Driving Natural Language Generation (NLG) Market Growth in 2025: The Role of Data Evolution Fuels Explosive Growth In The Natural Language Generation Market

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Natural Language Generation (NLG) Market Size Growth Forecast: What to Expect by 2025?
The market size of natural language generation (NLG) has seen rapid expansion in the past few years. It is projected to increase from $0.88 billion in 2024 to $1.06 billion in 2025, representing a compound annual growth rate (CAGR) of 21.4%. This significant surge during the historical period is due to a plethora of factors - greater access to data, the rise of big data analytics, advancements in natural language processing (NLP), the need for data-centric insights, and the merging with business intelligence (BI) tools.

How Will the Natural Language Generation (NLG) Market Size Evolve and Grow by 2029?
Expectations are high for the natural language generation (NLG) market, with predictions suggesting it is set for a significant expansion in the coming years. Forecasts indicate that it will swell to a value of $2.32 billion by 2029, boasting a compound annual growth rate (CAGR) of 21.5%. This surge in growth during the predicted period could be the result of quick progress in deep learning, integration with voice assistants, a soaring demand for automated content, increasing emphasis on explainability, and wider application in the healthcare sector. Observing trends for the forecast period, AI-enabled creativity, ethical AI and bias mitigation, technological breakthroughs, product evolutions, and on-the-go language translation factor heavily.

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What Drivers Are Propelling the Growth of Natural Language Generation (NLG) Market Forward?
The projected growth of the natural language generation (NLG) market is attributed to an increase in the volume and diversity of data. The terms "volume and diversity of data" refer to the vast quantities and varied kinds of information being produced, gathered, and analyzed by systems, applications, and devices, reflecting an ever-expanding and diverse data landscape. Natural Language Generation (NLG) technology effectively translates complex data sets into clear, understandable narratives providing businesses with significant insights and enabling them to make well-grounded decisions in a more human-readable fashion. For instance, G2.com, a software market firm based in the United States, disclosed in February 2023 that data investments had grown in 87.8% of companies, marking a 41% rise from 2022. Consequently, the escalation in the volume and diversity of data fuels the advancement of the natural language generation market.

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Which Emerging Trends Are Transforming the Natural Language Generation (NLG) Market in 2025?
Key players in the natural language generation (NLG) industry are pioneering novel technologies and products through the incorporation of stacks specifically designed for AI-fueled applications. The term integrating stacks involves merging various software elements or systems for harmonious operation. Essentially, a software stack is an assembly of autonomous components that unite to facilitate an application's execution. For example, in 2023, Microsoft Corporation, an American tech firm, introduced the Azure OpenAI Service. This platform evolves to accommodate the increasing demands of developers and companies. Azure delivers a comprehensive, integrated stack specifically designed for AI-powered apps and offers a range of pre-assembled, task-enhanced NLU/NLG functionalities bolstered by Azure OpenAI, thus creating a competitive advantage and superior efficacy. These models can be tailored to tasks such as content condensation, image comprehension, semantic searching, and converting natural language to code.

What Are the Key Segments in the Natural Language Generation (NLG) Market?
The natural language generation (NLG) market covered in this report is segmented -

1) By Deployment: On-Premise, Cloud
2) By Organization Size: Small and Medium Enterprises (SMEs), Large Enterprises
3) By Application: Fraud Detection, Predictive Maintenance, Risk And Compliance Management, Performance Management
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Retail And Ecommerce, Government And Defense, Healthcare And Life Sciences, Manufacturing, Telecom, IT, Media And Entertainment, Energy And Utilities

Subsegments:
1) By On-Premise: Local Server Installations, Customized NLG Software Solutions, Integrated Enterprise Systems, Self-Hosted Data Processing Systems
2) By Cloud: Software As A Service (Saas) NLG Platforms, API-Based NLG Services, Cloud Storage And Processing Solutions, Multi-Tenant Cloud Environments, Subscription-Based NLG Applications

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Who Are the Key Players Shaping the Natural Language Generation (NLG) Market's Competitive Landscape?
Major companies operating in the natural language generation (NLG) market report are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, International Business Machines Corporation, Deloitte Touche Tohmatsu Limited, Oracle Corporation, SAP SE, NVIDIA Corporation, Infosys Limited, Baidu Inc., SAS Institute Inc., Conversica Inc., Automated Insights Inc., OpenAI Inc., Narrative Science Inc., Persado Inc., Arria NLG plc, Hugging Face Inc., Retresco GmbH, AX Semantics GmbH, vPhrase Analytics Solutions Pvt. Ltd., Yseop SA, Phrasetech, Narrativa, Gabriele Sarti

What Geographic Markets Are Powering Growth in the Natural Language Generation (NLG) Market?
North America was the largest region in the natural language generation (NLG) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the natural language generation (NLG) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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