US: 1.646.568.9797 (24x5)
UK: 44.330.808.0580 (24x5)
Worldwide: 91.703.051.960 (24x7)
Industry Insights, Market Size, CAGR, High-Level Analysis: Natural Language Generation MarketThe global natural language generation market size was valued at USD 336.2 million in 2018 and is expected to register a CAGR of 19.8% from 2019 to 2025. NLG is a software process that enables the conversion of computerized data into natural language. It helps put concepts into words and quickly convert raw data into insights. Today, natural language generation has become an essential feature for most modern analytics and business intelligence platforms. The adoption of artificial intelligence (AI) technologies such as machine learning and natural language generation has increased within enterprises across diversified verticals. Furthermore, AI has gained significant importance in applications that involve the use of data-driven information. Across a range of applications, AI has started to replace traditional technologies to deal with changes digital infrastructure such as high computing power, high data volumes, and data storage devices with improved storage capacities and processing speeds. Thus, increasing investments in research and development of an effective mode of interaction between machines and humans are expected to drive the demand for AI technologies, which, in turn, would support the growth of the NLG market over the forecast period. An NLG software is driven by AI, wherein the software extracts data from various sources in order to generate insights in natural language. Furthermore, NLG also uses machine learning technology, through which it mimics the technique of analysis done by human analysts. The adoption of natural language generation solutions has significantly increased because it helps users streamline operations within their businesses by auto-generating data in the form of texts and information with high accuracy, thereby increasing organizations efficiency. The technology also helps in enhancing target marketing based on the interest of customers by creating variations in the content as per customers requirements and delivering personalized digital experience. Present-day NLG solutions provide a wide range of capabilities and newer products continue to see improvements over their predecessors as a number of new natural language generation companies focus on introducing advanced products to benefit from the promising growth opportunities across several industries. NLG vendors are integrating written analysis into visual analysis to get more impactful data visualizations. Natural language generation companies are also introducing self-service platforms such as Wordsmith for data discovery and insights based on data. Easy availability of NLC products and solutions with such enhanced capabilities is expected to drive the market for natural language generation over the forecast period.
Solution Insights of Natural Language Generation MarketOn the basis of solutions, the market for natural language generation is segmented into software and services. The software segment accounted for the highest share in the market in 2018. An NLG software consists of various engines, platforms, tools, and interfaces that process the conversion of computerized code to human-understandable language. Natural language generation software help data analysis scientists as well as non-technical people process information and data with the help of deep learning and also help generate actionable insights based on digital data. The services segment is expected to register a higher CAGR over the forecast period. It includes a variety of services provided to enterprises that employ natural language generation tools. As these services assist companies in deploying and using natural language generation tools efficiently and make use of the entire potential of the NLG software, their demand is likely to rise notably with the increased deployment of NLG software across a range of industries.
Vertical InsightsBased on vertical, the market for natural language generation has been segmented into banking, financial services, and insurance, retail and e-commerce, government and defense, healthcare and life sciences, manufacturing, telecom and IT, media and entertainment, energy and utilities, and others. The banking, financial services, and insurance segment accounted for a share of nearly 22% of the market in 2018. The segment is also expected to dominate the market in terms of overall market share over the forecast period. The increasing number of stringent regulations, rising competition between banks, and the rising demand for transparency has led to the adoption of automation and AI tools across banks, insurance companies, and investment management firms. NLG tools enable the BFSI vertical to automate the process of reporting and determining any fraudulent activity occurring within an organization. These tools also help in establishing engaging and personalized communication between users. Such factors have spurred the adoption of NLG tools in banking, financial services, and insurance segment. The retail and ecommerce segments are also expected to display promising growth over the forecast period as the NLG technology enables marketers to understand the requirements of customers and helps provide customers suggestions based on their recent searches. Thus, the technology helps influence buying behavior by generating content based on customers buying behavior. These factors are driving the adoption of natural language generation in retail and e-commerce industries.
Application Insights of Natural Language Generation MarketBased on application, the market for natural language generation has been segmented into risk & compliance management, fraud detection and anti-money laundering, performance management, customer experience management, predictive maintenance, and others. NLG tools are being increasingly used in risk & compliance management activities as natural language generation helps compliance teams analyze and identify critical information stored in structured data and uncover anomalies and hidden patterns from massive datasets with the help of sentiment analysis, topic tagging, and other techniques. The trend is likely to remain strong and the risk & compliance management segment is likely to retain its dominance throughout the forecast period. The adoption of natural language generation is expected to grow significantly in predictive maintenance applications over the forecast period. NLG tools enable data analysis teams to directly embed their expertise within a dashboard that can be used to deliver critical insights to more people within an organization quickly. The increased awareness about these benefits in the field of predictive maintenance applications is likely to drive the segment over the forecast period.
Deployment Mode InsightsBased on deployment, the natural language generation market is categorized into cloud and on-premise. The cloud segment includes deployment on a public or private cloud while the on-premise segment includes customer-hosted NLG solutions. The cloud segment held the lions share in the market in 2018 and is likely to retain its dominance throughout the forecast period. Benefits of cloud deployment, including quick setup, low operational cost, and flexibility in terms of operation and pricing models continue to increase its popularity among consumers. Nevertheless, the on-premise segment is likely to register a higher CAGR over the forecast period. On-premise deployment gives an organization total control over all the data processed on its IT environment. This mitigates the risk of the data being directly accessible to any external party. Moreover, some organizations are bound by regulatory requirements to host all processes in-house, driving the need for on-premise deployment of natural language generation tools and solutions.
Enterprise Size InsightsBased on enterprise size, the market for natural language generation is segmented into small and medium-sized enterprises and large enterprises. The large enterprises segment accounted for the dominant share of the market in 2018. The demand for NLG solutions is likely to remain strong in large enterprises in the near future as well and the segment is likely to retain its dominance throughout the forecast period. The small and medium-sized enterprises segment is expected to register a CAGR of approximately 22% over the forecast period. The adoption of natural language generation tools has been relatively low in SMEs due to the high investment required to set up the infrastructure and lack of awareness about vast advantages of NLG across a number of fronts. However, the economical nature of NLG tools on cloud and the rising number of cloud service providers globally are likely to help change the scenario, driving the small and medium-sized enterprises segment.
Regional Insights of Natural Language Generation MarketThe North American region dominated the NLG market in 2018, attributed to the significant adoption of advanced technologies in the region and increasing investment by various investment firms in NLG firms to benefit from the vast potentials of the market. For instance, In July 2019, NextStage AM, a management company, announced an investment in Yseop, a provider of NLG solutions. This investment would support the latter to develop its international market and accelerate the rollout of NLG solutions suited to various verticals in the U.S. The demand for NLG technology is expected to rise substantially in the Asia Pacific region over the forecast period. This is due to the rising adoption of the NLG tools in India, China, and Japan. A rising number of natural language generation startups such as vPhrase, Stride.ai, and others in India also ensure promising growth opportunities for the regional market. The rising deployment of artificial intelligence technologies in the banking, financial services, and insurance sector is expected to drive growth of the regional market.
Market Share Insights of Natural Language Generation MarketKey industry participants operating in the market for natural language generation include IBM Corporation, Narrative Science, ARRIA NLG plc, Phrasetech, Automated Insights, Inc., CoGenTex, Inc., Yseop, Artificial Solutions, AX Semantics, and Retresco. Vendors in the market are focusing on collaborating with technology providers in order to integrate natural language generation into new technologies to drive digital transformation and automation. For instance, in June 2019, Arria NLG, a provider of natural language generation solutions, collaborated with UiPath, a provider of robotic process automation (RPA). Through this collaboration, the customers of UiPath will gain access to natural language generation and RPA features on a single platform. NLG companies are also focusing on new product launches to cater to increasing customer requirements and expand their market reach to gain a competitive edge. For instance, in August 2018, Narrative Science, a provider of natural language generation solution, announced Narratives for Tableau, a new extension built with Tableaus latest Tableau Extension API. This will provide Tableau Software users with an easy way to communicate with dashboard readers.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Natural Language Generation Market Research ReportThis report provides forecasts for revenue growth at the global, regional, and country levels and analyses of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, this market research report has segmented the global natural language generation market report based on solutions, application, deployment mode, enterprise size, vertical, and region.
Solution Outlook (Revenue, USD Million, 2019 - 2030)
Application Outlook (Revenue, USD Million, 2019 - 2030)
- Fraud Detection and Anti-Money Laundering
- Predictive Maintenance
- Risk & Compliance Management
- Performance Management
- Customer Experience Management
Deployment Mode Outlook (Revenue, USD Million, 2019 - 2030)
Enterprise Size Outlook (Revenue, USD Million, 2019 - 2030)
- Small and Medium-Sized Enterprises
- Large Enterprises
Vertical Outlook (Revenue, USD Million, 2019 - 2030)
- Banking, Financial Services, and Insurance
- Retail and Ecommerce
- Government and Defense
- Healthcare and Life Sciences
- Telecom and IT
- Media and Entertainment
- Energy and utilities
Table of Contents Chapter 1 Methodology and Scope 1.1 Research Methodology 1.2 Research Scope and Assumptions 1.3 List to Data SourcesChapter 2 Executive Summary 2.1 Natural Language Generation Market - Industry Snapshot & Key Buying Criteria, 2014 - 2025 2.2 Global 2.2.1 Global Natural language generation market, 2014 - 2025 2.2.2 Global Natural language generation market, by region, 2014 - 2025 2.2.3 Global natural language generatio | read more...