Text Analytics Market Analysis

Text Analytics Market Overview

The Text Analytics Market is projected to grow from USD 3.96 billion in 2024 to USD 11.91 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.73% during the forecast period (2024 - 2032). Additionally, the market size for text analytics was valued at USD 3.39 billion in 2023.

Large volumes of unstructured text data can be mined for insightful information by businesses using sophisticated algorithms and machine learning techniques are the key market drivers enhancing market growth.

Figure 1: Data Lakes Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Text Analytics Market Trends

Development of the text analytics market is driving the market growth

Market CAGR for the development of the text analytics market has been greatly aided by advances in artificial intelligence (AI) and natural language processing (NLP) technologies. Large volumes of unstructured text data can be mined for insightful information by businesses using sophisticated algorithms and machine learning techniques. Due to this trend, sentiment analysis, entity recognition, and language translation tools have advanced. The need for real-time text analytics tools has grown significantly as the importance of quick responses and immediate decision-making has increased. As new trends emerge, brand reputation must be managed, and potential problems must be identified; businesses try to monitor social media platforms, news articles, and customer feedback in real-time.

Text analytics is being incorporated into business intelligence (BI) systems already in use to give users a complete picture of the data. Organizations can gain deeper insights and make well-informed decisions by combining structured data from conventional sources like databases with unstructured text data. It has become crucial for businesses to comprehend customer sentiment and preferences. Businesses can improve their products, services, and overall customer experience by using text analytics to improve their interactions and customer feedback. It is common practice in market research to use sentiment analysis, a key aspect of text analytics.

Sentiment analysis is used by businesses to determine consumer opinions, measure brand perception, and evaluate the effectiveness of marketing campaigns. With the aid of this data-driven methodology, marketing strategies can be improved, and the right audience can be targeted. Text analytics tools are being used increasingly for risk management and compliance monitoring. Text analytics is used by sectors like finance, healthcare, and legal services to examine documents, emails, and other textual content for regulatory compliance, fraud detection, and spotting potential risks. Thus, driving the text analytics market revenue.

Text Analytics Market Segment Insights

Text Analytics Component Insights

The text analytics market segmentation, based on components, includes software and services. The software segment dominated the market; software components enable automation and streamline text processing tasks, enhancing the effectiveness of analyzing and extracting priceless insights from massive amounts of text data. Software components with more sophisticated algorithms and natural language processing capabilities improve text analysis accuracy, producing more accurate findings and useful information. Software elements that automate text processing tasks require less manual input, saving businesses time and money on operational expenses.

Small and large businesses with various text analysis needs can use text analytics software components because they can be scaled to handle enormous amounts of data. Numerous software components that support multiple languages allow companies to analyze text data from various markets and geographical locations effectively. To understand customer sentiments and opinions and make wise decisions, businesses can benefit from sentiment analysis, a feature of text analytics software. These elements can extract new topics, trends, and patterns from textual data, offering insightful information for market research, product development, and marketing plans.

Figure 2: Text Analytics Market, by Components, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Text Analytics Application Insights

Based on application, the text analytics market segmentation includes customer experience management and workforce management. Customer experience management category generated the most income. Businesses can analyze unstructured textual data from sources like customer feedback, surveys, social media, and support interactions to gain deep insights into their customers' preferences, sentiments, and behaviors using CEM applications with Text Analytics capabilities. Text analytics enables CEM applications to process and analyze customer feedback in real-time, enabling businesses to address issues quickly, increase customer satisfaction, and keep repeat customers.

CEM applications can use text analytics to perform sentiment analysis, which allows companies to modify their marketing plans in response to customer sentiment about goods and services. Text analytics enables CEM applications to pinpoint the needs and preferences of specific customers, resulting in more individualized interactions and targeted marketing initiatives. Text analytics enables companies to proactively resolve problems before they worsen and affect customer satisfaction by assisting CEM applications in spotting potential issues and new trends.

Text Analytics Deployment Insights

Based on deployment, the text analytics market segmentation includes on-premise and cloud. Cloud category generated the most income. Cloud-based text analytics solutions can easily scale resources up or down as needed, allowing businesses to handle varying data and processing needs without significant infrastructure investment. The cloud eliminates the need for companies to invest in expensive hardware and infrastructure. Instead, it's a cost-effective solution because you can choose a pay-as-you-go model where you only pay for the resources you use. Cloud-based text analytics can be accessed from anywhere with an internet connection, allowing users to work remotely and enabling seamless collaboration from any location.

Text Analytics Vertical Insights

The text analytics market segmentation, based on vertical, includes BFSI, manufacturing, government, retail, and e-commerce. BFSI generated the most income. Text analytics enables BFSI institutions to quickly identify emerging threats, market trends, and potential risks by analyzing unstructured data from various sources, including news articles, social media, and financial reports. Better risk assessment and proactive risk management are made possible as a result. Text analytics can track and examine text-based information from customer interactions, emails, and transactions to find patterns suggestive of fraudulent activity. This enables prompt fraud detection and prevention.

Text Analytics Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American text analytics market area will dominate this market due to the technology's early adoption during the forecasted period. The region is rapidly embracing technologies like big data, artificial intelligence, the Internet of Things, cloud computing, and more, which is likely to increase demand for text analytics. Due to the importance of customer service and the growing awareness of competitive intelligence tools, the US is predicted to experience rapid growth. The demand for text analytics in the country is being driven by the escalating competition across industries like BFSI, healthcare, retail, and more will boost the market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: TEXT ANALYTICS SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's text analytics market accounts for the second-largest market share. The expansion of sectors like healthcare, retail, media, and entertainment, among others, in Europe is helping the continent gain momentum. The demand for text analytics is likely to be driven by the increasing competition in small and medium-sized businesses in Europe. Further, the German text analytics market held the largest market share, and the UK text analytics market was the fastest-growing market in the European region

The Asia-Pacific Text Analytics Market is expected to grow at the fastest CAGR from 2023 to 2032. This smart technology, the Internet of things, and artificial intelligence are increasingly adopted, and Asia Pacific is expanding quickly. The amount of structured and unstructured data being produced by these technologies is enormous. A large number of people use social media in nations like China, India, and Southeast Asia. This will probably result in more digital data being shared on social media platforms. Text analytics adoption is also likely to be influenced by the enormous demand for 5G, cloud, and connected technology. Moreover, China’s text analytics market held the largest market share, and the Indian text analytics market was the fastest-growing market in the Asia-Pacific region.

Text Analytics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the text analytics market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the text analytics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the text analytics industry to benefit clients and increase the market sector. In recent years, the text analytics industry has offered some of the most significant advantages to medicine. Major players in the text analytics market, including IBM Corporation (U.S.), SAP SE (Germany), SAS Institute Inc. (U.S.), Clarabridge Inc. (U.S.), OpenText Corporation (Canada), Megaputer Intelligence, Luminoso Technologies Inc. (U.S.) and others are attempting to increase market demand by investing in research and development operations.

IBM Corporation (U.S.), In order to assist clients in finding solutions to their most pressing business problems, we combine all required technology and services, regardless of where those solutions originate. When clients are pursuing the digital transformation of the world's mission-critical businesses, IBM integrates technology and expertise, offering infrastructure, software (including market-leading Red Hat), and consulting services for clients. They continued the history of sustainability leadership in 2021 when they declared a target of net-zero greenhouse gas emissions across all the nations where businesses by 2030. Customers are putting their aspirations into action with the aid of our data-driven sustainability solutions. IBM is constantly looking for the next big thing. Learn more about IBM Research's team of more than 3,000 scientists and researchers who firmly believe in the ability of the scientific method to create new things. For instance, setting the standard for quantum computing.

SAP SE (Germany) is redefining ERP and building networks of intelligent enterprises that provide transparency, resiliency, and sustainability across supply chains to help businesses of all sizes and in all industries run better. The market leader in enterprise application software. The customers can operate profitably, continuously adapt, and make a difference across the globe thanks to the comprehensive suite of applications and services we offer.

One of the world's top software developers for business process management, SAP creates products that streamline efficient data processing and information exchange between organizations. The business was founded in 1972 and was initially known as System Analysis Program Development (Systemanalyse Programmentwicklung), later becoming SAP. Since then, it has expanded from a five-person startup to a corporation with more than 105,000 staff members based in Walldorf, Germany.

Key Companies in the text analytics market include

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  IBM Corporation (U.S.)

  
  


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  SAP SE (Germany)

  
  


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  SAS Institute Inc. (U.S.)

  
  


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  Clarabridge Inc. (U.S.)

  
  


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  OpenText Corporation (Canada)

  
  


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  Megaputer Intelligence Luminoso Technologies Inc. (U.S.)

  
  

Text Analytics Industry Developments

March 2022: Google unveiled a number of AI-based improvements to the Workspace office tool and application suite for business teams to collaborate on projects. The business also unveiled Duet AI, which will help with text writing in Gmail and Google Docs and image generation for Slides, a PowerPoint-like slide presentation program. Additionally, it can sum up video conferencing conversations on Google Meet.

January 2022: AppTek and Expert announced the beginning of a strategic technology partnership to use AI-based text analytics on dynamic audio content that is available in a variety of languages. By combining the natural language understanding (NLU) capabilities of experts. ai with AppTek's industry-leading automatic speech recognition (ASR) and neural machine translation (NMT) technologies, the partnership enables businesses to use audio content in the unstructured data sets they manage for enhancing intelligent automation and enhancing decision-making.

Text Analytics Market Segmentation

Text Analytics Component Outlook

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  Software

  
  


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  Services

  
  

Text Analytics Applications Outlook

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  Customer Experience Management

  
  


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  Workforce Management

  
  

Text Analytics Deployment Outlook

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  On-Premise

  
  


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  Cloud

  
  

Text Analytics Vertical Outlook

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  BFSI

  
  


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  Manufacturing

  
  


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  Government

  
  


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  Retail

  
  


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  E-Commerce

  
  

Text Analytics Regional Outlook