Natural language processing (NLP) is a technology spawned from the need for machines to understand and communicate with humans in human language, not formal computer languages. The concept behind NLP is simple: if and when machines can understand and communicate with humans in natural (human) language, it democratizes data science, enabling humans to access, analyze, and leverage data more intelligently and become more efficient as they offload redundant, data-heavy tasks to machines. According to a new report from Tractica, while NLP is most commonly understood as a user interface (UI) technology, it is also a critical technology for extracting insights and analysis from a vast amount of previously unindexed and unstructured data, mining video and audio files, emails, scanned documents, and more.
Tractica forecasts that these expanded applications, leveraging newly developed artificial intelligence (AI) techniques, will drive growth in the NLP software market from $136 million in 2016 to $5.4 billion by 2025. The market intelligence firm anticipates that NLP software deployments will drive significant additional sales of hardware and professional services, bringing the total NLP software, hardware, and services market opportunity to $22.3 billion by the end of the forecast period.
“Natural language processing adoption is accelerating, but not because of the creation of new NLP algorithms, as the data science in that regard is mature,” says principal analyst Mark Beccue. “NLP adoption has accelerated over the past 2 to 3 years because of scalable, affordable computational power, the increasing digitization of all data, and the melding of NLP with machine learning (ML) and deep learning (DL).”
Tractica’s report, “Natural Language Processing”, examines 42 NLP use cases, identifying those applications best suited for commercial use. In addition, the report details the market trends and technology issues surrounding natural language processing and presents 10-year forecasts for NLP hardware, software, and services during the period from 2016 through 2025. The report also includes detailed profiles of 35 key industry players. Market forecasts, segmented by world region, include projections of software, hardware, and services revenue across multiple industry sectors. An Executive Summary of the report is available for free download on the firm’s website.