Natural Language Processing (NLP) refers to technology that can understand, interpret and generate human languages. It enables computers to understand human speech as well as text, facilitating interactions through various messaging applications and voice assistants like Alexa and Siri. NLP technology powers various applications like chatbots, machine translation, sentiment analysis and more. Advancements in technologies like deep learning and artificial intelligence have further accelerated the adoption and capabilities of natural language processing solutions.
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:
The increased adoption of AI-powered chatbots across various industries has been one of the key trends driving the growth of the natural language processing market. Chatbots powered by advanced NLP techniques can understand customer queries in natural language and provide responses. This has enabled organizations to offer 24/7 customer support and assist customers in an interactive and human-like manner. Furthermore, AI chatbots can be deployed across various channels like mobile apps, websites and messaging platforms. Their round-the-clock availability and ability to handle high volumes of queries is propelling their adoption globally. The improved capabilities of NLP in understanding complex queries pertaining to different domains are also augmenting the development of more intelligent and helpful chatbots. This is expected to further stimulate the demand for natural language processing solutions in the coming years.
Segment Analysis
The global natural language processing market is dominated by the artificial intelligence and machine learning segment. This segment accounts for over 55% of the market share due to increasing adoption of advanced technologies like deep learning, neural networks and natural language generation in applications like interactive voice response, semantic search, text analytics and sentiment analysis.
Key Takeaways
The Global Natural Language Processing Market Demand is expected to witness high growth over the forecast period of 2024 to 2031.
Regional analysis:
The North America region currently dominates the global market with over 35% share due to rapid technological advancements and presence of key technology players in countries like United States and Canada. The Asia Pacific region is expected to grow at the fastest pace during the forecast period owing to increasing investments in emerging technologies, government initiatives for digitalization and rising disposable income in countries like China and India.
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, nter IKEA Systems B.V, Carrefour SA, eBay Inc. Amazon leads the market with its investments in artificial intelligence assistant Alexa and natural language understanding capabilities in services like Amazon Translate. Walmart is also focusing on conversational AI and natural language processing for applications like customer service chatbots.
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