July 16, 2024
Natural Language

Natural Language Processing Market is Estimated to Witness High Growth Owing to Increasing Adoption of Conversational AI Assistants

Rather than machine-based programming languages. NLP helps computers understand, interpret and generate human languages by utilizing deep learning and neural network methodologies to analyze large amounts of text. It allows users to search enterprise data or user-generated content with natural language queries, extract structured information from unstructured text, automate text summarization, perform sentiment analysis, and more.

The global NLP market is estimated to be valued at US$ 23122.23 Bn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Natural language processing are Walmart, Costco Wholesale Corporation, The Kroger Co., Walgreens Boots Alliance Inc., TESCO PLC, Amazon.com Inc., METRO, Home Depot Product Authority LLC. , Target Brands Inc., Best Buy, nter IKEA Systems B.V, Carrefour SA, eBay Inc. Key opportunities in the market include growing demand for AI chatbots and smart assistants which can understand language, simplify long-tail search, and automate responses at scale. North America dominates the global NLP market currently due to presence of major technology companies and early adoption of AI. However, Asia Pacific is expected to witness the highest growth during the forecast period supported by increasing investments in AI by China, India and other emerging Asian countries.

Market drivers

The increasing adoption of conversational AI assistants is one of the major driver of the NLP market. Conversational AI uses NLP under the hood to understand user questions, retrieve relevant information and respond in a conversational manner. Many organizations are deploying virtual assistants powered by NLP for customer service, employee support and other applications. This is driving the demand for advanced NLP technologies among enterprises.

PEST Analysis
Political: The Natural Language Processing Market Size is affected by government regulations and spending related to AI and machine learning technologies in various countries. Regulations around data privacy, cybersecurity, and AI impact the demand and adoption of NLP solutions.
Economic: Economic growth, increasing internet penetration, modernization of government services drive the demand for NLP technologies from industries like healthcare, media & entertainment, retail,BFSI etc. Recession can impact technology spending and slow down market growth.
Social: Changing consumer preferences, increasing digital literacy, growing focus on personalized experiences are increasing social acceptance of conversational interfaces and virtual assistants. Privacy and job security concerns also impact social adoption of NLP technologies.
Technological: Advancements in deep learning, neural networks, cloud computing, and advancement of 5G networks are enhancing the capabilities of natural language processing systems. Integration of NLP with other technologies like computer vision and predictive analytics is further expanding the scope and applications of these systems.

North America and Europe hold the largest share of the global natural language processing market, led by United States, Germany, United Kingdom and France where adoption of advanced AI technologies including NLP is high across industries. The Asia Pacific region, led by China and India, is expected to witness the fastest growth during the forecast period due to increasing technology investments, internet penetration, and foreign investments in these countries promoting advancement of NLP market. Countries like Japan, South Korea are also emerging as major markets.

The natural language processing market in China is projected to grow at the fastest rate, becoming one of the largest regional markets by 2028. This can be attributed to rising technology adoption across industries including healthcare, manufacturing, education by Chinese enterprises and government initiatives supporting growth of AI startups and investments in key areas. Other Asian countries like India and Southeast Asian nations are also anticipated to offer lucrative opportunities for NLP vendors driven by rapidly growing internet and mobile users, government digitalization plans and expanding technology expertise in these regions.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it

About Author - Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.  LinkedIn Profile

About Author - Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.  LinkedIn Profile

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