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Natural Language Processing - India

India
  • The market size in the Natural Language Processing market is projected to reach US$1.29bn 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$5.56bn 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

Artificial Intelligence

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    Value

    Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    Most recent update: Mar 2024

    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 Artificial Intelligence market in India is experiencing significant growth due to the increasing adoption of digital technologies, rising health awareness, and convenience offered by online health services. The average growth rate is influenced by factors such as the expanding sub-markets of Text-based, Speech-based, and Language translation NLP.

    Customer preferences:     With the rapid advancement of technology, there has been a growing preference for efficient and accurate language processing solutions among businesses in India. Natural Language Processing (NLP) has gained traction in various industries, such as finance, healthcare, and e-commerce, due to its ability to extract valuable insights from unstructured data. This trend is further fueled by the country's diverse linguistic landscape, which requires NLP tools to be adaptable and multilingual. Additionally, the rising demand for voice-based interactions and chatbots in customer service is driving the adoption of NLP in the Artificial Intelligence market.

    Trends in the market:     In India, the Natural Language Processing (NLP) market within the Artificial Intelligence (AI) market is experiencing a surge in demand for chatbot technology in industries such as banking, e-commerce, and healthcare. This trend is expected to continue as businesses seek to improve customer service and streamline processes. Additionally, there is a growing focus on developing NLP solutions in regional languages to cater to a diverse population. This presents opportunities for industry stakeholders to tap into the vast Indian market and collaborate with local language experts. With the government's push for digitalization and the rise of AI startups, the NLP market in India is poised for significant growth in the coming years.

    Local special circumstances:     In India, the Natural Language Processing (NLP) market is gaining traction due to the country's large English-speaking population and the growing adoption of chatbots in various industries. Additionally, the government's initiatives to promote digital transformation and the availability of low-cost workforce have further fueled the growth of the NLP market. In contrast, in China, the NLP market is driven by the country's large population and the government's investments in AI technology. However, strict regulations on data privacy and censorship pose challenges for companies operating in this market.

    Underlying macroeconomic factors:     The Natural Language Processing market in India is also influenced by macroeconomic factors such as technological advancements, government support, and investment in research and development. India's strong IT infrastructure and skilled workforce make it an attractive market for companies operating in the Artificial Intelligence sector. Additionally, the increasing adoption of digital technologies in various industries, such as healthcare, finance, and retail, is driving the demand for NLP solutions in India. Despite challenges such as language diversity and limited internet penetration, the market is expected to grow due to the country's growing economy and government initiatives to promote digitalization and innovation.

    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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