Text Analytics Market Report Scope & Overview:

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The Text Analytics Market size was recorded at USD 9.55 billion in 2023 and is expected to reach USD 41.2 billion in 2032, growing at a CAGR of 17.65% Over the Forecast Period of 2024-2032.

Growing demand for text analytics with continuous shifting to alternate data sources a further surge and growth of text analytics is being portrayed due to the emerging need that is derived to bring insight from unstructured data powered by social media, online reviews, and customer feedback. This growth is driven by increasing demand for predictive analytics and better customer experience through analysis of unstructured text data for actionable insights. For instance, retail and e-commerce use text analytics to interpret customer behavior, demand, or preference leading to target marketing strategies that tend towards increased sales and loyalty. According to companies' surveys on text analytics, eighty to ninety percent of the data that businesses generate and collect is unstructured data, and the volumes of this data are growing rapidly. Companies like Amazon use text analytics to improve product recommendations by better-understanding customer reviews and feedback. In user engagement, this affects satisfaction. By the year 2024, it is forecasted that text analytics will make up some 15% of this broad analytics market, which houses many diverse tools and technologies for data analysis. Text analytics is also applied to fraud detection and risk management within financial services companies to ensure better efficiency of operations and strengthening of security measures across organizations.

Market Dynamics

Drivers

• The growing demand for social media analysis and brand awareness is likely to drive the demand for text analytics solutions.

• Additionally, the increasing focus on competitive intelligence and efficient customer services is expected to boost the text analytics market.

• Business predictive analytics

Considering the disruptive evolution of the Internet of Things (IoT) and big data technologies, predictive analytics will continue to have a considerable rise and remain one of the major reasons driving the overall growth of the text analytics market. Predictive analytics locates potential outcomes and creates predictive models using historical data, statistical algorithms, and machine-to-machine (M2M) learning. Leading businesses have discovered that by integrating potent text analytics software into their current processes, they would be able to immediately combine all these elements, map a sizable amount of data sets, and include valuable third-party data to improve the analysis and results. Employing sophisticated processing and rich data visualization tools to visually witness outcomes and situations, would assist businesses in improving the output of the prediction models. Text analytics offers predictive analytics with precise sentiment data analysis, which may uncover spatial relationships or trends that would otherwise be challenging to find. By analyzing both the present and historical data to forecast future results, text analytics tools help users make crucial business decisions. The need for predictive analytics among enterprises is anticipated to be a significant driving force for the text analytics market as a result of these factors.

Restrains

• Lack of knowledge, qualified personnel, and additional operational difficulties

The general use of text analytics will rise as a direct result of raising end-user understanding of how text analytics can transform enormous data sets into insightful information. Due to the complexity of big data, only a few text analytics software providers are present on the market and provide text analytics solutions. Today's software provides big data analytics and enables real-time analysis with a user-friendly interface thanks to technological advancements. Even today, a sizable portion of information accessible both inside and outside of organizational boundaries still consists of text-based material. Big data and text analytics will help firms examine the crucial data that is crucial to their decision-making processes but may have gone untapped up until now. The usage of location analytics software and services is anticipated to rise, particularly in the growing economies of APAC and Latin America, as clients become more aware of the fundamentals of the technology and its advantages.

Key Market Segmentation

By Component

In this segmentation, the Software segment led the text analytics market with more than 50% of the revenue share in 2023. The reason for this is that the software segment holds the maximum share in the text analytics market, due to the overall wide adoption of text analytics software solutions. This is because these software solutions are equipped with advanced text mining algorithms and NLP technologies, which efficiently help in making meaningful insights from huge amounts of unstructured textual data. According to market data, the software segment contributed to about 60% of the global text analytics market in 2023. Now, the huge share reflects how important software is in making it efficient for organizations to process and analyze textual information quickly. The software segment includes applications like sentiment analysis, machine translation, and bioinformatics. For instance, sentiment analysis tools are very instrumental to businesses in estimating consumer opinion and feedback because they give insights into consumer behavior and brand perception. For instance, the core prominent sentiment analysis tools, like Lexalytics' Semantria, assist companies in understanding and classifying the emotions of the customer through textual data.

By Application

In this segmentation, Customer Relationship Management (CRM) held dominance with more than 30% of the market share in 2023. The key factor attributing to the growth of text analytics is the rising necessity in business organizations across various industry verticals to interpret customer relativities, thereby evaluating future marketing strategies. Specifically, text analytics tools in CRM allow businesses to analyze their customer feedback and reviews so that they can look for common themes about what people are saying or asking which helps us better strategize our email marketing strategies as well as improve product. Examples include text analytics to inform stakeholders on the determination of customer sentiment (Salesforce Einstein Analytics). The market report on CRM reveals that this ability helps to have personalized interactions, which results in up to 20% higher customer satisfaction and a retention increase of nearly 15%. Text analytics also improves the efficiency of your CRM operations by automating this process, ensuring that customer inquiries are sorted and prioritized accurately leading to quicker response times. Zendesk, for instance, uses text analytics to accurately categorize and route customer tickets leading to improved support operations.

By End-user

In this segmentation, Text analytics is conceivably revolutionizing retail because it processes and analyzes the huge amount of text data that comes from many entities into meaningful information. Through customer reviews, social media posts, and other textual information retailers can mine to better understand the preferences, behavior, or needs of a single shopper. This allows them to deliver bespoke promotions, improve in-store experiences, and stay one step ahead of their competitors. Retailers can maximize the use of text analytics to combine AI-based capabilities, centralize diverse data sources, and deploy insights that help predict customer intent at scale. At the end of the day, text analytics is responsible for market growth as it delivers data to retailers which are required to make decisions and improve their customer satisfaction rates leading towards business strategy optimization.

Regional Analysis 

North America dominated the text analytics market, having a revenue share of over 40% in 2023, due to increased adoption of text analytics in various domains such as BFSI, Retail, Healthcare, etc. It is also actively adopting advanced and complex technologies like big data, artificial intelligence, the Internet of Things, and cloud computing. This wide adoption is likely to further boost the demand for text analytics. In particular, it is foreseen that the United States region would grow rapidly with new realization about competitive intelligence tools and use for customer service. Other major factors include intensifying competition in BFSI, healthcare, and retail industries, amongst others, adding to the demand for text analytics within the country.

The region consists of two major developed economies of the world, the USA and Canada. Digitalization of the healthcare industry in the USA is trending and creates an opportunity for the text analytics market due to its application in providing valuable insights to healthcare companies about bettering customer services. For instance, in December 2022, Tampa General Hospital collaborated with Palantir Technologies Inc.—a company developing operating systems for the modern enterprise—to deliver the best possible care for patients by operationalizing data and analytics across a connected hospital platform for excellence in operational, research, and clinical care.

The text analytics market is also gaining considerable momentum across Europe, largely driven by the growth of industries such as healthcare, retail, media, and entertainment. The rise of competition among small and medium-scale enterprises in this region is mounting and is further fueling demand for text analytics.

On the other hand, with increasing smart technology, the Internet of Things, artificial intelligence, and other related developments, Asia Pacific has been growing at a superfast pace. All of these are producing vast amounts of structured and unstructured data. However, countries like China, India, and Southeast Asia have the highest rate of usage in terms of social media. This will probably raise the level of digital data shared on social media. The huge demand for 5G, cloud, and connected technology will also fuel the adoption of text analytics. Both regions of the Middle East and Latin America are also likely to grow at a steady pace during the forecast period. The popularity of text analytics will surge in the demand for cheaper solutions for data analysis in such areas.

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Key Players:

The prominent market players are Microsoft Corporation, Luminoso Technologies, Inc., HP Enterprise, IBM Corporation, Knime.Com AG, RapidMiner, Inc., SAS Institute, Inc., OpenText Corporation, Indium Software, Bitext Innovations S.L., Infegy, Inc., Brandwatch, Lexalytics, Inc., Netbase Solutions, Clarabridge, SAP SE, Megaputer Intelligence, Inc., and others in a final report.

Recent Development

• New multibillion-dollar investment in Open AI, the company that makes ChatGPT for Microsoft announced January 2023 A ChatGPT generates text based on written prompts unlike chatbots, but in a more creative and refined way. Using this funding, the company will accelerate the development of AI and both parties plan to commercialize state-of-the-art technologies.
• The acquisition of Text Analytics Company “Clarabridge” by Qualtrics in 2023, expanded Qualtrics’ capabilities in customer experience analytics.
• In May 2023, Google revealed several AI-powered enhancements to its Workspace office toolkit, which enables corporate teams to work together on projects. The business also unveiled Duet AI, which will help with image creation for Slides, an application that looks like PowerPoint, and text authoring in Gmail and Google Docs. Moreover, it can condense talks on the video conferencing platform Google Meet.