Japan Natural Language Processing Market Trends

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.

Challenges

• 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