- Summary
- Table Of Content
- Methodology
Text Analytics Market Size:
Text Analytics Market Size is estimated to reach over USD 39.62 Billion by 2032 from a value of USD 12.37 Billion in 2024 and is projected to grow by USD 14.33 Billion in 2025, growing at a CAGR of 17.7% from 2025 to 2032.
Text Analytics Market Scope & Overview:
Text analytics is the process of using computational techniques to automatically extract meaningful information from unstructured text data. It involves transforming raw text into actionable insights by identifying patterns, relationships, and sentiments. This is achieved through a combination of natural language processing (NLP), statistical analysis, and machine learning, enabling computers to understand and interpret human language for various applications, such as customer feedback and social media monitoring.
Text Analytics Market Dynamics - (DRO) :
Key Drivers:
Increasing emphasis on customer satisfaction is driving text analytics market growth
By analyzing customer language, companies identify emerging trends and understand the drivers behind customer decisions, which allows for proactive adjustments to products, services, and marketing strategies. Additionally, automating customer feedback, streamline processes, enabling faster response times and efficient resource allocation, which results in reduced operational costs. Moreover, real-time monitoring of online conversations allows businesses to identify and address negative sentiments promptly, mitigating potential damage to brand reputation. Conversely, positive feedback can be leveraged to amplify brand advocacy, hence boosting the text analytics market trend.
- For instance, Xdroid introduced a text analytics solution designed to provide contact centers with comprehensive insights from diverse customer communication channels. Leveraging advanced AI, the tool accurately interprets sentiment and identifies key themes within emails, chats, social media, reviews, surveys, and NPS data.
Consequently, increasing emphasis on customer satisfaction is driving the text analytics market expansion.
Key Restraints:
Difficulty in analyzing non-English text is restraining the global text analytics market
Developing accurate NLP algorithms for diverse languages requires linguistic knowledge and specialized models. Compared to English, many languages have limited labeled training data, hindering the development of robust machine learning models. Additionally, developing and maintaining language-specific NLP tools and resources is costly and time-consuming. Many companies lack the resources to invest in this area, particularly for less common languages, further restraining the global text analytics market size.
Therefore, as per the analysis, these combined factors are significantly hindering text analytics market expansion.
Future Opportunities :
Rapid expansion of retail e-commerce is projected to create text analytics market opportunities
E-commerce platforms generate volumes of unstructured text data, including product reviews, customer feedback, social media comments, and chat logs. This data holds valuable insights into customer preferences, sentiment, and purchasing behavior. Text analytics enable e-commerce businesses to understand customer sentiment towards products, brands, and services, which helps in identifying areas for improvement, thus enhancing customer satisfaction. Also, analyzing product reviews helps businesses understand customer opinions on specific product features, quality, and performance, thus boosting the text analytics market demand.
- For instance, in Feb 2025, S. Census Bureau reported that estimated retail e-commerce sales for the fourth quarter of 2024 reached USD 308.9 billion, after seasonal adjustments, which represents a 2.7% increase from the previous quarter, indicating growth in the online retail sector.
Hence, based on the analysis, expansion of retail e-commerce is expected to create text analytics market opportunities.
Text Analytics Market Segmental Analysis :
By Component:
Based on the component, the market is bifurcated into software and services.
Trends in the Component:
- Growing trend towards the adoption of comprehensive training and ongoing support services to ensure effective utilization of text analytics tools.
- Software is designed with robust APIs and integration capabilities, allowing seamless integration with other business intelligence and CRM systems.
Software accounted for the largest revenue share in 2024.
- Software is incorporating advanced AI and ML algorithms to improve accuracy and efficiency, including deep learning models, topic modeling, and entity recognition, thereby driving the text analytics market share.
- To democratize text analytics, software vendors are developing user-friendly, low-code/no-code platforms, which enable non-technical users to build and deploy text analytics solutions.
- Moreover, software is moving towards providing real-time text analysis, allowing businesses to respond quickly to emerging trends and customer feedback, especially crucial for social media monitoring.
- For instance, in May 2023, Xdroid expanded its VoiceAnalytics platform with two new NLP-driven features, Auto-Summary and Topic Detection/Insight. These additions strengthen the platform's AI, enabling automated comprehension and analysis of human language, thereby minimizing configuration efforts.
- Thus, as per the text analytics market analysis, the aforementioned factors are driving the software segment demand.
Services is predicted to register the fastest CAGR during the forecast period.
- Businesses are outsourcing text analytics to managed service providers, driving the text analytics market share.
- Consulting services to help businesses design and implement effective text analytics strategies including data preparation, model development, and system integration, hence driving the text analytics market size.
- Service providers are offering customized text analytics solutions tailored to specific business needs including developing custom models, adapting algorithms, and creating specialized dashboards.
- Consequently, the aforementioned factors are driving the service segment.
By Deployment Model:
Based on the deployment model, the market is classified into on-premise, cloud, and hybrid.
Trends in the Deployment Model:
- Hybrid approach allows organizations to protect sensitive data on-premises while utilizing the cloud for less critical workloads, providing a balance of security and flexibility.
- Growing adoption of cloud-based text analytics due to its cost-effectiveness and scalability, particularly for SMEs to streamline operations and reduce costs.
Cloud accounted for the largest revenue share in 2024 and is also predicted to witness the fastest growth.
- Cloud platforms offer scalability, allowing businesses to easily adjust their text analytics capabilities based on fluctuating data volumes, crucial for handling the flow of unstructured data, thereby driving the text analytics market trend.
- Cloud-based solutions provide greater flexibility, enabling organizations to access and analyze data from anywhere with an internet connection.
- Moreover, cloud-based text analytics platforms are equipped with user-friendly interfaces and pre-built tools, accessible to a wider range of users.
- Cloud platforms are at the forefront of innovation in natural language processing (NLP) and artificial intelligence (AI), further driving the text analytics market demand.
- Thus, as per the text analytics market analysis, the aforementioned factors are driving the cloud text analytics segment demand.
By Application:
Based on the application, the market is categorized into BFSI, retail, government & defense, healthcare, IT & telecom, travel & hospitality, media & advertising, and others.
Trends in Application:
- BFSI industry uses text analytics solutions in analyzing transaction records, customer communications, and social media to identify suspicious patterns and mitigate risks.
- Growing trend towards the adoption of text analytics in travel and hospitality sector for analyzing online reviews and social media to improve customer experience and service quality.
Retail accounted for the largest revenue share of 28.46% in 2024 and is also projected to register the fastest growth.
- Retail industry utilizes text analytics for analyzing product reviews and social media comments to understand customer preferences and improve product offerings.
- Additionally, the solution is also utilized for tracking brand reputation and customer sentiment across online platforms, thereby driving the market size.
- Moreover, the solution is also used in retail sector for analyzing customer data to personalize marketing campaigns and product recommendations, further contributing to the text analytics market growth.
- For instance, in Apr 2025, according to the Australian Bureau of Statistics (ABS), Australian retail turnover experienced a 0.2 percent increase in February 2025, following a 0.3 percent rise in January 2025.
- In conclusion, the aforementioned benefits are bolstering the text analytics market.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 2.99 Billion in 2024. Moreover, it is projected to grow by USD 3.48 Billion in 2025 and reach over USD 9.94 Billion by 2032. Out of these, China accounted for the largest revenue share of 31.88% in 2024. Asia Pacific countries are investing heavily in AI and machine learning technologies, which are essential for advanced text analytics applications. Governments and businesses are recognizing the importance of these technologies to drive innovation and improve efficiency. In addition, the booming e-commerce sector in Asia Pacific is generating customer reviews and feedback, driving the demand for text analytics to understand customer sentiment and improve product offerings.
- For instance, India's e-commerce sector is booming, with projections indicating a market value of USD 325 billion by 2030. This rise is highlighted by a strong festive season in 2024, where the sector generated approximately USD 14 billion in Gross Merchandise Value (GMV), representing a 12% increase compared to the previous year.
North America was valued at USD 4.63 Billion in 2024. Moreover, it is projected to grow by USD 5.36 Billion in 2025 and reach over USD 14.70 Billion by 2032. North America is a hub for technological innovation, with high adoption rates of AI, machine learning, and cloud computing. These technologies are fundamental to the development and deployment of advanced text analytics solutions. Additionally, the region's strong presence of technology companies and research institutions fosters continuous innovation in NLP, further driving the text analytics market trend.
- For instance, in Sep 2021, Quantum Workplace launched Narrative Insight, a new text analytics engine designed to streamline the evaluation of workforce survey responses. Leveraging natural language processing and machine learning, Narrative Insight automates the process of identifying sentiment, categorizing themes, and translating employee comments, providing organizations with actionable insights into employee feedback.
As per the text analytics market analysis, in European countries stringent data privacy regulations like GDPR are driving the need for sophisticated text analytics solutions to handle sensitive data responsibly. Also, strong emphasis on multilingual capabilities due to the continent's diverse linguistic landscape is boosting market growth. Additionally, Latin America is an emerging market with significant growth potential for text analytics. Rapidly increasing internet and smartphone penetration are generating a surge in online data in Latin America countries. Moreover, Middle East and Africa regions are experiencing rapid growth due to rising demand for customer experience management and social media monitoring.
Top Key Players and Market Share Insights:
The market is highly competitive with major players providing text analytics to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the text analytics industry include-
- IBM (USA)
- Microsoft (USA)
- Oracle (USA)
- SAS Institute (USA)
- SAP (Germany)
- Google (USA)
- Amazon Web Services (USA)
- RapidMiner (USA)
- OpenText (Canada)
- ai (USA)
- Qualtrics (USA)
- Medallia Inc. (USA)
- Infor (USA)
- AYLIEN (Ireland)
- Clarabridge (USA)
Recent Industry Developments :
Mergers and Acquisitions:
- In Sep 2021, InMoment acquired Lexalytics, a leader of natural language processing (NLP) and machine learning (ML) solutions. This acquisition allows InMoment to enhance its ability to analyze structured and unstructured data, enabling customer-centric brands to gain deeper, actionable insights from various sources.
Innovation:
- In Sep 2021, CallMiner has integrated its Eureka Platform with Microsoft Azure Speech to Text, creating a unified solution. This integration allows organizations to leverage Azure's speech-to-text capabilities within CallMiner's platform, enhancing their ability to analyze voice interactions and extract valuable insights from customer conversations.
Text Analytics Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 39.62 Billion |
| CAGR (2025-2032) | 17.7% |
| By Component |
|
| By Deployment Model |
|
| By Application |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the text analytics market? +
The text analytics market size is estimated to reach over USD 39.62 Billion by 2032 from a value of USD 12.37 Billion in 2024 and is projected to grow by USD 14.33 Billion in 2025, growing at a CAGR of 17.7% from 2025 to 2032.
What specific segmentation details are covered in the text analytics report? +
The text analytics report includes specific segmentation details for component, deployment model, application, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the text analytics market, service is the fastest-growing segment during the forecast period.
Who are the major players in the text analytics market? +
The key participants in the text analytics market are IBM (USA), Microsoft (USA), Oracle (USA), SAS Institute (USA), SAP (Germany), Google (USA), Amazon Web Services (USA), RapidMiner (USA), OpenText (Canada), H2O.ai (USA), Qualtrics (USA), Medallia Inc. (USA), Infor (USA), AYLIEN (Ireland), Clarabridge (USA), and Others.
