The global market size in the 'Natural Language Processing' segment of the artificial intelligence market was forecast to continuously increase between 2025 and 2031 by in total 148.1 billion U.S. dollars (+277.24 percent). After the ninth consecutive increasing year, the market size is estimated to reach 201.49 billion U.S. dollars and therefore a new peak in 2031. 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 Natural Language Understanding Market is estimated to reach USD 439.1 Bn By 2034, Riding on a Strong 33.9% CAGR.

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 change in the 'Natural Language Processing' segment of the artificial intelligence market was forecast to continuously decrease between 2025 and 2031 by in total 16.1 percentage points. According to this forecast, in 2031, the market size change will have decreased for the sixth consecutive year to 18.16 percent. Find more key insights for the market size change in countries and regions like the number of AI tools users in the 'AI Tool Users' segment of the artificial intelligence market in Nordics and the market size change in the 'Machine Learning' segment of the artificial intelligence market in Europe. The Statista Market Insights cover a broad range of additional markets.

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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

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 is expected to hit USD 4,873.4 Million in 2025 and grow to USD 24,446.1 Million by 2035. It is set to grow at a rate of 17.5% in this time. The rise of tele-health, growth of AI medical chatbots, and use of NLP in electronic health records (EHRs) shape the industry's future. Also, increased rules on value-based care and use of cloud NLP options push market growth.

Country-wise Insights

Competitive Outlook

The global NLU market is set to grow from US$13.7 Bn in 2024 to US$56.7 Bn by 2031 at a 22.5% CAGR, driven by IoT, 5G, and 70% edge-based AI adoption

Key Takeaways

• Market Size: Expected to grow from USD 23.7 billion in 2024 to USD 439.1 billion by 2034.
• CAGR: 33.9% growth forecast.
• Dominant Region: North America with 48.9% market share.
• Leading Segment: Software (74.3% market share).
• Top Application: Chatbots leading in customer engagement.
• Key Industry: BFSI with 33.3% market share.

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Global Natural Language Processing (NLP) Market size was USD 13.9 Billion in 2021 and is grow to around USD 44.79 Billion by 2030 with a CAGR of roughly 22.96%.

Analyst Viewpoint

The Natural Language Understanding (NLU) Market is experiencing rapid expansion, driven by the rising adoption of AI and machine learning technologies across industries. North America, particularly the U.S., will continue to dominate the market, given the high rate of technology adoption and investment in software solutions.

The significant growth of chatbots in customer engagement points to the rising demand for automation. Businesses leveraging NLU for enhanced customer interaction and operational efficiency are well-positioned to capitalize on this expanding market.

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Global Natural Language Understanding market size is expected to reach $85.64 billion by 2029 at 31.8%, segmented as by rule-based, syntax-based parsing, semantic-based parsing, grammar rules, expert systems

The Natural Language Processing (NLP) market will grow exponentially between 2025 and 2035, fueled by the growing adoption of AI-driven conversational systems, machine learning-enabled text analytics, and improvements in speech recognition technology. The industry is projected to reach USD 26.01 billion in 2025 and expand to USD 213.54 billion by 2035, reflecting a compound annual growth rate (CAGR) of 23.4% during the forecast period.

Contract & Deals Analysis - Natural Language Processing Market

Country-Wise Analysis

Competitive Outlook

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

Global Natural Language Processing Market was valued at USD 30.25 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 25.03% through 2029F.

BCC Research Market Report says global natural language processing market should reach $92.7 billion by 2028 from $29.1 billion in 2023 at a compound annual growth rate of 26.1%.

• Natural Language Processing Market Scope:

The report on Natural Language Processing Market offers in-depth analysis on market trends, drivers, restraints, opportunities etc. Along with qualitative information, this report include the quantitative analysis of various segments in terms of market share, growth, opportunity analysis, market value, etc. for the forecast years. The global natural language processing market is segmented on the basis of type, application and geography.

The Global Natural Language Processing Market was valued at US$ 8,769.8 Mn in 2018 and is projected to increase significantly at a CAGR of 16.3% from 2019 to 2028. Read More

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

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.

Natural Language Processing Market size is growing with a CAGR of 26.0% and it crosses US$ 169.79 billion by 2032 from US$ 33.66 billion in 2025.