In the age of information technology, the availability of massive data has led to the innovation of tools to analyze it. Earlier, data analysis referred to focussing on metrics that could be easily measured. However, new technologies have made it possible to analyze a wider selection of data sources.
Text analytics, also referred as text mining, is one of the key data analysis techniques that can transform raw text into structured data that in turn, can be measured and analyzed. For example, text analytics can help to quantify texts such as customer service interactions, product reviews, or comments regarding a product and transform it into measurable data. The global text analytics market is estimated to expand robustly at a CAGR of 17.6% during the period between 2016 and 2024. The overall market was worth US$2.82 bn in 2015 and is projected to reach a valuation of US$12.16 bn by 2024.
IT and Telecom to Drive Demand from Global Text Analytics Market
The key applications of text analytics include fraud/ spam detection, data analysis and forecasting, customer relationship management, and intelligence and law enforcement. In the recent years, organizations are increasingly depending on text analytics solutions for data analysis and forecasting. In terms of deployment type, the global text analytics market has been broadly categorized into cloud-based and on-premise solutions. Various enterprises are rapidly adopting cloud-based text analytics solutions to increase the flexibility and scalability of data analysis process. In the coming years, cloud-based text analytics solutions are expected to be high in demand. Currently, on-premise text analytics solutions dominate the overall market.
Among the end user segments in the global text analytics market, military and defence held the majority share in the market in 2015. In the next couple of years, the IT and telecom sector is expected to be the fastest growing end user segment in the market owing to the rising need to improve visibility in core operations.
Major Players Focussing On Acquisition of Startups to Build Expertise on Text Analytics
The importance of text analytics has been identified by the major players in the market. Social media giant Facebook has recently introduced ‘Topic Data’ that allows anonymous analysing of posts and comments about subjects relevant to specific products. This will help advertisers to understand the customer perception about their products.
Some of the big players in the global text analytics market are SAP SE, Microsoft Corporation, IBM Corporation, SAS Institute Inc., RapidMiner Inc., Predixion Software, Lexalytics Inc., Attensity Group Inc., and Angoss Software Corporation. Players such as IBM and Microsoft are relying on acquiring startup firms to build their expertise on text analytics. For example, in October 2014, Microsoft acquired Israel-based text analysis startup Equivio Ltd. through a deal worth over US$300.0 mn. Similarly, in April last year, IBM Corp. bought AlchemyAPI, a startup selling software that analyzes unstructured data.
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