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Text Analytics Market Size
Text Analytics Market size exceeded USD 6 billion in 2020 and is poised to register gains at around 20% CAGR between 2021 and 2027. Increasing popularity of social media analytics for gaining crucial business insights is likely to fuel the industry growth. Social media analytics enables organizations to gain better understanding of customer preferences and offer customized ads to expand market presence across a diverse clientele. Text analytics has become a key enabler for marketing agencies to track the digital footprints of customers such as browsing behavior, keyword search, and liked pages.
The text analytics industry has received a strong impetus amid the ongoing COVID-19 pandemic. Market acceleration in the text analytics space has been substantial as R&D focus has shifted to a global analysis of textual data. Text analytics has been rapidly deployed to detect patterns from which conclusions can be drawn for quick decision-making. For instance, SAS Institute aims to analyze over 50,000 full text documents on COVID-19 to provide healthcare researchers with future action plans.
| Report Attributes | Details |
|---|---|
| Base Year: | 2020 |
| Market Size in 2020: | 6 Billion (USD) |
| Forecast Period: | 2021 to 2027 |
| Forecast Period 2021 to 2027 CAGR: | 20% |
| 2027 Value Projection: | 20 Billion (USD) |
| Historical Data for: | 2016 to 2019 |
| No. of Pages: | 250 |
| Tables, Charts & Figures: | 338 |
| Segments covered: | Component, Deployment Model, Application and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The increasing traction of enterprises toward sentiment analysis has emerged as the major driving force behind text analytics market demand. With the proliferation of online reviews, blogs, ratings, and recommendations, businesses are pressurized to ensure that their services receive good ratings for maintaining market competitiveness. Text analytics assists such enterprises in understanding customer sentiments and improving their services for enhanced customer satisfaction.
Text Analytics Market Analysis
In Italy, the customer intelligence segment generated over USD 5.15 million revenue in 2020. Digital channels have emerged as the first point of interaction between enterprises and target customers. The analysis of consumer sentiments on these platforms is becoming a crucial part of customer intelligence. Text mining and analytics enable enterprises to process and analyze large volumes of customer-related textual data to derive valuable business information.
For instance, Epipoli, a major gift card vendor in Italy, deployed customer intelligence solutions from SAS for improving customer conversion rates. The company used text mining to build detailed customer profiles of its potential customers, increasing customer conversion rates by 23%.
The cloud segment in Japan accounted for more than USD 74.75 million in 2020. The growing adoption of cloud technology by enterprises for improving business capabilities will expand the market for cloud-based text analytics software. Enterprises deploying text analytics software on the cloud can increase computing resources during peak loads and reduce them during idle hours, paying only for the exact amount of computing resources being used.
Enterprises offering cloud-based solutions are boosting market competitiveness through add-on services such as speech-to-text API and optical character recognition API in real time, complementing the results obtained from text analytics.
In Canada text analytics market, the retail segment is set to attain a market share of above 30% by 2027. The increasing adoption of text mining solutions in the regional retail industry is driven by the growing need to cut costs and target customers more efficiently. The optimization of promotions, identification of right marketing strategies, and the maximization of sales through discounts can be effectively carried out by leveraging the customer behavioral data.
As per the July 2020 press release by Walmart Canada, the retailer announced its plans to infuse USD 3.5 billion into its Canadian stores as the pandemic continues to trigger increased e-commerce and physical retail. With plans to renovate 150 more stores in the near future with new checkout experience to reduce touchpoints, text analytics will be at the fore.
Asia Pacific is expected to register significant growth in the text analytics market with a nearly 25% CAGR through 2027. The regional industry is characterized by increasing demand for text analytics solutions in the BFSI sector to improve customer experience and reduce the risks associated with frauds. Text analytics is becoming a viable solution for the detection of fraudulent claims in the regional insurance industry. Fake personal details, wrong transaction dates, and incorrect addresses can be extracted and evaluated by text mining algorithms, which has strongly propelled the market expansion.
Text Analytics Market Share
The global text analytics market remains highly consolidated with technology giants, such as IBM, SAP, and SAS, dominating the market share. Prominent players are placing an ever-growing emphasis on delivering advanced solutions that can cater to the changing dynamics of consumer sentiments, especially during the pandemic. For instance, in July 2020, Microsoft included text mining capabilities within its Azure Cognitive Services product. The text analytics for health feature can process various data types and tasks including extracting more than 100 types of personally identifiable information from unstructured texts.
Another major development included the release of COVID-19 search tool by SAS Institute in March 2020, which can extract text and numerical data from more than 50,000 research articles and allow users quick access to relevant information. The market has also witnessed several strategic alliances between key players to launch new products with added functionalities and to maintain revenue share & profitability, such as the June 2019 acquisition of Cooldata by Medallia to propel its big data handling capabilities.
Some of the key players operating in the text analytics market are:
- Amazon Web Services (AWS)
- Altair Engineering, Inc. (Angoss Software Corporation)
- Basis Technology
- Bitext Innovations SL
- Brandwatch
- Clarabridge
- IBM Corporation
- Interactions LLC
- Jive Software (Aurea, Inc.)
- Khoros, LLC
- Lexalytics Inc
- Luminoso Technologies Inc
- Medallia Inc
- Megaputer Intelligence, Inc
- Micro Focus LLC
- Microsoft Corporation
- Netbase Solutions
- OpenText Corporation
- RapidMiner Inc
- SAP SE
- SAS Institute Inc
- Unimetric
- Verint Systems, Inc.
This market research report on text analytics includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:
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Market, By Component
- Software
- Customer Intelligence
- Customer Relationship Management (CRM)
- Fraud Detection
- Governance, Risk and Compliance (GRC) Management
- Service
- Professional Services
- Managed Services
Market, By Deployment Model
- On-premise
- Cloud
Market, By Application
- BFSI
- Retail
- Government & Defense
- Healthcare
- IT & Telecom
- Travel & Hospitality
- Media & Advertising
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Spain
- Italy
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- GCC
- South Africa
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