Natural Language Processing (NLP) in Healthcare and Life Sciences Global Market Report 2024

The natural language processing (NLP) in healthcare and life sciences market size has grown exponentially in recent years. It will grow from $3.26 billion in 2023 to $4.17 billion in 2024 at a compound annual growth rate (CAGR) of 27.8%. The growth observed in the historic period can be attributed to several factors, including the increasing need for accurate processing of large volumes of unstructured data, a focus on enhancing clinical decision support systems, and a rising demand for predictive analytics aimed at improving healthcare outcomes and addressing health concerns more effectively.

The natural language processing (NLP) in healthcare and life sciences market size is expected to see exponential growth in the next few years. It will grow to $11.06 billion in 2028 at a compound annual growth rate (CAGR) of 27.6%. The forecasted growth in the upcoming period is driven by the increasing customer demand for improved healthcare services, bolstered by proper government policies and escalating initiatives, along with the growing utilization of connected devices. Major trends expected during this period encompass advanced patient-centric Natural Language Processing (NLP) applications, collaborative efforts, the introduction of innovative services, continuous technological innovations, and the integration of voice-based NLP, chatbots, and virtual assistants for providing basic health information and facilitating appointment scheduling. These trends underscore a shift towards more personalized and accessible healthcare solutions, leveraging advanced technologies to enhance patient care and streamline healthcare processes.

The anticipated surge in customer demand for improved healthcare is poised to drive the growth of natural language processing (NLP) in the healthcare and life sciences market. Healthcare involves the organized provision of medical services and assistance aimed at maintaining or enhancing the health of individuals or communities. NLP systems in healthcare and life sciences harness patient data, including symptoms, medical history, and laboratory results, to provide clinical decision support by identifying patterns, correlations, and insights. This aids healthcare professionals in disease diagnosis, treatment recommendation, and outcome prediction. For example, in March 2022, the Centers for Medicare & Medicaid Services, a US-based federal agency, reported a 5.1% increase in national health spending from 2021 to 2030, reaching a total expenditure of nearly $6.8 trillion. Additionally, Medicare spending is projected to rise by 7.2% annually, while Medicaid spending is expected to increase by 5.6% annually between 2021 and 2030. Therefore, the escalating customer demand for enhanced healthcare services is fueling the growth of natural language processing (NLP) in the healthcare and life sciences market.

Major players in natural language processing (NLP) within the healthcare and life sciences sectors are prioritizing technological advancements, particularly the integration of artificial intelligence (AI) and machine learning (ML), to deliver dependable services to their clientele. The incorporation of AI and ML technologies into NLP applications in healthcare and life sciences facilitates more sophisticated, efficient, and accurate processing of natural language data. For instance, in May 2023, Apollo Intelligence LLC, a US-based provider of real-time data to the healthcare industry, unveiled an AI and ML-powered platform tailored for healthcare and life sciences, offering rapid, efficient access to real-time insights. This platform distinguishes itself through its ML sampling intelligence, which optimizes outreach to global healthcare professional (HCP) panelists with exceptional efficiency. Notably, it leverages advancements in natural language processing (NLP) for open text analysis, enabling precise tagging, coding, and ML-enhanced detection and reporting of adverse events (AE). Additionally, the platform features dynamic profiling and validation functionalities, further enhancing its efficacy in engaging HCPs.

In May 2023, Intelligent Medical Objects (IMO), a healthcare data enablement company based in the US, acquired Melax Technologies Inc. for an undisclosed sum. This strategic acquisition aims to bolster IMO's suite of healthcare data solutions and enhance patient care, clinical workflows, and healthcare data quality. Melax Technologies Inc., also based in the US, specializes in providing natural language processing (NLP) solutions tailored for the healthcare and life sciences industries.

Major companies operating in the natural language processing (nlp) in healthcare and life sciences market report are Google LLC, Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation, 3M Company, Hewlett Packard Enterprise, IQVIA Inc., Cerner Corporation, Plasticity Inc., Oncora Medical, Inovalon Holdings Inc., Nuance Communications Inc., Press Ganey Associates, Mutuo Health Solutions, SparkCognition Inc., Apixio Inc., Linguamatics Ltd., Health Fidelity Inc., Wave Health Technologies, Dolbey Systems Inc., Ellipsis Health Inc., Lexalytics Inc., Averbis GmbH, CloudMedx Inc., Clinithink Ltd.

North America was the largest region in the natural language processing (NLP) in healthcare and life sciences market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the natural language processing (nlp) in healthcare and life sciences market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the natural language processing (nlp) in healthcare and life sciences market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Natural Language Processing (NLP) in healthcare and life sciences involves employing computational techniques to analyze and derive insights from unstructured human language data, including medical records, clinical notes, research papers, and other healthcare-related documents. This facilitates the extraction of valuable information, thereby enhancing clinical decision-making, patient care, and research outcomes.

The primary offerings of NLP in healthcare and life sciences encompass solutions and services. NLP solutions enable the extraction of critical data from electronic health records (EHR) at scale, thereby enhancing the completeness and accuracy of patient records. Various NLP types, including rule-based, statistical, neural, and hybrid approaches, are utilized, along with techniques such as optical character recognition, named entity recognition, sentiment analysis, text classification, topic modeling, image and pattern recognition, as well as other techniques such as predictive risk analytics, auto-coding, spelling correction, email filtration, question answering, and simulation and modeling. These technologies find application across various domains, including clinical decision and diagnosis, drug discovery and development, clinical trial matching, electronic health record search and retrieval, healthcare chatbots and virtual assistants, clinical documentation processing, medical imaging, and more. NLP solutions are employed by diverse end-users, including clinical practitioners, healthcare researchers, healthcare administrators, professionals in health insurance and payer organizations, pharmaceutical and biotech companies, among others.

The natural language processing in healthcare and life sciences market research report is one of a series of new reports that provides natural language processing in healthcare and life sciences market statistics, including natural language processing in the healthcare and life sciences industry global market size, regional shares, competitors with a natural language processing in healthcare and life sciences market share, detailed natural language processing in healthcare and life sciences market segments, market trends and opportunities, and any further data you may need to thrive in the natural language processing in healthcare and life sciences industry. This natural language processing in healthcare and life sciences market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The natural language processing (NLP) in healthcare and life sciences market consists of revenues earned by entities by providing services such as clinical documentation, speech recognition, data mining research and analysis of medical records. The market value includes the value of related goods sold by the service provider or included within the service offering. The natural language processing (NLP) in healthcare and life sciences market also includes sales of central processing units (CPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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