Natural Language Generation Market Size, Share, Industry Trends and Forecast to 2030

Natural Language Generation Market Size & CAGR in 2021:

The global natural language generation market is anticipated to experience a Compound Annual Growth Rate (CAGR) of 15.6% from 2021 to 2028. This growth is expected to result in a market size expansion of USD 2.74 billion by the end of 2028. Natural Language Generation (NLG) is a subfield of artificial intelligence (AI) that focuses on the automatic generation of human-readable language from data. The increasing adoption of NLG technologies across various industries, such as healthcare, finance, and marketing, is driving the market growth. NLG helps in automating the generation of narratives, reports, and summaries from structured data, thereby enhancing efficiency and productivity in organizations.

COVID-19 Impact on the Natural Language Generation Market:

The COVID-19 pandemic has had a significant impact on the natural language generation market. With the global workforce transitioning to remote work setups, there has been a surge in the demand for AI-driven technologies like NLG to streamline communication and collaboration processes. Organizations are increasingly leveraging NLG solutions to automate the generation of reports, emails, and other communication materials, reducing the dependence on manual labor. Additionally, the healthcare sector has witnessed a heightened adoption of NLG for processing and analyzing large volumes of data related to the pandemic, such as patient records and research studies. The pandemic has accelerated the digitization of operations across industries, further boosting the demand for NLG technologies.

Natural Language Generation Dynamics:

The natural language generation market is characterized by rapid technological advancements and increasing investments in AI research and development. Organizations are increasingly focusing on enhancing their data analytics capabilities to derive actionable insights from large datasets, driving the adoption of NLG solutions. The rise of big data and the proliferation of IoT devices are further fueling the demand for NLG technologies to process and interpret structured and unstructured data. Moreover, the integration of NLG with other AI technologies such as natural language processing (NLP) and machine learning (ML) is enabling organizations to automate complex data-driven tasks, leading to improved operational efficiency and decision-making.

Segments and Related Analysis:

Segmentation by Component:

• NLG Software
• NLG Services

The NLG market can be segmented by component into NLG software and NLG services. The NLG software segment dominates the market, driven by the increasing demand for AI-driven content generation solutions. NLG services, which include consulting, training, and support services, are witnessing growth due to the need for expertise in implementing and optimizing NLG solutions.

Segmentation by Application:

• Automated Reporting
• Customer Service
• Financial Analysis
• Others

In terms of application, NLG finds widespread use in automated reporting, customer service, financial analysis, and other areas. The automation of reporting processes using NLG software is driving operational efficiency and reducing manual errors. NLG-powered customer service solutions are enhancing the customer experience by providing personalized responses and recommendations. Financial institutions are leveraging NLG for data analysis and reporting to gain insights into market trends and investment opportunities.

By Region Analysis:

North America:

The North American region accounts for a significant share of the global NLG market, driven by the presence of key market players and technological advancements in AI and data analytics. The increasing adoption of NLG solutions across industries such as healthcare, finance, and e-commerce is propelling market growth in the region. The United States leads the market in North America, with a strong focus on innovation and the development of AI technologies.

Europe:

Europe is another prominent region in the NLG market, with countries like the UK, Germany, and France at the forefront of AI research and development. The growing emphasis on digital transformation in industries like retail, banking, and telecommunications is driving the adoption of NLG solutions in the region. European organizations are increasingly investing in AI technologies to automate business processes and enhance operational efficiency.

Asia Pacific:

Asia Pacific is witnessing rapid growth in the NLG market, fueled by the increasing adoption of AI technologies in emerging economies like China, India, and Japan. The region's burgeoning IT sector and growing investments in AI research are driving market expansion. Organizations in Asia Pacific are leveraging NLG solutions to improve customer engagement, optimize data analysis, and streamline content generation processes.

Key Market Players and Competitive Landscape:

The global NLG market is characterized by intense competition, with key players focusing on product innovation, strategic partnerships, and acquisitions to gain a competitive edge. Some of the prominent market players in the NLG space include IBM Corporation, Automated Insights Inc., Narrative Science, Yseop, and Arria NLG. These players are actively involved in developing advanced NLG solutions to cater to the evolving needs of organizations across various industries.

Recent Happenings in the Natural Language Generation Market:

In recent developments, IBM Corporation announced the launch of its latest NLG platform with enhanced language processing capabilities. Automated Insights Inc. introduced a new NLG software solution for financial analysis applications, targeting banking and investment firms. Narrative Science partnered with a leading technology firm to integrate its NLG technology into customer service chatbots. Yseop announced a collaboration with a healthcare provider to develop NLG-powered reporting tools for medical professionals. These initiatives underscore the growing importance of NLG technology in driving innovation and efficiency across diverse sectors.