DUBLIN--(BUSINESS WIRE)--The "Natural Language Processing Market by Component, Type (Statistical, Hybrid), Application (Automatic Summarization, Sentiment Analysis, Risk & Threat Detection), Deployment Mode, Organization Size, Vertical, and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The Global Natural Language Processing (NLP) Market Size to Grow from USD 11.6 Billion in 2020 to USD 35.1 Billion by 2026, at a Compound Annual Growth Rate (CAGR) of 20.3% during the Forecast Period.
Growing demand for cloud-based NLP solutions to reduce overall costs and better scalability and increasing usage of smart devices to facilitate smart environments are expected to drive the NLP market growth. The rise in the adoption of NLP-based applications across verticals to enhance customer experience and increase in investments in the healthcare vertical is expected to offer opportunities for NLP vendors.
The services segment is expected to grow at a higher CAGR during the forecast period
The NLP market is segmented on the basis of components into solutions and services. The services segment is expected to grow at a higher CAGR during the forecast period. NLP services play a vital role in the functionality of NLP platform and software tools. These services are an integral step in deploying tools and are taken care of by solution, platform, and service providers. The demand for NLP software tools and platform is increasing globally due to the rising demand to gain real-time insights from voice or speech data across BFSI, healthcare and life sciences, and retail and eCommerce vertical.
On-premises segment is expected to grow at a higher CAGR during the forecast period
The NLP market by deployment mode has been segmented into on-premises and cloud. Enterprises opt for the deployment mode based on their requirements regarding the scalability and level of data security required. The on-premises mode is the most preferable among the enterprises, which consider data as a valuable asset and need to maintain high-level security to comply with regulations. The cloud deployment mode is dominating the market due to its advantages, such as scalability, easy availability, and cost-savings. The cloud segment is expected to account for a larger market size during the forecast period.
Among verticals, the healthcare and life sciences segment to grow at the highest CAGR during the forecast period
The NLP market is segmented into the various verticals, particularly BFSI, IT and telecom, retail and eCommerce, healthcare and life sciences, transportation and logistics, government and public sector, energy and utilities, manufacturing, others (education, travel and hospitality, and media and entertainment). The healthcare and life sciences vertical is expected to grow at the highest CAGR during the forecast period. The vertical's high growth rate can be attributed to the increasing healthcare complexities and growing need for advanced NLP-driven EHRs to extract meaningful insights from unstructured clinical data. To address the COVID-19 impact on the BFSI vertical, the adoption of digital technologies such as video banking facilities, AI-supported tools, and conversational platforms has become essential.
North America to hold the largest market size during the forecast period
The NLP market has been segmented into five regions: North America, Europe, APAC, MEA, and Latin America. Among these regions, North America is projected to hold the largest market size during the forecast period. Improvements in cloud computing platforms, which are now more efficient, affordable, and capable of processing complex information, have led to the growth of inexpensive software development tools and plentiful datasets, which play a vital role in the development of AI technology in the US market. APAC is expected to grow at the highest CAGR during the forecast period on account of the rising awareness and increasing AI investments.
- Increasing Usage of Smart Devices to Facilitate Smart Environments
- Growing Demand for Cloud-Based NLP Solutions to Reduce Overall Costs and Better Scalability
- Rising Urge of Predictive Analytics to Reduce Risks and Identify Growth Opportunities
- Complexities due to the Usage of Code-Mixed Language while Implementing NLP Solutions
- Limitations in the Development of NLP Technology Using Neural Networks Restricting the Usage of Cloud-Based Services
- Increase in Investments in the Healthcare Vertical
- Rise in the Adoption of NLP-Based Applications Across Verticals to Enhance Customer Experience
- Regulatory and Privacy Concerns Over Data Security
- Interoperability and Reliability Issues while Deploying NLP Algorithms
- Amazon Web Services
- Automated Insights
- Health Fidelity
- Just AI
- Narrative Science
- SAS Institute
For more information about this report visit https://www.researchandmarkets.com/r/ppebhi