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Natural Language Processing - United Kingdom

United Kingdom
  • The market size in the Natural Language Processing market is projected to reach US$1.18bn 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$5.06bn 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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    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 the United Kingdom is experiencing significant growth, driven by increasing adoption of digital technologies, rising health awareness among consumers, and the convenience of online health services. The average growth rate is impacted by factors such as advancements in text-based, speech-based, and language translation NLP technologies.

    Customer preferences:     As more businesses prioritize digital transformation, the Natural Language Processing Market within the Artificial Intelligence Market in the UK is experiencing a surge in demand for advanced NLP solutions. Consumers are seeking smarter and more efficient ways to interact with technology, leading to the adoption of chatbots and virtual assistants for customer service. Additionally, the rise of voice-activated devices and smart speakers is transforming the way people access information and control their homes, indicating a shift towards more natural and convenient forms of communication.

    Trends in the market:     In the United Kingdom, the Natural Language Processing market is experiencing a surge in demand for chatbot technology, with companies using it for customer service and marketing purposes. Additionally, there is a growing trend of using NLP for sentiment analysis and social media monitoring. These developments are significant as they indicate a shift towards using NLP for more advanced and diverse applications. Industry stakeholders can benefit from this trend by investing in NLP technology and leveraging its capabilities to improve business operations and customer engagement. However, there may also be concerns around data privacy and security, which industry players need to address to maintain consumer trust.

    Local special circumstances:     In the United Kingdom, the Natural Language Processing market is thriving due to the country's advanced technological infrastructure and high adoption rate of digital solutions. Additionally, the UK's strong regulatory framework for data privacy and protection has instilled trust in consumers and boosted the use of AI-powered language processing tools in various industries. The country's culturally diverse population and multilingual society have also contributed to the demand for NLP solutions tailored to different languages and dialects.

    Underlying macroeconomic factors:     The Natural Language Processing Market within the Artificial Intelligence Market in the United Kingdom is influenced by macroeconomic factors such as technological advancements, government support, and investment in research and development. The UK has a strong economy and supportive regulatory environment for AI, which is driving the growth of the market. Additionally, the increasing demand for AI-powered solutions in various industries, such as healthcare and finance, is fueling the demand for NLP technology. Furthermore, the UK government's focus on promoting innovation and investment in AI is expected to further propel the growth of the NLP market in the country.

    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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