Natural Language Processing Market | USD 1233.48 Billion by 2034
The natural language processing market size was exhibited at USD 41.15 billion in 2024 and is projected to hit around USD 1233.48 billion by 2034, growing at a CAGR of 40.5% during the forecast period 2024 to 2034.
Natural language processing (NLP) is a prominent component of artificial intelligence, it has applications in consumer chatbots and digital assistants and commercial applications like sentiment analysis, text analysis, voice sense (speech analysis), and change effect analysis. The NLP market is witnessing rapid growth owing to the rapid acceptance of novel technology advancements. Additionally, the growing requirement for data management and increased complexity in major businesses is also fostering the growth of the industry.
The U.S. natural language processing market size is evaluated at USD 7.5 billion in 2024 and is projected to be worth around USD 161.16 billion by 2034, growing at a CAGR of 35.9% from 2024 to 2034.
North America is estimated to hold the largest revenue share of 31.0% in 2024. The region dominates AI and machine learning technologies, making it one of the key marketplaces for natural language processing technologies. Further, the prevalence of key market participants in the U.S. drives innovation in the region subsequently fueling the natural language processing market growth. Regional governments are also increasingly encouraging the use of AI, ML, and NLP technologies, which is allowing market participants to expand their presence in the region.
Asia Pacific is projected to expand at the highest CAGR of 42.7% during the forecast period. The growth is attributable to increasing smartphone usage, rapid technological advancements, the digitalization of economies, and government initiatives in developing countries from the region. Furthermore, this region holds leading positions in cutting-edge industries like robotics and has a strong IT infrastructure, software, and service offerings. These factors would create profitable growth prospects for the market.
The global COVID-19 outbreak has significantly impacted businesses worldwide. However, the COVID-19 pandemic has positively influenced the adoption of NLP-based services due to the nationwide lockdowns imposed by governments in countries across the globe. Post-COVID-19, enterprises are focused on cutting-edge technology to undertake contactless operations, including artificial intelligence (AI), machine learning (ML), analytics, and computing technology, across industries like BFSI, healthcare, IT, & telecommunication. This contributes to the demand for Al-driven NLP technology, which propels the global natural language processing (NLP) market growth.
| Report Coverage | Details |
| Market Size in 2025 | USD 57.82 Billion |
| Market Size by 2034 | USD 1233.48 Billion |
| Growth Rate From 2024 to 2034 | CAGR of 40.5% |
| Base Year | 2024 |
| Forecast Period | 2024-2034 |
| Segments Covered | Component, Deployment, Enterprise Size, Type, Application, End-use, Region |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional scope | North America; Europe; Asia Pacific; Latin America; MEA |
| Key Companies Profiled | 3M; Apple; AWS; Baidu; Google LLC; IBM Corporation; Meta; Microsoft; Oracle Inc.; Inbenta; IQVIA |
The solution segment accounted for the dominant revenue share of 72.6% in 2024. The engines, platforms, tools, and interfaces that make up an NLG program process the translation of computer code into a language that is intelligible by humans. Deep learning is used by data analysis scientists as well as non-technical persons to analyze information and data. Natural language processing software also aids in producing actionable insights based on digital data.
With accelerating software implementation, lowering deployment costs & risks, maximizing the value of existing installations by optimizing them, and other associated factors, the service segment is expanding at a substantial CAGR during the forecast period. The service segment consists of a range of services offered to businesses that use tools for generating natural language. The demand for these services is projected to increase significantly with the increased use of natural language generation software across various industries since they help businesses implement and utilize natural language generation tools effectively and utilize the full potential of the software.
The on-premise segment is estimated to account for the leading share of 59.8% in 2024. The on-premises NLP deployment offers full control, visibility, and authentication security controls over data. In addition, it is easier to scale to match corporate demand and improve efficiency with built-in redundancy. The increased adoption of cloud-based NLP is anticipated to fuel the expansion of the market. The cloud segment is expected to experience the fastest growth over the forecast period.
The advances in cloud computing have created a transformation by enabling the creation of cloud-based NLP applications. The competency of cloud-based solutions to handle huge data sets and provide an improved consumer experience has stimulated several businesses to opt for cloud-based deployment over on-premises. Since most enterprises do not have the infrastructure and networks capable of handling large datasets, there is a massive demand for cloud-based deployment in the NLP market.
The large enterprise's segment held the leading revenue share of 61.9% in 2024, attributable to the strong demand for predictive approaches to maintain data security. Most businesses have already adopted natural language processing-based tools for processing their data in the cloud owing to easy availability and scalability. However, owing to the expensive infrastructure setup costs and lack of knowledge regarding the extensive benefits of NLP on various fronts, the adoption of natural language generation technologies has been relatively low in SMEs.
The affordability of NLP tools in the cloud and the expanding global market for cloud service providers are likely to transform the situation and propel the category of small and medium-sized businesses. SMEs are likely to have a greater propensity for orchestrating processes to combine and coordinate multiple instruments. Additionally, the COVID-19 epidemic and the accompanying market disruptions forced SMEs to rethink their business plans to enhance customer satisfaction and become more competitive on the global stage.
The statistical NLP segment held the largest revenue share of 39.3% in 2024. However, rule-based NLP and hybrid NLP segments are projected to witness prominent growth during the forecast period. Pattern matching, a highly valuable skill in the healthcare sector, is the main emphasis of rule-based NLP. The aforementioned technique is useful for the healthcare sector since it enhances the electronic health record (EHR) process by facilitating the discovery of arbitrary phrases and enhancing data management effectiveness.
The hybrid approach combines the best rule-based and machine-learning approaches and combines natural language processing, machine learning, and human input. Accurate analysis is guided by human expertise, but machine learning makes scaling that analysis simple. With a combination of rule-based and statistical NLP technologies in a hybrid way, organizations can utilize the features, and advantages of both technologies. While using the hybrid approach in NLP, there are various options available to choose the best course for managing data and accelerating business decisions.
The automatic summarization segment is expected to account for the leading share of 17.6% revenue share in 2024. As natural language processing assists compliance teams in analyzing and identifying critical information stored in structured data and uncovering anomalies and hidden patterns from massive datasets with the help of topic tagging, sentiment analysis, and other techniques, NLP tools are also being used more and more in risk and threat detection activities.
As natural language processing assists compliance teams in analyzing and identifying vital information deposited in structured data and uncovering anomalies and concealed patterns from huge datasets with the help of sentiment analysis, topic tagging, and other techniques, NLP tools are being used more and more in risk and threat detection activities. The text summarizing method develops algorithms or software that condenses the text and generates a summary of text data.
The challenge of text summarization is to condense a document's meaning into fewer sentences and words. The methods used to extract data from unstructured text data and use it for a summarization model can be broadly divided into Extractive and Abstractive methods.
The healthcare segment is expected to account for a leading share of 23.0% in 2024. The leading share is attributable to the increasing adoption of advanced technologies and software such as predictive analytics, NLP tools, automation tools, and cloud-based software in the healthcare sector. Healthcare researchers can monitor prominent online comment boards to understand consumer apprehensions during the COVID-19 pandemic.
The IT & telecommunication segment is projected to witness the highest growth rate during the forecast period. The field of communications can benefit greatly from natural language processing technologies. An NLP engine can automatically fix grammatical errors in messaging applications and also can be used to analyze and parse various languages. As a result, a comprehensive system that automatically parses texts in any language can be offered.
Problems on the consumer side would be automatically debugged just by a message from the customer. The "AMITIES" project in Europe is a well-known example of how NLP is used in the telecom industry. It facilitates an easier billing system for the customers. Additionally, telecom users communicate with the system directly.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the natural language processing market
By Component
By Deployment
By Enterprise Size
By Type
By Application
By End-use
By Regional
Chapter 1 Methodology and Scope
1.1 Information Procurement and Research Scope
1.2 Information Analysis
1.3 Market Formulation & Data Visualization
1.4 Market Scope and Assumptions
1.4.1 Secondary Sources
1.4.2 Primary Sources
Chapter 2 Executive Summary
2.1 Market Outlook
2.2 Global
2.2.1 Natural Language Processing Market, 2021 - 2034
2.2.2 Natural Language Processing Market, by Region, 2021 - 2034
2.2.3 Natural Language Processing Market, by Component, 2021 - 2034
2.2.4 Natural Language Processing Market, by Deployment, 2021 - 2034
2.2.5 Natural Language Processing Market, by Enterprise Size, 2021 - 2034
2.2.6 Natural Language Processing Market, by Type, 2021 - 2034
2.2.7 Natural Language Processing Market, by Application, 2021 - 2034
2.2.8 Natural Language Processing Market, by End-use, 2021 - 2034
2.3 Segmental Trends
Chapter 3 Natural Language Processing Market Variables, Trends & Scope
3.1 Market Segmentation & Scope
3.2 Natural Language Processing- Value Chain Analysis
3.3 Market Dynamics
3.3.1 Market Drivers
3.3.1.1 Increasing adoption of a cloud-based solution
3.3.1.2 Emerging demand for cloud-based solution
3.3.1.3 Increasing demand for text-based analytics
3.3.2 Market Restraints
3.3.2.1 Limitations in the development of NLP technology
3.4 Industry Analysis - Porter’s
3.4.1 Supplier Power
3.4.2 Buyer Power
3.4.3 Substitution Threat
3.4.4 Threat From New Entrant
3.4.5 Competitive Rivalry
3.5 Key Opportunities - Prioritized
3.6 Natural Language Processing- PEST Analysis
3.6.1 Political
3.6.2 Economic
3.6.3 Social
3.6.4 Technological
Chapter 4 Natural Language Processing Market: Component Outlook
4.1 Natural Language Processing Market Share by Component, 2024 & 2034
4.2 Solution
4.2.1 Solution Natural Language Processing Market, by Region, 2021 - 2034
4.3 Services
4.3.1 Services Natural Language Processing Market, by Region, 2021 - 2034
Chapter 5 Natural Language Processing Market: Deployment Outlook
5.1 Natural Language Processing Market Share by Deployment, 2024 & 2034
5.2 Cloud
5.2.1 Cloud Natural Language Processing Market, by Region, 2021 - 2034
5.3 On-Premise
5.3.1 On-Premise Natural Language Processing Market, by Region, 2021 - 2034
Chapter 6 Natural Language Processing Market: Enterprise Size Outlook
6.1 Natural Language Processing Market Share by Enterprise Size, 2024 & 2034
6.2 Large Enterprises
6.2.1 Large Enterprises Natural Language Processing Market, by Region, 2021 - 2034
6.3 Small and Medium Enterprises
6.3.1 Small and Medium Enterprises Market, by Region, 2021 - 2034
Chapter 7 Natural Language Processing Market: Type Outlook
7.1 Natural Language Processing Market Share by Type, 2024 & 2034
7.2 Statistical NLP
7.2.1 Statistical NLP Market, by Region, 2021 - 2034
7.3 Rule-Based NLP
7.3.1 Rule-Based NLP Natural Language Processing Market, by Region, 2021 - 2034
7.4 Hybrid NLP
7.4.1 Hybrid NLP Natural Language Processing Market, by Region, 2021 - 2034
Chapter 8 Natural Language Processing Market: Application Outlook
8.1 Natural Language Processing Market Share by Application, 2024 & 2034
8.2 Sentiment Analysis
8.2.1 Sentiment Analysis Market, by Region, 2021 - 2034
8.3 Data Extraction
8.3.1 Data Extraction Market, by Region, 2021 - 2034
8.4 Risk & Threat Detection
8.4.1 Risk & Threat Detection Market, by Region, 2021 - 2034
8.5 Automatic Summarization
8.5.1 Automatic Summarization Market, by Region, 2021 - 2034
8.6 Content Management
8.6.1 Content Management Market, by Region, 2021 - 2034
8.7 Language Scoring
8.7.1 Language Scoring Market, by Region, 2021 - 2034
8.8 Others
8.8.1 Others Market, by Region, 2021 - 2034
Chapter 9 Natural Language Processing: End-use Outlook
9.1 Natural Language Processing Market Share by End-use, 2024 & 2034
9.2 BFSI
9.2.1 BFSI Natural Language Processing Market, by Region, 2021 - 2034
9.3 IT & Telecommunication
9.3.1 IT & Telecommunication Natural Language Processing Market, by Region, 2021 - 2034
9.4 Healthcare
9.4.1 Healthcare Natural Language Processing Market, by Region, 2021 - 2034
9.5 Education
9.5.1 Education Natural Language Processing Market, by Region, 2021 - 2034
9.6 Media & Entertainment
9.6.1 Media & Entertainment Natural Language Processing Market, by Region, 2021 - 2034
9.7 Retail & E-commerce
9.7.1 Retail & E-commerce Natural Language Processing Market, by Region, 2021 - 2034
9.8 Others
9.8.1 Others Natural Language Processing Market, by Region, 2021 - 2034
Chapter 10 Natural Language Processing: Regional Outlook
10.1 North America
10.1.1 North America Natural Language Processing Market, by Component, 2021 - 2034
10.1.2 North America Natural Language Processing Market, by Deployment, 2021 - 2034
10.1.3 North America Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.1.4 North America Natural Language Processing Market, by Type, 2021 - 2034
10.1.5 North America Natural Language Processing Market, by Application, 2021 - 2034
10.1.6 North America Natural Language Processing Market, by End-use, 2021 - 2034
10.1.7 U.S.
10.1.7.1 U.S. Natural Language Processing Market, by Component, 2021 - 2034
10.1.7.2 U.S. Natural Language Processing Market, by Deployment, 2021 - 2034
10.1.7.3 U.S. Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.1.7.4 U.S. Natural Language Processing Market, by Type, 2021 - 2034
10.1.7.5 U.S. Natural Language Processing Market, by Application, 2021 - 2034
10.1.7.6 U.S. Natural Language Processing Market, by End-use, 2021 - 2034
10.1.8 Canada
10.1.8.1 Canada Natural Language Processing Market, by Component, 2021 - 2034
10.1.8.2 Canada Natural Language Processing Market, by Deployment, 2021 - 2034
10.1.8.3 Canada Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.1.8.4 Canada Natural Language Processing Market, by Type, 2021 - 2034
10.1.8.5 Canada Natural Language Processing Market, by Application, 2021 - 2034
10.1.8.4 Canada Natural Language Processing Market, by End-use, 2021 - 2034
10.1.9 Mexico
10.1.9.1 Mexico Natural Language Processing Market, by Component, 2021 - 2034
10.1.9.2 Mexico Natural Language Processing Market, by Deployment, 2021 - 2034
10.1.9.3 Mexico Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.1.9.4 Mexico Natural Language Processing Market, by Type, 2021 - 2034
10.1.9.5 Mexico Natural Language Processing Market, by Application, 2021 - 2034
10.1.9.6 Mexico Natural Language Processing Market, by End-use, 2021 - 2034
10.2 Europe
10.2.1 Europe Natural Language Processing Market, by Component, 2021 - 2034
10.2.2 Europe Natural Language Processing Market, by Deployment, 2021 - 2034
10.2.3 Europe Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.2.4 Europe Natural Language Processing Market, by Type, 2021 - 2034
10.2.5 Europe Natural Language Processing Market, by Application, 2021 - 2034
10.2.6 Europe Natural Language Processing Market, by End-use, 2021 - 2034
10.2.7 Germany
10.2.7.1 Germany Natural Language Processing Market, by Component, 2021 - 2034
10.2.7.2 Germany Natural Language Processing Market, by Deployment, 2021 - 2034
10.2.7.3 Germany Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.2.7.4 Germany Natural Language Processing Market, by Type, 2021 - 2034
10.2.7.5 Germany Natural Language Processing Market, by Application, 2021 - 2034
10.2.7.6 Germany Natural Language Processing Market, by End-use, 2021 - 2034
10.2.8 U.K.
10.2.8.1 U.K. Natural Language Processing Market, by Component, 2021 - 2034
10.2.8.2 U.K. Natural Language Processing Market, by Deployment, 2021 - 2034
10.2.8.3 U.K. Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.2.8.4 U.K. Natural Language Processing Market, by Type, 2021 - 2034
10.2.8.5 U.K. Natural Language Processing Market, by Application, 2021 - 2034
10.2.8.6 U.K. Natural Language Processing Market, by End-use, 2021 - 2034
10.2.9 France
10.2.9.1 France Natural Language Processing Market, by Component, 2021 - 2034
10.2.9.2 France Natural Language Processing Market, by Deployment, 2021 - 2034
10.2.9.3 France Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.2.9.4 France Natural Language Processing Market, by Type, 2021 - 2034
10.2.9.5 France Natural Language Processing Market, by Application, 2021 - 2034
10.2.9.6 France Natural Language Processing Market, by End-use, 2021 - 2034
10.3 Asia Pacific
10.3.1 Asia Pacific Natural Language Processing Market, by Component, 2021 - 2034
10.3.2 Asia Pacific Natural Language Processing Market, by Deployment, 2021 - 2034
10.3.3 Asia Pacific Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.3.4 Asia Pacific Natural Language Processing Market, by Type, 2021 - 2034
10.3.5 Asia Pacific Natural Language Processing Market, by Application, 2021 - 2034
10.3.6 Asia Pacific Natural Language Processing Market, by End-use, 2021 - 2034
10.3.7 China
10.3.7.1 China Natural Language Processing Market, by Component, 2021 - 2034
10.3.7.2 China Natural Language Processing Market, by Deployment, 2021 - 2034
10.3.7.3 China Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.3.7.4 China Natural Language Processing Market, by Type, 2021 - 2034
10.3.7.5 China Natural Language Processing Market, by Application, 2021 - 2034
10.3.7.6 China Natural Language Processing Market, by End-use, 2021 - 2034
10.3.8 Japan
10.3.8.1 Japan Natural Language Processing Market, by Component, 2021 - 2034
10.3.8.2 Japan Natural Language Processing Market, by Deployment, 2021 - 2034
10.3.8.3 Japan Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.3.8.4 Japan Natural Language Processing Market, by Type, 2021 - 2034
10.3.8.5 Japan Natural Language Processing Market, by Application, 2021 - 2034
10.3.8.6 Japan Natural Language Processing Market, by End-use, 2021 - 2034
10.3.9 India
10.3.9.1 India Natural Language Processing Market, by Component, 2021 - 2034
10.3.9.2 India Natural Language Processing Market, by Deployment, 2021 - 2034
10.3.9.3 India Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.3.9.4 India Natural Language Processing Market, by Type, 2021 - 2034
10.3.9.5 India Natural Language Processing Market, by Application, 2021 - 2034
10.3.9.6 India Natural Language Processing Market, by End-use, 2021 - 2034
10.4 South America
10.4.1 South America Natural Language Processing Market, by Component, 2021 - 2034
10.4.2 South America Natural Language Processing Market, by Deployment, 2021 - 2034
10.4.3 South America Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.4.4 South America Natural Language Processing Market, by Type, 2021 - 2034
10.4.5 South America Natural Language Processing Market, by Application, 2021 - 2034
10.4.6 South America Natural Language Processing Market, by End-use, 2021 - 2034
10.4.7 Brazil
10.4.7.1 Brazil Natural Language Processing Market, by Component, 2021 - 2034
10.4.7.2 Brazil Natural Language Processing Market, by Deployment, 2021 - 2034
10.4.7.3 Brazil Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.4.7.4 Brazil Natural Language Processing Market, by Type, 2021 - 2034
10.4.7.5 Brazil Natural Language Processing Market, by Application, 2021 - 2034
10.4.7.6 Brazil Natural Language Processing Market, by End-use, 2021 - 2034
10.5 MEA
10.5.1 MEA Natural Language Processing Market, by Component, 2021 - 2034
10.5.2 MEA Natural Language Processing Market, by Deployment, 2021 - 2034
10.5.3 MEA Natural Language Processing Market, by Enterprise Size, 2021 - 2034
10.5.4 MEA Natural Language Processing Market, by Type, 2021 - 2034
10.5.5 MEA Natural Language Processing Market, by Application, 2021 - 2034
10.5.6 MEA Natural Language Processing Market, by End-use, 2021 - 2034
Chapter 11 Competitive Landscape
11.1 3M
11.1.1 Company Overview
11.1.2 Financial Performance
11.1.3 Product Benchmarking
11.1.4 Recent Developments
11.2 Apple Inc.
11.2.1 Company Overview
11.2.2 Financial Performance
11.2.3 Product Benchmarking
11.2.4 Recent Developments
11.3 Amazon Web Services, Inc.
11.3.1 Company Overview
11.3.2 Financial Performance
11.3.3 Product Benchmarking
11.3.4 Recent Developments
11.4 Baidu Inc.
11.4.1 Company Overview
11.4.2 Financial Performance
11.4.3 Product Benchmarking
11.4.4 Recent Developments
11.5 Crayon Data
11.5.1 Company Overview
11.5.2 Financial Performance
11.5.3 Product Benchmarking
11.5.4 Recent Developments
11.6 Google LLC
11.6.1 Company Overview
11.6.2 Financial Performance
11.6.3 Product Benchmarking
11.6.4 Recent Developments
11.7 Health Fidelity
11.7.1 Company Overview
11.7.2 Financial Performance
11.7.3 Product Benchmarking
11.7.4 Recent Developments
11.8 IBM Corporation
11.8.1 Company Overview
11.8.2 Financial Performance
11.8.3 Product Benchmarking
11.8.4 Recent Developments
11.9 Inbenta
11.9.1 Company Overview
11.9.2 Product Benchmarking
11.9.3 Recent Developments
11.10 IQVIA
11.10.1 Company Overview
11.10.2 Product Benchmarking
11.10.3 Recent Developments
11.11 Meta Platforms Inc.
11.11.1 Company Overview
11.11.2 Financial Performance
11.11.3 Product Benchmarking
11.11.4 Recent Developments
11.12 Microsoft Corporation
11.12.1 Company Overview
11.12.2 Financial Performance
11.12.3 Product Benchmarking
11.12.4 Recent Developments
11.13 Oracle Inc.
11.13.1 Company Overview
11.13.2 Financial Performance
11.13.3 Product Benchmarking
11.13.4 Recent Developments
11.14 SAS Institute Inc.
11.14.1 Company Overview
11.14.2 Financial Performance
11.14.3 Product Benchmarking
11.14.4 Recent Developments
Cross-segment Market Size and Analysis for Mentioned Segments
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