Natural Language Processing or NLP refers to the technology that enables computers to understand human language. To put it another way, it is the ability of a computer program to comprehend human language. NLP is a branch or subfield of AI (Artificial Intelligence), linguistics, computer science, and information engineering. It is concerned with programming computers to process as well as analyse a large volume of natural language data, in order to facilitate the interaction between machines and humans.
The study of NLP has a long history tracing back to almost 50 years. It developed from the field of linguistics. The current approaches to NLP are deep learning-based. Deep learning deals with examining and using patterns in data to improve the understanding of a program. For this, deep learning models require huge amounts of data.
The global Natural Language Processing market is expected to grow at an impressive CAGR of 22.5% during the period from 2019 to 2024. This can be attributed to the remarkable advances made by deep learning architectures and algorithms in the areas of image recognition and speech processing in the last couple of years.
At present, more and more organizations are adopting NLP solutions. In the coming years, the NLP market is anticipated to penetrate the professional service segment, mainly due to the availability of cloud solutions that are not only cost effective but also easy to deploy.
The growth of the global NLP market will also be driven by the increasing use of and demand for NLP in call centres and healthcare centres. The rising demand for advanced text analytics and growth of the machine-to-machine technology will too drive the growth of the Natural Language Processing market.
NLP facilitates the analysis of data and then translates the insights obtained from the data back to the spoken language. This helps businesses utilize their data more effectively and efficiently. Text analytics solutions can also give better market insights to organizations. All these factors have raised the demand for NLP and text analytics solutions, which will give a major boost to the global market.
However, stringent government regulations and their implementation may curb the growth of the market to some extent. Nevertheless, the rising demand for advanced text analytics will fuel the growth of the market and provide growth opportunities for the market players.
North America is presently dominating the global Natural Language Processing market and is likely to maintain its dominance in the coming days as well. In the North American region, the US is leading the market. The impressive growth of the North American NLP market can be attributed to the presence of several NLP companies in the region, along with rapid adoption of NLP, increasing data generation in organizations, and rising demand for enhanced customer experience.
In the coming years, the Asia-Pacific region is also expected to exhibit robust growth in the global NLP market, mainly due to increasing use of voice recognition across several industry verticals. The increasing disposable incomes of consumers in this region will also boost the growth of the NLP market.
The major players that are dominating the global Natural Language Processing market include 3M, Dolbey Systems, Apple Incorporation, Google, HP, Microsoft Corporation, IBM Corporation, SAS Institute Inc., NetBase Solutions, and Verint Systems, among others.