Natural Language Processing - G7 | Statista Market Forecast

The market size in the Natural Language Processing market is projected to reach US$16.70bn 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$71.89bn 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.

For more information on the data displayed, use the info button right next to the boxes.

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

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

The Artificial Intelligence market in G7 is witnessing steady growth due to the increasing adoption of digital technologies, growing health awareness among consumers, and the convenience of online health services. The market is further propelled by the growth of Text-based, Speech-based, and Language translation NLP sub-markets. However, the average growth rate is impacted by factors such as regulatory challenges and data privacy concerns.

Customer preferences: As the use of natural language processing continues to expand in various industries, there is a growing demand for personalized and conversational AI solutions. Consumers are increasingly looking for more natural and intuitive interactions with technology, which has led to the rise in chatbots and virtual assistants. Additionally, with the increased adoption of smart home devices and voice assistants, there is a growing trend towards voice-enabled technology and hands-free communication. This shift towards more human-like interactions is driven by the desire for convenience and efficiency in daily tasks, as well as the increasing prevalence of AI technology in our daily lives.

Trends in the market: In G7 countries, the Natural Language Processing market within the Artificial Intelligence market is experiencing a surge in demand for chatbots and virtual assistants, with companies leveraging these technologies to improve customer service and streamline operations. Additionally, there is a growing trend towards using NLP for sentiment analysis and social media monitoring, providing valuable insights for businesses. These trends are significant as they showcase the potential of NLP in various industries. Industry stakeholders should continue to invest in NLP development and integration to stay ahead of the curve and harness its benefits for improved efficiency and customer satisfaction.

Local special circumstances: In the G7 countries, the Natural Language Processing market is heavily influenced by the advanced technological capabilities and high adoption rates of AI-powered solutions. In the United States, the market is driven by the strong presence of tech giants and their investments in NLP research and development. In Japan, the government's focus on increasing efficiency in healthcare and customer service has led to the widespread adoption of NLP-enabled chatbots. In Germany, strict data privacy laws have shaped the NLP market, with a focus on secure and transparent solutions. In Canada, the market is driven by the growing demand for AI-powered customer service platforms in the retail and banking sectors. In France, the government's initiatives to promote AI innovation have led to a surge in NLP research and development. In the United Kingdom, the market is driven by the increasing use of NLP in financial services and legal sectors, fueled by the need for cost-effective and accurate solutions.

Underlying macroeconomic factors: The Natural Language Processing Market within the Artificial Intelligence Market is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in research and development. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for automation and efficiency in various industries, coupled with the growing adoption of AI in business processes, is driving the demand for Natural Language Processing solutions. This trend is further supported by the increasing need for accurate and efficient processing of large volumes of data, which is a key application of Natural Language Processing.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Artificial intelligence evokes images of supercomputer assistants, machines that can think creatively, and, to some, scenes from their favorite sci-fi movie. The reality, despite not being as futuristic, is not far off from this. AI refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow well beyond that to over 1.8 trillion U.S. dollars by 2030.

Artificial intelligence (AI), the technology that allows digital computers or computer-controlled robots to perform tasks more commonly associated with intelligent beings, has been leaping into the limelight following the release of a wide variety of Generative AI models in 2023. The United States, being the largest economy in the world, has a natural advantage. Although human-like androids such as those portrayed in the science fiction movie Blade Runner are still far from reality, applications of AI such as smartphone virtual assistants and industrial robots are already widespread in U.S. society. The industry’s powerful ability to improve efficiency and increase productivity has made it of strategic importance to U.S. industries and government, both of which push the U.S. lead in the AI race.

Natural Language Processing - G7

Market Size

Analyst Opinion

Global Comparison

Methodology

Technology

Access more Market Insights on Technology topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Artificial intelligence (AI) worldwide - statistics & facts

Explore more high-quality data on related topic

Artificial intelligence (AI) in the U.S. - statistics & facts

Contact

Get in touch with us. We are happy to help.

Natural Language Processing - G7

In-Scope

Out-Of-Scope

Artificial Intelligence

Related markets:

Artificial Intelligence: in-depth market analysis

Market Size

Analyst Opinion

Global Comparison

Methodology

Technology

Access more Market Insights on Technology topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Artificial intelligence (AI) worldwide - statistics & facts

Explore more high-quality data on related topic

Artificial intelligence (AI) in the U.S. - statistics & facts