virtual agents, and chatbots. These AI-powered solutions enable more effective text analytics, interactive voice response, and optical character recognition, driving digital transformation across various industries. The market is expected to continue expanding, fueled by the proliferation of AI technologies such as conversational AI, data management, and machine learning. Cloud-based solutions and 5G infrastructure are key enablers, facilitating the deployment of AI-powered chatbots, digital assistants, and data security measures. Consumer demand for personalized and efficient communication is further accelerating market growth.
However, data security concerns remain a significant challenge, necessitating strong data management and encryption solutions. Overall, the market is poised for continued expansion, with applications spanning customer experience, smart devices, social media platforms, and communication infrastructure.

How is this Natural Language Processing Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Component

  Solution
  Services


Deployment

  On-premises
  Cloud


Geography

  North America

    US


  APAC

    China
    India


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Component Insights

The solution segment is estimated to witness significant growth during the forecast period. The market experienced significant growth in 2023, driven by the increasing demand for automation, data-driven decision-making, and the need to extract insights from unstructured data. Advanced technologies, such as speech recognition, sentiment analysis, virtual agents, and chatbots, are integral components of NLP solutions. Major market players, including Google (Alphabet), Microsoft, Amazon, and IBM, offer comprehensive NLP suites for various applications, including text mining, virtual assistants, and sentiment analysis. The market's expansion is fueled by the integration of AI technologies, conversational AI, and predictive analytics. Additionally, the adoption of cloud-based solutions, 5G infrastructure, and multi-cloud strategies is transforming the industry.

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The solution segment was valued at USD 4.9 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market is experiencing substantial growth due to the presence of leading technology corporations and research institutions in the region. The US, in particular, holds a significant market share, driven by the dominance of major industrial companies and the widespread adoption of NLP in various industries such as healthcare, banking, and customer services. In demand are NLP solutions offering advanced language comprehension, sentiment analysis, and chatbot capabilities. Factors fueling this market's optimistic outlook include technology advancements, increased AI investments, and the growing need for effective language processing in dat

The global natural language processing market is expected to expand from USD 27.37 billion in 2024 to USD 734.82 billion by 2037, reflecting a CAGR of over 28.8% during the forecast timeline, from 2025 to 2037. Key industry players include Lexicala, Apple Inc., Amazon Web Services, Inc., among others.

The size and share of the market is categorized based on Application (Hospitals, Clinics) and Product (Machine Translation, Information Extraction, Automatic Summarization, Text and Voice Processing) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Get detailed insights into the current valuation of Natural Language Processing market size, including growth analysis, current market status and future market projections.

The Natural Language Processing Market size is expected to reach a valuation of USD 209.82 Billion in 2033 growing at a CAGR of 30.2%. The Natural Language Processing market research report classifies market by share, trend, demand, forecast and based on segmentation.

The size and share of the market is categorized based on Type (Machine Translation, Information Extraction, Automatic Summarization, Text and Voice Processing, Others) and Application (Electronic Health Records (EHR), Computer-Assisted Coding (CAC), Clinician Document, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The Natural Language Processing (NLP) market is experiencing explosive growth, projected to reach $25.34 billion in 2025 and exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 42.93%. This surge is driven by several key factors. The increasing adoption of AI-powered solutions across diverse industries, from customer service and healthcare to finance and marketing, fuels the demand for sophisticated NLP capabilities. Businesses leverage NLP for sentiment analysis, chatbot development, machine translation, and text summarization to improve efficiency, automate processes, and gain valuable insights from vast amounts of unstructured data. Furthermore, advancements in deep learning techniques, particularly in transformer-based models, are significantly enhancing the accuracy and capabilities of NLP systems, driving further market expansion. The cloud-based deployment model is gaining significant traction, offering scalability, cost-effectiveness, and ease of access to NLP technologies. The market segmentation reveals a dynamic landscape. While the solution and services components contribute significantly to the overall market value, the cloud deployment model is expected to witness faster growth than on-premises solutions due to its inherent flexibility. Geographically, North America currently holds a significant market share, owing to early adoption and the presence of major technology companies. However, the Asia-Pacific region, particularly China and India, is poised for rapid growth fueled by increasing digitalization and a burgeoning tech ecosystem. Competitive intensity is high, with established tech giants like Google, Microsoft, and Amazon vying for market dominance alongside specialized NLP companies. Future market growth will hinge on continuous advancements in NLP algorithms, the development of robust and explainable AI models, and successful integration of NLP into diverse business applications. Addressing concerns around data privacy and ethical considerations will also be critical for sustained market expansion.

The global natural language processing (NLP) market is anticipated to experience exceptional growth, reaching a value of USD 4.71 billion by 2033, expanding at a CAGR of 27.6% during the forecast period from 2023 to 2033. The increasing adoption of AI, ML, and data analytics across various industry verticals, coupled with the growing need for automated text and speech analysis, drives market expansion. The healthcare, retail, and media & entertainment sectors are expected to be major contributors to this growth. The market is segmented based on technology, type, deployment, service, vertical, and region. Auto-coding, text analytics, pattern & image recognition, and speech analytics are the key technologies driving market growth. Rule-based, statistical, and hybrid approaches are the primary types of NLP systems. On-cloud and on-premise deployment models are adopted by organizations based on their specific requirements. Integration, consulting & maintenance services support the implementation and optimization of NLP solutions. Key market players include IBM, Oracle, Apple, Microsoft, HP, and Netbase Solutions, among others. North America, Europe, Asia Pacific, South America, and the Middle East & Africa are the major regional markets for NLP solutions. Recent developments include: December 2023:, GPT-4 Turbo with Vision, a large multimodal model, is available on Azure OpenAI, enabling image analysis with textual responses. Enhanced features include Optical Character Recognition and video prompt support. REST API allows direct calls to the chat API. Azure OpenAI now supports full VPN and private endpoint protection, including for storage and AI Search resources, ensuring secure data usage., March 2023:, Baidu introduced ERNIE Bot, a knowledge-enhanced LLM, showcasing its abilities in literary creation, business writing, math, Chinese language understanding, and multi-modal generation. ERNIE Bot integrates supervised fine-tuning, reinforcement learning, prompt learning, and knowledge enhancement for comprehensive functionality., April 2023:, Generative AI is reshaping industries, with a focus on ML's pivotal role in fostering innovation. Amazon's strides in democratizing ML are showcased, notably through services like Amazon Bedrock. Also, infrastructure improvements like Amazon EC2 Trn1n instances and EC2 Inf2 instances, optimized for generative AI, are highlighted. Lastly, Amazon Code Whisperer, an AI coding tool aiding developer productivity, is introduced, offering code suggestions based on natural language cues and prior code., May 2023:, Google's next-gen language model offers enhanced multilingual, reasoning, and coding capabilities. Available in four sizes, from Gecko to Unicorn, it powers over 25 Google products, including Workspace features and Med-PaLM 2 for medical insights. Sec-PaLM enhances cybersecurity, while the PaLM API enables developers to leverage its capabilities responsibly. Gemini, our upcoming model, promises groundbreaking multimodal capabilities for future innovation..

As of 2019, the overall scale of the knowledge graph and natural language processing (NLP) market in China reached roughly 57 billion yuan and was projected to grow at an average compound annual rate of 28.6 percent over the observed period, amounting to over 240 billion yuan in 2025. In 2020, knowledge graph and NPL core products and services would form a market of nearly 13.4 billion yuan in size and, in the meantime, increase the peripheral industry's value to around 65.6 billion yuan.

Explore the top companies and key players in the Natural Language Processing Market with our detailed report. Get insights on key players, market strategies and learn about their market positions and contributions to the industry.