“Global Text Analytics Market to reach a market value of USD 32.00 Billion by 2031 growing at a CAGR of 17.6%”
The Global Text Analytics Market size is expected to reach $32.00 billion by 2031, rising at a market growth of 17.6% CAGR during the forecast period.
The North America segment witnessed 41% revenue share in the market in 2023. The region's technological advancements and widespread adoption of analytics tools across industries drive the market. The presence of major players such as IBM, Microsoft, and Google has accelerated innovation, making cutting-edge text analytics solutions readily available. Industries like retail, BFSI, and healthcare extensively leverage these tools to analyze customer feedback, detect fraud, and ensure regulatory compliance.
The extensive utilization of social media and digital platforms has fundamentally changed the manner in which individuals and enterprises communicate, disseminate information, and engage with one another. With billions of users actively participating on platforms such as Facebook, Instagram, Twitter, LinkedIn, and TikTok, there has been an unprecedented surge in user-generated content. This content includes everything from reviews, comments, and tweets to blogs, videos, and discussion threads. Hence, the increased use of social media and digital platforms has amplified the volume of user-generated content and emphasized the importance of advanced tools like these analytics.
Additionally, Integrating Artificial Intelligence (AI) and Machine Learning (ML) into these analytics has revolutionized how organizations process and interpret textual data. One of the most notable improvements driven by AI and ML is in the domain of Natural Language Processing (NLP), which focuses on enabling machines to understand, interpret, and respond to human language meaningfully. NLP, powered by AI and ML, has significantly advanced in recent years, allowing these analytics tools to comprehend complex linguistic nuances, such as context, tone, and sentiment. Thus, adopting AI and ML in these analytics has increased its capabilities.
However, Analyzing textual data frequently involves handling sensitive and confidential information, such as customer feedback, emails, medical records, or financial data. Organizations must tread carefully to protect this data from breaches, misuse, or unauthorized access. Failure to do so can lead to significant legal and reputational consequences. For instance, compliance with stringent data protection regulations like the General Data Protection Regulation (GDPR) in Europe, the Health Insurance Portability and Accountability Act (HIPAA) in the United States, and the California Consumer Privacy Act (CCPA) are mandatory for businesses operating in respective jurisdictions. Hence, these challenges may hamper the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on component, the market is bifurcated into software and services. The services segment procured 35% revenue share in the market in 2023. The complexity of setting up and maintaining advanced analytics systems often requires tailored services, including consulting, integration, and ongoing support. Managed services are in high demand as businesses outsource these tasks to specialized providers, ensuring their analytics systems remain efficient and up-to-date.
On the basis of deployment type, the market is divided into on-demand and on-premise. The on-premise segment garnered 35% revenue share in the market in 2023. In order to comply with strict data privacy and security regulations, businesses in highly regulated industries like government, healthcare, and finance usually prefer on-premise deployments. On-premise solutions offer the ability to store and process data within the organization’s infrastructure, reducing risks associated with data breaches or compliance violations.
By enterprise size, the market is bifurcated into large enterprises and SMEs. The SMEs segment acquired 35% revenue share in the market in 2023. Small and medium-sized enterprises, often with limited resources, leverage text analytics to automate processes, gain customer insights, and improve decision-making. The availability of subscription-based models and pay-as-you-go pricing structures has made these tools accessible to SMEs, enabling them to compete with larger organizations.
Based on industry vertical, the market is segmented into retail, BFSI, travel & hospitality, media & entertainment, healthcare, telecom & IT, and others. The BFSI segment witnessed 19% revenue share in the market in 2023. Financial institutions use text analytics to analyze transaction logs, customer complaints, and regulatory documents to identify potential fraud and ensure adherence to legal standards. For instance, banks leverage sentiment analysis to assess customer feedback and improve service quality, while insurers use text mining to detect anomalies in claims processing.
On the basis of application, the market is classified into customer experience, marketing, GRC, document management, workforce management, and others. The marketing segment acquired 22% revenue share in the market in 2023. Text analytics is widely used to analyze campaign performance, monitor brand sentiment, and track trends across social media platforms. By comprehending consumer preferences and behaviors, businesses are able to develop targeted advertisements, promotions, and content that effectively engage their audience.
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Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment garnered 28% revenue share in the market in 2023. The implementation of stringent regulations such as the General Data Protection Regulation (GDPR) has driven the demand for text analytics solutions to monitor and manage compliance efficiently. Industries like BFSI, healthcare, and the government utilize these tools to ensure regulatory adherence and mitigate risks.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 8.86 Billion |
| Market size forecast in 2031 | USD 32.00 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 17.6% from 2024 to 2031 |
| Number of Pages | 351 |
| Number of Tables | 650 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Deployment Type, Enterprise Size, Industry Vertical, Application, Region |
| Country scope |
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| Companies Included | Qualtrics, LLC, IBM Corporation, Luminoso Technologies, Inc., Megaputer Intelligence, Inc., Microsoft Corporation, Micro Focus International PLC (Open Text Corporation), Oracle Corporation, SAP SE, SAS Institute Inc., and Averbis GmbH |
By Component
By Deployment Type
By Enterprise Size
By Industry Vertical
By Application
By Geography
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