Text Analytics Market Size By Component (Software [Customer Intelligence, Customer Relationship Management (CRM), Fraud Detection, Governance, Risk & Compliance (GRC) Management], Service [Professional Service, Managed Services]), By Deployment Model (On-premise, Cloud), By End-use (BFSI, Retail, Government, Healthcare & Lifesciences, IT & Telecom, Travel & Hospitality, Media & Entertainment) Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2026

Published Date: Nov 2019  |  Report ID: GMI2215  |  Authors: Preeti Wadhwani, Sachin Kasnale

Report Format: PDF   |   Pages: 252   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Text Analytics Market size surpassed USD 4 billion in 2018 and is anticipated to grow at over 18% CAGR from 2019 to 2026.
 

Text Analytics Market

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Text analytics refers to the process of deriving useful information from unstructured textual data. Sophisticated data analysis, algorithms, and pattern detection methods, such as statistical pattern learning and Natural Language Processing (NLP), are deployed for extracting high-quality information from the input text. Enterprises are increasingly adopting text mining technologies for retrieving information from unstructured data and are interpreting these results for enhanced business decisions and customer satisfaction. The sustained growth in the adoption of text analytics solutions, specifically CRM, will lead to a rise in market share.
 

The text analytics market growth is attributed to the increasing popularity of social media analytics for gaining crucial business insights. For instance, in August 2018, fashion retailer H&M deployed text mining solutions for analyzing customer response on its social media channels. This enables the company to gain a better understanding of customer preferences and offer customized ads to target new customers for increasing profit avenues. Social media text mining is gaining importance as it enables federal agencies and national security authorities to monitor the behavior of citizens for potential terrorist threats. As security agencies deploy text analytics solutions to analyze potential threat topics and objectionable materials mentioned in social media handles, the demand for text mining solutions will rise sharply over the projected timespan. Another factor contributing to the text analytics market share is the increasing deployment of text mining solutions for fraud detection. For instance, in February 2018, China Life Insurance adopted text mining software for information extraction from insurance claims. The technology enables the company to automate insurance claim handling and detect fraudulent claims by matching it with use cases. However, lack of awareness on the economic proposition of text mining and the high cost of text analytics solutions may hinder the market growth from 2019 to 2026.
 

Text Analytics Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: Over USD 4 Billion (2018)
Historical Data for: 2015 to 2018 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 18.1% 2026 Value Projection: Over USD 15 Billion (2025)
Pages: 252 Tables, Charts & Figures: 340
Geographies covered (23): U.S., Canada, UK, Germany, Italy, Spain, France, China, India, Japan, South Korea, Australia, Brazil, Mexico, South Africa, GCC
Segments covered: Component, Deployment Model, Application, and Region
Companies covered (20): Amazon Web Services (AWS), Altair Engineering, Inc. (Angoss Software Corporation), Basis Technology, Bitext Innovations, S.L., Brandwatch, Clarabridge, HP Enterprise, IBM Corporation, Interactions LLC, Jive Software (Aurea, Inc.), Khoros, LLC, Lexalytics, Inc., Luminoso Technologies, Inc., Medallia, Inc., Megaputer Intelligence, Inc., Microsoft Corporation, Netbase Solutions, OpenText Corporation, RapidMiner Inc., SAP SE , SAS Institute Inc., Unimetric, and Verint System
Growth Drivers:
  • Growing demand for social media analytics
  • Increasing use of business intelligence tools
  • Proliferation of cloud computing technology
  • Growing demand for sentiment analysis
  • Inclination towards virtual workplace and demand for personalized services
Pitfalls & Challenges:
  • Lack of awareness
  • High cost of software

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Growing uptake of the cloud model for scalable processing

The adoption of cloud deployment model will witness a rapid surge for accelerating business growth while reducing the capital and resources required to deploy & maintain analytics solutions. SMEs, in particular, can benefit immensely from subscription-based pricing models offered by analytics solution providers to scale their usage of solutions as per their business demands. Also, cloud-based deployment ensures the availability of timely updates, security upgrades, and backup & recovery functions that are handled by service providers.
 

Extensive usage of text mining in CRM is propelling industry growth

Text Analytics Market Size, By Software, 2018 (USD Million)
Text Analytics Market Size, By Software, 2018 (USD Million)

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The CRM segment held the largest share of around 35% in the text analytics market in 2018 and is expected to maintain its dominant market share till 2026 due to extensive adoption of text mining for enhancing customer service and improving customer satisfaction. The mining of textual data sourced from customer complaints and feedback has assisted enterprises in ensuring high customer satisfaction and a positive customer experience. Enterprises are analyzing call center data and using sentiment analysis algorithms to quantify customer emotions and improve service quality. As enterprises leverage the benefits of text mining in CRM applications to detect early signs of product defects and improve quality within a quick timeframe, the adoption of CRM text mining software is anticipated to increase substantially over the projected timeline.
 

Increased adoption of professional services to manage dedicated projects

Professional services held a major text analytics market share of over 70% in 2018 due to the growing needs among enterprises to outsource text mining projects for dedicated text data handling requirements such as one-time projects and software deployment. Professional services include training of in-house data analytics team, working on specific text mining projects such as algorithm & terminology development and software deployment & integration. Enterprises are realizing the economic benefits of procuring professional services to augment business intelligence by enabling better decision making and improving customer satisfaction. As the adoption of professional services increases for integrating text analytics with enterprise intelligence, the overall market will grow significantly.
 

Text analytics has a significant impact on the retail sector

UK Text Analytics Industry Size, By Application, 2015 - 2026 (USD Million)
UK Text Analytics Industry Size, By Application, 2015 - 2026 (USD Million)

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The retails sector in the UK will grow at a CAGR of over 18% by 2026 due to the extensive demand for text analytics solutions to reap the benefits of customer intelligence and maximize sales. Sentiment analytics can enable retailers to dynamically change pricing and distribution strategies according to customer feedback. As the retail sector is entirely dependent on maintaining regular customer demand for ensuring profitability, analyzing customer’s perception and product choices is a crucial part of business intelligence. Text mining solutions are assisting retailers in optimizing promotions, identifying right pricing strategies, and increasing revenues by leveraging customer behavioral data. For instance, in October 2018, Alibaba developed a Question-Answer (QA) style sentiment analysis software to target potential buyers visiting its website. The software detects questions asked by potential customers and detects sentiment & response of such buyers through text mining.
 

The retail sector is witnessing a huge adoption of customer intelligence platforms offered by text analytics providers including IBM, SAS, and SAP to bolster the efficiency of their online sales channels and increase cross-selling of products. Text mining for customer intelligence assists in suggesting relevant products to targeted customers, boosting sales and generating additional revenue.
 

Surging adoption of text analytics is fueling the U.S. market

U.S. Text Analytics Market Share, By Software, 2018 (USD Million)
U.S. Text Analytics Market Share, By Software, 2018 (USD Million)

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The text analytics industry in the U.S. will witness a lucrative market growth over the forecast timeline due to the rising trend of social media analytics for deriving meaningful insights to enhance decision making. According to the data reported by the Pew Research Center in June 2019, around 70% of the leading brands across the country are deploying text mining solutions for social media analytics, leading to better customer engagement. Furthermore, global text data mining solution providers are rapidly expanding their presence in the U.S. by launching new products, which will contribute to market growth. For instance, in July 2019, IBM released a new version of IBM Cognos Analytics with in-built text data analytics and NLP tools. The new update also merged IBM Watson’s text mining solution with the Cognos platform. The new launch is aimed at small & medium enterprises with easy-to-use BI tools and reduced pricing strategies.
 

Focus on acquisitions & partnerships to stay competitive in the market

Prominent players operating in the text analytics market are focusing on strategic mergers, acquisitions, and partnerships with other players to improve their offerings and maintain their market position. For instance, in June 2019, Medallia acquired a behavioral analytics provider, Cooldata. The acquisition helped the company to leverage Cooldata’s capabilities to handle large volumes of customer feedback data and derive & predict customer sentiments. New entrants in the market are focusing on R&D and new product developments to register significant business growth. For instance, in September 2018, Unmetric, Inc. launched custom content tagging, enabling marketers to identify and understand the most engaging content categories across social media handles and adjust their social media strategy.
 

Some of the players in the market are Amazon Web Services (AWS), Altair Engineering, Inc. (Angoss Software Corporation), Basis Technology, Bitext Innovations, S.L., Brandwatch, Clarabridge, HP Enterprise, IBM Corporation, Interactions LLC, Jive Software (Aurea, Inc.), Khoros, LLC, Lexalytics, Inc., Luminoso Technologies, Inc., Medallia, Inc., Megaputer Intelligence, Inc., Microsoft Corporation, Netbase Solutions, OpenText Corporation, RapidMiner, Inc., SAP SE , SAS Institute, Inc., Unimetric, and Verint System.
 

The text analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

By Component

  • Software
    • Customer Intelligence
    • Customer Relationship Management (CRM)
    • Fraud Detection
    • Governance, Risk and Compliance (GRC) Management
  • Service
    • Professional Services
    • Managed Services

By Deployment Model

  • On-premise
  • Cloud

By Application

  • BFSI
  • Retail
  • Government & Defense
  • Healthcare
  • IT & Telecom
  • Travel & Hospitality
  • Media & Advertising

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • GCC
    • South Africa
       

Frequently Asked Questions (FAQ) :

Text analytics refers to the process of deriving useful information from unstructured textual data. Sophisticated data analysis, algorithms, and pattern detection methods, such as statistical pattern learning and Natural Language Processing (NLP), are deployed for extracting high-quality information from the input text.
The CRM software held the largest industry share of around 35% in 2018 and is expected to maintain its dominant market share till 2026 owing to extensive adoption of text mining for enhancing customer service and improving customer satisfaction.
The text analytics industry in the U.S. will witness a lucrative market growth over the forecast timeline due to rising trend of social media analytics for deriving meaningful insights to enhance decision making.

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