Japan Natural Language Processing (NLP) Market Size & Share, by Component (Solution, Services); Deployment (On-Premise, Cloud); Organization (SMEs, Large Enterprises); Type (Rule-Based, Statistical, Hybrid); Application (Social Media Sentiment Analysis, Text Summarization, Virtual Agents, Chatbots, Machine Translation) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2031

  • Report ID: 3721
  • Published Date: Jan 24, 2023
  • Report Format: PDF, PPT


  1. An Outline of the Japan Natural Language Processing Market
    1. Market Definition
    2. Market Segmentation
    3. Product Overview
  2. Assumptions and Acronyms
  3. Research Methodology
  4. Summary of the Report for Key Decision Makers
  5. Forces of the Market Constituents
    1. Market Drivers
    2. Market Trends
  6. Key Market Opportunities for Business Growth
  7. Major Roadblocks for the Market Growth
  8. Government Regulation: How They Would Aid Business?
  9. Technology Transition and Adoption Analysis
  10. Industry Risk Analysis
  11. Impact of COVID-19 on Japan Natural Language Processing Market
  12. Case Study Analysis
  13. Patent Analysis
  14. Technology Outlook
  15. Analysis on Number of Start-up’s Using Natural Language Processing
  16. End User Industry Analysis
  17. Competitive Landscape
    1. Market Share Analysis, 2021
    2. Competitive Positioning
    3. Competitive Benchmarking
    4. Company Profiles
      1. General Purpose
        1. LINE Corporation
        2. Atilika, Inc.
        3. BAIDU Research
        4. JSOL Corporation
        5. IQVIA Inc.
      2. Domain Specific
        1. NTT Media Intelligence Laboratories
        2. FRONTEO Inc.
        3. NVIDIA Corporation
        4. 3M
        5. IBM Corporation
        6. Nikkei Inc.
  18. Japan Natural Language Processing Market, 2021-2031
    1. Market Overview
    2. Market Segmentation
    3. By Component
      1. Solution, 2021-2031F (USD Million)
        1. General Purpose, 2021-2031F (USD Million)
        2. Domain Specific, 2021-2031F (USD Million)
        3. Finance, 2021-2031F (USD Million)
        4. Healthcare, 2021-2031F (USD Million)
        5. Legal, 2021-2031F (USD Million)
        6. Others, 2021-2031F (USD Million)
      2. Services, 2021-2031F (USD Million)
    4. By Deployment
      1. On-Premise, 2021-2031F (USD Million)
      2. Cloud, 2021-2031F (USD Million)
    5. By Enterprise Size
      1. Small & Medium Enterprises, 2021-2031F (USD Million)
      2. Large Enterprise, 2021-2031F (USD Million)
    6. By Type
      1. Rule-based, 2021-2031F (USD Million)
      2. Statistical, 2021-2031F (USD Million)
      3. Hybrid, 2021-2031F (USD Million)
    7. By Application
      1. Social Media Sentiment Analysis, 2021-2031F (USD Million)
      2. Text Summarization, 2021-2031F (USD Million)
      3. Virtual Agents and Chatbots, 2021-2031F (USD Million)
      4. Machine Translation, 2021-2031F (USD Million)
      5. Others, 2021-2031F (USD Million)
    8. By End-User Industry
      1. Education, 2021-2031F (USD Million)
      2. BFSI, 2021-2031F (USD Million)
      3. Healthcare, 2021-2031F (USD Million)
      4. IT & Telecom, 2021-2031F (USD Million)
      5. Manufacturing, 2021-2031F (USD Million)
      6. Media & Entertainment, 2021-2031F (USD Million)
      7. Others, 2021-2031F (USD Million)

Global Market Size, Forecast, and Trend Highlights Over 2023-2031

Japan Natural Language Processing (NLP) Market size is poised to cross USD 10.32 Billion by the end of 2031, growing at a CAGR of 24.5% during the forecast period, i.e., 2022-2031. In the year 2022, the industry size of Japan natural language processing was over USD 0.87 Billion. Natural language processing is a sub-category of artificial intelligence that helps computer systems to understand the ways of human conversations. Therefore, the growth of the market can be attributed to the growing usage of artificial intelligence in the region and the rise in the development of new AI systems. In 2021, the end users in Japan spent almost 2 billion on artificial intelligence systems. Moreover, the expenditure is expected to grow at a rate of 24% and reach to nearly USD 6 million by 2026. In 2020, the Japan Patent Office received more than 5700 applications for patents relating to artificial intelligence (AI).

In addition to these, factors that are believed to fuel the market growth of Japan’s natural language processing include the government’s rising effort for advancing the use of AI in the region which can boost the development and innovation in the country. For instance, the government presented new strategies for AI in the year 2022. It includes establishing a framework to build and boost the human resources suitable for the AI era, followed by building strategies to develop the research, education, and infrastructure network for artificial intelligence. This initiative resulted in the creation of the "Artificial Intelligence Research and Development Network" and the encouragement of information sharing between member companies. Additionally, NLP also allows various voice assistant devices to understand human speech and commands, therefore, the launch of various voice assistant platforms is further expected to augment the growth of the market. For instance, Kore.ai, a leading AI software provider, launched the enterprise-grade virtual assistant platform. The platform includes various conversational AI technologies, such as NLP, machine learning, NLU, predictive analytics, and deep learning.

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Japan Natural Language Processing (NLP) Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Market of AI in Japan– The growing prevalence of technology such as AI, has facilitated the interaction between machines and humans. NLP the branch of artificial intelligence helps machines to understand the human tone of writing and communication. According to the data of Ministry of Economic Affairs and Climate Policy, Japan currently has 200 to 300 AI-related businesses.
  • Rising Popularity of Smart Devices– Most of the smart devices have the feature of getting operated by human command, therefore it creates major opportunities for the natural learning processing market. In 2020, around 6 million households in Japan were using smart speakers. In addition, by 2026, the penetration of smart speakers is likely to reach over 15 million households.
  • Increasing Government Efforts for Boosting NLP Technology– The government of Japan allotted around USD 19 million for the deployment of the technology that can enhance the analysis of vast data and put it into work for the future.
  • Growing Count of Startups for Natural Language Processing – For instance, the Cinnamon Electra, is an NLP model deployed in the transformer library and highly used in Python programming language. Moreover, the AI of Cinnamon has raised a fund of USD 42 million in 9 rounds, additionally, it raised USD 12 million in the recent fundraising round in 202o
  • Rising Use of NLP in Healthcare Researches – NLP is highly adopted by the healthcare sector for enhancing the real-time experience of patients and optimizing it according to their needs. For instance, Fronteo Inc. and NTT East Japan collaborated in July 2022 to study the development of digital health after incorporating natural language AI in it.


  • Lack of skilled engineers- In Japan, there is not much workforce dedicated to AI development. Moreover, by 2030, there is going to be a shortage of around 270,000 engineers for artificial intelligence in Japan. Additionally, by then, the lack of specialized IT personnel in Japan is anticipated to be 13 times worse than it was in 2018. This dearth of engineers and analysts is likely to hamper the market growth.
  • Japan is inclined towards hardware, therefore the slow pace of adopting technology is hampering the market growth
  • Barriers of phrases, slang, irony, and others in NLP

Japan Natural Language Processing (NLP) Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

USD 0.87 Billion

Forecast Year Market Size (2031)

   USD 10.32 Billion

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Japan Natural Language Processing (NLP) Segmentation

The Japan natural language processing market is segmented and analyzed for demand and supply by end-user industry into education, BFSI, healthcare, IT & telecom, manufacturing, media and entertainment, and others. Out of all end user industries of Japan’s natural language processing, the BFSI segment is estimated to gain the largest market of USD 4,448.6 million at the end of 2031 by growing at a CAGR of 25% over the projected time frame. Moreover, the segment garnered a revenue of USD 360 million in 2021.  The growth of the segment can be attributed to the rise in the number of AI facilities designed exclusively for banking and other financial services. In Japan, there are 24 startups focused on AI in financial services. Furthermore, NLP enhances the customer experience and to automate the vast unstructured data of BFSI sector. The rising number of people creating bank accounts is boosting the segment growth. As of March 2022, around 12 million bank accounts were registered in Rakuten Bank, Ltd., moreover, it was the first digital bank in Japan to exceed the count of 10 million accounts.  

The Japan natural language processing market is also segmented and analyzed for demand and supply by application into social media sentiment analysis, text summarization, virtual agents and chatbots, machine translation, and others. Amongst these five segments, the text summarization segment is expected to garner a revenue of USD 3,106.8 million at the end of 2031 by growing at a CAGR of 24.1% over the forecast period. In addition to this, the market generated a revenue of USD 272.6 million in 2021. NLP helps in simplifying complex text and converting and saving the meaning of the text. Consequently, the demand for AI-based technology in libraries is expected to augment the growth of the segment. The National Diet Library of Japan will use the "CLOVA OCR (Optical Character Recognition)" technology, it is an AI-based technology, which was co-developed by NAVER and its Japanese affiliate LINE. Through this technology, the National Diet Library of Japan is undertaking a project to digitally transform more than 223 million of its around 2 million documents.

Our in-depth analysis of the Japan natural language processing market includes the following segments:

           By Component

  • Solution
    • General Purpose
    • Domain Specific
    • Finance
    • Healthcare
    • Legal
    • Others
  • Services

          By Deployment

  • On-Premise
  • Cloud

         By Enterprise Size

  • Small & Medium Enterprises (SMEs)
  • Large Enterprises

           By Type

  • Rule-Based
  • Statistical
  • Hybrid

          By Application

  • Social Media Sentiment Analysis
  • Text Summarization
  • Virtual Agents and Chatbots
  • Machine Translation
  • Others

          By End User Industry

  • Education
  • BFSI
  • Healthcare
  • IT & Telecom
  • Manufacturing
  • Media & Entertainment
  • Others

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Companies Dominating the Wearable Sensors Landscape

    • LINE Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Atilika, Inc.
    • Baidu Research
    • JSOL Corporation
    • IQVIA Inc.
    • NTT Media Intelligence Laboratories
    • FRONTEO Inc.
    • Nvidia Corporation
    • 3M
    • IBM Corporation
    • Nikkei Inc.


In The News

  • BAIDU Research announced the introduction of the world’s first knowledge enhancing multi-hundred billion models, PCL-BAIDU Wenxin (ERNIE 3.0 Titan). It is a pre-training language model that has 260 billion parameters. The model is best at both natural language generation (NLU) and natural language understanding (NLU).

  • JSOL Corporation announced to deliver the advance natural language processing technology that is incorporated into the AI System to Sumitomo Mitsui Financial Group, Inc. This technology is built by JSOL Corporation with the collaboration of SMBC Group and The Japan Research Institute, Limited.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 3721
  • Published Date: Jan 24, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising adoption of AI technology, government investment to boost AI, increasing popularity of voice assistant devices, and uses of AI in the medical sector are the few factors that are likely to drive market growth.

The market is anticipated to attain a CAGR of 24.5% over the forecast period, i.e., 2022-2031.

The shortage of expert professionals, the confusion created by a different form of speech, and slow adoption of technology are estimated to be the growth hindering factors for the market expansion.

The major players in the market are Atilika, Inc., Baidu Research, JSOL Corporation, IQVIA Inc., NTT Media Intelligence Laboratories, FRONTEO Inc., Nvidia Corporation, 3M, IBM Corporation, Nikkei Inc., and LINE Corporation

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component, deployment, enterprise size, type, application, end-user industry, and by region.

The BFSI segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
Japan Natural Language Processing Market Report Scope

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