NLP and Transcription Services Market Size, Share, Growth, And Industry Analysis, By Type (Natural Language Processing (NLP) and Transcription Services), By Application (Automotive, Healthcare, Banking Financial Services and Insurance, IT and Telecom and Government, Defense & Aerospace), Regional Forecast By 2031

Updated On: 15 April 2024

NLP and Transcription Services Market Report Overview

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The global NLP and transcription services market size was USD 2114.7 million in 2021, as per our research, the market is expected to reach USD 7,525.64 million in 2031, exhibiting a CAGR of 12.81% during the forecast period.

 The global COVID-19 pandemic has been unprecedented and staggering, with the NLP and transcription services market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The study of how computer systems and artificial intelligence interact with human language is known as natural language processing. It is a part of artificial intelligence that can comprehend human language before translating it into computer language. In the contemporary business environment, enormous amounts of data (big data) are being produced from a variety of sources, including emails, audio, papers, internet blogs, newsgroups, social media platforms and others.

The market for NLP and transcription services will experience great development as a result of expanding smartphone adoption, increasing usage of both built-in and third-party NLP software, expanding cloud implementation, and heavy investments in the technology industry.

COVID-19 Impact: Automation of Internal Business Procedures due to Enactment of Lockdowns by Governments

Governments all over the world enacted lockdowns and restrictions in response to the COVID-19 epidemic, which had a detrimental effect on the world economy. To streamline their corporate operations, however, enterprises all around the world were compelled by the COVID-19 epidemic to switch to online platforms and apply digital technology-based solutions. Businesses adopted digital strategies to automate their internal business procedures. Along with the development of supportive government policies for the adoption of digital technology, key businesses are increasingly adopting digital strategies, which has further reinforced the market expansion.

Latest Trends

"Acquisition of Business to provide Clients with Individualized Experiences "

For an unknown sum, Microsoft Corp., a technology corporation with headquarters in the United States, bought Nuance Communications Inc. in March 2022. This acquisition will aid businesses in providing more individualized client experiences as well as more efficient, economical, and accessible healthcare. A U.S.-based firm called Nuance Communications specializes in conversational AI, NLP, and ambient intelligence for a variety of markets, notably telecommunications, financial sectors, medical, and retail. 

NLP and Transcription Services Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Natural Language Processing (NLP) and Transcription Services

• By Application Analysis

Based on application, the market can be divided into Automotive, Healthcare, Banking Financial Services and Insurance, IT and Telecom and Government, Defense & Aerospace

Driving Factors

"Growing Utilization for NLP Services in the Education Sector will aid in Market Broadening"

The market for NLP and transcription services continues to hold great promise for growth. Both offline and online education are in greater demand than ever. The increased need for education has also resulted in a wide range of publishing options for study guides, notes, and other educational tools for both teachers and students. Additionally, NLP services can help disabled people achieve equitable access to many basic channels in the education sector, making tools like these and transcribing services perfect for usage by these people. Furthermore, educational institutions can reach out to students from different backgrounds by using softwares like NLP services, which are affordable and convenient for all students. In order to interact with students from foreign countries and non-native speakers of the dominant language, higher education institutions can also benefit greatly from using NLP software. Global NLP and transcription services market growth will continue to be significantly influenced by the rising need for education and the growing allure of digitization in the context of COVID-19.

"Growing Demand for Banking Services will Simultaneously Boost the NLP Services Industry "

Globally, the banking industry has benefited greatly from digitization. The banking industry now has simple access to consumer financial data, an easy way to reach customers who require financial goods like loans, and costs that are distributed to millions of people worldwide for optimal cost-efficiency. It has become necessary to provide millions of people with automated services, such as digital assistants built on NLP, due to the increasing need for investment instruments like loans, credit cards, and insurance, among others. The banking sector currently provides customers with access to a variety of banking services, such as bank accounts, as well as personal assistants to help with problems and provide guidance. Global distribution of decreased costs due to digitization, growing need for NLP-based transcription, and increasing demand for banking services, and thus will pilot healthy thriving for the worldwide NLP and transcription services industry.

Restraining Factors

"Increasing Data Security Issues is Plausible to Obstruct Industry Development  "

The NLP and transcription services industry expansion is hampered by increasing data security worries and the lack of enterprise-wide compatibility of NLP-based technologies. A key function of IBM's Watson is authorship attribution, which is carried out using this programme. But security issues impede industry expansion because of this. Any business must pay a hefty price when it comes to malware and cybersecurity threats, which will probably slow market expansion.

NLP and Transcription Services Market Regional Insights

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"North America to Lead the Market due to Increased Investments in Technologies"

During the anticipated period, North America is anticipated to hold a leading NLP and transcription services market share globally. In the future years, the regional players will continue to grow as a result of increased investment in technologies like AI, 5G, and automation. With investments in supporting technologies like the cloud, data servers, and intelligent computing, the region will probably continue to lead the world in total revenues in the transcription services sector. Key industries in AI technology, like Google, among others, are still based in the United States.

Due to the youthful population's thirst for digitization and the region's expanding development in smartphone technology and 5G, Europe will continue to be one of the most innovative regions in the world. This will lead to significant improvement in the regional NLP services industry.

Key Industry Players

"Major Competitors are Focused on R&D Projects and Activities which Aim at Creating New Technologies"

The global market for NLP and transcription services is only slightly fragmented. Major businesses have well-established facilities, participate in strategic alliances, mergers, and acquisitions, as well as numerous research and development projects and activities aimed at creating and implementing new and more effective products and technologies in the transcription services industry. Besides this, the major competitors are involved in various growth methods to promote the sales of the products and stay ahead of competitors and increase their customer base as well as geographical reach.

List of Market Players Profiled

• Nuance Communications, Inc. (U.S.)
• Microsoft Corporation (U.S.)
• SAS Institute (U.S.)
• IBM Incorporation (U.S.)
• Amazon Inc. (U.S.)
• M*Modal (U.S.)
• McGowan Transcriptions (U.K.)
• 3M Company (U.S.)
• Marten Walsh Cherer Ltd (U.K.)
• Oracle Corporation (U.S.)
• Linguamatics (U.K.)
• GoTranscript (U.K.)
• Conscriptor AB (Sweden)
• Google LLC (U.S.)

Report Coverage

This report covers the NLP and transcription services market. The CAGR expected to be in during the forecast period, and also the USD value in 2021 and what it is expected to be in 2031. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.