Natural Language Generation Market Size, Share & Trends Analysis Report By Solution (Software, Service), By Application, By Deployment Model, By Enterprise Size, By Verticals, By Region, And Segment Forecasts, 2024 - 2030

Natural Language Generation Market Trends

The global natural language generation market size was valued at USD 655.3 million in 2023 and is projected to grow at a CAGR of 21.8% from 2024 to 2030. The factors such as growing industry adoption of AI and machine learning, increasing reliance on data driven decision making, increasing the usage of analytics and business intelligence applications, are major driving factors for the market growth.

NLG helps organizations create large amounts of content in a short time with coherence and professionalism. Therefore, NLG solutions are now widely used by modern businesses to generate textual content such as reports, summaries, articles, and product descriptions. The companies are also engaged in innovation and development to gain an advantage in the market. For instance, in June 2019, Arria NLG introduced integrations for business intelligence (BI) that brought advanced analytics and linguistics together inside BI tools. The integration is expected to help in improving the speed and efficiency of reporting, which is likely to drive their demand in the market.

Furthermore, IoT devices collect enormous amounts of information from sensors, machines, and connected devices in the manufacturing, healthcare, and transportation industries. NLG becomes indispensable in presenting the findings based on this IoT-obtained data in a natural language form. For instance, in February 2020, Yseop introduced Augmented Analyst, a report-generation platform based on NLG, which is likely to help financial companies draw insights from structured data and translate them into clearly written reporting narratives.

Solutions Insights

The software segment dominated the market with a market share of 66.3% in 2023. Natural language generation software helps data analysis scientists and non-technical people process information and data with the help of deep learning and helps generate actionable insights based on digital data. This application of natural language generation in various industries and the launch of advanced solutions is expected to drive segmental growth demand over the forecast period. In December 2019, AX Semantics was launched globally, an AI-powered, natural language generation (NLG) software used within the e-commerce, business, finance, and media publishing sectors. The software is expected to help make automated content generation accessible to all customers.

The service segment is expected to grow at the fastest CAGR of 22.5% over the forecast period from 2024 to 2030. The services such as training & support help companies in efficiently deploying and using natural language generation tools and make use of their entire potential, which is likely to drive segmental demand with rising deployment of NLG software across different sectors.

Application Insights

The risk & compliance management segment accounted for the largest market share of 23.0% in 2023. NLG plays a crucial role in automating the generation of reports, alerts, and insights to ensure regulatory compliance and manage risks effectively. For instance, according to the article published by the ARRIA NLG in March 2024, its natural language generation software can help in the analysis of large amounts of transactional data and customer information, identify suspicious patterns, and generate detailed reports with improved quality to comply with government regulations.

The fraud detection and anti-money laundering segment was expected to grow at the fastest CAGR over the forecast period. Detection and preventing fraud on time becomes important to build and safeguard customer confidence in AI and machine learning tools. Therefore, the ability of natural language generation to identify the risks associated with large data is likely to help drive segmental growth.

Deployment Insights

The cloud segment was the most dominant segment, with a global market share of 67.0% in 2023. Benefits offered by the cloud deployment, such as quick setup, low operational cost, and flexibility in pricing models, are major factors driving the market growth. The use of cloud-based deployment also offers scalability and helps in increasing access, which is likely to help in driving market growth.

The on-premises is expected to grow at the fastest CAGR over the forecast period of 2024 to 2030. On-premises deployment gives an organization total control over the data processed in its IT environment. It reduces the risk of data being directly accessed by an external third party. In addition, due to regulatory restrictions, some organizations are required to host in-house processes. This is likely to increase the demand for on-premises deployment of NLG tools and drive market growth.

Enterprise Size Insights

Large enterprises dominated the market and accounted for a market share of hold the most dominant position with a global market share of 67.4% in 2023. Large enterprises deal with vast amounts of data, and the ability of NLG to analyze this data and automatically generate detailed reports in an efficient time is likely to increase their demand in large enterprises. For instance, in January 2024, Analog Devices, Inc. deployed SambaNova Suite, a generative AI platform, which is expected to help in enhancing its generative AI capabilities at an enterprise scale.

The small and medium-sized enterprise segment is expected to grow at the fastest CAGR over the forecast period. The presence of global and local players in the market and increasing usage of NLG tools across industries is likely to help drive the demand for natural language generation in the small and medium-sized enterprises segment.

Verticals Insights

The BFSI segment dominated the market and accounted for a market share of 21.8% in 2023. The natural language generation in the BFSI sector can help automate financial reports, create regulatory compliance documents, and enhance customer service through automated responses. For instance, in June 2024, Bank Negara Indonesia (BNI) selected Cloudera to help it advance its banking services by improving customer experience and increasing operational efficiency.

Media and entertainment are expected to grow at the fastest CAGR of 25.0% over the forecast period of 2024 to 2030. Natural language generation can help the media and entertainment industry in generating news articles from structured data, such as sports scores or financial reports, which can further assist in rapid content dissemination while maintaining accuracy. This increasing application of the NLG in the media and entertainment industry is expected to drive segment growth over the forecast period.

Regional Insights

North America accounted for the largest market share of 38.6% in 2023. The growth can be attributed to the increasing adoption of generative AI by various industries such as government and defense, healthcare, and financial services. The increasing efforts by the government and private organizations to promote technological innovation in the region and increasing investment in science and technology are further expected to foster growth in the market.

U.S Natural Language Generation Market Trends

The U.S. accounted for 63.2% of the North American market in 2023. The increasing efforts by the U.S. government to ensure the safe use of artificial intelligence in the country have encouraged the adoption of natural language generation in the country. For instance, in budget 2024, the government announced an investment of USD 65 million with the Department of Commerce to extend support to the mandate of the AI Safety Institute to ensure the safety and security of AI models critical AI work. Such steps are likely to boost the usage of generative AI models, including natural language generation, and drive market growth.

Europe Natural Language Generation Market Trends

Europe accounted for a significant share of the global natural language generation market. The increasing technological advancements in the country and the increasing use of artificial intelligence in various industries are driving the market growth in the region. For instance, according to the European Commission, in 2023, about 8% of enterprises in the European Union having ten or more employees were using AI technologies to conduct their business. In addition, about 2.1% of the enterprises were using natural language generation tools in their business. The increase in technological advancements and adoption is expected further to boost the growth of this market in the region.

The German natural language generation market is expected to grow significantly over the forecast period owing to the emergence of various startups using artificial intelligence technologies. For instance, in June 2024, Cognigy, a startup based in Düsseldorf, received approximately USD 101 million in Series C to advance its AI customer service automation business. Such developments are expected to drive the country's implementation of natural language generation models and market growth.

Asia Pacific Natural Language Generation Market Trends

The Asia Pacific natural language generation market is projected to grow at the fastest CAGR of 29.3% over the forecast period owing to the technological advancement in the region and increasing investments by the growing economies such as China and India in the development of science and technology. According to an article published by Springer Nature Limited in March 2024, India announced an investment of approximately USD 1.25 billion to advance the artificial intelligence infrastructure in the country. Such investments are likely to boost the market growth in the region.

The Indian natural language generation market is expected to grow owing to the rising technological investments in the country and the emergence of various local startups and artificial intelligence tools. For instance, in December 2023, CoRover.ai introduced BharatGPT in collaboration with Google Cloud, which is its Indian language generative AI platform. The development of such platforms is likely to add to the market growth over the forecast period.

Key Natural Language Generation Company Insights

Some of the key companies in the natural language generation market include AWS, Salesforce, Inc., ARRIA NLG Limited., Yseop, and others. Companies in the market are focusing on increasing their customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers and acquisitions, and partnerships with other major companies to strengthen their position in the market.

Recent Developments

• In July 2024, Cognizant and Yseop announced a plan to partner to scale medical writing through Generative AI. The partnership is expected to help in advancement advancing the development process of new drugs and expedite their market introduction.

• In December 2021, Tableau, through its parent company, Salesforce, Inc., completed the acquisition of Narrative Science, a natural language generation company.

• In September 2020, Arria NLG launched a Microsoft Excel add-in that generates natural language summaries and automates report creation in spreadsheets.

Natural Language Generation Market Report Scope

Global Natural Language Generation Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global natural language generation market report based on solutions, application, deployment model, enterprise size, verticals and region:

• Solutions (Revenue, USD Million; 2018 - 2030)

  • Software

  • Service

• Application Outlook (Revenue, USD Million; 2018 - 2030)

  • Fraud Detection & Anti-Money Laundering

  • Predictive Maintenance

  • Risk & Compliance Management

  • Performance Management

  • Customer Experience Management

  • Others

• Deployment Model Outlook (Revenue, USD Million; 2018 - 2030)

  • On-premises

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million; 2018 - 2030)

  • Small & Medium Sized Enterprises

  • Large Enterprises

• Verticals Outlook (Revenue, USD Million; 2018 - 2030)

  • Banking, Financial Services and Insurance

  • Retail and Ecommerce

  • Government and Defense

  • Healthcare and Lifesciences

  • Manufacturing

  • Telecom and IT

  • Media and Entertainment

  • Energy and Utilities

  • Others

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • MEA and Africa

    • South Africa

    • Saudi Arabia

    • UAE