Natural Language Processing Market Trends

Growth Drivers

• Growing Sector of E-Commerce – Machines can quickly identify which phrases and terms are commonly used by humans when searching for a specific product using NLP. Global e-commerce increased from about 15% of total retail sales in 2019 to almost 21% in 2021. Furthermore, by 2022, it is expected to account for 22% of total revenues.
• Increasing Spending on the Adoption of Natural Language Processing – More than 75% of organizations in the United Kingdom with active natural language processing (NLP) efforts intend to boost the amount they spend in the next 12 to 18 months.
• Surging Use of Social Media– NLP is used to gauge sentiment in social media. Moreover, content analytics is an NLP-driven strategy of categorizing videos. One of the most popular internet activities is using social media. Over 4 billion individuals used social media worldwide in 2021, with that figure expected to rise to more than six billion by 2027.
• Rising Penetration of Digitization–Natural Language Processing (NLP) provide solutions to the difficulties associated with unstructured data generated by digital transformation. There are around 5 billion active internet users globally. That equates to nearly 62% of the global population. Every day, over 500,000 new internet users are added.
• Rising Implementation of Chatbots– NLP is an artificial intelligence (AI) program that assists your chatbot in evaluating and comprehending natural human language communication with the consumers and developing an conversational systems. Globally chatbots were expected to be used by nearly 25% of customers in 2020, up from nearly 13% in 2019.

Challenges

• Lack of skilled engineers for developing NLP software - There is a scarcity of AI specialists who are looking for work. There was around a 15% reduction in applicant searches for AI-related employment between May 2018 and May 2019. It indicates that extremely few people choose to work in artificial intelligence. Furthermore, in Japan, there is going to be a shortfall of roughly 270,000 artificial intelligence engineers by 2030. Moreover, according to estimates from various interest groups, Germany now has a shortfall of around 96,000 IT specialists. Therefore, the shortage of AI engineers is likely to hamper the development of natural language processing.
• Phrase, Slang, Irony, and Other NLP Barriers
• NLP Has Limited Functionality