Natural Language Generation Market Analysis Report By Solution, By Application, By Deployment Mode, By Enterprise Size, By Vertical, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619954  |  Published: July 2020  |  No of Pages: 111
Format: Electronic (PDF)  |  Industry: Computing & Technology

Industry Insights

The global natural language generation (nlg) market size was worth USD 336.2 million in the year 2018. It is predicted to grow at a CAGR of 19.8% over the forecast period. The software process NLG allows converting computerized data to natural language. It enables to turn concepts into words and swiftly convert raw data into meaningful insights. Currently, natural language generation has emerged as an important feature for a majority of business intelligence and modern analytics platforms.

The use of artificial intelligence technologies like natural language generation and machine learning has grown among enterprises in various verticals. Moreover, AI has garnered substantial demand in applications where data-based information is required. Among various applications, artificial intelligence has replaced conventional tools to handle the changes in the digital platform including high computing power, data storage devices, and high data volumes with better processing speed and storage capacity. Therefore, rising investments in R&D activities for the deployment of an efficient platform for the interaction between humans and machines are likely to boost the demand for AI tools, thereby, contributing to the growth of the natural language generation industry by 2025.

 Asia Pacific natural language generation market

The NLG tool is run by AI, where the software acquires data from diversified sources to provide insights into natural language. Moreover, it adopts machine learning technology by which it copies the analysis technique carried on by human analysts. The use of NLG tools has substantially surged owing to its support to users streamline operations amongst businesses by self-generating data as information and texts with precision thus, enhancing operational efficiency. It further helps in strengthening target marketing in terms of consumer interests by incorporating variation in the content based on customer needs and providing a customized digital experience.

Solution Insights

The software segment held the largest share in 2018. It comprises several engines, tools, interfaces, and platforms that convert computerized code to human language. NLG software aids data scientists and non-technical personnel to process data and information through deep learning and further supports creating actionable information in terms of digital data.

The services division is likely to account for a higher CAGR from 2019 to 2025. It consists of several services catered to businesses that adopt NLG tools. Since these services help organizations in using and deploying natural language generation techniques effectively and further the overall potential of NLG, their demand is expected to surge substantially over the forecast period.

Vertical Insights

The BFSI segment held a share of about 22% of the natural language generation market in 2018 and is likely to dominate the industry based on total market share by 2025. Stringent regulations and increasing competition among banks have led to a rise in the adoption of AI tools. AI tools help in automating the processes and make the reporting of fraudulent activities easy, thereby, gaining traction among the BFSI sector.

Global natural language generation market

The retail and e-commerce segment is anticipated to substantially grow from 2019 to 2025 owing to its benefits identified by marketers to provide insights on the customer needs and help customers with suggestions according to their past searches. Therefore, technology contributes to influencing the purchasing pattern by creating content based on consumer behavior. The aforementioned factors are fueling the demand for NLG in the retail and e-commerce sectors.

Application Insights

NLG tools are highly adopted in risk and compliance management processes as it aids compliance teams to identify and analyze important insights stored in a structured format and uncover anomalies and patterns from huge datasets using topic tagging, sentiment analysis, and other techniques. This trend is expected to emerge powerfully and the risk and compliance management division is expected to maintain its lead throughout the forecast period.

The demand for natural language generation is anticipated to boost substantially in the predictive maintenance segment from 2019 to 2025. NLG techniques allow the data analysts to directly provide their skills within a dashboard which can help in providing important information to the masses within a company. The rising awareness relating to the advantages in the area of predictive maintenance is expected to boost the segment growth in the upcoming years.

Deployment Mode Insights

The cloud segment consists of deployment on a private or public cloud whereas the on-premise division comprises customer-hosted solutions. The cloud division held the dominant share of the overall market in 2018. It is expected to maintain its lead over the projected period. The advantages of the cloud segment include low operational cost, flexibility based on pricing models and operation, and quick setup.

Moreover, the on-premise division is expected to account for a higher CAGR from 2019 to 2025 as it provides businesses overall control over the entire data sets processed in the IT industry. This substantiates the risk related to the accessibility of the data to external sources. Furthermore, many businesses are compelled by regulatory needs to incorporate all processes within, thereby, creating the demand for the on-premise segment.

Enterprise Size Insights

The large enterprise division led the market in 2018 and is expected to maintain its dominance from 2019 to 2025. Small and medium-sized enterprises are likely to account for a CAGR of around 22% from 2019 to 2025. The use of NLG tools has been comparatively less in SMEs owing to the intense investment needs for setting up the infrastructure and less awareness relating to the benefits provided by NLG solutions. However, the hold of NLG techniques on cloud services is expected to positively impact its demand in SMEs.

Regional Insights

North America held the largest NLG market share in 2018 due to the considerable use of advanced technologies and rising investment by firms in NLG companies. For example, NextStage AM, in July 2019, announced investing in Yseop that can contribute NextStage AM to initiate its international presence and enhance its reach to diversified verticals in the region.

The need for NLG solutions is anticipated to increase subsequently in the Asia Pacific from 2019 to 2025 due to the increasing requirement across India, Japan, and China. The number of NLG startups like Stride.ai, vPhrase, and few others in India are further estimated to bolster the market growth. The increasing use of artificial intelligence technologies in the financial services, insurance, and banking sector is anticipated to boost regional market growth.

Impact of COVID-19

The market has been affected owing to the outbreak of COVID-19. Various end-user industries such as BFSI, Telecom & IT, Media & Entertainment, and manufacturing have shut down their operations. Additionally, these industries have reduced their spending on research & development, thus, delaying the growth of the market.

However, NLG automates various processes and is expected to reduce the dependency on manpower. Owing to the coronavirus outbreak, various industries are operating with low employees count. Thus, to ensure proper facilitation of processes, natural language generation is projected to play a vital role in business operations.

Natural Language Generation (NLG) Market Share Insights

The key players include IBM Corporation, Retresco. Vendors, Narrative Science, Phrasetech, ARRIA NLG plc, Yseop, Automated Insights, Inc., AX Semantics, CoGenTex, Inc., and Artificial Solutions. The organizations are aiming at integrating with technology service providers to combine NLG with advanced technologies to boost digital automation and transformation. For example, Arria NLG, in June 2019, integrated with UiPath. This will provide the customer of UiPath access to RPA and NLG features on one platform.

Moreover, the companies are emphasizing launching new products to fulfill the rising consumer needs and enhance their market presence. For example, Narrative Science, in August 2018, announced Narratives for Tableau created with the advanced Tableau Extension API to provide the users with ease of communication.

Report Scope

Attribute

Details

The base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Country Scope           

U.S., Canada, Mexico, UK, Germany, France, China, India, Japan, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, and growth factors and trends

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Segments Covered in the Report

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 2014 to 2025. For the purpose of this study, Million Insights has segmented the global natural language generation market report based on solutions, application, deployment model, enterprise size, vertical, and region:

• Solution Outlook (Revenue, USD Million, 2014 - 2025)
    • Software
    • Services

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • Fraud Detection and Anti-Money Laundering
    • Predictive Maintenance
    • Risk & Compliance Management
    • Performance Management
    • Customer Experience Management
    • Others

• Deployment Mode Outlook (Revenue, USD Million, 2014 - 2025)
    • Cloud
    • On-Premise

• Enterprise Size Outlook (Revenue, USD Million, 2014 - 2025)
    • Small and Medium-Sized Enterprises
    • Large Enterprises

• Vertical Outlook (Revenue, USD Million, 2014 - 2025)
    • Banking, Financial Services, and Insurance
    • Retail and Ecommerce
    • Government and Defense
    • Healthcare and Life Sciences
    • Manufacturing
    • Telecom and IT
    • Media and Entertainment
    • Energy and utilities
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • The Middle East and Africa (MEA)

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