Natural Language Processing Market Growth by 2035,CAGR Details

By Srikanth
6 Min Read
Natural Language Processing Market Growth by 2035,CAGR Details 1

Research Nester’s recent market research analysis on “Natural Language Processing Market: Global Demand Analysis & Opportunity Outlook 2035” delivers a detailed competitor’s analysis and a detailed overview of the global natural language processing market in terms of market segmentation by processing type, component, deployment, enterprise size, application, and by region.

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Rising Use of Chatbots in the Businesses to Promote Global Market Share of Natural Language Processing

The global natural language processing market is estimated to grow majorly on account of the growing adoption of chatbots for giving product information, for assisting in customer services. NLP is an artificial intelligence (AI) program that supports your chatbot in analyzing and interpreting natural human language interactions with customers.  Customer service uses NLP tools as a first point of contact to address basic product and feature questions. Around 75% of Chinese marketers are interested in using chatbots to promote their products and services. Furthermore, roughly 54% of respondents feel chatbots can provide intelligent responses to client problems. Furthermore, 62% of customers would prefer to use a customer service bot than wait for human workers to react to their concerns. In addition to this, chatbots were predicted to be employed by over 25% of customers in 2020, up from nearly 13% in 2019.

Besides this, the growing use of social media is boosted by the penetration of digitization followed by rising demand for multilingual languages. In 2021, over 4.26 billion people use social media globally, with that amount predicted to climb to over six billion by 2027. Furthermore, using social media is one of the most popular internet activities. There are approximately 5 billion active Internet users worldwide. That is about 62% of the world’s population. Over 500,000 new internet users are added every day. Natural Language Processing (NLP) offers answers to the problems connected with unstructured data produced by digital transformation. Furthermore, NLP is utilized to assess sentiment in social media.

Some of the major growth factors and challenges that are associated with the growth of the global natural language processing market are:

Growth Drivers:

  • Surge in Social Media Users Worldwide
  • Growing Adoption of NLP

Challenges:

NLP has limited capability thus it can only be utilized for one specific activity. Moreover, NLP does not completely understand the phrase, slang, irony, and others. These are some of the major factors anticipated to hamper the global market size of natural language processing. On the other hand, the shortage of AI developers and skilled engineers is also expected to hamper market growth. There will be a shortage of approximately 270,000 artificial intelligence engineers in Japan by 2030. In addition to this, between May 2018 and May 2019, there was a 15% drop in applicant searches for AI-related jobs. It suggests that very few people prefer to work in artificial intelligence. Furthermore, several interest organizations estimate that Germany today has a shortage of approximately 96,000 IT specialists. There is an absence of AI specialists looking for jobs. As a result, the scarcity of AI developers is likely to impede the advancement of natural language processing.

By enterprise size, the global natural language processing market is segmented into large enterprises, and small & medium enterprises. The small & medium enterprise segment is anticipated to garner the highest revenue by the end of 2035 by growing at a significant CAGR over the forecast period. The segment’s expansion can be ascribed to the rising use of digitization by small and medium-sized organizations. According to a survey, digitalization is on the rise, with up to 70% of small businesses boosting their usage of digital technologies as a result of the pandemic. On the other side, the segment’s expansion is also related to an increase in the number of small enterprises. According to the World Economic Forum, small firms constitute the cornerstone of the global economy, accounting for 90% of all businesses, 60-70 percent of total employment, and 50% of global GDP.

By region, the North America natural language processing market is to generate the highest revenue by the end of 2035. The market’s expansion can be attributed in large part to increased investment in AI-related technology. Funding for artificial intelligence startups in the United States has increased dramatically in recent years, growing from a low of less than USD 300 million in 2011 to almost USD 17 billion in 2019. On the other hand, the increasing use of chatbots and social media is expected to promote market growth in the region. With over 16,000 websites incorporating a chatbot, the United States is a global leader. Furthermore, the United States had approximately 300 million social media users as of 2023. That is, nearly 90% of the general populace in the United States actively uses social media.

This report also provides the existing competitive scenario of some of the key players of the global natural language processing market which includes company profiling of Apple Inc., Amazon Web Services, Inc., Baidu Inc., Crayon AS, Google LLC, Meta Platforms Inc., IBM Corporation, Inbenta Holdings Inc., SAP SE, and Lexicala

Article contributed by https://www.researchnester.com

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