Natural Language Processing Market, By Solution (Hardware, Software, Services), By Technology (Interactive Voice Response (IVR), Optical Character Recognition (OCR), Text Analytics , Speech Analytics, Classification and Categorization, Pattern and Image Recognition, Others), By Industry Vertical (BFSI, Healthcare, IT and Telecom, Retail, Manufacturing, Media and Entertainment, Other End-use Industries), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Jun 2024

Code : CMI1090

Pages :170

Formats :

Excel and PDF

Industry : Information and Communication Technology

Regional Analysis

Natural Language Processing Market Regional Insights

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North America has remained the largest regional market for natural language processing globally. The region is estimated to account for o35.1% in 2024, due to strong presence of technology giants and startups. The U.S. alone contributes to more than 80% of North America's market share. Major factors accounting for its dominance include huge domestic demand for AI-powered customer support solutions, a vibrant startup ecosystem and enormous investment in R&D by companies. Moreover, with a majority of top NLP companies based in the U.S., the region has become a hub for innovation.

Rising need for sentient AI assistants and smart virtual agents can also drive the market growth. Companies provide these through platforms like Amazon Alexa, Apple's Siri, Microsoft Cortana, and others. Furthermore, increasing focus on incorporating ML and NLP into healthcare products for clinical decision support, diagnosis and treatment can drive the regional market growth. Prominent U.S.-based firms are leveraging NLP to classify unstructured text in electronic health records for better patient outcomes.

Asia Pacific region has emerged as the fastest expanding market for natural language processing globally with CAGR of 31.2% for the forecast period of 2024. Rapid digitization and technology adoption across industries have accelerated the demand. Countries like China and India offer a large talent pool of AI engineers and developers to cater to the growing need of NLP. For example, core capabilities around machine translation, conversational AI, and more are attracting investments in APAC countries from global tech giants.

APAC's increasing exports of IT services, coupled with a thriving startup ecosystem specializing in diverse NLP applications, have positioned it as an attractive outsourcing hub. International companies are leveraging affordable costs and top talent in the region for product development and support requirements. Furthermore, local companies are implementing various NLP-based solutions across sectors like e-commerce, banking, healthcare to gain competitive advantage. This is anticipated to drive continued expansion of the APAC NLP market at an exponential rate in the near future.