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Natural Language Processing - Europe

Europe
  • The market size in the Natural Language Processing market is projected to reach US$9.20bn in 2024.
  • The market size is expected to show an annual growth rate (CAGR 2024-2030) of 27.54%, resulting in a market volume of US$39.61bn by 2030.
  • In global comparison, the largest market size will be United States (US$9.71bn in 2024).

Definition:
Natural language processing (NLP) is a branch of artificial intelligence that focuses on the interaction between human language and computers. Natural language processing tools analyze, understand, and generate written, oral, and visual formats of human language. The Natural Language Processing (NLP) market has relevance for the healthcare, finance, and e-commerce industries in the areas of sentiment analysis, chatbots, and language translation.

Structure:

The Natural Language Processing (NLP) market has three markets. The Text-Based NLP market covers applications that analyze written forms of language. The Speech-Based NLP market covers applications that interpret and understand spoken language. The Language Translation NLP market covers applications that convey the content and meaning of a text from one language into another language.

Additional Information:

The market comprises two key performance indicators: market sizes, and market sizes by industry. Market sizes are generated by the funding amount of Computer Vision companies. Key players of the market include companies such as Amazon Web Services (AWS), Microsoft Azure Cognitive Services, and Google.

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In-Scope

  • Natural language processing tools such as chatbots, virtual assistants, and sentiment analysis that enable machines to understand, interpret, and generate human languages.

Out-Of-Scope

  • Non-artificial intelligence applications such as spell checking and grammar correction, which do not involve semantic analysis or machine learning.
Artificial Intelligence

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    Market Size

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Europe Artificial Intelligence market is witnessing significant growth, fueled by factors such as increasing adoption of digital technologies, growing health consciousness among consumers, and the convenience of online health services. The Text-based NLP, Speech-based NLP, and Language translation NLP sub-markets are also contributing to this average growth rate. Factors such as advancements in technology and government initiatives are impacting the market's growth rate positively.

    Customer preferences:     The Natural Language Processing Market within the Artificial Intelligence Market is experiencing a rise in demand for conversational AI solutions, driven by the increasing use of chatbots for customer service and virtual assistants for personal and business tasks. This trend is a result of the growing need for seamless and efficient communication, as well as the desire for more personalized and convenient interactions with technology. Additionally, the incorporation of voice recognition technology and multilingual capabilities in NLP solutions is catering to the diverse linguistic preferences of European consumers.

    Trends in the market:     In Europe, the Natural Language Processing market within the Artificial Intelligence market is experiencing a surge in demand for chatbot technology, as companies seek to enhance customer service and improve operational efficiency. Additionally, there is a growing trend of using NLP for sentiment analysis, allowing businesses to better understand customer feedback and make data-driven decisions. These trends highlight the increasing importance of NLP in various industries and showcase its potential to revolutionize customer interactions and data analysis. Moving forward, stakeholders in the NLP market must stay updated on these developments to remain competitive in the evolving landscape.

    Local special circumstances:     In Europe, the Natural Language Processing Market within the Artificial Intelligence Market is heavily influenced by the region's strict data privacy regulations, such as the General Data Protection Regulation (GDPR). This has led to a rise in demand for compliance solutions and data privacy tools within the market. Additionally, the region's diverse linguistic landscape presents unique challenges for natural language processing and requires specialized solutions. The European market is also shaped by the region's strong focus on sustainability, leading to a growing demand for eco-friendly AI solutions and ethical considerations in the use of AI.

    Underlying macroeconomic factors:     The Natural Language Processing Market within the Artificial Intelligence Market in Europe is heavily influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in digital infrastructure. Countries with strong regulatory frameworks and significant investment in NLP technologies are experiencing robust growth in the market. On the other hand, regions with regulatory hurdles and limited funding for AI research are facing slower market growth. Furthermore, the rising prevalence of chronic diseases and an aging population in Europe are driving the demand for NLP solutions to improve healthcare access and outcomes.

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Methodology

    Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

    Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

    Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

    Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.

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    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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