Text Analytics Market

Text Analytics Market Overview:

The global text analytics market size reached US$ 8.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 33.0 Billion by 2032, exhibiting a growth rate (CAGR) of 15.5% during 2024-2032. There are various factors that are driving the market, which include the growing adoption of big data analytics and artificial intelligence (AI), rising utilization of social media, increasing focus on cloud computing, and advancements in natural language processing (NLP).

Text Analytics Market Analysis:

• Major Market Drivers: The market is experiencing robust growth, driven by the increasing focus on enhanced user experience and the rising demand in legal applications.
• Key Market Trends: The increasing utilization of social media and increasing focus on cloud computing are key market trends.
• Geographical Trends: North America exhibits a clear dominance, accounting for the biggest market share owing to high investment in research and development (R&D) activities.
• Competitive Landscape: Various market players in the text analytics industry are Clarabridge, Infegy, International Business Machines Corporation, Lexalytics Inc., Luminoso Technologies Inc., Microsoft Corporation, Open Text Corporation, Oracle Corporation, SAP SE, SAS Institute Inc., Tableau Software LLC (Salesforce.com Inc), The Hewlett Packard Enterprise Company and TIBCO Software Inc., among many others.
• Challenges and Opportunities: Security and privacy concerns represent a key market challenge. Nonetheless, rising preferences for customized solutions for several industries, along with the increasing demand for user insights, is anticipated to overcome these challenges and offer recent market opportunities.

Text Analytics Market Trends:

Rising Utilization of Social Media

At the beginning of July 2024, there were approximately 5.17 billion social media users worldwide, according to Datareportal. User-generated material is becoming an increasingly valuable resource for companies looking to better understand their target individuals on social media platforms. Considering the billions of posts, comments, reviews, and conversations that happen on social media platforms every day, businesses now have access to enormous amounts of unstructured and real time data. However, the sheer volume of this data makes manual processing and analysis practically unfeasible. Text analytics gives businesses the means to extract meaningful insights from their material.

Increasing Adoption of Big Data and Artificial Intelligence (AI)

On 31 August 2023, IBM and Salesforce collaborated to help businesses accelerate their adoption of AI for customer relationship management (CRM). Companies like these support clients to revolutionize customer, partner, and employee experiences, while helping safeguard their data. The growing need for big data and AI is offering a favorable text analytics market outlook. Computers can now automatically recognize patterns, extract meaning, and produce insights from textual material just because of AI and machine learning (ML) technologies that would be impossible to study manually. Text analytics converts unstructured data into structured insights, enabling businesses to make data-driven decisions. Organizations can also identify reoccurring problems or features that users request regularly by examining user evaluations and comments. This information can then be used to inform future product enhancements.

Growing Adoption of Cloud Computing

The increasing focus on cloud computing, along with the adoption of connected devices, are major text analytics market growth drivers. Cloud computing allows businesses to easily scale their text analytics capabilities based on their needs. Organizations dealing with vast amounts of unstructured data such as social media content, emails, or customer feedback can process data on-demand without needing to invest heavily in physical infrastructure. Cloud platforms are offering flexible storage and computational power that allow businesses to analyze large datasets in real time. According to the IMARC Group, the global public cloud market is expected to reach US$ 3,934.2 Billion by 2032, exhibiting a CAGR of 19.9% during 2024-2032.

Text Analytics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on deployment model, organization size, application, and end user.

Breakup by Deployment Model:

• On-premises
• Cloud-based
   

On-premises account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the deployment model. This includes on-premises and cloud-based. According to the report, on-premises represented the largest segment.

On-premises provide greater control over sensitive data by keeping it within the organization’s infrastructure, which is crucial for ensuring compliance with regulatory frameworks. Companies with stringent compliance requirements prefer on-premises solutions to reduce the risk of data breaches or unauthorized access that may occur in cloud environments. On-premises solutions offer businesses a higher level of customization and control over the text analytics tools they use. Organizations can tailor the software to meet their specific operational needs, which is particularly important for large enterprises with complex workflows. These advantages are expected to provide a positive text analytics market forecast.

Breakup by Organization Size:

• Large Enterprises
• Small and Medium Enterprises (SMEs)
   

Large enterprises hold the largest share of the industry

A detailed breakup and analysis of the market based on the organization size have also been provided in the report. This includes large enterprises and small and medium enterprises (SMEs). According to the report, large enterprises account for the largest market share.

Large enterprises produce and handle massive volumes of data daily from customer interactions, social media platforms, internal communications, and external documents. These organizations need powerful tools to process and extract actionable insights from this unstructured data, which helps inform business strategies and decision-making processes. These enterprises usually have the resources and budgets to invest in advanced and comprehensive text analytics solutions. They seek to implement cutting-edge technologies as to improve their ability to analyze vast data sets and gain competitive advantages.

Breakup by Application:

• Competitive Intelligence
• Customer Relationship Management
• Predictive Analytics
• Fraud Detection
• Brand Reputation
• Others
   

Customer relationship management represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes competitive intelligence, customer relationship management, predictive analytics, fraud detection, brand reputation, and others. According to the report, customer relationship management represents the largest segment.

Customer relationship management (CRM) relies heavily on text analytics to analyze user interactions across multiple channels including social media, chat logs, emails, and customer reviews. Businesses can gain a deeper understanding of user requirements, preferences, and needs by deriving insights from various unstructured data sources. They can better satisfy user expectations by customizing their services and marketing methods. They can also use text analytics to classify and rank specific questions and comments according to urgency.

Breakup by End User:

• Fast Moving Consumer Goods (FMCG)
• Banking Financial Services and Insurance (BFSI)
• Healthcare and Pharmaceuticals
• Telecommunication
• Government
• Retail
• Others
   

Fast moving consumer goods (FMCG) exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes fast moving consumer goods (FMCG), banking financial services and insurance (BFSI), healthcare and pharmaceuticals, telecommunication, government, retail, and others. According to the report, fast moving consumer goods (FMCG) account for the largest market share.

Fast moving consumer goods (FMCG) companies typically receive vast amounts of user feedback through various channels including social media, product reviews, surveys, and customer service interactions. Text analytics helps these companies analyze this feedback to understand individual preferences, satisfaction levels, and product performance. In the competitive FMCG sector, brand reputation is crucial. Text analytics allows companies to monitor brand sentiment and track public perception in real time. By analyzing mentions and discussions on social media and review platforms, FMCG brands can quickly identify potential issues or crises and take corrective actions to protect their reputation.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest text analytics market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for text analytics.

North America is home to some of the world's leading technology companies and research institutions, which foster innovation and development in text analytics solutions. The presence of advanced technological infrastructure facilitates the adoption of cutting-edge tools and methodologies, allowing businesses to leverage text analytics effectively. Moreover, the United States is witnessing rapid adoption of big data analytics and artificial intelligence (AI) across various industries. The United States data analytics market is anticipated to exhibit a CAGR of 26.80% during 2024-2032, as claimed by the IMARC Group.

Competitive Landscape:

• The text analytics market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the text analytics industry include Clarabridge, Infegy, International Business Machines Corporation, Lexalytics Inc., Luminoso Technologies Inc., Microsoft Corporation, Open Text Corporation, Oracle Corporation, SAP SE, SAS Institute Inc., Tableau Software LLC (Salesforce.com Inc), The Hewlett Packard Enterprise Company and TIBCO Software Inc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Top market players are investing in capabilities for real time text analytics, enabling businesses to gain insights from user interactions and market data. Companies are continually improving their text analytics solutions by integrating advanced technologies like NLP, ML, and AI. This allows for more accurate sentiment analysis, topic extraction, and entity recognition. They are also developing intuitive user interfaces to make it easier for non-technical users to utilize text analytics tools effectively. For instance, on 30 May 2023, InnovateMR announced significant enhancements to its revolutionary product, the Text Analyzer™. It is designed to streamline the analysis of open-ended text responses and offers an even more robust and sophisticated approach to ensuring data quality, helping researchers extract meaningful insights efficiently and accurately. All these factors provide text analytics industry overview.

 
Text Analytics Market News:

• 10 October 2023: Microsoft introduced new data and AI solutions that help healthcare organizations take advantage of the breadth and scale of Microsoft Cloud for Healthcare and unlock insights while improving patient and clinician experiences. The industry-specific data solutions in Fabric eliminates the costly and time-consuming process of stitching together a complex set of disconnected and multimodal health data sources like text, images, and videos. Moreover, text Analytics for health, an Azure AI Language service, applies ML intelligence to extract and label essential medical information from a variety of unstructured texts.

Text Analytics Market Report Scope:

Key Questions Answered in This Report:

• How has the global text analytics market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global market?
• What is the impact of each driver, restraint, and opportunity on the global market?
• What are the key regional markets?
• Which countries represent the most attractive market?
• What is the breakup of the market based on the deployment model?
• Which is the most attractive deployment model in the market?
• What is the breakup of the market based on the organization size?
• Which is the most attractive organization size in the market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global text analytics market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the text analytics market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the text analytics industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.