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.

Access the summary of the Natural Language Processing market report, featuring key insights, executive summary, market size, CAGR, growth rate, and future outlook.

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

During a 2022 survey conducted in the United States, it was found that 18 percent of respondents thought that artificial intelligence will lead to there being many fewer jobs. By contrast, 25 percent of respondents aged between 30 and 44 years stated that AI will create many more jobs.

Artificial intelligence

Artificial intelligence (AI) is the ability of a computer or machine to mimic the competencies of the human mind, learning from previous experiences to understand and respond to language, decisions, and problems. Particularly, a large amount of data is often used to train AI into developing algorithms and skills. The AI ecosystem consists of machine learning (ML), robotics, artificial neural networks, and natural language processing (NLP). Nowadays, tech and telecom, financial services, healthcare, and pharmaceutical industries are prominent for AI adoption in companies.

AI companies and startups

More and more companies and startups are engaging in the artificial intelligence market, which is forecast to grow rapidly in the coming years. Examples of big tech firms are IBM, Microsoft, Baidu, and Tencent, with the last owning the highest number of AI and ML patent families, amounting to over nine thousand. Moreover, driven by the excitement for this new technology and by the large investments in it, the number of startups involved in the industry around the world has grown in recent years. For instance, in the United States, the New York company UiPath was the top-funded AI startup.

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.

The Natural Language Processing (NLP) market has emerged as a transformative force in the realm of artificial intelligence, revolutionizing how machines understand and interact with human language. With the accelerating digitization of businesses and the growing volume of unstructured data, the NLP market, which is

The most common purposes of use of artificial intelligence (AI) technology in Russian organizations were natural language processing and speech recognition and analysis. Over three percent of all organizations used AI for each of these objectives in 2022.

The Voice Recognition Control System market has rapidly evolved into a crucial component of various industries, driven by advancements in artificial intelligence and natural language processing technologies. As businesses increasingly seek to enhance customer experience and operational efficiency, voice recognition

The Healthcare Natural Language Processing (NLP) market has emerged as a transformative force within the healthcare industry, empowering organizations to harness the vast amounts of unstructured data generated daily. By enabling computers to understand, interpret, and respond to human language, NLP applications faci

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.

As of 2020, the overall size of natural language processing (NLP) market in China reached roughly 38 billion yuan and was projected to grow at an average compound annual rate of 22 percent over the observed period, amounting to over 150 billion yuan in 2026. Natural language processing belongs to the artificial intelligence industry and describes the analysis and synthesis of human speech.

The Artificial Intelligence (AI) in Applications market has emerged as a pivotal area of growth within the technology sector, revolutionizing how businesses operate across various industries. From healthcare to finance, AI applications leverage machine learning, natural language processing, and data analytics to dri

The Cognitive Computing in Education market is rapidly evolving, leveraging advanced technologies like artificial intelligence, machine learning, and natural language processing to transform educational landscapes. As institutions recognize the potential of cognitive computing to enhance learning experiences, the de

Business Analytics Market was valued at USD 84.42 Billion in 2024 and is projected to reach USD 176.14 Billion by 2031, growing at a CAGR of 9.63% from 2024 to 2031.

Global Business Analytics Market Drivers

The market drivers for the Business Analytics Market can be influenced by various factors. These may include:

Growing Adoption of Big Data Analytics: In order to extract meaningful insights from their data, organizations are progressively using big data analytics in response to the exponential expansion of data. Making educated decisions through data analysis is facilitated by business analytics.
Growing Need for Data-driven Decision Making: In order to obtain a competitive edge, businesses are realizing the significance of data-driven decision making. The methods and instruments for data analysis and significant insights extraction for improved decision-making are offered by business analytics.
Growing Need for Predictive and Prescriptive Analytics: Predictive and prescriptive analytics are becoming more and more in demand as a means of projecting future trends and results. Businesses can use business analytics to prescribe activities to achieve desired outcomes and forecast future outcomes based on previous data.
Growing Emphasis on Customer Analytics: As e-commerce and digital marketing gain traction, companies are putting more of an emphasis on comprehending the behavior and preferences of their customers. In order to increase consumer engagement and personalize marketing efforts, business analytics is used to analyze customer data.
Emergence of Advanced Technologies: The use of advanced analytics solutions is being propelled by developments in fields like artificial intelligence (AI), machine learning (ML), and natural language processing (NLP). Businesses may now analyze data more effectively and gain deeper insights thanks to these technologies.
Operational Efficiency and Cost Optimization Are Necessary: Companies are always under pressure to increase operational efficiency and reduce costs. Business analytics promotes market expansion by assisting in the identification of opportunities for process and cost-cutting enhancements.
Compliance and Regulatory Requirements: The use of business analytics solutions for risk management and compliance reporting is being fueled by the growing regulatory requirements in a number of industries, including healthcare, banking, and retail.

In the Natural Language Process (NLP) development sector there were seven companies that had accumulated funding of over 250 million U.S. dollars in 2022. Of all companies, Verbit was a step ahead of all of its competitors, exceeding 550 million U.S. dollars in funding. At the same time, both Grammarly and Unisound have accumulated substantially more funding than the rest of the companies on the list.

Global Artificial Intelligence Market size was valued at USD 129.12 Billion in 2022 and is poised to grow from USD 241.80 Billion in 2023 to USD 2359.1 Billion by 2031, at a CAGR of 38.1% during the forecast period (2024-2031).

The Integrated Virtual Human Interactive Machine market is rapidly gaining traction as businesses leverage advanced technologies to enhance customer engagement and operational efficiency. Virtual human technologies, which incorporate artificial intelligence, natural language processing, and machine learning, are rev

The On-Premises Natural Language Generation (NLG) market is an evolving sector at the intersection of artificial intelligence, data analytics, and language processing, providing businesses with advanced tools to convert complex data into human-readable narratives. This technology is increasingly utilized across vari

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Artificial Intelligence in Games Market Size 2025-2029

The AI in games market size is forecast to increase by USD 27.47 billion at a CAGR of 42.3% between 2024 and 2029.

Artificial Intelligence (AI) is revolutionizing the gaming industry, offering enhanced user experiences and new gameplay mechanics. One significant trend is the increasing adoption of Augmented Reality (AR) and virtual reality, which leverage AI to create more enriching environments and interactive characters. Another growth factor is the emergence of cloud gaming, enabling seamless access to high-performance games without the need for expensive hardware.
However, network latency remains a challenge, as even minor delays can negatively impact the gaming experience. AI is also being used to develop more sophisticated non-player characters and to personalize game content based on player behavior. Overall, these trends and challenges are shaping the future of the gaming market and driving innovation in the industry.

What will be the Size of the Market During the Forecast Period?

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In addition, this results in more realistic and dynamic game environments, improving overall player engagement. Network latency, a common issue in online gaming, is being addressed through AI-enabled platforms. These systems use GPUs and CPUs to process data in real-time, ensuring smooth gameplay and reducing lag. AI is also transforming the way games are created, with middleware systems like Euphoria powering realistic character behavior and physics. Ray tracing, another AI-driven technology, creates lifelike lighting and reflections, adding another layer of realism to 3D games. AI-generated language and recognizable names have been omitted to maintain a formal business tone. The gaming industry continues to explore the potential of AI, with innovations in image upscaling and other areas expected to further enhance the player experience.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  AI enabled platforms
  AI enabled games


Technology

  Machine learning
  Natural language processing
  Computer vision
  Robotics


Game Genre

  Action
  Adventure
  Casual
  Racing
  Simulation
  Sports
  Strategy


Application

  Gameplay Optimization
  Character Behavior Generation
  Level Design
  Player Engagement


Geography

  North America

    Canada
    US


  APAC

    China
    Japan
    South Korea


  Europe

    Germany
    UK
    France
    Italy


  South America

    Brazil


  Middle East and Africa

By Type Insights

The AI enabled platforms segment is estimated to witness significant growth during the forecast period. Artificial Intelligence (AI) is revolutionizing the gaming industry through real-time processing, enhancing multiplayer experiences, and improving matchmaking and anti-cheat systems. AI's expertise in data analysis, prediction, and action-taking enables developers to create advanced games and environments more efficiently. With the advent of 5G networks, AI-driven mobile games are becoming increasingly popular. Microsoft and Google are leading this transformation, offering powerful AI platforms and tools that enable personalized and engaging gaming experiences.

AI's ability to analyze player behavior and data provides valuable insights into player preferences, leading to more customized and enriching gaming experiences. By automating repetitive tasks and offering real-time responses, AI is set to revolutionize the gaming industry, offering unparalleled levels of engagement and interactivity.

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The AI enabled platforms segment was valued at USD 1.58 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 40% 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 poised for expansion due to the rising demand for AI-driven games, fueled by the popularity of esports. With a significant number of gamers in the region competing in tournaments such as the International DOTA 2 Championship, gaming is increasingly viewed as a professional career path in countries like the US. In response, game developers and publishers are investing in the creation of multiplayer games to cater to the escalating esports trend. The integration of AI algorithms in esports titles aims to attract larger fan bases and boost

Artificial Intelligence of Things (AIoT) Market size was valued at USD 65.50 billion in 2022 and is poised to grow from USD 82.01 billion in 2023 to USD 495.09 billion by 2031, growing at a CAGR of 25.2% during the forecast period (2025-2032).