Natural language processing (NLP) is a field of artificial intelligence that helps computers understand, interpret and generate human languages. NLP powers applications such as digital assistants, machine translation, speech recognition etc. It is used widely across industries like healthcare, banking, retail etc. NLP makes it possible for computers to read text, understand it and determine what actions to take. For example, chatbots rely heavily on NLP techniques to understand customer queries and respond appropriately. With accelerated adoption of AI technologies, demand for NLP is growing exponentially. The ability of NLP to analyze huge amounts of unstructured text data makes it invaluable for many organizations to gain actionable insights.

The global Natural Language Processing Market is estimated to be valued at Us$ 23122.23 Bn in 2023 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:

One of the key trends in the NLP market is the increasing focus on deep learning techniques. Deep learning relies on artificial neural networks that can learn representations of data without the need for human involvement. Companies are developing advanced deep learning models that can understand language as well as humans. For example, OpenAI’s GPT-3 model uses deep learning to generate human-like text. Such advances are making NLP solutions more powerful, adaptable and easier to deploy. Integration of NLP capabilities into other applications is another notable trend. Companies are building NLP into CRM platforms, ERP systems and other popular software to make them smarter. This is facilitating frictionless human-computer interaction across various domains. Growing focus on conversational AI and expansion of NLP capabilities on mobile devices are also driving innovation.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is medium. While the market is growing rapidly, existing players have significant resources, economies of scale, brand recognition and customer loyalty which pose barriers for new companies.

Bargaining power of buyers: The bargaining power of buyers is medium. Large buyers can negotiate better prices and terms due to their high volume purchases. However, the availability of substitutes limits their power.

Bargaining power of suppliers: The bargaining power of suppliers is low. The market has several component and technology suppliers limitng their influence.

Threat of new substitutes: The threat of new substitutes is high. Advances in AI, machine learning and related technologies continually introduce new forms of products and solutions.

Competitive rivalry: Competition in the market is intense. Players compete based on technology, features, services, pricing and partnerships.

Key Takeaways

The Global Natural Language Processing Market Demand is expected to witness high growth. The market size is projected to reach US$ 23122.23 Bn by 2024 registering a CAGR of 19.% during the forecast period.

Regional analysis:

North America dominated the market in 2021 with a share of around 38%, followed by Asia Pacific. The presence of major technology companies and early adoption of advanced solutions drives the North American market. Asia Pacific is expected to be the fastest growing region, led by countries like China and India supporting widespread digital transformation initiatives.

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, nter IKEA Systems B.V, Carrefour SA, eBay Inc. These companies are investing heavily in R&D to develop superior products and partnering with other players to enhance their service offerings.

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