Market Overview and Growth Highlights – 2018-2027
Natural Language Processing (NLP) is used to process and analyze unstructured data into structured and standardized format with the help of various computer programs and through artificial intelligence. It allows the interaction between human languages and computers. In order to generate relevant data, various voice and text inputs are used to provide information through advanced systems. NLP has a wide range of applications in the life sciences and healthcare industry, mainly for the generation of important data, remedial checkup, prescription analysis and other medical and research processes. The market for NLP in healthcare and life sciences is anticipated to record a CAGR of 23.60% over the forecast period, i.e., 2019-2027.
NLP in Healthcare and Life Sciences Market to Expand in the U.S. as Population Rises
NLP in healthcare and life sciences market in North America includes the markets in the United States and Canada. The market in the U.S. is predicted to hold the largest share throughout the upcoming years, however, the market in Canada is anticipated to grow at the highest CAGR of 25.92% during the forecast period. According to statistics presented by the Administration of Community Living, the percentage of Americans aged 65 and above has almost tripled from 4.1% in 1900 to 15.2% in 2016. The maintenance and track of health-related documents of a large number of people requires advanced services such as NLP. The growing technological advancements in this field allow maintenance of data in a structured format which can be made easily available. As a result of this, the market in the United States was estimated to hold a share of 83.26% in North America in the year 2018. CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
Based on component, the market is segmented into technology and services. The technology segment is further segmented into speech recognition, text mining, cognitive analytics and others; while the services segment is further bifurcated into professional services and managed services. Out of these, the speech recognition segment is estimated to hold the leading share in the market as a result of availability of large amounts of data that is generated in the form of voice and used in the analysis of remedies and for research purposes.
On the basis of type, the market is segmented into statistical-based NLP, rule-based NLP and hybrid NLP. The segment for rule-based NLP currently holds the largest share in the market in North America, which can be attributed to the risk of errors that might occur through alternative approaches in other forms of NLP. For the year 2019, the estimated market value for rule-based NLP was USD 415.93 million. On the other hand, the hybrid NLP solutions segment is gaining popularity in the region as these solutions provide statistical as well as rule-based approaches.
NLP can be used for various applications in the healthcare and life sciences industry, as a result of which the market can be segmented into information extraction, predictive risk analytics, machine translation, report generation and others. The segment for machine translation is anticipated to hold the largest share in the market and observe the highest growth rate during the forecast period. This can be attributed to the rising use of cognitive analytics in machine translation in the upcoming years.
Based on deployment, NLP in healthcare and life sciences market can be bifurcated into cloud and on-premises. The prevalence of on-premises solutions in North America is significantly high as a result of which the market value for this segment is predicted to reach a value of USD 2,823.61 million by 2027. However, the usage of cloud based NLP solutions in the healthcare industry is growing at a considerably high rate on account of the increasing installation of connectivity of cloud in the region.
Market Drivers and Challenges
The market for NLP in healthcare and life sciences is anticipated to grow on the back of digital transformations in healthcare along with rising usage of patient health record systems. The NLP technology supports value-based care and health management, which is a major factor estimated to drive the market growth in the next few years. Machine learning and NLP based advanced systems manage patient health records and provide managed care, PHM applications, analytics and reporting. Further, growing unstructured information at healthcare organizations can be efficiently structured through NLP. Machine learning and NLP enabled tools have the capacity to detect patients with complex health conditions and can be used to improve coordination among patients with behavioral health conditions. Despite routine checkups, healthcare professionals as well as patients can receive help through informative by-products that interpret data with the help of computer vision, text and sound recognition along with NLP.
Complex regulations and compliances associated with cyber security is one of the major challenges faced by the NLP in healthcare and life sciences market. As a result of these, the adoption rate of text analytics in these industries has been slowed down to a significant extent. Additionally, the online services and software are highly prone to cyber-attacks, through which the personal information of patients can be stolen. The government has implemented regulations for the protection of personal health information which can result in litigation and heavy penalties from the regulatory bodies in cases of violations in privacy regulations.
Some of the affluent industry leaders in the North America NLP in healthcare and life sciences market are IBM, 3M, Microsoft, Cerner Corporation, Health Fidelity, Inc., Linguamatics, Dolbey and Apixio. Moreover, other key and niche players are working towards bringing improved and efficient technologies for carrying out effective collection and storage of patient health data in the market along with investing in the development of better NLP technologies in order to gain competitive edge in the North America NLP in healthcare and life sciences market.
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