The global natural language processing market was valued at USD 30.06 billion in 2023 and is expected to reach USD 150 Billion by 2030, growing at a CAGR of 27.55% from 2024 to 2030.
This is according to an analysis by Stocklytics.com.
Stocklytics financial analyst, Edith Reads said, “This consistent growth is driven by the increasing demand for enhanced customer experiences, the proliferation of digital data, and advancements in machine learning technologies.”
Understanding natural language processing
Natural language processing (NLP), a branch of artificial intelligence, has applications in consumer chatbots, digital assistants, and commercial applications like sentiment analysis, text analysis, voice sense (speech analysis), and change effect analysis.
The NLP market is witnessing rapid growth owing to the rapid acceptance of novel technology advancements. This growing requirement for data management and increased complexity in major businesses also foster the industry’s growth.
NLP’s applications span various sectors, including healthcare, retail, high tech, telecom, and BFSI, where solutions like voice recognition, chatbots, and predictive text play a pivotal role in transforming operations and enhancing efficiency.
Opportunities and regional trends
Opportunities in the NLP market are abundant, especially with the growing digitalization and technological advancements in healthcare which generate vast amounts of data.
Emerging trends in the NLP market include the proliferation of virtual assistants, sentiment analysis, multilingual language models, named entity recognition (NER), and reinforcement learning. These trends are shaping the landscape of NLP applications across various sectors. This includes healthcare, financial services, media and entertainment, retail, and human resources.
Additionally, the expansion of the e-commerce industry and the perception of online sales channels are projected to increase the demand for NLP. This will further enhance the consumer experience through personal attention and query handling.
Increasing demand for sentiment analytics and content management is augmenting the market expansion. Businesses can utilize sentiment analytics to offer their clients customized deals and discounts based on previous trends. Sentiment analytics is essential for examining consumer behaviour and gauging the type of consumers. Additionally, the retail and e-commerce industries utilize social media platforms as a primary data source for sentiment analytics, anticipating demand and supply, and enhancing the consumer experience.
Major challenges and market opportunities
Challenges in the NLP market comprise ambiguity in language, handling colloquialisms and slang, domain-specific language, speech and text errors, and data scarcity for low-resource languages. However, significant opportunities in emerging markets, integration with AI and ML technologies, advancements in generative AI, healthcare applications, and government and public sector adoption counterbalance these challenges.
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