Natural Language Processing Market To Grow Rapidly
Research firm MarketsandMarkets predicts that the natural language processing (NLP) market, which includes interactive voice response, speech analytics, machine translation, and dictation technologies, among many other types of technologies and services, will grow from $3.8 billion in 2013 to $9.9 billion in 2018, representing a compound annual growth rate of 21.1 percent.
In the current scenario, the Web and e-commerce, healthcare, IT, and telecommunication verticals will continue to grow and contribute the most to the NLP market. North America is expected to be the biggest regional market, while Europe and the Asia-Pacific region are expected to experience increased market traction due to increasing adoption across various verticals and investment support in research projects from regional governments.
MarketsandMarkets also identified the major forces driving this market. They include the growing demand for enhanced customer experiences, an increase in adoption of smartphones, leveraging big data, and growth in machine-to-machine technologies. Furthermore, in industries such as healthcare, BFSI, social Web sites and e-commerce channels have witnessed exponential rise in real-time customer data and transaction information. NLP technology can leverage this unstructured data for analyzing customer needs, expectations, and enhancing customer experiences by optimizing cost-effective lingual response systems in organizational processes. By using NLP software solutions, organizations can have better insights on customers' perceptions, optimize business processes, and reduce operational cost, the firm concluded in its "Natural Language Processing (NLP) Market Worldwide Market Forecast and Analysis (2013 - 2018)" report.
MarketsandMarkets also uncovered an increasing demand of NLP technology in Web and e-commerce and the healthcare, IT, and telecommunications industries for enhancing customer experience and operational processes. The firm also expects these software solutions to continue to show steady growth in other verticals as well.
While the NLP market is growing at a steady pace across various verticals, MarketsandMarkets observes some of the major vendors, such as Nuance Communications, M*Modal, IBM, and many others, are continuously innovating their NLP software solutions so they can be integrated into enterprise platforms. Further, MarketsandMarkets expects that on-demand NLP software solutions will experience continuous growth and adoption in the long term, thereby creating customizable stack services and applications facilitating quicker customer adoption.
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