Natural Language Processing (NLP) refers to the interaction between humans and computers using natural language, such as English, Spanish or Mandarin Chinese, rather than formal coded programming languages. NLP helps computers to understand, interpret and generate human languages to have conversations through text or voice in a more human-like manner. It provides capabilities like voice assistants, language translation, sentiment analysis and more.
The global Natural Language Processing 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, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Artificial Intelligence adoption has significantly boosted the natural language processing market. By leveraging AI and machine learning techniques, NLP technologies have become more intelligent, engaging and helpful. Major tech giants are heavily investing in AI research and development to incorporate advanced NLP capabilities into their voice assistants, virtual agents and other services. Growing penetration of AI-powered chatbots, digital assistants and conversational platforms across industries is driving the demand for enhanced NLP tools and platforms. As AI techniques continue to evolve, natural language processing market is expected to gain further momentum over the forecast period supported by increasing Artificial Intelligence adoption.
SWOT Analysis
Strength: Natural language processing technologies are rapidly advancing due to increased investments in AI and machine learning. This is enabling more sophisticated NLP models with deeper understanding of human language.
Weakness: Developing high-quality annotated training data at scale requires huge resources and can be expensive. Models also require large computational power for training which favors large tech companies.
Opportunity: The integration of NLP capabilities across various domains like healthcare, education, advertising etc. is opening new revenue streams. It is also improving customer/user experience through chatbots, virtual assistants and other conversational interfaces.
Threats: Privacy and security issues related to the usage of personal data for training NLP models poses regulatory challenges. There is also a risk of models picking up unwanted biases without careful handling of annotated data.
Key Takeaways
The Global Natural Language Processing Market Demand is expected to witness high growth over the forecast period of 2024 to 2031 supported by increasing demand across various sectors. Rapid digital transformation is driving the need for advanced language processing technologies.
Regional analysis:
North America dominates the global NLP market currently due to heavy investments in AI by tech giants and governments in the US and Canada. However, Asia Pacific is witnessing the fastest growth led by countries like India, China and Japan. This can be attributed to growing internet penetration, smartphone usage and focus on emerging technologies.
Key players:
Key players operating in the Natural Language Processing market 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, IKEA Systems B.V, Carrefour SA, eBay Inc. These companies are investing in R&D to enhance NLP capabilities and expand the application of these technologies to new problem statements across industries. Mergers and acquisitions have also been a key strategy for bigger firms to gain cutting edge capabilities.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
