Natural Language Generation (NLG) Market Analysis Report 2025: Market to Grow by a CAGR of 7.9 to 2033, Driven by Government Incentives, Popularity of Virtual Assistants, and Strategic Partnerships

Key Insights

The Natural Language Generation (NLG) Market size was valued at USD 872.3 USD Million in 2023 and is projected to reach USD 3180.72 USD Million by 2032, exhibiting a CAGR of 20.3 % during the forecast period. Natural Language Generation also known as NLG refers to a field of artificial intelligence that involves writing human-like messages from structured data. It comprises template-based, rule-based, and machine learning-based generation as some of its types. Data-to-text writing, context awareness, and language differences are essentials of the model. Examples of NLG uses include chatbot and auto report writing, especially since the technique generates nearly 85% of the content, content writing, and targeted communications. In sum, the NLG offers organizational factors an accessibility and meaning-making capacity that benefits both efficiency and engagement in the specified domains.

Natural Language Generation (NLG) Trends

• Emergence of transformer-based NLG models
• Increased adoption of AI-assisted content creation
• Integration with NLP and ML techniques

Driving Forces: What's Propelling the Natural Language Generation (NLG) Market

• Growing demand for personalized and engaging content
• Availability of large language models (LLMs)
• Proliferation of AI and machine learning

Challenges and Restraints in Natural Language Generation (NLG) Market

• Limited accuracy and coherence in NLG output due to complexities in natural language processing
• Potential for bias and discrimination as NLG systems are trained on large datasets that may reflect existing societal biases
• Lack of standardized NLG evaluation criteria, making it difficult to assess the performance and progress of NLG systems
• High computational costs associated with training and deploying NLG models, posing a barrier to widespread adoption

Emerging Trends in Natural Language Generation (NLG)

• Multimodal NLG systems (combining text, audio, and visual elements)
• Contextual NLG (tailoring output to specific user needs)
• Real-time NLG for interactive applications

Growth Catalysts in Natural Language Generation (NLG) Industry

The Natural Language Generation (NLG) market is poised for significant growth, driven by several key factors:

• Advancements in Cloud Computing and Data Analytics: Cloud computing provides scalable and cost-effective infrastructure for NLG solutions, enabling businesses to process massive amounts of data for text generation.
• Government Initiatives Supporting AI Adoption: Government agencies are investing in artificial intelligence (AI) and NLG to enhance public services, such as automating report writing and improving communication.
• Rising Need for Data-Driven Decision-Making: Businesses are increasingly relying on data to make informed decisions. NLG enables them to extract insights from complex data sets and generate clear, actionable reports.
• Growing Demand for Personalized Content: NLG allows businesses to create personalized content for marketing campaigns, customer service, and other applications, leading to enhanced customer engagement.

Market Segmentation: Natural Language Generation (NLG) Analysis

Component:

• Software
• Services

Deployment:

• On-premises
• Cloud

Organization Size:

• Large enterprises
• Small and medium enterprises

End User:

• Media and entertainment
• Healthcare
• Energy and utilities

Leading Players in the Natural Language Generation (NLG) Market

• Arria NLG
• AWS
• IBM Corporation
• Vphrase
• Linguastat
• Narrative Science
• Automated Insights
• Retresco
• Yseop
• Phrasee

Significant Developments in the Natural Language Generation (NLG) Sector

• Google's launch of Gemini, a pre-trained LLM for text and code generation
• Microsoft's acquisition of Nuance Communications, enhanced its NLG capabilities
• OpenAI's release of GPT-4, a highly advanced LLM

Comprehensive Coverage Natural Language Generation (NLG) Market Report

This comprehensive report provides an in-depth analysis of the NLG market, encompassing:

• Industry analysis: Overview of the market landscape, including size, growth potential, and key industry trends
• Competitor landscape: Profiling of major players, their market share, strategies, and competitive dynamics
• Market trends: Emerging trends, technological advancements, and factors driving market growth
• Key growth factors: Analysis of the factors contributing to the market's expansion, such as increasing demand for personalized content and advancements in machine learning

Regional Insight

• North America: Dominates the market due to the presence of leading technology companies and high adoption of AI and data analytics.
• Europe: Growing focus on digital transformation and government support for AI initiatives.
• Asia-Pacific: Rapidly emerging market with significant investments in AI and NLG solutions.
• Rest of the World: Emerging economies are adopting NLG to improve efficiency and enhance decision-making.

Recent Mergers & Acquisition

• Cogniflow Technologies' acquisition of Narrative Science
• Salesforce's purchase of Narrative Technologies

Regulation

• Data privacy and governance regulations
• Ethical guidelines for AI and NLG

Patent Analysis

• Analysis of recent NLG-related patent applications and grants
• Key trends in NLG innovation

Analyst Comment

"The NLG market is expected to experience significant growth in the coming years, driven by increasing demand for AI-enabled content creation and data-driven insights. Vendors should focus on innovation, strategic partnerships, and domain-specific solutions to capitalize on the opportunities."