Text Analytics Market Size to exceed $15bn by 2026
Published Date: November 29, 2019 Authors: Preeti Wadhwani, Sachin Kasnale
Text Analytics Market size is set to exceed USD 15 billion by 2026; according to a new research report by Global Market Insights, Inc.
The text analytics market growth is attributed to the growing popularity of sentiment analysis among enterprises to effectively capture customer requirements and accordingly devise a product launch or marketing strategy. For instance, in March 2018, Adidas, a German sportswear brand, deployed text mining solutions to analyze customer sentiments on its twitter handle. The technology enabled the company to effectively launch new product ads and video teasers to maintain a competitive edge over its rival firm, Nike. With the increasing use of social media platforms to post product feedback, there has been a rising adoption of text mining tools to monitor customer sentiments, driving market growth.
Surging adoption of business intelligence tools will augment the text analytics market demand
Enterprises are experiencing a dynamic shift toward the adoption of sophisticated BI tools to fuel business growth and ensure profitability. Text mining solutions complement the capabilities of BI tools by enabling enterprises to derive useful information from unstructured textual data, which traditional analytic solutions are not able to achieve. The capabilities of text mining solutions to handle textual data is transitioning enterprises toward a swift adoption of intelligent dashboards, self-reporting tools, and advanced visualization highlights. For instance, in September 2017, Walmart integrated text analytics into its BI systems to conduct behavioral analysis of customers. Walmart gained a 7% increase in its sales by using unstructured text data sourced from social media channels and feedback forms. The advent of new technologies, such as NLP and speech-to-text, will further accentuate text analytics market value.
Browse key industry insights spread across 252 pages with 306 market data tables and 34 figures & charts from the report, “Text Analytics Market Size, 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 End-use (BFSI, Retail, Government, Healthcare, IT & Telecom, Travel & Hospitality, Media & Advertising), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Spain, Italy, China, India, Japan, Australia, South Korea, Brazil, Mexico, GCC, South Africa), Growth Potential, Competitive Market Share & Forecast, 2019 – 2026” in detail along with the table of contents:
On-premise model to witness steady text analytics market growth from 2019 to 2026
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The on-premise cloud computing delivery model is expected to exhibit a growth rate of over 11% from 2019 to 2026 as it provides enhanced data security and better data control to enterprises holding critical textual data such as drug development documents, financial records, and product design blueprints. Such software is suited for enterprises with robust computing infrastructure and a dedicated IT team due to the resource-intensive nature of text mining software. Enterprises have to decide a trade-off between high data security & control and the limitations of on-premise infrastructure while selecting an on-premise deployment model for text mining solutions.
Changing legal framework spurring the adoption of GRC solutions
The GRC segment is expected to be the fastest-growing segment in the text analytics market with a growth rate of over 20% CAGR from 2019 to 2026. As enterprises are consistently pressurized to ensure legal compliance with rapidly changing legal frameworks, the adoption of text mining tools to process legal documents has grown profoundly. These solutions enable enterprises to accelerate decision-making through a human level understanding of legal documents and contracts. Legal firms are leveraging textual intelligence embedded in documents to augment business operations and ensure regularity in compliance, driving the market growth. With new regulations, such as REACH and CLP, pushing enterprises to enhance their internal audit and compliance, the adoption of text mining for GRC is expected to grow profoundly over the forecast timeline.
Managed services to grow lucratively as enterprises focus on core strengths
The adoption of managed services is anticipated to grow at an impressive CAGR of over 22% from 2019 to 2026, as enterprises are looking to outsource text mining to reduce costs and focus on core business strengths. As SMEs & small organizations are outsourcing cloud services to managed service providers, there is an increased demand for text mining & analytics services delivered through the cloud. Managed service providers have identified text analytics as an important business prospect and are investing accordingly to strengthen their domain expertise.
Increasing competitiveness in financial services is augmenting the demand for text mining solutions
The BFSI sector will observe rapid growth in the text analytics market due to the growing use of text mining tools to provide positive customer experience. As banking & financial services become more competitive, reducing customer churn is a major business issue for fintech organizations. To address these problems, BFSI enterprises are rapidly adopting text mining techniques for better customer engagement and enhanced customer intelligence, fueling market growth. Additionally, the automation of the compliance process through information retrieval and document search will help BFSI enterprises in streamlining their operation with digital technologies. For instance, in June 2017, JP Morgan Chase developed its proprietary text mining software, COIN. The software helped the company complete nearly 36,000 hours of human document classification work within a few hours and detected over 12,000 errors in contract documents missed by human analysts.
Growing demand to leverage PR data in Germany is promoting industry growth
Germany text analytics market is anticipated to exhibit the fastest growth in the region with a robust CAGR of above 22% from 2019 to 2026 due to the surging adoption of text mining solutions to leverage useful insights in media & PR data. For instance, in August 2019, Ubermetrics, a content intelligence platform provider, partnered with Kantar, a data intelligence & consulting firm, to provide data & analytics solutions to PR & communication enterprises across the country. This partnership will enable Kantar to access Ubermetrics’ global social media data & analytics solutions to provide highly specialized newsroom solutions. The growing demand from consulting firms to analyze social media data to make informed decisions in all aspects, such as media monitoring, reputation analysis, audience targeting, and media planning, will continue to accelerate the market in the country over the forecast period.
The text analytics market players are focusing on strategic partnerships and improving R&D capabilities to launch innovative solutions to maintain a competitive advantage and expand their customer base. For instance, in April 2019, Panasonic Avionics launched Insights, a cloud-based data analytics platform. This solution will help the company to analyze inflight text data generated from inflight entertainment, connectivity, social media, location, and weather monitors in real-time to extract actionable insights, enabling better service to its passengers by understanding their preferences. The market growth is also accelerated as key market players are investing heftily in new technologies to improve the product portfolio and accelerate its adoption across different business verticals. For instance, in February 2019, IBM invested USD 20 million to develop an AI Research Center in Sao Paulo to accelerate the development of disruptive technologies such as NLP and deep learning.
Some of the players in the text data mining 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.
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