natural language processing (nlp) market - financial services outlook (2015-19)

NLP Market - Outlook (2015-19) for Financial Services

[email protected]+1-408-469-4380

+91-80-6134-1500www.researchfox.com

1

ResearchFox Consulting is an Indian market research and consulting firm based in Bangalore. We strive to provide our clients with research data and reports which they can trust and analyze. Insights gleaned from our detailed and comprehensive research reports helps our clients stay ahead of trends. ResearchFox serves clients with services from data collection to analysis and reports. ResearchFox has extensive sector expertise and its consultants are abreast of global trends and issues across industries. Our areas of expertise include Manufacturing, IT, FMCG, Healthcare, Automotive, Government Sector and NGO, BFSI and Retail.

Disclaimer :This report is furnished to the recipient for information purposes only. Each recipient should conduct their own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of ResearchFox Consulting Pvt.Ltd. contained in this report for any purpose. ResearchFox Consulting Pvt. Ltd. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of ResearchFox Consulting Pvt.Ltd.

Copyright © 2015. ResearchFox Consulting Private Limited

2

Tableof Contents

1. Introduction1.1. Report Description1.2. Objective1.3. Scope of the Research1.4. Regions Covered1.5. Key Takeaways1.6. Key Stakeholders1.7. Key Terminologies1.8. List of Abbreviations

2. Executive Summary2.1. Executive Overview

3. Research and Forecasting3.1. Research Methodology3.2. Forecasting Methodology

4. Industry Landscape4.1. Market Size and Growth4.2. Competitive Landscape4.3. Market Share4.4. Company Classification4.5. Region Outlook4.6. Market Metrics4.7. Porter's Five Forces Model4.8. Key Drivers Analysis4.9. Key Constraints Analysis4.10. Key Opportunities Identified4.11. Key Challenges Identified

5. Market Segmentation5.1. Industry 5.1.1. Financial Services

5.1.1.1. Market Size and Forecasting 5.1.1.2. Key Drivers Analysis 5.1.1.3. Key Constraints Analysis 5.1.1.4. Key Opportunities Identified 5.1.1.5. Key Challenges Identified 5.1.1.6. Sub Segments

5.1.1.6.1. Region : North America 5.1.1.6.2. Region : Europe 5.1.1.6.3. Region : APAC 5.1.1.6.4. Region : ROW

3

dfgfd dfgfdh dfgfh dfhgf

Introduction 01 4

1. Introduction

1.1. Report Description

With growing usage of computers, Internet, smartphones and other personal devices, the need for human and machine level interaction has increased. Businesses to individual users now want machines that respond to their queries, assist them in their day-to-day operations and all-in-all make their life easier and organized. This has given rise to increased demand for technologies like Natural Language Processing (NLP) which is now being rapidly commercialized. NLP, which was earlier a topic of research for various educational and research organizations is now growing to be a commercial product.

Additionally, there is growing technology advancement in smartphones, biometrics and social media which has forced the organizations to bring the enhanced customer service experience which in-turn is driving the demand for NLP based solutions. Language processing tools that were developed earlier concentrated only on few languages and were used largely in developed countries. However, with growing computing capabilities and businesses going global, the need for multi-lingual language processing tools is growing and this has paved way to development of new and advanced version of Natural Language Processing tools.

This report presents interpretative and easy-to-understand facts on how the current NLP market is segmented based on end-user, verticals, application types, technology, solution type and geographies. It cuts through several facets of the NLP market such as market size, market share for each segment, the drivers and constraints of Natural Language Processing marketplace. It also throws light on various verticals where NLP is being rigorously implemented and the NLP applications that are most sought after. Report also provides information on the challenges and opportunities that lie ahead for these solutions.

1.2. Objective

1. To understand the NLP market across the globe by addressing the challenges faced by the industry with regards to the adoption of NLP.2. To estimate the size of present global NLP market and to forecast its future values.

1.3. Scope of the Research

Scope of the research was limited to understanding the market share across segments. Key drivers, constraints and challenges along with their impact on various business functions in both short term and long term were addressed. Segmentations and forecasting were done based on:1. End user2. Applications3. Verticals4. Solution type5. Technology6. Region based segmentation

5

1.4. Regions Covered

1. North America (US, Canada and Mexico).2. Europe (United Kingdom, France, Germany, Italy, Spain).3. APAC (Australia, India, China, Japan, Singapore, and others).4.

1.5. Key Takeaways

The research conducted to understand NLP markets in different regions of the globe have revealed some valuable insights. Some of the key take away points involve information given below:1. North America has the highest market share whereas Europe is growing at a good pace.2. The market share of NLP is over USD 2489.71 million in 2014 and growing at an impressive CAGR of over 20%.3. Adoption of NLP is more among enterprises who generate large amounts of data and seek data that helps them in relevant decision making.4. Preference towards Statistical based NLP is increasing as businesses look for some kind of numbers and insights which help them to draw conclusions.5. High implemenatation costs and complexities are the major constraints that hold back small and mid-size companies from adopting these solutions.6. NLP based applications like machine translation, information extraction and report generation are the most popular applications among the users.

1.6. Key Stakeholders

1. NLP service providers: NLP service providers will be able to gauge the market more accurately as this will assist them in better decision making.2. NLP product development companies: NLP product developers will be able to assess the end-user market mood and accordingly develop products as per the changing requirements of customers.3. End-User companies: Report will provide the end-users, a more clear picture on the service provider demographics so that they can choose among the best.4. Global Investors: Those investors who look to fund new and budding NLP startups will get clearer picture about the market and its trends.5. Industry Watchers: Industry and trend watchers are always referred to as trusted advisors who follow markets. The report would add to their knowledge repository, creating value for their know-how.

6

1.7. Key Terminologies

1. NLP (Natural Language Processing): Natural language processing is the ability of a computer to understand human language. 2. Enterprise: Companies with an employee headcount above 1001 3. Mid-Size: Companies with an employee headcount between 501 and 1000 4. Small Business: Companies with an employee upto 500 5. Analytics: Analytics is defined as the scientific process of transforming data into insight for making better decisions. 6. Text Analytics: Text analytics leverages and learns from massive quantities of textual data to reveal customer intentions and sentiment. 7. Semantic Analysis: Analyzing, searching, and presenting information using explicit semantic relationships between known entities. 8. Sentiment Analysis: Sentiment analysis is the analysis of the feelings (i.e. attitudes, emotions and opinions) behind the words using natural language processing tools. 9. Big Data: Big data describes any voluminous amount of structured, semi-structured and unstructured data that has the potential to be mined for information. 10. North America: North America includes the countries - USA (United States of America), Canada and Mexico 11. Europe: Europe includes countries - UK (United Kingdom), France, Italy, Germany and Spain. 12. APAC (Asia Pacific): Asia Pacific includes countries - India, China, Japan, Philippines, and Australia. 13. Rest of World: Rest of World includes South Africa, Middle East Asia - UAE (United Arab Emirates), South America (Brazil and Argentina), Israel etc. 14. Virtual Assistants: A digital application which delivers personalized effortless customer service via a human-like conversational interface.

7

1.8. List of Abbreviations

1. APAC: Asia Pacific 2. API: Application Program Interface 3. B2B: Business-to-business 4. B2C: Business-to-consumer 5. CACS: Computer Assisted Coding Systems 6. CAGR: Compounded Annual Growth Rate 7. CRM: Customer Relationship Management 8. ERP: Enterprise Resource Planning 9. ICD: International Classification of Diseases 10. IT: Information Technology 11. ITES:Information Technology Enabled Services 12. IVR: Interactive Voice Response 13. NLP: Natural Language Processing 14. NLU: Natural Language Understanding 15. OCR: Optical Character Recognition 16. OEM: Original Equipment Manufacturer 17. PR: Public Relations 18. SaaS: Software-as-a-Service 19. UK: United Kingdom 20. USA: United States of America 21. USD: United States Dollars

8


Executive Summary 02 9

2. Executive Summary

2.1. Executive Overview

Technology has always turned out to be a facilitator to human beings making their work simpler and effective. Data explosion across all the industries and the need for structuring of this kind of data has given rise to commercial applications of technologies like Natural Language Processing. In simple terms, natural language processing is a part of artificial intelligence that enables interactions between computer and human languages.

With increase in big data and businesses transforming themselves to become social media centric organizations, the need for quick processing tools that can gauge the customer responses and present them in some kind of actionable manner is fast becoming the need of the hour. Also, increased use of internet via smartphones is bringing loads of data into the social platform and businesses are seeing natural language processing tools as a means to organize data from the repository.

Till recently, Natural language processing was a research oriented topic and was not intensively commercialized. But, with recent developments, NLP is fast gaining commercial importance with large enterprises like IBM, Microsoft, HP and others starting to provide NLP solutions. In 2014, global NLP market reached USD 2.4 billion and the growth is expected to continue with a healthy pace.

North America rules NLP

North America, especially USA, is the major source of revenue for natural language processing. This region houses most NLP providers of the world and consists of more end-users. The market here is mature enough and as always, has been the leader in terms of acceptance of this technology. Most of research activities related to natural language processing have been initiated and implemented on these grounds and thereby forms the breeding ground for natural language processing. Among other regions, APAC stands promising market for the technology with growing customer priority.

Enterprises are the major customers

Natural language processing involves complexities in implementation and as the costs involved are also high, NLP solution mainly finds its prominence among large enterprises. Large enterprises cannot manage high volumes of unstructured data generated and in order to structure these sets of data, they seek natural language processing systems. Going forward, with growth of cloud, even mid-size companies are also expected to adopt NLP solutions more aggressively.

Healthcare and Publishing houses embrace NLPHealthcare industry observes larger use of NLP solutions and this market consists of NLP providers like Nuance, 3M who dedicatedly serve this industry. Due to the nature of healthcare industry which uses standard phrases and medical terms, it becomes extremely difficult to understand the patient behavior and hence to attain greater accuracy within minimum time when dealing with patients, NLP finds its way into the healthcare industry. Also, the publishing and media houses are the front-runners in adoption of natural language processing solutions as this industry deals with data which needs to be propagated in real time.

10

Awareness about natural language processing is still at its nascent stage and has limited acceptance all over the world. Similarly, the complexities and costs involved in developing and implementation of NLP based solutions is high which restricts entry of new companies into the provider market and also deters end-users from adopting these solutions.

With growing importance of data, improved research related to NLP and development of advanced cost effective NLP solutions, businesses are expected to adopt NLP solutions at a higher rate in the future.

11


Research and Forecasting 03 12

3.1. Research Methodology

Base Year: 2014Forecasting Period: 2015 - 2019

3.1.1. Sampling

The leading suppliers of each end-user product categories that were chosen to provide a larger representative sample.

Purposive unit sampling was adopted for every service segment such as verticals, regions, end-users and others. This was resorted to, in order to elicit the appropriate inputs with regard to the qualitative growth aspects of the market.

3.1.2. Secondary Research

The research methodology that was carried out was desk research through various journals, association reports, and in house database to build a knowledge base on various market service segments, product categories and industry trends.

Various fact based data was analyzed. Some of the sources included:

a. ResearchFox Knowledge Base:

Previous data on the market has been put through a rigorous and comprehensive analysis to analyze the current state.

b. Desk Research:

Industry reports, annual reports, press releases, webinars, journals and publication, independent rating agencies and government statistics.

3.1.3. Primary Research

Primary interviews were conducted among various stakeholders:

Product and service companiesMembers of associations and alliancesSubject Matter Experts and EvangelistsConsultants and Strategists

13

3.1.4. Industry Information

It was essential to understand the current industry landscape, market dynamics, security ecosystem and competitor metrics. To estimate the global market, Chief Experience Officers (CXOs), Marketing Heads, Sales Managers and product stakeholders were interviewed.

3.1.5. Technical Information

In addition to the interviews with leading participants for industry-related information, ResearchFox conducted interviews with Research and Development (R&D) and Design and Development teams to understand the current usage of the products by service type and also to find out the emerging trends. Finally, interviews with suppliers were conducted to cross check the validity of information and also to understand the emerging trends in the end-user segment. The detailed methodology for primary research is outlined below.

3.1.6. Primary Interview Questionnaire Design

ResearchFox developed a detailed questionnaire, which was used by the analysts as a guide for their discussions. This process ensured the collection of all necessary data. The questionnaire was designed to elicit unbiased industry level data (market size, production, sales, and others), that had check points (questions such as company level information and their position in the industry acted as check points) to ensure accuracy of the data. The questionnaire included the following sections:

1. Industry level information2. Characteristics and Dynamics3. Company-specific information4. Market segmentation data

3.1.7. Interview Questionnaire Test and Validation

Following the design of the questionnaire, ResearchFox carried out some initial interviews to verify that the appropriate market and technology data was generated. After the final design of the questionnaire, ResearchFox began full scale primary research. Specific companies targeted for primary research interviews were selected based upon market participation. Higher was the entity's profile, more attractive was the entity.

14

3.1.8. Interview Process

As participants respond in the course of an interview, ResearchFox analysts are trained to move from lower priority and/ or sensitive topics to increasingly key and/or sensitive topics in response to the interviewee's behavior. This responsive and reflective interview process, combined with the analysts' ability to discuss the industry and technical issues in an open and sharing environment, allows ResearchFox to probe for key data, operations, and competitive information. Multiple contacts within a single organization and with an individual are often planned and/or staged in order to optimize and complete the information gathering process.

3.1.9. Research Validation

At a point, when 20 percent of the research interviews and/or data collection had been completed, ResearchFox consultants evaluated the preliminary findings to assure that up-to-date results are in line with project objectives. The analyst team analyzed the information from the interviews and information was validated through a combination of the following validation techniques:

Cross checking with other primary data and previously developed in-house researchReview of secondary information, such as trade journals, annual reports and industry directories

15

3.2. Forecasting Methodology

3.2.1. Step-by-Step Methodology for Market Estimation and Forecasting

Market Estimation and Forecast Methodology, 2015

Step Method

1Understand the market mechanism for the market through structured, systematic and theoretically established norms of analyzing, designing, introducing and quality assurance of the market estimation

2 Measuring the various market drivers, constraints, opportunities and challenges at regular intervals of time

3 Integrate expert-opinion of discussions in consultation with the ResearchFox Analyst team

4 Market estimation and forecast calculation

5 Delphi method and Causal Analysis used as and when required

6Rigorous quality check with heads of Research Team, Subject Matter Experts and Consultants before final publication

Source: ResearchFox

Significance and Importance of the Market Forecast, 2015

Sr. No. Significance and Importance

1 Helps revisit on the company's R&D investments

2 Keeps the Sales and Marketing team posted on the market prospects

3 Strategize investment and expansion plans

4 Improve business planning

5 Helps create business aims and set sales figures within the company

6 Aware of the current market competition

7 Support plans for Merger and Acquisition (M&A)

Source: ResearchFox

16

About ResearchFoxWHAT WE STAND FOR

We strive towards helping our customers take informed decisions by providing different perspectives for business. We don't believe in flashing LOGOs but are proud to mention that we have been helping all sizes of businesses since our inception. We are glad to have contributed in our own little way towards making a business successful. Whether you are a start-up or a large enterprise, we assure equal treatment to all, after all "Customer is King"!

THE TEAM

We are a bunch of 25 people with handful of grey hair between us. Our humble experience of around 75 man years in market research and business consulting has led us to believe that this industry is ripe for disruption. With the advent of enterprise consumerization and rapid digitization across industries, days are numbered for traditional business models of market research and consulting services. We make all efforts to bring different (fresh) perspectives to Market, Competition, and Growth of your business.

Contact Us:

Suggest a Report Topic: Report topics are approved based on number of users with the same suggestion and users are notified when the topic is approved.If you prefer to customize a report, or would like to get your report done exclusively in less than a months time!

Bangalore# 4 & 5, 1st & 2nd Floor,1st Cross,Krishna Reddy Colony,Domlur Layout,Bangalore 560 071,India

Phone: +91-80-61-341500Email: [email protected]

Hyderabad# 104 & 105, 1st Floor,Bhuvana Towers,CMR Building,Sarojini Devi Road,Secunderabad 500 003,India


Pune6th Floor Pentagon P-2,Magarpatta City,Hadapsar,Pune 411 028,India


PhilippinesL29 Joy Nostalg Centre,17 ADB Avenue,Ortigas Center,Pasig City, Manila,Philippines - 1600

Email: [email protected]

The information contained here in is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

43