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The text analytics market is estimated to grow at a CAGR of 19.82% between 2022 and 2027. The size of the market is forecast to increase by USD 12,755.09 million. The growth of the market depends on several factors, including the popularity of SOA among end-users, the need to improve business efficiency, and the need to analyze large volumes of unstructured data.
This report extensively covers market segmentation by deployment (cloud and on-premises), component (software and services), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Technavio categorizes the global text analytics market as a part of the global application software market within the global IT software market. The parent global IT software market covers companies that are engaged in developing and producing application and system software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The need to improve business efficiency is notably driving the market growth, although factors such as a lack of skilled workforce for developing text analytics algorithms may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Text Analytics Market Driver
The need to improve business efficiency is notably driving the market growth. Owing to an increase in the number of connected devices in end-user industries businesses are expanding and new players are entering the market. Hence, the demand for results and profits will increase owing to intensified competition. Business operators have realized that they must establish better communication platforms to connect with end-users without location barriers, optimize costs, deliver better services, and increase revenues.
Companies are primarily using text analytics solutions for CRM-related requirements, such as customer interfacing processes, behind-the-scene sales, marketing and service operational processes, data management processes, and customer journey process services. Text analytics solutions provide cost benefits and improve the functionality and management of processes. They also enable companies to focus on their core competencies. The insights gained from better-managed CRM processes, such as chatbot services and feedback systems, enable decision-making. Therefore, these factors will drive the growth of the market during the forecast period.
Significant Text Analytics Market Trend
The evolution of programmatic advertisement buying is an emerging trend in the market. Consumers are supported by programmatic advertisement buying in automating their decision-making process associated with the buying of digital advertisements by targeting specific demographics and audiences. These advertisements are placed using real-time bidding (RTB) and AI for online displays, mobile and video campaigns, and social media campaigns. Furthermore. these advertisements use analytics solutions for buying digital advertisements.
Text analytics solutions help in making the advertisement buying system more efficient, and by removing human intervention, the buying process has also become less expensive. In the traditional method of buying a digital advertisement, requests for proposals, quotes, tenders, and human negotiation were included, whereas programmatic advertisement buying using advanced analytics solutions, such as AI-based text analytics, uses algorithms for purchasing the display space. Owing to this optimized and efficient process of programmatic advertisement buying, some countries are investing in this solution for better and more efficient operations. Hence, these factors will fuel the market growth during the forecast period.
Major Text Analytics Market Challenge
The lack of a skilled workforce for developing text analytics algorithms is a major challenge impeding the market. Sound knowledge is required by the vendors that are implementing AI in their text analytics platforms, which are periodically updated to ensure seamless operations. The lack of technical knowledge often deters end-users from adopting AI in their text analytics platforms. To harness the benefits of AI, vendors must offer both online and offline training and consultation to ensure that end-users get the required support.
The lack of skilled operators and proper training has resulted in a disinclination to execute wide-scale automation, as substantial time, training, and budget have to be allocated for the successful implementation of AI in text analytics solutions. This scenario is expected to change gradually during the forecast period as several end-users are transitioning from traditional manual operations to automated functions for improving process efficiency. Therefore, the lack of technical expertise among users limits the scope of advanced text analytics solutions. Moreover, the acquisition and retention of talent are major concerns for recruiters. A high level of attrition and employee turnover in the past few years, especially when companies are focusing on making strategic divestitures, may hamper the market growth. Therefore, these factors will affect the growth of the during the forecast period.
Key Text Analytics Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Text Analytics Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Averbis GmbH - The company offers scalable text mining and machine learning solutions for the analysis of unstructured data. The key offerings of the company include offer text analytics.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the cloud segment will be significant during the forecast period. This is mainly because of the increasing popularity of cloud platforms among end-users. Vendors such as Microsoft, offer text analytics software and services based on the SaaS model.
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The cloud segment was valued at USD 3,039.63 million in 2017 and continued to grow until 2021. Cloud-based solutions are less expensive than on-premise software. This software does not require the actual installation of the hardware and software at end-user premises and is maintained at the vendor's data center, where it can be accessed by end-users on a subscription basis. Thus, the cloud-based model is beneficial for SMEs as it allows them to streamline and automate their daily operations in an efficient manner, reduce errors, and lower costs. Furthermore, it is also less time-consuming. As a result, the return on investment (ROI) is faster in cloud-based text analytics platforms when compared with on-premises platforms. Therefore, such reasons are attracting more end-users in adopting such software. Hence, this segment is estimated to grow at a significantly high pace during the forecast period.
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Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Developed economies such as Germany, France, Switzerland, the Netherlands, and the UK are the major contributors of revenue to the text analytics market in Europe. The high adoption of technologies and the considerable installed base of IoT data collection devices increase the need for text analytics. The manufacturing, transportation, media and entertainment, government, and healthcare sectors will be the major contributors of revenue to the market in the region. Additionally, the market is expanding as governments of several countries in the region have also implemented several initiatives to increase revenue from the industrial internet and aid economic growth.
Furthermore, enterprises in Europe are adopting cloud-based text analytics software solutions to enable business transformation and create new opportunities. For instance, Tata Consultancy Services (TCS), announced a strategic partnership to accelerate the process of modernization in enterprise data warehouses for various data-driven companies in Europe using a unified analytics platform (UAP) Vertica in May 2021. Such solutions help in improving competitive advantage and the decision-making process, which will drive the growth of the market in Europe during the forecast period.
In 2020, the COVID-19 pandemic positively impacted the market in Europe. Many governments in the region enforced lockdowns as a result of the pandemic, which compelled people to stay at home. As a result, companies throughout the region conducted significant trade activities online, which resulted in the widespread usage of virtual private networks (VPNs) for remote work and teleconferencing in Europe. Furthermore, with the growing usage of the internet, the requirement for technologies such as big data, cloud computing, and other sophisticated technologies to evaluate enormous amounts of data spurred. As a result, the demand for text analytics software and services for inferring patterns to make decisions from data generated increased in Europe in 2020. Therefore, all these factors are expected to propel the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Deployment (Cloud and On-premises), Component (Software and Services), and Geography (Europe, North America, APAC, Middle East and Africa, and South America).
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Text Analytics Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.82% |
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Market growth 2023-2027 |
USD 12,755.09 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
17.87 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 30% |
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Key countries |
US, Japan, China, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Averbis GmbH, Bitext Innovations SL, Forsta AS, Infegy, InMoment Inc., International Business Machines Corp., KNIME AG, Luminoso Technologies Inc., MeaningCloud LLC, Megaputer Intelligence Inc., Micro Focus International Plc, Microsoft Corp., NICE Ltd., Open Text Corp., Oracle Corp., Qualtrics International Inc., SAP SE, SAS Institute Inc., and TIBCO Software Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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