Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
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
- Growing need to understand customers’ behavior is expected to drive growth of the global natural language generation market during the forecast period
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.
- Rising penetration of big data and related technologies is expected to propel the global natural language generation market growth over 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.
- Lack of skilled personnel to deploy NLG solutions is expected to hinder the global natural language generation market growth over the forecast period
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.
- Low awareness regarding NLG solutions is expected to restrain growth of the global natural language generation market during 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.
Natural Language Generation Market Report Coverage
||Market Size in 2019:
||USD 411.5 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 1915.8 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Application: Fraud Detection and Anti-Money Laundering, Predictive Maintenance, Risk & Compliance Management, Performance Management, Customer Experience Management and Others
- By Deployment: On-premise and Cloud
- By Organization Size: SME’s and Large Enterprises
- By Vertical: BFSI, Retail and Ecommerce, Government and Defense, Healthcare and Life Sciences, Manufacturing, Telecom and IT, Media and Entertainment, Energy and Utilities and Others
Retresco, Narrative Science, AX Semantics, IBM Corporation, Artificial Solutions, Yseop, Narrative Science, CoGenTex, Inc., ARRIA NLG plc, Automated Insights, Inc., and Phrasetech.
- Growing need to understand customers’ behavior
- Rising penetration of big data and related technologies
|Restraints & Challenges:
- Lack of skilled personnel to deploy NLG solutions
- Emerging options in application areas can present lucrative growth opportunities in the global natural language generation market
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.
- Rising demand for intelligent business processes can provide major business opportunities in the global natural language generation market
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.
- Rising research and development activities in NLG solutions
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.
- Growing adoption of NLG in marketing
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.
- Major companies are focused on product launches, in order to enhance the product portfolio. For instance, in December 2019, AX Semantics introduced AI-powered SaaS-based content generation solution.
- Key players are involved in product launches, in order to gain a competitive edge in the market. For instance, in February 2020, Yseop introduced Augmented Analyst, a next-generation AI NLG platform for intelligent reporting automation.