Natural language processing market

Natural language processing is a branch of artificial intelligence, which is developed to make machine understand words or statements written and spoken in human language. The increasing adoption of natural language processing by various organization helps reduce customer effort, improve organization's analytical capabilities, and enable automation. Virtual assistants enable customers to communicate with organizations through online chat box in vernacular language and improve customer experience. In addition to this, NPL helps organizations to enhance their analytical capabilities. The increasing demand for text analytics in various organizations, rising demand for machine learning process, and increasing social media monitoring are some of the key driving factors leading to growth of the natural language processing market.

The global natural language processing (NLP) market is expected to witness significant growth during the forecast period (2021–2028) due to rising need for enhanced customer services. Enterprises are focusing on enhancing their business processes and continuously looking forward to improve customer experience. Therefore use of AI (Artificial intelligence) and Natural Language Processing (NLP) will help in analyzing the client's query, comments, and provide response accordingly. With the use of advanced technologies such as Artificial intelligence, seamless communication can be established between the client and the system. The communication is saved in the system for future references. The integration of AI and NLP can make suggestions based on the available customer data, history of information, and from the instant responses send by the client. The advanced technologies integrated in the system will provide customized or unique solution to solve the customer queries. Moreover, in the healthcare sector, integrating NLP platform has made it possible for physicians to dedicate maximum time to their patients and provide undivided attention to patients. Several physicians prefer voice notes instead of typed ones or handwritten.

Therefore, NLP platform can be use to easily interpret the speech and update records accurately. Furthermore, NLP platform is used to extract and interpret clinical note, which helps physician to better understand patient’s health profile and diagnostic results and provide suitable treatment. The changing regulatory guidelines and shifts of healthcare industry to patient-centric approach such as catering individual needs, getting feedback from patients and their loved ones and providing other health solution centered around the patient, has given rise to patient involvement in the care delivery. Patient portals can help patients to maintain track of their health record. This portal has limitation to explain and educate patients without manual involvement of physician and thus, NLP can aid patients to maintain Electronic Health Records (EHR). In the e-commerce sector, Natural Language Processing (NLP) is used for improving customer experience with better customer query handling and providing high level of personalization. Therefore, the growing adoption of the natural language processing across different industries such as e-commerce, healthcare, and customer care centers is driving the overall natural language processing market growth.

Global Natural Language Processing (NLP) Market - Impact of Coronavirus (Covid-19) Pandemic

Natural language processing (NLP) is a process by which computers understand and interact with the user. The technology like Google Search, Alexa, Siri, or Google Assistant operates on NLP process. Software developers are constantly focusing on incorporating NLP in many applications such as speech recognition, machine translation, sentiment analysis, market intelligence, chatbots, spell checking, and text classification. There is rapid increase in adoption of NLP services due to the ability of natural language processing (NLP) to organize data at the time of addressing the feedbacks and queries from customers with the help of chatbots. The process of collection, organizing, and providing solution of data has helped many companies to understand and serve their customers in a better way during the COVID-19 crisis. The rapid outbreak of COVID-19 has significantly affected all the industries globally. The situation caused significant deterioration in economic conditions and governments had to shut down commercial as well as educational sectors for a specific period. To combat COVID-19 pandemic, most of the countries implemented lockdown, and are now easing it phase-wise and industry wise. Due to the unexpected outbreak of COVID-19, different industries faced various issues such as loss of business and drop in revenue generation due to the sudden shutdown guidelines put by the government bodies. All the companies across the world had to WFH (work from home) triggering complete dependency on software-based solutions and services. This has rapidly increased the adoption of NLP services during the lockdown.

North America held dominant position in the global natural language processing (NLP) market during the forecast period

Statistics:

North America held dominant position in the global natural language processing (NLP) market in 2020, accounting for 39.6% share in terms of value, followed by Europe, Asia-Pacific and Rest of the World.

Figure 1: Global Natural Language Processing (NLP) Market Share (%), By Region, 2020

North America is expected to account for the largest market share during the forecast period. The natural language processing (NLP) market has witnessed significant growth in the North America region. The increasing number of new product launches is expected to further increase the demand of NLP products and services in North America region. For instance, in March 2019, Inference Solutions, a U.S.-based intelligent virtual agents for sales and service providing company, launched Studio 6.0, which integrates NLP and conversational artificial intelligence (AI) technologies from Google and IBM to help businesses eliminate complex interactive voice response (IVR) menus, and simple speech-enabled, directed dialogue systems.

 Asia Pacific region is expected to exhibit highest growth during the forecast period, Asia Pacific is expected to hold a prominent position in the global natural language processing (NLP) market over the forecast period, owing to increasing new launches of NLP platforms. For instance, in July 2018, e-Aksharayan, an optical character recognition (OCR) engine for seven Indian languages, was launched in India. The tool converts printed document images to editable text with up to 90-95% recognition accuracy. In August 2020, Baidu, Inc., a China-based technology company, launched worlds largest Chinese natural language processing (NLP) database known as Qian Yan – or “thousand words”.

Predictive Risk Analytics segment is expected to drive the market growth during the forecast period

Among application, the predictive risk analytics segment is expected to hold dominant position in the global natural language processing (NLP) market during the forecast period. Predictive risk analytics in the healthcare industry is an integrated program of artificial intelligence and natural language processing (NLP), which helps to predict health and related risks in patients. The predictive analytics segment is expected to witness growth during the forecast period, owing to the increasing application of predictive risk analytics such as predicting risk scores for healthcare insurers, preventing hospital readmissions, and clinical variation management. In January 2017, IBM Watson Health partnered with Illumina, Inc. to simplify and standardize genomic data interpretation. The partnership is expected to combine IBM Watson Health’s Watson for Genomics software with Illumina’s tumor sequencing and BaseSpace sequencing Hub.

Figure 2: Global Natural Language Processing (NLP) Market Value (US$ Bn) Analysis and Forecast and Y-o-Y Growth (%), 2017 - 2028

The global natural language processing (NLP) market was valued at US$ 11,500.0 Mn in 2020 and is expected to reach US$ 49,023.2 Mn by 2028 at a CAGR of 20.4% between 2021 and 2028.

Major players operating in the global natural language processing (NLP) market include IBM Corporation, Microsoft Corporation, Dolbey Systems, Inc., Google LLC, Apple Inc., IQVIA Holdings Inc., Inovalon, 3M, Hewlett-Packard Enterprise Company, SAS Institute Inc., NetBase Quid