The NLP in healthcare & life sciences market is expanding rapidly, with a projected market size rising from USD 5.18 billion in 2025 to USD 16.01 billion by 2030, at a CAGR of 25.3% during the forecast period. The substantial increase in unstructured clinical data, including electronic health records, physician notes, and pathology reports, drives the demand for NLP technologies to derive actionable insights. Simultaneously, clinical decision support is gaining importance, with NLP enabling real-time diagnostics and treatment recommendations in precision medicine. However, outdated IT systems can be incompatible with modern NLP tools, posing integration and interoperability challenges. As healthcare systems modernize, NLP is poised to become a cornerstone of data-driven, personalized care delivery.
Scope of the Report
Years Considered for the Study
2020-2030
Base Year
2024
Forecast Period
2025-2030
Units Considered
USD (Billion)
Segments
Offering, Deployment Mode, NLP type, NLP technique, Application and End User
Regions covered
North America, Europe, Asia Pacific, Middle East & Africa, Latin America
"NLG type segment to account for the fastest growth rate during the forecast period"
Natural language generation (NLG) is the fastest-growing segment in the NLP in healthcare and life sciences market. NLG transforms structured clinical data into clear, human-like narratives, improving clinical documentation and reducing physician workload. It automates the creation of patient summaries, discharge notes, and personalized communications, enhancing patient engagement and adherence to treatment. The rising need for efficient data handling and automation in healthcare drives NLG adoption. As healthcare providers focus on improving operational efficiency and patient outcomes, NLG becomes a critical tool for enabling scalable, accurate, and timely clinical documentation and communication within the NLP in healthcare and life sciences market.
"Named entity recognition (NER) NLP technique segment to hold the largest market share during the forecast period"
Named entity recognition (NER) holds the largest market share in NLP in healthcare and life sciences because it is critical in extracting structured information from unstructured medical texts. NER enhances clinical decision-making, medical coding, and data interoperability by identifying and classifying key entities such as diseases, drugs, procedures, and patient information. Its ability to accurately process large volumes of electronic health records, clinical trial data, and biomedical literature makes it essential for improving diagnostics, treatment planning, and research. As healthcare increasingly relies on data-driven insights, NER's precision and scalability make it a foundational tool across multiple healthcare applications.
"North America leads with advanced infrastructure and early tech adoption, while Asia Pacific records fastest growth with digitalization and government AI initiatives"
North America leads the NLP in healthcare and life sciences market due to its advanced healthcare IT infrastructure, strong regulatory support for digital health, and early adoption of electronic health records and AI. The region is home to key industry players and research institutions that actively develop and deploy NLP applications for clinical decision-making, patient monitoring, and administrative automation. Meanwhile, Asia Pacific is the fastest-growing market, driven by rapid digitization of healthcare systems, increasing investments in AI, and growing awareness of personalized medicine. China, India, and Japan prioritize healthcare modernization, with government initiatives encouraging AI integration. The region's rising healthcare demands and technological advancements make it a hotspot for NLP adoption in the coming years.
Breakdown of Primaries
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the NLP in healthcare & life sciences market.
By Company: Tier I - 35%, Tier II - 45%, and Tier III - 20%
By Designation: C-Level Executives - 35%, D-Level Executives -25%, and others - 40%
By Region: North America - 40%, Europe - 30%, Asia Pacific - 20%, Middle East & Africa - 5%, and Latin America - 5%
The report includes a study of key players offering NLP in healthcare & life sciences. It profiles major vendors in the NLP in healthcare & life sciences market. The major market players include Microsoft (US), Google (US), IBM (US), AWS (US), IQVIA (US), Oracle (US), Inovalon (US), Dolbey Systems (US), Averbis (Germany), SAS Institute (US), Solventum (US), Press Ganey (US), Ellipsis Health (US), Lexalytics (US), NVIDIA (US), GE Healthcare (US), Clinithink (US), HPE (US), Oncora Medical (US), Flatiron Health (US), Datavant (US), Edifecs (US), John Snow Labs (US), ITRex Group (US), KMS Healthcare (US), Appinventiv (India), Reveal HealthTech (US), Veritis (US), Optum (US), Health Catalyst (US), AMBOSS (Germany), Maruti Techlabs (India), DeepScribe (US), ForeSee Medical (US), Gnani.ai (India), Notable Health (US), Biofourmis (US), Suki AI (US), Wave Health Technologies (US), Corti (Denmark), CloudMex (US), Emtelligent (Canada), Enlitic (US), and Deep 6 AI (US).
Research Coverage
This research report categorizes the NLP in healthcare & life sciences market based on Offering (software and services), Deployment mode (cloud & on-premises), NLP type (natural language understanding (NLU) and natural language generation (NLG)), NLP technique (optical character recognition (OCR), named entity recognition (NER), sentiment analysis, text classification, topic modeling, text summarization, other NLP techniques), Application (patient care & engagement, clinical operations & decision support, biomedical research & drug development, administrative & operations management, genomics & precision medicine, medical education & knowledge dissemination and other applications), End User (enterprise (clinical practitioners, healthcare researchers, healthcare administrators, health insurance & payer professional, pharmaceutical & biotech companies and other end users), and Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The scope of the report covers detailed information regarding the drivers, restraints, challenges, and opportunities influencing the growth of the NLP in healthcare & life sciences market. A detailed analysis of the key industry players was done to provide insights into their business overview, solutions, and services; key strategies; contracts, partnerships, agreements, new product & service launches, and mergers and acquisitions; and recent developments associated with the market. This report also covered the competitive analysis of upcoming startups in the market ecosystem.
Key Benefits of Buying the Report
The report will provide the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall NLP in healthcare & life sciences market and its subsegments. It will help stakeholders understand the competitive landscape and gain more insights to better position their business and plan suitable go-to-market strategies. It will also help stakeholders understand the market's pulse and provide them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
Analysis of key drivers (NLP makes EHR data actionable by extracting insights from text and large datasets, enhanced decision-making by analyzing complex, unstructured clinical data and supports predictive analytics to identify trends and reduce risks).), restraints (Legacy IT systems hinder compatibility with modern NLP tools and high deployment costs and need for skilled personnel) ), opportunities (Real-time, personalized clinical decision support from diverse data, AI assistants streamlines patient engagement and documentation and multilingual translation improves global healthcare access)), and challenges (Integration with existing workflows requires major adjustments and lack of standardized frameworks for validating NLP effectiveness)).
Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the NLP in healthcare & life sciences market.
Market Development: Comprehensive information about lucrative markets - the report analyzes the NLP in healthcare & life sciences market across varied regions.
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the NLP in healthcare & life sciences market.
Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Microsoft (US), Google (US), IBM (US), AWS (US), IQVIA (US), Oracle (US), Inovalon (US), Dolbey Systems (US), Averbis (Germany), SAS Institute (US), Solventum (US), Press Ganey (US), Ellipsis Health (US), Lexalytics (US), NVIDIA (US), GE Healthcare (US), Clinithink (US), HPE (US), Oncora Medical (US), Flatiron Health (US), Datavant (US), Edifecs (US), John Snow Labs (US), ITRex Group (US), KMS Healthcare (US), Appinventiv (India), Reveal HealthTech (US), Veritis (US), Optum (US), Health Catalyst (US), AMBOSS (Germany), Maruti Techlabs (India), DeepScribe (US), ForeSee Medical (US), Gnani.ai (India), Notable Health (US), Biofourmis (US), Suki AI (US), Wave Health Technologies (US), Corti (Denmark), CloudMex (US), Emtelligent (Canada), Enlitic (US), and Deep 6 AI (US). The report also helps stakeholders understand the pulse of the NLP in healthcare & life sciences market and provides them with information on key market drivers, restraints, challenges, and opportunities.
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 MARKET SCOPE
1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE
1.3.2 INCLUSIONS AND EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 STAKEHOLDERS
1.6 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY DATA
2.1.1.1 Key data from secondary sources
2.1.2 PRIMARY DATA
2.1.2.1 List of primary participants
2.1.2.2 Breakdown of primaries
2.1.2.3 Key data from primary sources
2.1.2.4 Key industry insights
2.2 MARKET BREAKUP AND DATA TRIANGULATION
2.3 MARKET SIZE ESTIMATION
2.3.1 TOP-DOWN APPROACH
2.3.2 BOTTOM-UP APPROACH
2.4 MARKET FORECAST
2.5 RESEARCH ASSUMPTIONS
2.6 RESEARCH LIMITATIONS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN NLP IN HEALTHCARE & LIFE SCIENCES MARKET
4.2 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY APPLICATION
4.3 NORTH AMERICA: NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY NLP TECHNIQUE AND END USER
4.4 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY REGION
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Surging volume of unstructured clinical data
5.2.1.2 Rising demand for enhanced care delivery and patient engagement
5.2.1.3 Need for predictive analytics to improve significant health concerns
5.2.1.4 Increasing focus on enhancing clinical decision support
5.2.2 RESTRAINTS
5.2.2.1 Clinical accuracy and reliability concerns
5.2.2.2 Issues related to domain-specific language and medical terminology in NLP model development
5.2.2.3 Complexity in integrating NLP with established healthcare system
5.2.3 OPPORTUNITIES
5.2.3.1 Rising adoption of computer-assisted coding to enhance productivity
5.2.3.2 Emergence of advanced AI technology for generating valuable insights for healthcare
5.2.3.3 Emergence of cognitive computing for medicine applications
5.2.4 CHALLENGES
5.2.4.1 Model training data limitations
5.2.4.2 High cost of implementation and maintenance of NLP technology
5.2.4.3 Explainability and interpretability issues while deploying NLP algorithms
5.3 IMPACT OF 2025 US TARIFF-NLP IN HEALTHCARE & LIFE SCIENCES MARKET
5.3.1 INTRODUCTION
5.3.2 KEY TARIFF RATES
5.3.3 PRICE IMPACT ANALYSIS
5.3.3.1 Strategic shifts and emerging trends
5.3.4 IMPACT ON COUNTRY/REGION
5.3.4.1 US
5.3.4.1.1 Strategic shifts and key observations
5.3.4.2 China
5.3.4.2.1 Strategic shifts and key observations
5.3.4.3 Europe
5.3.4.3.1 Strategic shifts and key observations
5.3.4.4 India
5.3.4.4.1 Strategic shifts and key observations
5.3.5 IMPACT ON END-USE INDUSTRIES
5.3.5.1 Clinical practitioners
5.3.5.2 Healthcare Researchers
5.3.5.3 Pharmaceutical & Biotech companies
5.4 EVOLUTION OF NLP IN HEALTHCARE & LIFE SCIENCES MARKET
5.5 NLP IN HEALTHCARE & LIFE SCIENCES MARKET: ARCHITECTURE
5.6 SUPPLY CHAIN ANALYSIS
5.7 ECOSYSTEM ANALYSIS
5.7.1 SOFTWARE & SERVICE PROVIDERS BY APPLICATION
5.7.1.1 Patient care & engagement
5.7.1.2 Clinical operations & decision support
5.7.1.3 Biomedical research & drug development
5.7.1.4 Administrative & operations management
5.7.1.5 Genomics & precision medicine
5.7.1.6 Medical education & knowledge dissemination
5.8 INVESTMENT LANDSCAPE AND FUNDING SCENARIO
5.9 CASE STUDY ANALYSIS
5.9.1 CASE STUDY 1: CSL BEHRING COLLABORATED WITH IQVIA'S NLP TEAM, LINGUAMATICS, TO CREATE PROOF OF CONCEPT
5.9.2 CASE STUDY 2: ATRIUS HEALTH USED LINGUAMATICS I2E TO CREATE QUERIES TO EXTRACT CLINICAL DATA FROM FREE-TEXT FIELDS WITHIN CLINICIAN PROGRESS NOTES AND CLINICAL REPORTS
5.9.3 CASE STUDY 3: HUMANA ADOPTED WATSON'S VOICE AGENT TO OFFER ENHANCED SELF-SERVICE CAPABILITIES TO HEALTHCARE PROVIDERS
5.9.4 CASE STUDY 4: BIOPHARMACEUTICAL COMPANY DEPLOYED IQVIA'S SOLUTIONS TO CONDUCT HEALTH TECHNOLOGY ASSESSMENT
5.9.5 CASE STUDY 5: PHILIPS ADOPTED AMAZON'S ELASTIC COMPUTE CLOUD (AMAZON EC2) TO ATTAIN SECURE, RESIZABLE COMPUTING CAPACITY
5.10 TECHNOLOGY ANALYSIS
5.10.1 KEY TECHNOLOGIES
5.10.1.1 Generative AI
5.10.1.2 Natural Language Processing (NLP)
5.10.1.3 Machine Learning
5.10.1.4 Computer Vision
5.10.2 COMPLIMENTARY TECHNOLOGIES
5.10.2.1 Conversational AI
5.10.2.2 Emotion AI
5.10.2.3 Cloud computing
5.10.3 ADJACENT TECHNOLOGIES
5.10.3.1 Edge AI
5.10.3.2 Blockchain
5.10.3.3 AR/VR
5.11 REGULATORY LANDSCAPE
5.11.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS
5.11.1.1 North America
5.11.1.1.1 US
5.11.1.1.2 Canada
5.11.1.2 Europe
5.11.1.3 Asia Pacific
5.11.1.3.1 China
5.11.1.3.2 India
5.11.1.3.3 Japan
5.11.1.3.4 South Korea
5.11.1.4 Middle East & Africa
5.11.1.4.1 UAE
5.11.1.4.2 KSA
5.11.1.5 Latin America
5.11.1.5.1 Brazil
5.11.1.5.2 Mexico
5.12 PATENT ANALYSIS
5.12.1 METHODOLOGY
5.12.2 PATENTS FILED, BY DOCUMENT TYPE
5.12.3 INNOVATION AND PATENT APPLICATIONS
5.13 PRICING ANALYSIS
5.13.1 AVERAGE SELLING PRICE OF KEY PLAYERS, BY OFFERING, 2025
5.13.2 AVERAGE SELLING PRICE, BY APPLICATION, 2025
5.14 KEY CONFERENCES AND EVENTS, 2025-2026
5.15 NLP IN HEALTHCARE & LIFE SCIENCES MARKET: BUSINESS MODELS
5.15.1 SAAS MODEL
5.15.2 CONSULTING SERVICES MODEL
5.15.3 REVENUE SHARING MODEL
5.15.4 PAY-PER-USE MODEL
5.16 PORTER'S FIVE FORCES ANALYSIS
5.16.1 THREAT OF NEW ENTRANTS
5.16.2 THREAT OF SUBSTITUTES
5.16.3 BARGAINING POWER OF SUPPLIERS
5.16.4 BARGAINING POWER OF BUYERS
5.16.5 INTENSITY OF COMPETITIVE RIVALRY
5.17 KEY STAKEHOLDERS AND BUYING CRITERIA
5.17.1 KEY STAKEHOLDERS IN BUYING PROCESS
5.17.2 BUYING CRITERIA
5.18 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
6 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY OFFERING
6.1 INTRODUCTION
6.1.1 OFFERING: NLP IN HEALTHCARE & LIFE SCIENCES MARKET DRIVERS
6.2 SOFTWARE
6.2.1 STANDALONE NLP SOFTWARE
6.2.1.1 Deliver precise, customized, and secure NLP solutions
6.2.2 INTEGRATED NLP SOFTWARE
6.2.2.1 Enhance clinical workflows and insights
6.3 SERVICES
6.3.1 PROFESSIONAL SERVICES
6.3.1.1 Empower healthcare & life sciences with expert service solutions
6.3.1.2 Training & Consulting Services
6.3.1.3 System integration & implementation
6.3.1.4 Support & maintenance
6.3.2 MANAGED SERVICES
6.3.2.1 Reliable NLP operations with comprehensive managed healthcare services
7 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY DEPLOYMENT MODE
7.1 INTRODUCTION
7.1.1 DEPLOYMENT MODE: NLP IN HEALTHCARE & LIFE SCIENCES MARKET DRIVERS
7.2 CLOUD
7.2.1 LEVERAGE CLOUD-BASED NLP FOR SCALABLE AND COST-EFFECTIVE DATA PROCESSING SOLUTIONS
7.3 ON-PREMISES
7.3.1 SECURE ON-PREMISES NLP DEPLOYMENT FOR COMPLIANCE AND DATA SOVEREIGNTY IN HEALTHCARE
8 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY NLP TYPE
8.1 INTRODUCTION
8.1.1 NLP TYPE: NLP IN HEALTHCARE & LIFE SCIENCES MARKET DRIVERS
8.2 NATURAL LANGUAGE UNDERSTANDING
8.2.1 HARNESSING CLINICAL INSIGHTS BY UNDERSTANDING COMPLEX MEDICAL LANGUAGE IN HEALTHCARE
8.3 NATURAL LANGUAGE GENERATION
8.3.1 DRIVING HEALTHCARE EFFICIENCY AND PATIENT ENGAGEMENT THROUGH ADVANCED SOLUTIONS
9 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY NLP TECHNIQUE
9.1 INTRODUCTION
9.1.1 NLP TECHNIQUE: NLP IN HEALTHCARE & LIFE SCIENCES MARKET DRIVERS
9.2 OPTICAL CHARACTER RECOGNITION
9.2.1 FOCUS ON ENHANCING DATA PROCESSING INTO DIGITAL CONTENT TO DRIVE ADOPTION IN HEALTHCARE SERVICES
9.3 NAMED ENTITY RECOGNITION
9.3.1 GROWING NEED TO ENHANCE DATA ORGANIZATION FOR IMPROVED PATIENT CARE TO PROPEL MARKET
9.4 SENTIMENT ANALYSIS
9.4.1 NEED FOR IMPROVEMENT IN PATIENT CARE AND COMMUNICATION STRATEGIES TO DRIVE MARKET
9.5 TEXT CLASSIFICATION
9.5.1 EMPHASIS ON EMPOWERING HEALTHCARE ORGANIZATIONS FOR ADVANCED ANALYSIS TO BOOST DEMAND
9.6 TOPIC MODELING
9.6.1 NEED FOR UNCOVERING INSIGHTS AND TRENDS FROM TEXTUAL DATA TO DRIVE MARKET
9.7 TEXT SUMMARIZATION
9.7.1 STREAMLINING MEDICAL INSIGHTS IN HEALTHCARE AND LIFE SCIENCES TO DRIVE MARKET
9.8 OTHER NLP TECHNIQUES
10 NLP IN HEALTHCARE & LIFE SCIENCES MARKET, BY APPLICATION
10.1 INTRODUCTION
10.1.1 APPLICATION: NLP IN HEALTHCARE & LIFE SCIENCES MARKET DRIVERS
10.2 PATIENT CARE & ENGAGEMENT
10.2.1 EMPOWERING PATIENT CARE AND ENGAGEMENT THROUGH ADVANCED NLP IN HEALTHCARE SYSTEMS
10.2.2 CONVERSATIONAL AI & VIRTUAL ASSISTANTS
10.2.3 REMOTE MONITORING & TELEHEALTH SUPPORT
10.2.4 PATIENT FEEDBACK & SENTIMENT ANALYSIS
10.2.5 HEALTH RISK ASSESSMENT
10.2.6 OTHERS
10.3 CLINICAL OPERATIONS & DECISION SUPPORT
10.3.1 UNLOCKING CLINICAL INSIGHTS AND STREAMLINING OPERATIONS WITH NLP FOR ENHANCED DECISION-MAKING AND EFFICIENCY
10.3.2 CLINICAL DOCUMENTATION & TRANSCRIPTION
10.3.3 MEDICAL CODING & BILLING AUTOMATION
10.3.4 CLINICAL DECISION SUPPORT
10.3.5 CLINICAL TRIAL MATCHING
10.3.6 OTHERS
10.4 BIOMEDICAL RESEARCH & DRUG DEVELOPMENT
10.4.1 ACCELERATING DRUG DISCOVERY AND RESEARCH INSIGHTS USING NLP IN HEALTHCARE
10.4.2 LITERATURE MINING & KNOWLEDGE EXTRACTION
10.4.3 DRUG DISCOVERY & REPURPOSING
10.4.4 CLINICAL TRIAL DESIGN & OPTIMIZATION
10.4.5 PHARMACOVIGILANCE & SAFETY MONITORING
10.4.6 OTHERS
10.5 ADMINISTRATIVE & OPERATIONS MANAGEMENT
10.5.1 STREAMLINING ADMINISTRATIVE WORKFLOWS WITH NLP TO BOOST EFFICIENCY AND ACCURACY IN HEALTHCARE OPERATIONS