Cloud Natural Language Processing (NLP) Market: Global Size, Share, Trends, Growth and Forecast Outlook 2022-2032

Cloud Natural Language Processing (NLP) Market Overview and Definition

The global cloud natural language processing market is anticipated to expand at a steady CAGR of 25.2% over the forecast period 2022-2032. The cloud natural language processing (NLP) market refers to the use of cloud computing technologies to process and analyze human language data, such as text and speech, to extract insights and meaning. The market includes various cloud-based NLP services and platforms, such as sentiment analysis, language translation, and text-to-speech conversion, and is driven by increasing demand for automated language processing and analysis across various industries, including healthcare, finance, and e-commerce. According to various market research reports, the global cloud NLP market is expected to grow significantly in the coming years, driven by increasing adoption of AI and machine learning technologies and the growing need for real-time language processing and analysis.

Natural language processing (NLP) is the subdivision of computer science and artificial intelligence (AI) that gives computers an ability to understand text and spoken words in the same way human beings can. It is an automatic manipulation of natural language, such as speech and text, by software. It combines computational linguistics with machine learning, statistical, and deep learning models. It drives computer programs to translate text from one language to another, summarize large volumes of text rapidly, and respond to spoken commands. For instance, IBM Watson Natural Language Understanding uses deep learning to extract metadata and meaning from unstructured text data.

The rising number of companies are using natural language processing (NLP) applications, such as sentiment analysis, to identify sentiment and opinions online to understand what customers think about their products and services.

Cloud Natural Language Processing (NLP) Market Key Drivers

There are several drivers contributing to the growth of the Cloud Natural Language Processing (NLP) market, including:

  • Increasing demand for AI and machine learning technologies across various industries, including healthcare, finance, and e-commerce.
  • Growing need for real-time language processing and analysis, particularly in areas such as customer service and social media monitoring.
  • Increasing adoption of cloud computing technologies and the rise of big data analytics.
  • Advancements in deep learning algorithms and natural language processing techniques.
  • Growing awareness of the benefits of cloud-based NLP solutions, such as scalability, flexibility, and cost-effectiveness.
  • Increasing availability of open-source NLP software and APIs, which have reduced the barriers to entry for smaller businesses and developers.

Top Impacting Factors

Various factors such as upsurge in adoption of smart devices along with the increasing adoption of cloud natural language processing technology in healthcare settings drives growth of the market. For instance, in January 2021, Pryon Inc., a an AI company focused on enterprise knowledge management, launched an NLP platform that helps the companies to add no-code AI capabilities as well as deploy NLP projects with the help of smart devices and virtual assistants. IN addition to this, surge in digitisation across the hospitals and healthcare facilities has generated massive amount of data. Hence, these facilities are making significant investments in analytics-driven NLP technologies to gain insight from the valuable data. 

Moreover, increase in demand for cloud-based NLP solutions to reduce overall costs is expected to drive the NLP market growth. However, complexities owing to the usage of code-mixed language while implementing cloud NLP may hamper growth of the market to some extent. 

On the other hand, rise in demand for advanced text analytics coupled with the growing machine-to-machine technology creates lucrative growth opportunities for the market growth.

Latest Trends

The increasing scalability among businesses as well as the extensive adoption of advanced technologies, such as cloud-based services, artificial intelligence (AI), and machine learning (ML) have boosted demand for Cloud Natural Language Processing (NLP). In addition, cloud NLP is experiencing growth in healthcare centres, as many healthcare facilities are using this technology to analyse and ingest massive amounts of patient data. 

In addition to this, most of the cloud NLP advances had been focused on English language. However, there is rising trend among the companies such as Google and Facebook who are publishing pre-trained multilingual models, which perform same as the monolingual models. 

Moreover, there is rising demand to automate customer service tasks to help them handle customer enquiries in a faster and effective way. Hence, there is growing trend of integrating the NLP tools with help desk software to automate tedious tasks such as tagging and routing customer support tickets, freeing agents from time-consuming & tedious tasks, and enabling them to focus on higher-value tasks.

Cloud Natural Language Processing (NLP) Market Challenges

While the Cloud Natural Language Processing (NLP) market presents many opportunities, there are also several challenges to be aware of, including:

  • Data privacy and security concerns, as NLP solutions often require access to sensitive data.
  • Difficulties in accurately processing and interpreting natural language, particularly for languages with complex grammatical rules.
  • Lack of standardization across NLP solutions, which can make it difficult to compare and integrate different tools and platforms.
  • Difficulty in integrating NLP solutions with existing enterprise systems and workflows.
  • Cost concerns, as some cloud-based NLP services can be expensive, particularly for businesses with large datasets or complex requirements.
  • Need for specialized expertise, as effective implementation of NLP solutions often requires knowledge of machine learning, linguistics, and other technical fields.

Cloud Natural Language Processing (NLP) Market Segmentation

Global Cloud Natural Language Processing (NLP) market segmentation is based on the product, deployment model, technology, application, and end-use and region.  Based on the product, the Cloud Natural Language Processing (NLP) market is segmented into rule based, statistical, hybrid. Based on the deployment mode, it is segregated into public, private, and hybrid. According to the technology, the market is divided into recognition, analytics, and operational. As per the applications, it is categorized into information extraction, processing & visualization, machine translation, and question answering. According to the industry bertical, the market is segmented into BFSI, retail & e-commerce, it & telecommunication, defence, government, healthcare, energy & utility. Based on the region, it is segregated into North America, Asia Pacific, Europe, Latin America and Middle East and Africa. 

Cloud Natural Language Processing Market : Report Scope

Base Year Market Size


Forecast Year Market Size


CAGR Value




  • By Deployment Model
  • By Organization Size
  • By Industry Vertical
  • By Region



  • High Costs
  • Data privacy and security concerns
  • Lack of standardization
  • Need for specialized expertise


Growth Drivers

  • Increasing demand for AI and machine learning
  • Growing need for real-time language processing and analysis
  • Increasing adoption of cloud computing technologies
  • Growing Awareness
  • Increasing availability of open-source NLP software

Cloud Natural Language Processing (NLP) Market Regional Synopsis

On the basis region, the Global Cloud Natural Language Processing (NLP) Market is segmented into North America, Asia Pacific, Europe, Latin America and Middle East and Africa. North America accounted for the largest share in the Cloud Natural Language Processing (NLP) Market. This is mainly attributed to the surge in adoption of advanced technologies in countries such as Canada and the U.S. along with the increasing usage of associated services. For instance, as per the study by RichRelevance, the provider of personalized shopping experiences, online shoppers in the United States are more inclined to use Google Assistant than the other platforms. In addition to this, increasing data generation and the growing advances in cloud computing platforms has boosted demand for cloud natural language processing in the region., 

However, the Asia-Pacific is expected to grow at the highest growth rate during the forecast period. Growth of this region is mainly driven by the growing popularity and adoption of cloud computing technology, mainly across China and India. In addition to this growth in purchasing capabilities of people along with the increased usage of voice recognition applications has boosted growth of this region. 

Cloud Natural Language Processing (NLP) Market: Recent Developments

The Cloud Natural Language Processing (NLP) market is constantly evolving, with several recent developments worth noting, including:

  • Growing focus on explainable AI, which seeks to increase transparency and understanding of how NLP models arrive at their decisions.
  • Increasing use of pre-trained language models, which can speed up development and improve accuracy of NLP solutions.
  • Growing availability of specialized NLP solutions for specific industries, such as healthcare and legal services.
  • Advancements in voice recognition technology, which is driving increased adoption of speech-to-text and other voice-based NLP solutions.
  • Growing use of cloud-based NLP solutions for social media monitoring and analysis, particularly for reputation management and brand monitoring.
  • Emergence of new NLP standards and best practices, which seek to increase interoperability and compatibility across different platforms and tools.

Cloud Natural Language Processing (NLP) Market Key Players

  • Amazon Web Services
  • Apple Inc
  • IBM
  • HPE
  • SAP SE
  • Nuance Communication
  • Baidu
  • Dolbey Systems
  • Facebook
  • Netbase Solutions
  • Fuji Xerox
  • Lexalytics
  • SAS
  • Verint systems
  • Microsoft

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  • Publication date: 22nd October 2023
  • Base year: 2022
  • Forecast year: 2023-2033
  • Format: PDF, PPT,Word,Excel

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Frequently Asked Questions(FAQ)

Cloud natural language processing (NLP) refers to the use of cloud computing resources and infrastructure to perform natural language processing tasks, such as text analysis, sentiment analysis, language translation, and speech recognition.

Using cloud NLP can offer several benefits, including improved scalability and flexibility, reduced costs, and access to advanced machine learning and artificial intelligence tools.

Cloud NLP is used in a wide range of applications, including chatbots and virtual assistants, customer service and support, content analysis and categorization, and fraud detection and prevention.

Some of the major players in the cloud NLP market include Amazon Web Services, IBM Corporation, Google LLC, Microsoft Corporation, and SAP SE.

The Asia-Pacific region is currently experiencing the highest growth in the cloud NLP market, due to factors such as the growing demand for customer service and support solutions in the region.

The cloud NLP market faces challenges such as the need to develop more accurate and reliable NLP algorithms, the potential impact of data privacy and security regulations on NLP applications, and the need to address biases and ethical concerns in NLP.

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