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Natural Language Processing Market to Double by 2021

Research firm MarketsandMarkets expects the natural language processing (NLP) market, which includes speech recognition and interactive voice response technologies, to grow from $7.63 billion today to $16.07 billion by 2021, at a compounded annual growth rate of 16.1 percent.

The major forces driving the NLP market are increased demand for enhanced customer experience, increased usage of smart devices, the growing number of emerging options in application areas, increased investment by the healthcare industry, increased deployment of Web and cloud-based business applications, and growth in machine-to-machine technology, according to the research.

MarketsandMarkets also expects the professional services segment to grow at the highest rate. North America is expected to experience the highest growth rate in both professional services and support and maintenance services segment, it said.

The research also points to the IVR technology as having the highest market share as businesses move toward enhanced automation to capture and process the customer's voice. Moreover, Optical Character Reader, pattern recognition, and speech analytics are expected to gain traction during the forecast period.

While North America is expected to have the largest market share, the Middle East and Africa offer tremendous potential growth opportunities for the NLP market. The key factors driving the growth rate in this market are increasing data generation in business organizations, growing demand for enhanced customer experience, and increased adoption of smart devices.

The research firm singled out solution vendors 3M, Apple, Dolby Systems, Google, HP, IBM, Microsoft, NetBase Solutions, SAS Institute, and Verint Systems as the leading companies offering high-end NLP solutions.


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