Natural language generation is a specific type of
artificial intelligence that focuses on automatically producing human-like text from data inputs. It uses different algorithms and models to transform structured data into coherent, contextually appropriate language. NLG is growing due to significant advancements in
machine learning, intense learning & neural network architectures.
Demand for NLG is increasing due to the exponential rise in available data, sophisticated language models like OpenAI's GPT series development, and the growing use of automated content creation across various industries. The potential of the market for natural language generation is vast, encompassing everything from customer service to content creation. Using natural language generation, businesses can automate report writing, chatbots, and other content-related tasks.
Integration of NLG with other AI technologies, such as Natural Language Processing (NLP) and machine translation, has expanded its capabilities and applications. The surge in computational power, along with improvements in algorithm efficiency, has further propelled NLG's development. This advanced technology is perfectly capable of generating natural, high-quality text that mimics human writing which driven interest and investment in this field.
It is expected to transform how information is communicated and utilized, which offers new opportunities for automation and enhancing human-machine interactions as NLG continues to grow. The market in terms of natural language generation systems is categorized by its diverse applications across industries.
The Natural Language Generation (NLG) Market is rapidly expanding, driven by increasing demand for AI-powered content creation and automation. Recent developments include major investments from tech giants in enhancing NLG capabilities for industries like healthcare, finance, and customer service. NLG is revolutionizing content production, enabling faster, more efficient, and personalized communication at scale.
Natural Language Generation (NLG) Market continues its surge forward due to advances in artificial intelligence. NLG technology, which automates content creation, is quickly being adopted across industries including finance, e-commerce, healthcare and government agencies - its ability to produce human-like text from structured data has revolutionized reporting, customer service and content production processes.
Recent events have showcased the application of Natural Language Generation technology in chatbots, virtual assistants and automated reporting tools. Leading companies are investing heavily in R&D to advance NLG algorithms that improve language fluency, personalization and contextual understanding - leading to rapid adoption in enterprise applications.
AI-driven natural language generation solutions have seen tremendous growth due to businesses needing to produce large volumes of content quickly and efficiently. Enterprises that focus on customer experiences and operational efficiencies see NLG solutions as an invaluable way to automate tasks such as report generation, product descriptions and customer support - creating vast growth potential in sectors reliant on data.
The U.S Natural Language Generation Market
U.S. Natural Language Generation Market is expected to value USD 1.0 billion in 2024 and is anticipated to grow to USD 5.6 billion by 2033 at a CAGR of 21.1%.
Robust & technological infrastructure, presence of leading tech companies, and significant investments in AI research and development are some of the driving factors for the growth of the U.S. market.
There is an increasing adoption of NLG in customer service for automated responses, personalized content generation in marketing, and real-time data analysis in finance and
healthcare. The emergence of cloud-based solutions and integration with other AI technologies like NLP and machine translation further propel the expansion of the NLG market in the U.S.
Key Takeaways
- Market Growth: Global Natural Language Generation Market is expected to grow by USD 20.8 billion, at a CAGR of 24.5 % from 2025 to 2033.
- Market Definition: Natural Language Generation (NLG) is a part of artificial intelligence focused on the automatic creation of human-like text from structured data.
- Software Dominance in Component Analysis: Software deployment is projected to lead the Natural Language Generation (NLG) market in terms of revenue share in 2024.
- On-Premise Leadership in Deployment Model: On-premise deployment is anticipated to dominate the NLG market based on deployment models, capturing a revenue share of 53.1% in 2024.
- Predominance of Large Organizations: Large organizations are expected to hold the largest market share in the NLG market based on organization sites in 2024.
- Finance Sector Dominance in Business Function Review: The finance sector is forecasted to dominate the global NLG market, commanding the largest revenue share in 2024.
- BFSI Sector Leading Industry Vertical Analysis: Banking, Financial Services, and Insurance (BFSI) is poised to lead the NLG market among industry verticals, capturing the largest revenue share in 2024.
- Application Analysis: Fraud detection and anti-money laundering applications are projected to dominate the NLG market with the largest revenue share of 27.1% in 2024.
- Regional Analysis: North America is expected to dominate the global natural language generation market as it holds 34.1 % of the market share in 2024.
Use Cases
- Content Creation: NLG is used to generate articles, news stories, and social media content by media and publishing companies as it can produce weather reports, sports recaps, and financial news summaries quickly and consistently.
- Personalized Marketing: NLG is capable of creating personalized marketing messages at scale as it can generate customized emails, product descriptions, and promotional content by analyzing customer data.
- Automated Report Generation: NLG technologies are used to create detailed and accurate reports from structured data, and it also generate investment reports, earning summaries, and market analysis, transforming data into readable and insightful narratives.
- Customer Service Chatbots: Natural language generation tools like chatbots are quite useful in providing instant, human-like responses to customer queries. They can handle a wide range of questions, offer personalized assistance, and improve customer satisfaction.
Market Dynamic
Drivers
Efficiency and Speed in Content Production
The emergence of digital platforms and social media increases the demand for fresh and engaging content which is needed to produce in large volume. Automated content creation technologies with the help of NLG allow companies to quickly generate content with minimal manual effort, thereby saving time and resources. These technologies are important for businesses that need to create content in various formats, multiple languages, and across different channels, which drives the growth of the NLG market. Global market is poised for significant growth, driven by the increasing demand for NLG solutions.
Personalization in Customer Service Automation
Chatbots and virtual assistants with the adoption of NLG understand and interpret user inputs, enabling them to provide contextually relevant and linguistically accurate responses in real-time. They improve the ability to engage with users naturally, facilitating smoother interactions and improving overall user satisfaction by integrating NLG capabilities, which drive the growth of the NLG market.
Restraints
Impact of Skilled Consultant Shortage on NLG Adoption
NLG market faces obstruction due to the scarcity of skilled consultants capable of effectively deploying NLG solutions and services. Skilled consultants are required to understand client requirements, design tailored NLG solutions, and implement them effectively within organizational frameworks. The unavailability of qualified professionals leads to delays in project deployments and increased costs for businesses.
Opportunities
Increase in Adoption Of AI-driven NLG Solutions
NLG market is experiencing rapid growth opportunities in the coming years as enterprises globally increase the adoption of AI-driven solutions. Advancements in AI technology are improving NLG systems, enabling them to generate meaningful, natural-sounding content for reports, conversational agents, and other communication tools.
Healthcare Sector Integration of NLG Technologies
Many industries like healthcare, media, and finance are increasingly using the potential of natural language generation (NLG), which is significantly contributing to its market growth. These advanced technologies are adopted to automate the creation of patient reports,
medical summaries, and personalized healthcare recommendations based on patient data analysis, which is beneficial for the growth of the healthcare industry.
Trends
AI Investments and Collaboration
Companies are working towards greater investment in AI technologies which helps in the further expansion of the natural language generation market. Collaboration between technology firms and government entities also helps to the growth of this market. These partnerships are mainly focused on developing advanced NLG solutions that meet regulatory standards and enhance public service delivery.
Research Scope and Analysis
By Component
Software is expected to dominate the Natural Language Generation (NLG) market in terms of deployment with the highest revenue share in 2024 as software-based NLG solutions offer a high degree of flexibility & scalability which makes it suitable for a wide range of applications across various industries. They are easily integrated into existing systems and workflows, allowing organizations to use NLG capabilities without the need for significant infrastructure changes or investments.
Software-based NLG platforms often come with user-friendly interfaces and customizable features that allow businesses to tailor the technology to their specific needs. These platforms require lower upfront investment compared to hardware-based alternatives, making them more accessible to a broader range of organizations, including small and medium-sized enterprises (SMEs).
Services are predicted to show notable growth as they include consulting, training, and support, which are important for the successful implementation and utilization of NLG solutions. Managed services play an important role in providing good management of NLG solutions by ensuring that these systems are running smoothly, updated regularly, and tailored to the evolving needs of the business. It reduces the burden on the companies which allows businesses to focus on their core competencies while still reaping the benefits of NLG.
By Deployment Model
On-premise is expected to dominate the natural language generation market based on the deployment model with a revenue share of 53.1% in 2024 as it provides organizations greater control and customization over their NLG systems. Companies can fulfill specific business needs, integrate these models seamlessly with existing infrastructure, and develop proprietary models by hosting NLG solutions internally, which drives the growth of this segment. They offer assurances of compliance and data sovereignty as customization is valuable in industries with stringent regulatory requirements or unique data security concerns.
The on-premise deployment also ensures higher levels of data privacy and security as many organizations are dealing with sensitive or proprietary information which prioritizes maintaining direct control over their data. It helps optimize the data processing speeds and minimize dependence on external networks or cloud service availability by leveraging local infrastructure. Further, they are preferred in the NLG market due to their advantages in customization, data security, performance optimization, and potential cost savings.
Cloud is predicted to experience notable growth due to Cloud-based natural language generation systems depending on providers like Amazon Web Services, Microsoft Azure, and Google Cloud. It allows the creation of interactive and dynamic customized content, saving time, money, and effort. It offers data storage and access from any location, providing secure storage, integrated analytics, cost-efficiency, and scalability.
By Organization site
Large Organization is predicted to dominate the natural language generation market with the largest market share based on organization sites in 2024. NLG technology is widely adopted by these enterprises to generate content from structured data as it allows the rapid creation of detailed documents, reports, and summaries from complex data sets, saving significant time and resources that would otherwise be spent on manual content creation. NLG technology also ensures consistency and accuracy in the generated content, minimizing the risk of human error and maintaining high-quality standards across all documents which is beneficial for these organizations.
It effortlessly handles vast data and generates insights and narratives at a speed and volume that would be impossible for human workers to match. These systems can generate customized content for each customer, enhancing engagement and satisfaction as large organizations are often required to tailor their messaging to different segments of their customer base.
Natural language Generation is gaining popularity among small and medium enterprises (SMEs) due to its ability to efficiently produce content from structured data sources. This advanced technology removes the necessity for manual transcription or the detailed writing of documents, reports, and summaries derived from complex data, thereby saving SMEs both time and resources.
By Business Function
Global NLG Market is segmented into Finance, Legal, Operation, HR, Marketing and Sales, and Others based on business function. Finance is expected to dominate the global market with the largest revenue share in 2024, due to its demand for efficient and accurate data analysis and reporting. Financial Institutions use the NLG system to automate the generation of investment reports, earnings summaries, and market analyses, reducing the time and cost associated with manual report creation. This advanced technology helps in real-time data interpretation and personalized financial advice, enhancing customer experience and decision-making.
There is huge complexity in financial regulations which require compliance that drives the adoption of NLG, as it ensures consistent and precise documentation and reporting. Legal is expected to show notable growth fueled by the demand for automation in document creation and analysis. NLG system is used by professional lawyers to draft contracts, legal briefs, and compliance reports, significantly reducing the time required for these tasks. It is helpful in legal research by summarizing large volumes of case law and statutes, enabling quicker and more accurate information retrieval.
By Application
Fraud detection and antimony Laundering are expected to dominate the natural language generation market with the largest revenue share of 27.1% in 2024 as they are becoming important across various industries like BFSI, retail, healthcare, manufacturing, and government due to frequent fraudulent incidents. NLG-powered platforms are capable of analyzing user activities in real-time, and through batch analysis to protect customers and enterprise data, leveraging AI and related technologies for high accuracy.
Advancements in NLG technologies significantly improve the capability to analyze and interpret vast amounts of unstructured data, like text from emails, social media, and financial transactions, important for identifying fraudulent activities and suspicious patterns. Regulatory requirements globally are becoming stricter, which forces financial institutions and regulatory bodies to adopt NLG solutions to align with regulations and combat financial crimes effectively.
Predictive maintenance applications are expected to show notable growth as there is a huge requirement to extract insights from historical data, predicting future trends and outcomes using data mining, regression, and clustering techniques. Further, customer experience management is growing due to its use in customer data to understand behaviors and inform strategic decisions through techniques like customer segmentation and predictive analytics.
By Industry Vertical
Banking, Financial Services, and Insurance (BFSI) is predicted to lead the natural language generation market in terms of industry verticals with the largest revenue share in 2024. They integrate with NLG-powered chatbots and virtual assistants to provide instant responses to customer queries, thus, improving customer satisfaction and reducing operational costs. These advanced systems are perfectly able to understand and respond to natural language queries, offering personalized recommendations and guiding customers through complex financial products and services.
NLG technologies allow financial institutions to automate the creation of narrative reports from structured data, such as financial statements, investment reports, and regulatory filings which improve operational efficiency and reduce the risk of human error in critical reporting tasks. NLG tools can generate tailored customer communications, like personalized investment advice, account summaries, and policy updates which is beneficial for the BFSI industry which is particularly focused on improving customer experience through personalized communication.
Retail and e-commerce are growing with significant revenue share due to its adoption of personalized product descriptions, customer recommendations, and summarizing financial data in natural language. It automatically analyzes the summaries of research insights, catalog building, dynamic product attributes, and customer service interactions.
Global NLG Market Report is segmented based on the following
By Component
- Software
- Services
- Managed services
- Professional services
- Consulting services
- Training and Support
By Deployment Model
By Organization Size
- Small and Medium-sized Enterprises (SMEs)
- Large enterprises
By Business Function
- Finance
- Legal
- Operations
- HR
- Marketing and Sales
- Other Business Function
By Application
- Fraud Detection and Anti-money Laundering
- Customer Experience Management (CEM)
- Predictive Maintenance
- Risk and Compliance Management
- Performance Management
- Other Application
By Industry Vertical
- Banking, Financial Services, and Insurance (BFSI)
- Retail and eCommerce
- Government and Defense
- Healthcare and Life Sciences
- Media and Entertainment
- Telecom and IT
- Other Industry Vertical
Regional Analysis
North America is predicted to dominate the global natural language generation market with a revenue share of 34.1% in 2024, due to rising demand for automated content creation and the necessity for businesses to generate substantial volumes of content quickly in this region as it hosts world’s leading technology companies, which are heavily investing in NLG technology. This region has benefitted from a large pool of skilled professionals and advanced infrastructure, making it an optimal environment for NLG development.
This region is expanded due to the increasing need for personalized content, as companies leverage NLG to create tailored content that enhances customer engagement. The growing demand for automated customer service further drives this market in this region, with companies deploying NLG to create automated customer service agents that help reduce costs and improve customer satisfaction. After North America, Europe is predicted to grow notably due to the presence of companies that leverage NLG to create personalized content that is tailored to the individual needs of their customers.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The natural language generation market plays an important role by automating data collection and generating comprehensive reports, thereby facilitating predictive analytics that forecast future trends and events. NLG companies differentiate themselves based on the sophistication of their algorithms, the naturalness of generated text, and the ability to handle diverse data sources. The market leaders have a global presence and serve a diverse customer base ranging from small businesses to large enterprises.
They often provide scalable solutions that can accommodate varying levels of user demand. As NLG continues to evolve, major market leaders are at the forefront of leveraging its capabilities to transform how businesses analyze data, communicate insights, and automate decision support systems across diverse industries globally.
Market Players are eager to develop international market strategies to capitalize on the growing interest in NLG technology. To compete effectively, businesses must focus on the international market and accelerate their adoption of natural language generation systems. The demand for NLG solutions is growing as more industries recognize the benefits of automated content generation. Leading players in the market are investing heavily in research and development to improve the capabilities of natural language generation systems.
Some of the prominent players in the Global Natural Language Generation market are:
- AWS
- IBM
- CoGenTex
- Artificial Solutions
- 2txt - Natural Language Generation GmbH.
- vPhrase
- Phrasetech
- NewsRx
- Textual Relations
- Retresco
- Narrative Science
- Others
Recent Development
- In June 2024, OpenAI announced the integration of advanced NLG features into its GPT-4.5 model, enhancing the model's ability to generate more accurate and contextually relevant narratives for various industries, including healthcare and finance.
- In May 2024, Yseop, a leading AI software company, announced a new Generative AI application for the Biopharma industry, developed with support from AWS. As a member of the AWS Partner Network, Yseop utilizes AWS's security and scalability to improve its LLM ecosystem and infrastructure.
- In December 2023, Open AI introduced ChatGPT, a significant advancement in natural language understanding and generation capabilities, integrating state-of-the-art NLG technology which is focused on enhancing conversational abilities, context awareness, and the generation of more coherent and human-like responses.
- In March 2023, Syndigo, a prominent SaaS company specializing in product information and syndication, introduced enhanced generative artificial intelligence (AI) features. The new SmartPrompts feature allows Syndigo clients to expedite content creation for product detail listings. This addition enhances existing integrations of generative AI, aiming to enhance conversions, minimize returns, and significantly elevate brand interactions.
- In June 2022, Yseop, a leading AI software company and pioneer in Natural Language Processing (NLP) announced that Sanofi, a global healthcare company, has selected Yseop to enhance its natural language generation (NLG) capabilities.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 3.5 Bn |
| Forecast Value (2033) |
USD 25.1 Bn |
| CAGR (2024-2033) |
24.5% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Component (Software, and Services),By Deployment Model (On-premises, and Cloud), By Organization Size (Small and Medium-sized Enterprises (SMEs), and Large enterprises), By Business Function (Finance, Legal, Operations, HR, and Marketing and Sales), By Industry Vertical (Banking, Financial Services, and Insurance (BFSI), Retail and e-commerce, Government and Defense, Healthcare and Life Sciences, Healthcare and Life Sciences, Media and Entertainment, Telecom and IT, and Others ), By Application (Customer Experience Management (CEM), Fraud Detection and Anti-money Laundering, Risk and Compliance Management, Performance Management, Predictive Maintenance, and Others ) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
AWS, IBM, CoGenTex, Artificial Solutions, 2txt - Natural Language Generation GmbH., vPhrase, Phrasetech, NewsRx, Textual Relations, Retresco, Narrative Science, and Other Key Players |
| Purchase Options |
HVMN Inc., Thync Global Inc., Apple Inc., Fitbit Inc., TrackmyStack, OsteoStrong, The ODIN, Thriveport LLC, Muse, Moodmetric, and Other Key Players |