(MENAFN- GlobeNewsWire - Nasdaq) The retrieval-augmented generation market offers key opportunities in boosting generative AI with real-time data integration, enhancing decision-making across sectors like healthcare and e-commerce. Cloud-based deployment ensures scalability, while small and medium enterprises are poised for growth, driven by evolving AI applications.

Dublin, Oct. 08, 2025 (GLOBE NEWSWIRE) -- The "Retrieval-Augmented Generation (RAG) Market Industry Trends and Global Forecasts to 2035: Distribution by Type of Function, Areas of Application, Types of Deployment, Type of Technology, Type of End-Users, Company Size, and Key Geographical Regions" report has been added to ResearchAndMarkets's offering.

The global retrieval-augmented generation market size is estimated to grow from USD 1.96 billion in 2025, to USD 40.34 billion by 2035, at a CAGR of 35.31% during the forecast period, till 2035.

Retrieval-augmented generation (RAG) represents a cutting-edge method that boosts the capabilities of generative AI by incorporating external data sources, resulting in outputs that are more accurate and contextually relevant. This technology combines the advantages of information retrieval and natural language generation, enabling systems to not only create text but also access real-time information from various databases to enhance and support the content produced.

RAG systems are becoming crucial for extracting and generating information from proprietary databases, allowing professionals to make data-driven decisions instantly. Organizations are channeling investments into these technologies to improve customer experience and streamline internal operations by embedding them in applications such as chatbots, virtual assistants, and knowledge management systems. The emergence of cloud-based AI platforms further promotes the scalability of RAG solutions across different departments.

As a result, companies are increasingly adopting these models to address specific needs, backed by the rising availability and quality of specialized datasets. The effects of RAG are substantial, markedly enhancing decision-making processes and content distribution across various sectors, thereby propelling the growth of retrieval-augmented generation market during the forecast period.

Retrieval-Augmented Generation Market: Research Coverage

The report on the retrieval-augmented generation market features insights on various sections, including:

• Market Sizing and Opportunity Analysis: An in-depth analysis of the retrieval-augmented generation market, focusing on key market segments, including type of function, areas of application, types of deployment, type of technology, type of end-users, company size, and key geographical regions.
• Competitive Landscape: A comprehensive analysis of the companies engaged in the retrieval-augmented generation market, based on several relevant parameters, such as year of establishment, company size, location of headquarters and ownership structure.
• Company Profiles: Elaborate profiles of prominent players engaged in the retrieval-augmented generation market, providing details on location of headquarters, company size, company mission, company footprint, management team, contact details, financial information, operating business segments, service / product portfolio, moat analysis, recent developments, and an informed future outlook.
• Megatrends: An evaluation of ongoing megatrends in retrieval-augmented generation industry.
• Patent Analysis: An insightful analysis of patents filed / granted in the retrieval-augmented generation domain, based on relevant parameters, including type of patent, patent publication year, patent age and leading players.
• Recent Developments: An overview of the recent developments made in the retrieval-augmented generation market, along with analysis based on relevant parameters, including year of initiative, type of initiative, geographical distribution and most active players.
• Porter's Five Forces Analysis : An analysis of five competitive forces prevailing in the retrieval-augmented generation market, including threats of new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitute products and rivalry among existing competitors.
• SWOT Analysis: An insightful SWOT framework, highlighting the strengths, weaknesses, opportunities and threats in the domain. Additionally, it provides Harvey ball analysis, highlighting the relative impact of each SWOT parameter.

Key Players in Retrieval-Augmented Generation Market Profiled in the Report Include

• Amazon Web Services
• Anthropic
• Clarifai
• Cohere
• Databricks
• Google DeepMind
• Google
• Hugging Face
• IBM
• Informatica
• Meta Platforms
• Microsoft
• Neeva
• NVIDIA
• OpenAI
• Semantic Scholar

Key Questions Answered in this Report

• How many companies are currently engaged in retrieval-augmented generation market?
• Which are the leading companies in this market?
• What factors are likely to influence the evolution of this market?
• What is the current and future market size?
• What is the CAGR of this market?
• How is the current and future market opportunity likely to be distributed across key market segments?

Retrieval-Augmented Generation Market: Key Segments

Market Share by Type of Function

Based on type of function, the global retrieval-augmented generation market is segmented into document retrieval, recommendation engines, response generation and summarization & reporting. According to estimates, currently, document retrieval segment captures the majority share of the market. This can be attributed to its crucial role in providing accurate and contextually relevant information from large data repositories. Industries like legal, healthcare, and finance heavily rely on these systems to quickly access specific documents and information, a task that traditional AI models frequently struggle to perform efficiently.

However, recommendation engines segment is anticipated to grow at a relatively higher CAGR during the forecast period, driven by the rising demand for personalized user experiences in sectors such as e-commerce, entertainment, and online services.

Market Share by Areas of Application

Based on areas of application, the retrieval-augmented generation market is segmented into content generation, customer support & chatbots, knowledge management, legal & compliance, marketing & sales, research & development. According to estimates, currently, content generation segment captures the majority of the market. This can be attributed to its capability to generate high-quality and contextually relevant content by utilizing retrieval techniques. This capability is vital for sectors like marketing, media, and education, where timely and pertinent content is critical.

However, customer support sector is anticipated to grow at a relatively higher CAGR during the forecast period. This increase can be ascribed to the demand for more sophisticated, real-time interactions with customers. RAG-augmented chatbots have the ability to extract specific, relevant information from databases, allowing them to deliver more precise responses compared to traditional AI solutions.

Market Share by Type of Deployment

Based on type of deployment, the retrieval-augmented generation market is segmented into cloud and on-premises. According to estimates, currently, cloud segment captures the majority share of the market. This can be attributed to the ability of cloud deployment to provide scalability, flexibility, and cost savings, allowing businesses to implement RAG solutions swiftly and effectively. However, on-premises segment is anticipated to grow at a relatively higher CAGR during the forecast period.

Market Share by Type of Technology

Based on type of technology, the retrieval-augmented generation market is segmented into deep learning, knowledge graphs, machine learning, natural language processing (NLP), semantic search, and sentiment analysis algorithms. According to estimates, currently, natural language processing (NLP) segment captures the majority share of the market. This can be attributed to its essential role in enabling machines to comprehend and produce human language efficiently.

However, the deep learning segment is expected to experience a higher compound annual growth rate (CAGR) during the forecast period. This growth is linked to its superior ability to process extensive datasets and enhance model precision.

Market Share by Type of End User

Based on type of end user, the retrieval-augmented generation market is segmented into education, financial services, healthcare, IT & telecommunications, media & entertainment, retail & e-commerce, and others. According to estimates, currently, healthcare segment captures the majority share of the market. This can be attributed to the industry's demand for accurate, real-time access to large volumes of medical data, research papers, patient records, and clinical guidelines. However, retail and e-commerce sector is expected to experience a higher compound annual growth rate (CAGR) during the forecast period. This surge is linked to the growing need for tailored shopping experiences and adaptive content recommendations.

Market Share by Company Size

Based on company size, the retrieval-augmented generation market is segmented into large and small and medium enterprise. According to estimates, currently, large enterprises segment captures the majority share of the market. However, small and medium enterprise segments is expected to experience a higher compound annual growth rate (CAGR) during the forecast period. This can be attributed to their agility, innovation, focus on specialized markets, and their capacity to adapt to evolving customer preferences and market dynamics.

Market Share by Geographical Regions

Based on geographical regions, the retrieval-augmented generation market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to estimates, currently, North America captures the majority share of the market. This can be attributed to the rising adoption of AI-driven technologies and the ongoing research and development of RAG models that prioritize ethical and transparent AI practices.

Reasons to Buy this Report

• The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
• Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. By analyzing the competitive landscape, businesses can make informed decisions to optimize their market positioning and develop effective go-to-market strategies.
• The report offers stakeholders a comprehensive overview of the market, including key drivers, barriers, opportunities, and challenges. This information empowers stakeholders to stay abreast of market trends and make data-driven decisions to capitalize on growth prospects.

Additional Benefits

• Complimentary Excel Data Packs for all Analytical Modules in the Report
• 15% Free Content Customization
• Detailed Report Walkthrough Session with Research Team

Report Scope:

Type of Function

• Document Retrieval
• Recommendation Engines
• Response Generation
• Summarization & Reporting

Areas of Application

• Content Generation
• Customer Support & Chatbots
• Knowledge Management
• Legal & Compliance
• Marketing & Sales
• Research & Development

Type of Deployment

• Cloud
• On-Premises

Type of Technology

• Deep Learning
• Knowledge Graphs
• Machine Learning
• Natural Language Processing (NLP)
• Semantic Search
• Sentiment Analysis Algorithms

Type of End-Users

• Education
• Financial Services
• Healthcare
• IT & Telecommunications
• Media & Entertainment
• Retail & E-Commerce
• Others

Company Size

• Large Enterprises
• Small and Medium Enterprises

Geographical Regions

• North America
  • US
  • Canada
  • Mexico
  • Other North American countries
• Europe
  • Austria
  • Belgium
  • Denmark
  • France
  • Germany
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Russia
  • Spain
  • Sweden
  • Switzerland
  • UK
  • Other European countries
• Asia
  • China
  • India
  • Japan
  • Singapore
  • South Korea
  • Other Asian countries
• Latin America
  • Brazil
  • Chile
  • Colombia
  • Venezuela
  • Other Latin American countries
• Middle East and North Africa
  • Egypt
  • Iran
  • Iraq
  • Israel
  • Kuwait
  • Saudi Arabia
  • UAE
  • Other MENA countries
• Rest of the World
  • Australia
  • New Zealand
  • Other countries

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Attachment

• RAG Market

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