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Natural Language Generation Market: Information by Deployment Mode (Cloud, On-Premise), Application, Solution, Enterprise, Deployment Mode, End-User, and Region — Forecast Till 2029

Published At : 04 Mar, 2022
Updated At : 04 Mar, 2022
Market Snapshot
Base Year:
2021
Study Period:
2017-2029
CAGR:
29.4 %
Fastest Growing Market:
Asia Pacific
Largest Market:
North America

Natural language generation is a software process that exploits artificial intelligence and computational linguistics to transform structured data into natural language. Natural language generation facilitates easier and faster decision-making processes. It can simplify complex tasks by converting machine language into natural language. It is an indispensable component in the spoken dialogue system utilized to bridge the communication gap between humans and machines. The types of natural language generation software available in the market are basic natural language generation, template natural language generation, and advanced natural language generation. Basic natural language generation software relies on excel functions to translate data into text. Template natural language generation software utilizes template-driven mode to produce the desired output.

NLG — An Indispensable Aspect of Business Intelligence Platform

Advanced natural language generation software can communicate as humans, as well as understands the intent, increases the intelligence of the product, and displays a result in an understandable and readable manner. Growing research and development activities to explore the potential of NLG among several industries, such as weather forecasting, healthcare, and journalism, are some of the trends in the market. As of now, this software is a necessary feature for most of the modern analytics and business intelligence platforms. The Pollen forecast system for Scotland utilizes template natural language generation software to predict pollen levels in several parts of Scotland.  It takes six numbers as input from historical data and generates a brief textual summary of estimated pollen levels as output.

Streamlining Business Operations Using NLG

Increasing customer preferences towards advanced technologies and the emergence of big data and akin technologies boost market growth. NLG-based tools are widely used among enterprises as it provides business information that helps to make data-driven decisions.  For instance, NLG tools are extensively used in chatbots. The natural language capabilities possessed by these tools aid chatbots to interact more humanly. NLG allows chatbots to deliver an individualized user experience to customers while resolving queries, complaints, and virtual assistants for online processes. Therefore, companies are widely adopting NLG software to enhance their customer experience and satisfaction. Furthermore, it also employs machine learning algorithms to imitate the analysis technique done by human analysts. Data generation performed by this technology streamlines business operations, thereby increasing the efficiency of the organizations. However, lack of expertise in tandem with the lack of awareness among the customers concerning the benefits of NLG technology acts as a threat impeding the market growth.

Converting Machine Language into Understandable Human Language

The software segment, among other solution types, is a primary revenue generator and is anticipated to continue the trend in upcoming years. NLG software encompasses various tools, platforms, engines, and interfaces that aid in the conversion of machine language into understandable human language. NLG software helps non-technical employees and data analysts to generate data by dint of deep learning and to produce fruitful insights from digital information. The service segment is estimated to grow with the highest CAGR, as it offers a gamut of services to enterprises that utilize natural language generation. These services help companies in the effective utilization of natural language generation tools, thereby accelerating the service segment’s demand.

NLG Detects Abnormalities in Reports

The risk and compliance management segment possess significant market share, as NLG allows compliance teams to examine and identify critical information stored in structured data sets. The technique also helps to discover the abnormalities and hidden patterns from large data sets by utilizing topic tagging and sentiment analysis. The predictive maintenance segment is projected to snowball during the forecast period, as data analysis experts can make use of the technology to swiftly deliver crucial information to other people in the organization. NLG tools can be applied to the narrative component of suspicious reports, which helps in the detection of fraud and anti-money laundering issues. It converts data into text with high precision and is currently utilized in the automatic generation of suspicious transaction reports. By using natural language generation tools, data is processed quickly and accurately, reducing reporting time and anomalies.

Automatic Accurate Report Generation

NLG helps business organizations to improve their sales by customer experience management. Companies use customer experience management to augment customer loyalty and satisfaction. It offers personalized and customer-centric messages by extracting data from intricate sources to generate natural language content. Natural language generation tools automate report writing by translating the information into human language. This delivers precise and accurate performance reports, impacting the performance of organizations. Large enterprises dominate the market due to the initial seed money invested for software set-up. Small scale and medium scale enterprises fail to fully adopt the technology, owing to the high initial investment. However, the increasing number of cloud providers and the cost-effective nature of cloud NLG tools are expected to revise present scenarios.

Segmental Analysis

On-Premise Platform Prevents Third-Party Access

The on-premise segment holds customer-hosted NLG solutions; it allows an organization to take the helm of the complete data processed in its IT environment. This eliminates the risk of data accessed by a third party or unauthorized author. Furthermore, some organizations are subjected to regulations to host all the processes in house, thereby calling the demand fo the on-premise deployment of NLG tools. The cloud segment holds the largest share among other deployment modes and is anticipated to retain supremacy during the forecast period. It offers less operational cost, flexibility, and quick setup.

BFSI — the Largest Shareholder

The BFSI segment (banking, financial services, and insurance) held the lion’s share in the market during the year 2018. This is due to the fierce competition among banks, stringent government policies, and escalating demand for transparency urging banking sectors to incorporate automation and artificial intelligence tools. The technology enables banking and insurance companies to automate the fraud detection processes occurring in the organizations. It also allows them to maintain a good relationship with customers by initiating personalized communication between the users and banking organizations. These factors fueled the natural language generation market growth in the banking, financial, and insurance sector.

Addressing Customer Preferences

The retail and e-commerce segment is anticipated to grow with the highest CAGR during the forecast period. Natural language generation technology assists marketers to address customer preferences and requirements, offering them customized suggestions on the basis of their recent search histories. Therefore, technology increases the probability of buying goods, providing momentum to the NLG market in the retail and e-commerce sector.

Regional Overview

North America — Home for Industry Giants Amazon, IBM

North America held the largest share during 2018 and is estimated to continue its ascendancy during the forecast period. North America houses industry leaders such as Amazon Web Services, Inc., IBM Corporation, and Automated Insights; thus, facilitating a wide scope for market progression. Burgeoning investment from various investment companies in NLG technology to explore the benefits of this technique helps North America to hold the top position. In July 2019, a management company called NextStage AM invested in YSEOP, a natural language generation solution provider company. This investment will help YSEOP to broaden its international market and catalyze growth among various verticals in the United States. North America is observing major developments in the NLG market; in February 2018, Amazon Web Services and World Press Engine collaborated to launch Amazon Polly Plugin that helps to convert text into human speech. In 2018 April, Deloitte partnered with Restresco to develop artificial intelligence-powered natural language generation solutions for financial companies to automate the business transactions. Furthermore, increased technical awareness among the populace and rising adoption of innovative technologies by customers is accelerating the regional market growth.

A Wave of AI and ML in Asia-Pacific

Asia-Pacific is estimated to grow with the fastest CAGR during the forecast period on account of the increasing adoption rate of natural language generation tools in countries such as China, India, and Japan. Startup companies in India such as vPhrase and Stride.ai, are considerably contributing to the country’s NLG market growth. Rising utilization of artificial intelligence (AI) and machine learning (ML) among various industry verticals in Asia-Pacific countries such as banking, financial, and insurance, and government are boosting the regional market growth.

Europe’s Penchant for Technology

Europe is the second dominating region in the global natural language generation market, owing to the technical awareness among customers regarding the benefits of innovative technologies. Europe is conducting various workshops focusing on artificial intelligence and natural language processing technologies. NAVER LABS Europe, the biggest industrial research center for artificial intelligence technology based in France, is achieving ground-breaking progress in natural language processing and machine learning. Therefore, the presence of such prominent artificial intelligence companies helps Europe to cement strong position in the market.

Key Players

Some of the notable players in the global natural language generation market are Arria NLG, Amazon Web Services, Inc., IBM Corporation, Narrative Science, Automated Insights, Artificial Solutions, YSEOP, Conversica, Inc., NarrativeWave, Inc., vPhrase Analytics Solutions Pvt. Ltd, and Linguastat Inc. They are increasingly collaborating and partnering with technology providers to blend natural language generation with innovative and new technologies.

Natural Language Generation Market: Segmentation

By Solution

  • Software
  • Services

By Application

  • Fraud Detection and Anti-Money Laundering
  • Predictive Maintenance
  • Risk and Compliance Management
  • Performance Management
  • Customer Experience Management
  • Others

By Enterprise

  • Small and Medium Enterprise
  • Large Enterprise

By Deployment Mode

  • Cloud
  • On-premise

By Solution

  • Telecom and IT
  • BFSI (Banking, Financial Services, and Insurance)
  • Government and Defense
  • Health Care and Life Science
  • Media and Entertainment
  • Manufacturing
  • Retail and E-Commerce
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific
  • MEA
  • South America

Frequently Asked Questions (FAQs)

BFSI Solution Segment is expected to be the leading segment in Natural Language Generation Market during the forecast period.
Arria NLG, Amazon Web Services, Inc., IBM Corporation, Narrative Science, Automated Insights, Artificial Solutions, YSEOP, Conversica, Inc., NarrativeWave, Inc., vPhrase Analytics Solutions Pvt. Ltd are the top players in Natural Language Generation Market.
North America is expected to hold the highest market share in Natural Language Generation Market.
Increasing customer preferences towards advanced technologies and the emergence of big data and akin technologies are the key factors expected to drive Natural Language Generation Market during the forecast period.
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Report Metric Details
Market Size USD in Billion By 2030
CAGR CAGR 29.4%
Historical Data 2019-2020
Base Year 2021
Forecast Period 2022-2030
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered by Deployment Mode (Cloud, On-Premise), Application, Solution, Enterprise, Deployment Mode, End-User
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors Arria NLG, Amazon Web Services, Inc., IBM Corporation, Narrative Science, Automated Insights, Artificial Solutions, YSEOP, Conversica, Inc., NarrativeWave, Inc., vPhrase Analytics Solutions Pvt. Ltd,
Key Market Opportunities Growing Prevalence Of Technology Industry Helps To Grow Natural Language Generation Market Share
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