Cloud Natural Language Processing (NLP) Market Analysis

Cloud Natural Language Processing Market Analysis

The statistical cloud NLP market dominated the global business landscape in 2016 owing to its advanced features and benefits over the conventional methods. Statistical method leverages advanced machine learning algorithms to develop statistical models from bilingual parallel corpora that assist in the precise and rapid translation. Whereas, rule based rule based methods requires human effort to prepare rule and linguistic resources such as syntactic parsers, part of speech taggers, and transfer rules for translation. Furthermore, statistical method is data driven and can handle ambiguity effectively, which makes it an ideal choice for natural language processing solutions.    
 

Public cloud NLP market is analyzed to be the leading deployment model owing to the low cost and scalability offered by the public cloud deployment. On the other hand, hybrid cloud is estimated to witness high growth at over 19% CAGR during the forecast timeline as it offers benefits of both public and private cloud models.   
 

The need for an effective predictive technology and low adoption of the teasdchnology are the major constraints in the cloud NLP market growth. The growing adoption of the technology among media and entertainment, advertisement, and healthcare organizations are estimated to develop myriad growth opportunities for the market. 
 

Recognition technology is estimated to account for major share in the global cloud NLP market owing to wide spread adoption of the image recognition, interactive voice recognition and optical character recognition technology among large and small enterprises for machine translation and information extraction. Furthermore, growing demand of recognition technology among organizations to capture and analyze customer voice for enhancing customer experience and automation is also estimated to back the growth of the recognition technology.   
 
Machine translation is the dominating application as it is the most essential component of the NLP solution that converts text and speech inputs from one language to another. Furthermore, increasing requirement of localizing content into more languages is also estimated to fuel the demand. In addition, need for high speed translation and cost effectiveness is also contributing significantly towards the growth of the cloud NLP market.     
 

BFSI sector is the leading end-user of the cloud NLP market solutions. Financial institutes are leveraging the technology for text mining, cross boarder payments, solving insurance queries, foreign exchange, and many other applications. Furthermore, these solutions are also widely used by financial institutes in contact centers for processing customer voice and documentation. For instance, Citibank utilizes NLP in biometric security applications and for text mining. SAS, Fuji Xerox and Nuance Communications are the major vendors that are catering to this industry.       
 

U.S. is estimated to be the leading regional segment in the global cloud NLP market owing to the presence of the large number of players. Increasing investment in the AI technology is also estimated to be one of the major factor backing the growth of the market. Furthermore, rapid adoption of the smart device is also estimated to contribute significantly towards the growth.