“Global Natural Language Generation Market to reach a market value of USD 2.7 Billion by 2031 growing at a CAGR of 21.2%”
The Global Natural Language Generation Market size is expected to reach $2.7 billion by 2031, rising at a market growth of 21.2% CAGR during the forecast period.
In 2023, the Europe region generated 30% revenue share in the natural language generation market. The increasing digital transformation initiatives across various industries, including banking, finance, healthcare, and retail, fuel the growth in Europe. European organizations increasingly adopt NLG technology to streamline operations, ensure regulatory compliance, and enhance customer experiences.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2024, Amazon Web Services, Inc. unveiled a generative AI-powered feature in CloudTrail Lake (preview) that allows users to analyze AWS activity events using plain English queries, eliminating the need to write complex SQL. This simplifies event data analysis, enhancing security, compliance, and operational investigations for non-experts. Moreover, In April, 2024, Salesforce, Inc. unveiled MuleSoft's automation, integration, and API management solutions with AI features to boost productivity and streamline workflows. MuleSoft's Intelligent Document Processing (IDP) extracts data from various documents and integrates it with Salesforce Flow for seamless automation. Einstein AI is embedded in MuleSoft's tools, enabling natural language prompts for building integrations and automation.
Based on the Analysis presented in the KBV Cardinal matrix; Google LLC is the forerunner in the Natural Language Generation Market. In June, 2024, Google LLC unveiled the Gemini chatbot app in India, supporting English and nine Indian languages: Hindi, Bengali, Gujarati, Kannada, Malayalam, Marathi, Tamil, Telugu, and Urdu. Android users can download it via the Google Play Store or Google Assistant, and iOS access will soon be available. Companies such as IBM Corporation, Microsoft Corporation, and Amazon Web Services, Inc. are some of the key innovators in Natural Language Generation Market.
Businesses are constantly looking for ways to optimize operations and reduce costs. Automated content generation enables organizations to produce large volumes of text quickly, reducing the need for human writers and minimizing labor costs. This is especially valuable in industries like marketing, where timely content can drive sales. In conclusion, increasing demand for automated content generation drives the market's growth.
Additionally, Organizations are increasingly recognizing the value of data in informing their strategies. NLG technologies enable businesses to convert complex data sets into easily understandable narratives, making it simpler to derive actionable insights from raw data. As businesses seek to stay agile and responsive, the ability to generate real-time reports and summaries is crucial. Therefore, the growing focus on data-driven decision-making drives the market's growth.
Deploying NLG solutions often requires substantial initial investment. This includes costs associated with purchasing software, licensing, and possibly investing in hardware infrastructure. These upfront costs can be prohibitive for many organizations, significantly smaller businesses, or startups. NLG tools must be integrated with existing systems and data sources, involving complex technical work and additional expenses. Therefore, the high implementation costs of these tools are hindering market growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
By enterprise size, this market is divided into small & medium sized enterprises and large enterprises. The small & medium sized enterprise (SME) segment procured 35% revenue share in this market in 2023. Despite their smaller scale, SMEs increasingly recognize the benefits of NLG technology in improving efficiency and gaining competitive advantages. NLG solutions offer SMEs the capability to automate repetitive tasks, generate insights from data, and enhance customer interactions without extensive human intervention.
On the basis of application, this market is segmented into fraud detection & anti-money laundering (AML), predictive maintenance, risk & compliance management, performance management, customer experience management, and others. The performance management segment held 13% revenue share in this market in 2023. Organizations are increasingly leveraging NLG to improve their performance management processes. By transforming performance data into coherent and actionable insights, NLG enables managers to understand their team’s performance better, identify improvement areas, and make informed decisions.
Based on solutions, this market is divided into software and service. The service segment attained 35% revenue share in this market in 2023. This segment includes consulting, implementation, and maintenance services, which are essential for the successful deployment and operation of NLG solutions. The growth in this segment is driven by the increasing need for expertise in customizing and optimizing NLG software to meet specific business requirements.
Based on deployment, this market is categorized into on-premises and cloud. The on-premises segment witnessed 35% revenue share in this market in 2023. On-premises NLG solutions offer businesses complete control over their data and infrastructure, which is crucial for industries with stringent data privacy and security standards, such as finance, healthcare, and government.
Based on vertical, this market is divided into banking, financial services and insurance, retail and e-commerce, energy and utilities, government and defense, healthcare and lifesciences, media and entertainment, manufacturing, telecom and IT, and others. The retail and e-commerce segment held 14% revenue share in this market in 2023. This sector leverages NLG technology to enhance customer experience, optimize marketing efforts, and improve operational efficiency. NLG tools generate product descriptions, personalized marketing messages, and sales reports, enabling retailers to deliver tailored and engaging content to their customers.
Free Valuable Insights: Global Natural Language Generation Market size to reach USD 2.7 Billion by 2031
The Natural Language Generation (NLG) market remains competitive even without key players, driven by rising demand across industries like healthcare, finance, and e-commerce. Emerging companies and startups are leveraging AI advancements to offer innovative solutions. Competitive differentiation is focused on customization, integration with existing systems, and enhancing AI-driven content generation capabilities.
Region-wise, the natural language generation market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 38% revenue share in the natural language generation market in 2023. The dominance of North America is attributed to the advanced technological infrastructure, high adoption rate of artificial intelligence (AI) technologies, and significant investments in NLG solutions. The presence of major NLG vendors and a strong focus on innovation and research further drive the market growth in this region.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 605.4 Million |
| Market size forecast in 2031 | USD 2.7 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 21.2% from 2024 to 2031 |
| Number of Pages | 373 |
| Number of Tables | 593 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Enterprise Size, Application, Solutions, Deployment, Vertical, Region |
| Country scope |
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| Companies Included | IBM Corporation, Microsoft Corporation, Google LLC (Alphabet Inc.), Amazon Web Services, Inc. (Amazon.com, Inc.), SAS Institute Inc., Salesforce, Inc., Arria NLG Limited, vPhrase, Retresco GmbH, Yseop |
By Enterprise Size
By Application
By Solutions
By Deployment
By Vertical
By Geography
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