The Global natural language processing (NLP) in healthcare and life sciences is forecast to reach USD 4,799.6 Million by 2030, according to a new report by Reports and Data. NLP is the broad term used for the process of using computer algorithms to identify major components in everyday language and extract meaning from unstructured written or spoken input. Some NLP efforts emphasize on beating the Turing test by formulating algorithmically-based entities that can impersonate human-like responses to conversations or queries. Others try to perceive human speech with the help of voice recognition technology, such as automated customer service applications. One of the intrinsic attributes of NLP is to comprehend human speech. In the functioning of the healthcare sector and life science industry, NLP holds significant opportunities, which is contributing to the continuous growth of the market. In the healthcare sector, NLP turns out to help enhance the electronic health record (EHR) experience, which is a major priority for care providing organizations. NLP tools have already become an alternative to handwriting notes or typing in various healthcare organizations, which has turned out to be a solution for minimizing EHR distress. It is also useful in developing patient health literacy by making the interaction between care users and health IT tools smother. Though the presence of these traits and benefits in NLP is propelling the growth of the market; however, factors like lack of access to clinical data, limited institutional commitment may hinder the market growth.
In context to region, North America can be seen to dominate the market. It is resultant of the region\'s technological advancement, quick adoption of new technologies, and continuous expansion of the healthcare sector.
Key Coverage of the Report
- Region and country wise statistics of the natural language processing (NLP) in healthcare and life sciences market from the period 2019-2030. While 2016 & 2017 has been utilized as historical data, 2020 is considered the base year. 2019-2030 have been derived as forecasts.
- Estimation of the market size along with historical and forecasted trend analysis.
- Various types\' of alternatives available have been analyzed. Statistical analysis has been conducted on obtaining the individual share of these segments.
- The regulatory framework of each region.
- Regional up-coming research and application outlook.
- Status of on-going developments.
- Regional prevalence of natural language processing (NLP) in healthcare and life sciences have been mapped.
- Demand and Supply GAP Analysis
- Regional Competitors Pricing Strategy
- Market share analysis of the top industry players
- Strategic recommendations for the new entrants
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments.
Salient Trends of the Natural Language Processing (NLP) in Healthcare and Life Sciences Market
- The NLP in healthcare and life sciences market is forecasted to grow at a rate of 12.90% during the forecast period and reach USD 4,799.6 Million in 2030.
- Different strategic initiatives taken by industry players are spurring the growth of the market. New product launches is one of the mentionable initiative. In 2019, M*Modal and 3M launched new AI-powered CDI tool. With the help of this new platform, NLP technology is applied to assist health systems manage clinical documentation enhancement initiatives. Thus, these new launches positively impacts the overall growth of the market.
- Another commonly used strategy is acquisition. As an instance, in January 2019, Linguamatics, a mentionable industry player, was acquired by Iqvia. The focus of this acquisition was delivering value from machine learning and artificial intelligence on the part of Thus, such initiatives by industry players result in the overall growth of the market.
Companies considered and profiled in this market study
Cerner Corporation, 3M, Nuance Communications, Inc., IBM Corporation, Heath Fidelity, Microsoft Corporation, Linguamatics, Apixio, Clinithink Inc., and Mmodal IP PLC.
The companies have emphasized on different approaches like new product launches, focused on R&D activities, acquisitions, and mergers to penetrate the untapped market.
- The valuation for the NLP in healthcare and life sciences market was USD 1,805.5 Million in 2020, and it is forecasted to witness a growth rate of 12.90% during the forecast period.
- In context to Component, the Technology segment occupies a larger market share of 66.0% in 2020, with a faster growth rate of 13.9% during the forecast period. The market share held by the Technology segment is resultant of high demand for Optical Character Recognition, Interactive Voice Response, Text Analytics technologies among care providing organizations for enhancing their EHR processing. Furthermore, increasing demand for Speech Analytics in healthcare organizations for recording care user’s feedback about the care services and further enhance it, is contributing to the growth rate of this segment.
- While discussing Component, it is mentionable here that the Service segment is projected to occupy 32.0% of the market by 2030, with a CAGR of 12.6% during the forecast period. The growing demand for availing informed care services and access data associated with delivered care services results in increased demand for professional services to effectively manage clinical data and provide enhanced service experiences to the care users. The rising demand for professional services contributes to the market share occupied by the Service segment.
- In regards to Type, the Rule-Based NLP segment occupies the largest market share of 49.0% in 2020, with the second-highest CAGR of 13.8% during the forecast period. This type of NLP focuses on pattern-matching, a trait that is of significant use in the healthcare sector. The mentioned trait is beneficial for the healthcare sector as it is useful in enhancing the EHR process by assisting in finding arbitrary words and increase the efficiency of data maintenance. It results in increased demand for this type of NLP, which contributes to the market share held by the Rule-Based NLP segment.
- While discussing Type, it is mentionable here that the Hybrid NLP segment is forecasted to witness the fastest growth rate of 14.4% during the forecast period, which is expected to occupy 19.2% of the market by 2030. The growth rate experienced by the Hybrid NLP segment is resultant of its effectiveness in dealing with complex sentence structures, which is contributing to its growing popularity.
- In regards to Deployment Mode, the Cloud segment is forecasted to witness a faster growth rate of 14.3% during the forecast period, which is expected to occupy 36.0% of the market by 2030. Various benefits associated with cloud deployment, like ease of access, cost-effectiveness results in its elevated demand among healthcare organizations, resulting in the growth rate experienced by the Cloud segment.
- In context to Application, the Automated Information Extraction segment is forecasted to witness the fastest CAGR of 15.0% during the forecast period, which is expected to occupy the second-largest market share of 30.0% by 2030. The growth rate experienced by the Automated Information Extraction segment is attributed to the continuously growing number of data in the unstructured form in the healthcare sector and associated increasing demand of NLP for extracting those data.
- In context to the region, North America holds the largest market share of 43.0% in 2020, with a CAGR of 13.7% during the forecast period. Factors like technological advancement, quick adoption of new technologies, and continuous expansion of the healthcare sector contribute to the market share occupied by this region.
Segments covered in the report:
This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2030. For the purpose of this report, Reports and Data have segmented the global natural language processing (NLP) in healthcare and life sciences market according to Component, Type, Deployment Mode, Application, and Region:
Component Type Outlook (Revenue, USD Billion; 2019-2030)
- Support and Maintenance Services
- Professional Services
- Optical Character Recognition
- Auto Coding
- Interactive Voice Response
- Pattern and Image Recognition
- Text Analytics
- Classification and Categorization
- Speech Analytics
Type Outlook (Revenue, USD Billion; 2019-2030)
- Statistical NLP
- Rule-Based NLP
- Hybrid NLP
Deployment Mode Type Outlook (Revenue, USD Billion; 2019-2030)
Application Type Outlook (Revenue, USD Billion; 2019-2030)
- Machine Translation
- Predictive Risk Analytics
- Report Generation
- Automated Information Extraction
Regional Outlook (Revenue, USD Billion; 2019-2030)
- North America
- Asia Pacific
- Latin America