Natural language generation (NLG) is a subfield of artificial intelligence, which automatically transforms data into plain English content. It can be used to produce long-form content for organizations to generate custom content for mobile applications as well as custom reports. NLG is different from natural language processing (NLP) since NLP focuses on deriving analytics insights from textual data, while NLG is used to generate textual data by combining analytic output with contextualized narratives. With NLG, data can be accessed, analyzed, and communicated with scale and accuracy.
The global Natural Language Generation Market was accounted for US$ 411.5 Mn in terms of value in 2019 and is expected to grow at CAGR of 21.2% for the period 2020-2027.
Market Dynamics- Drivers
Understanding customers’ buying behavior has become crucial for business owners. Since products are made to cater to consumers’ needs and wants, the product should be designed and marketed accordingly. The study of customer behavior helps organizations to analyze different factors that influence buying decisions of consumers. NLG can create unlimited content variations for every individual for a personalized experience with better customer engagement. It also helps companies to execute targeted marketing and provide individualized content for increased sales. This also means less amount of time is spent on routine tasks, which can be otherwise used for improving digital experiences. NLG can make different variations of product descriptions precisely in multiple languages very efficiently. Thus, these factors are expected to drive growth of the global natural language generation market during the forecast period.
Big data refers to an efficient way to analyze and systematically extract valuable insights from a vast amount of unstructured data. Big data is far more efficient than conventional data processing application software. NLG is a cutting-edge technology that can boost data visualization solutions. By leveraging NLG, interpretation of data visualization software such as SAP, Tableau, and Qlik has become significantly easy. Furthermore, NLG can provide a coherent and inclusive analysis of a vast and complex dataset. In fact, it also reduces human cognitive efforts, enabling end users to make decisions based on valuable insights. Therefore, these factors are expected to propel the global natural language generation market growth over the forecast period.
North America held dominant position in the global Natural Language Generation market in 2019, accounting for 34.7% share in terms of value, followed by Europe and Asia Pacific respectively
Figure 1: Global Natural Language Generation Market Share (%) in terms of Value, By Region, 2019
Natural Language Generation Market - Impact of Coronavirus (Covid-19) Pandemic
Many companies are laying off people due to the reduced sales revenues owing to the COVID-19 pandemic. For instance, In U.S. according to the Coherent Market Analysis, the unemployment rate increased from 5.5% to 14.5% in the period December 2019 to April 2020. As companies are facing losses, it is expected that companies will reduce the expenditure on the technological advancements such as Natural Language Generation tools during the year 2020. COVID-19 is expected to restrain the market growth during the year 2020.
Understanding and deploying natural language generation requires skilled personnel. Such expertise is scarcely available, especially in emerging regions such as Latin America, Asia Pacific, and MEA. As a result of this, the adoption of NLG is significantly hindered. Thus, these factors are expected to hinder the global natural language generation market growth over the forecast period.
Despite its numerous advantages, the adoption of NLG is significantly low. This is owing to low awareness regarding NLG solutions and their advantages among many business owners. Thus, these factors are expected to restrain growth of the global natural language generation market during the forecast period.
|Base Year:||2019||Market Size in 2019:||USD 411.5 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||21.2%||2027 Value Projection:||USD 1915.8 Mn|
Retresco, Narrative Science, AX Semantics, IBM Corporation, Artificial Solutions, Yseop, Narrative Science, CoGenTex, Inc., ARRIA NLG plc, Automated Insights, Inc., and Phrasetech.
|Restraints & Challenges:||
Natural language generation is being used in various applications such as automated editorial content creation, e-commerce content creation, chatbots, auto-generated software patent application, financial assessment automation, and more. In this, chatbots are one of the most recent applications of NLG where they are required to converse or interact with people in a way that a human would. The best chatbots would the ones that can give users the impression that they are interacting with actual humans.
NLG is finding applications in intelligent business processes. NLG tools can analyze, interpret, and identify the most significant data and generate reports in simple English. Furthermore, NLG offers artificial intelligence (AI) to business intelligence by automating the routine analysis, which saves both time and money for the business.
Figure 2: Global Natural Language Generation Market Value (US$ Mn), 2017 - 2027
The global Natural Language Generation market was valued at US$ 411.5 Mn in 2019 and is forecast to reach a value of US$ 1915.8 Mn by 2027 at a CAGR of 21.2% between 2020 and 2027.
Key companies in the market are focused on research and development activities, in order to expand the market presence. These activities can unblock the potential of NLG across various verticals such as weather forecasting, journalism, medicine, and more. For instance, in March 2020, IBM Corporation announced several new IBM Watson technologies designed to aid organizations in identifying, analyzing, and understanding major challenges related to English language.
Natural language generation is being increasingly used in marketing analytics, machine learning, and sales analytics. Sales and marketing analytics provide crucial insights into the market. NLG allows analytics tools to provide responses that are easy and immediately understandable.
Key players operating in the global natural language generation market are Retresco, Narrative Science, AX Semantics, IBM Corporation, Artificial Solutions, Yseop, Narrative Science, CoGenTex, Inc., ARRIA NLG plc, Automated Insights, Inc., and Phrasetech.
Natural language generation software uses artificial intelligence algorithms to produce the speech or text from the large amount of data. These software enable companies to convert analytical data report into natural languages such as English. Moreover, these software enable companies to create data driven reports, which help them in their strategic decision making.
Natural language generation tools are widely used in BFSI, healthcare, retail & e-commerce, IT and telecommunication industry. The NLG tools are used in chabot and rapidly increasing use of chabot is expected to propel growth of the natural language generation market during the forecast period. Moreover, partnership between the IT companies to develop advanced NLG solutions is expected to propel growth of the market. For instance, in April 2018, Retresco GmbH partnered with Deloitte Touche Tohmatsu Limited to develop artificial intelligence driven natural language generation solutions to derive insights from texts and data. Moreover, in February 2018, WordPress, an online website developing platform, partnered with Amazon Web Services to launch Amazon Polly plugin, which converts texts into audio format.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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