The global natural language generation market size was valued at USD 478.26 Million in 2022 and is projected to reach USD 2.32 Billion by 2031, expanding at a CAGR of around 19.2% during the forecast period, 2023 – 2031. The growth of the market is attributed to the demand for Artificial Intelligence (AI) technologies for an effective mode of interaction between machines and humans.
Natural language generation (NLG) is a software program that allows targeted electronic data to be converted into natural language. It aids in the communication of ideas and the conversion of raw data into insights. AI is at the heart of NLG software, which pulls data from a variety of sources to provide natural language insights. Many advanced technologies such as Machine Learning (ML) are integrated into NLG to ensure effective and low-cost business operations. Moreover, NLG solutions are gaining popularity as they assist users in streamlining activities inside their enterprises by automatically creating data in the form of texts and information with high accuracy. Hence, it helps in enhancing an organization's efficiency. Vendors of NLG software are combining textual and visual analysis to create more powerful data representations. Self-service systems for data discovery and insights based on data are also being introduced by NLG firms.
Due to the COVID- 19 pandemic outbreak, several lockdown rules and regulations were enforced that resulted in putting business operations on halt globally. Most of the sectors except for medical supplies and life support items, have been severely hit and natural language generation software companies have also been severely disrupted.
Natural Language Generation Market Trends, Drivers, Restraints, and Opportunities
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Wide adoption of NLG helps to enhance the knowing about the customers’ behavior and their interest. This is a key factor driving the market growth.
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Production of raw data can be quickly converted into words and providing advanced feature associated with the software are anticipated to propel market expansion.
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Easy availability of products and solutions with increased capabilities and low-cost is expected to boost the market in the coming years.
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Issues concerning to data security and lack of skilled consultants to deploy solutions and services are the major restraining factors that can hamper the market expansion.
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Increasing demand for intelligent business processes and wide integration of advanced technology in NLG solutions are creating new opportunities for market expansion.
Scope of Natural Language Generation Market Report
The report on the global natural language generation market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Natural Language Generation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Applications (Risk & Compliance Management, Performance Management, Customer Experience Management, Fraud Detection & Anti-money Laundering, Predictive Maintenance, and Others), Deployments (On-premise and Cloud-based), Solutions (Services and Software), Enterprises (Large Enterprises and Small & Medium-sized Enterprises), End-users (Healthcare & Life Sciences, Manufacturing, Telecom & IT, Media & Entertainment, Energy & Utilities, BFSI, Retail & E-commerce, Government & Defense, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Narrative Science; ARRIA NLG plc; Phrasetech; Automated Insights, Inc.; CoGenTex, Inc.; Yseop; Artificial Solutions; AX Semantics; Retresco; and IBM Corporation
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Natural Language Generation Market Segment Insights
Risk & compliance management segment is expected to grow at a rapid pace
Based on applications, the natural language generation market is divided into risk & compliance management, performance management, customer experience management, fraud detection & anti-money laundering, predictive maintenance, and others. The risk & compliance management segment is expected to grow at a rapid pace during the forecast period as NLG helps in identifying critical information and hidden patterns from massive datasets. However, the predictive maintenance segment is anticipated to hold a key share of the market in the coming years. As market solutions allow data analysis teams to immediately incorporate their knowledge within a dashboard, which can then be leveraged to swiftly provide crucial insights to more individuals within an organization.
Cloud-based segment to emerge as a fast-growing category
In terms of deployments, the market is bifurcated into cloud-based and on-premise. The cloud-based segment is projected to emerge as a fast-growing category during the forecast period owing to low operational cost and flexibility in terms of operation. During the projected period, the on-premise segment is expected to grow at a fast rate as the on-premise implementation provides a company with complete control over all data handled on its IT infrastructure.
Software segment to hold a large proportion of the market growth
On the basis of solutions, the natural language generation market is divided into software and services. The software segment is expected to hold a large proportion of the market growth during the forecast period owing to multiple engines that handle the translation of computer code to human-readable language. On the other hand, the services segment is predicted to expand at a fast growth rate during the projection period due to services offered to businesses that use natural language generating techniques.
Large enterprises segment is expected to grow at a rapid pace
Based on enterprises, the market is bifurcated into large enterprises and small & medium-sized enterprises. The large enterprise segment is expected to grow at a rapid pace during the forecast period. However, the small and medium segment is anticipated to hold a key share of the market in the coming years as high investment in the services among small and medium businesses to improve their infrastructure. However, the cost-effectiveness of cloud-based tools and the growing number of cloud service providers globally are projected to boost the segment growth.
BFSI segment is projected to expand at a considerable CAGR
On the basis of end-users, the natural language generation market is segregated into healthcare & life sciences, manufacturing, telecom & it, media & entertainment, energy & utilities, BFSI, retail & e-commerce, government & defense, and others. The BFSI segment are projected to expand at a considerable CAGR during the forecast period due to the growing number of strict rules as well as increased rivalry among banks. The implementation of the technology allow the BFSI vertical to automate the process of reporting and identifying any fraudulent behavior inside a company.
North America is anticipated to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period as the increasing adoption of new technologies among companies in the region. However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the rising number of NLG market start-ups in the region.
Segments
The global natural language generation market has been segmented on the basis of
Applications
- Risk & Compliance Management
- Performance Management
- Customer Experience Management
- Fraud Detection & Anti-money Laundering
- Predictive Maintenance
- Others
Deployments
Solutions
Enterprises
- Large Enterprises
- Small & Medium-sized Enterprises
End-users
- Healthcare & Life Sciences
- Manufacturing
- Telecom & IT
- Media & Entertainment
- Energy & Utilities
- BFSI
- Retail & E-commerce
- Government & Defense
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global natural language generation market are Narrative Science; ARRIA NLG plc; Phrasetech; Automated Insights, Inc.; CoGenTex, Inc.; Yseop; Artificial Solutions; AX Semantics; Retresco; and IBM Corporation.
Market vendors are concentrating on cooperating with technology providers to include NLG into new technologies that aids in promoting digital transformation and automation. For instance, in June 2019, Arria NLG, a provider of natural language generation technologies, had entered into a partnership with UiPath, a provider of robotic process automation (RPA). As per the deal, customers of UiPath were allowed to receive access to NLG solutions and RPA technologies on a single platform.
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