NLP in Healthcare & Life Sciences Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component, By NLP Type, By Deployment Mode, By End User, By Region & Competition, 2021-2031F

Description

The Global NLP in Healthcare & Life Sciences Market is projected to expand from USD 3.17 Billion in 2025 to USD 5.34 Billion by 2031, registering a CAGR of 9.09%. This field involves the use of computational algorithms to interpret, understand, and generate human language from unstructured sources like electronic health records, clinical notes, and scientific literature. The market's fundamental growth is driven by the critical need to alleviate clinician burnout through automated documentation and the operational requirement to extract actionable insights from massive repositories of medical text. These structural necessities distinguish the market's core expansion from temporary technological trends. According to the 'Medical Group Management Association', in '2024', '59% of medical group leaders identified scribing and documentation tools as their top artificial intelligence priority'.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 3.17 Billion
Market Size 2031	USD 5.34 Billion
CAGR 2026-2031	9.09%
Fastest Growing Segment	Solutions
Largest Market	North America

However, the market faces significant hurdles regarding data privacy and the complexity of regulatory compliance. The intricate task of securing sensitive patient information while satisfying rigorous legal standards introduces major liability risks and interoperability challenges. These obstacles threaten to impede the widespread scaling of NLP technologies across the healthcare sector.

Market Driver

Advancements in Generative AI and Large Language Models constitute the most transformative force currently reshaping the Global NLP in Healthcare & Life Sciences Market. Unlike traditional NLP, these technologies allow for the sophisticated generation of clinical documentation and automated summarization of patient histories. This technological leap has sparked rapid adoption across medical practices as providers aim to leverage these tools for improved diagnostic support and workflow optimization. According to the American Medical Association's 'Augmented Intelligence Research' survey from February 2025, 66% of physicians reported using AI in their practices in 2024, a figure that nearly doubled from the previous year. This surge is supported by changing professional sentiment; as noted by VatorNews in February 2025, in the 'AMA: physicians using AI nearly doubled in 2024' article, 36% of physicians reported feeling more excited than concerned about AI, indicating a strong market appetite for these advanced capabilities.

The imperative for operational efficiency and healthcare cost containment serves as the second critical driver, directly addressing the systemic challenges of clinician burnout and administrative overload. As healthcare organizations confront mounting financial pressures, NLP solutions are increasingly deployed to automate labor-intensive tasks such as medical coding, revenue cycle management, and real-time documentation. These tools reduce the cognitive load on practitioners, allowing them to redirect their focus from data entry to patient care. According to the 'Clinician of the Future 2025' report by Elsevier in July 2025, 57% of clinicians perceive clinical AI tools as saving them time. By streamlining administrative workflows, NLP applications not only improve operational margins but also help ensure the sustainability of healthcare delivery systems in an increasingly data-dense environment.

Market Challenge

The strict enforcement of data privacy and regulatory compliance acts as a substantial barrier to the expansion of the Global NLP in Healthcare and Life Sciences Market. Healthcare organizations function under rigorous legal frameworks that mandate the absolute protection of patient confidentiality. Because NLP systems require access to vast datasets of unstructured clinical notes and records to operate effectively, there is an inherent risk of exposing Personally Identifiable Information (PII). The potential for costly data breaches and heavy regulatory fines compels institutions to adopt a risk-averse approach, significantly slowing the procurement and integration of these technologies.

This operational caution creates a bottleneck for market growth, as decision-makers prioritize liability protection over technological capabilities. The fear of non-compliance limits the willingness of providers to scale NLP solutions across their networks, often confining projects to small, isolated pilots. This reluctance is reflected in recent industry findings regarding adoption criteria. According to the 'American Medical Association', in '2024', '87% of physicians identified data privacy assurances as a top attribute required to advance the adoption of artificial intelligence tools'. This statistic underscores that widespread commercialization remains hindered by deep-seated compliance anxieties within the sector.

Market Trends

The utilization of NLP to accelerate drug discovery and biomarker identification is shifting the market focus from administrative automation to scientific research. Pharmaceutical companies are deploying algorithms to mine vast repositories of scientific literature and genomic data to predict molecular interactions and identify potential therapeutic targets. This transition enables researchers to compress the initial stages of drug development, significantly reducing the time required to bring new therapies to clinical testing. According to NVIDIA, July 2025, in the 'State of AI in Healthcare and Life Sciences: 2025 Trends' survey, 59% of pharma and biotech professionals identified drug discovery as their primary AI goal, underscoring the sector's prioritization of computational biology.

The enhancement of clinical trial recruitment via automated patient matching is addressing the critical bottleneck of participant enrollment in life sciences research. NLP engines are increasingly integrated into clinical workflows to parse unstructured electronic health records and pathology reports, automatically identifying eligible candidates based on complex inclusion criteria. This capability ensures accurate patient cohorts while minimizing costly delays associated with recruitment failures. This trend is driving substantial adoption; according to Medidata, October 2025, in the 'The State of AI in Clinical Trials: Today and Tomorrow' report, 83% of companies using AI in clinical trials are now leveraging the technology specifically for patient population and cohort identification.

Key Market Players

SAS Institute Inc.
IBM Corporation
Microsoft Corporation
Google LLC
IQVIA Inc
Oracle Corporation
Inovalon
Dolbey Systems, Inc.
Averbis GmbH

Report Scope

In this report, the Global NLP in Healthcare & Life Sciences Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

NLP in Healthcare & Life Sciences Market, By Component

Solutions
Services

NLP in Healthcare & Life Sciences Market, By NLP Type

Rule-Based Natural Language Processing
Statistical Natural Language Processing
Hybrid Natural Language Processing

NLP in Healthcare & Life Sciences Market, By Deployment Mode

On-premises
Cloud

NLP in Healthcare & Life Sciences Market, By End User

Public Health & Government Agencies
Medical Devices
Healthcare Insurance
Others

NLP in Healthcare & Life Sciences Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global NLP in Healthcare & Life Sciences Market.

Available Customizations:

Global NLP in Healthcare & Life Sciences Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global NLP in Healthcare & Life Sciences Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Component (Solutions, Services)
- 5.2.2. By NLP Type (Rule-Based Natural Language Processing, Statistical Natural Language Processing, Hybrid Natural Language Processing)
- 5.2.3. By Deployment Mode (On-premises, Cloud)
- 5.2.4. By End User (Public Health & Government Agencies, Medical Devices, Healthcare Insurance, Others)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America NLP in Healthcare & Life Sciences Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Component
- 6.2.2. By NLP Type
- 6.2.3. By Deployment Mode
- 6.2.4. By End User
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States NLP in Healthcare & Life Sciences Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Component
    - 6.3.1.2.2. By NLP Type
    - 6.3.1.2.3. By Deployment Mode
    - 6.3.1.2.4. By End User
- 6.3.2. Canada NLP in Healthcare & Life Sciences Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Component
    - 6.3.2.2.2. By NLP Type
    - 6.3.2.2.3. By Deployment Mode
    - 6.3.2.2.4. By End User
- 6.3.3. Mexico NLP in Healthcare & Life Sciences Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Component
    - 6.3.3.2.2. By NLP Type
    - 6.3.3.2.3. By Deployment Mode
    - 6.3.3.2.4. By End User

7. Europe NLP in Healthcare & Life Sciences Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Component
- 7.2.2. By NLP Type
- 7.2.3. By Deployment Mode
- 7.2.4. By End User
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany NLP in Healthcare & Life Sciences Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Component
    - 7.3.1.2.2. By NLP Type
    - 7.3.1.2.3. By Deployment Mode
    - 7.3.1.2.4. By End User
- 7.3.2. France NLP in Healthcare & Life Sciences Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Component
    - 7.3.2.2.2. By NLP Type
    - 7.3.2.2.3. By Deployment Mode
    - 7.3.2.2.4. By End User
- 7.3.3. United Kingdom NLP in Healthcare & Life Sciences Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Component
    - 7.3.3.2.2. By NLP Type
    - 7.3.3.2.3. By Deployment Mode
    - 7.3.3.2.4. By End User
- 7.3.4. Italy NLP in Healthcare & Life Sciences Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Component
    - 7.3.4.2.2. By NLP Type
    - 7.3.4.2.3. By Deployment Mode
    - 7.3.4.2.4. By End User
- 7.3.5. Spain NLP in Healthcare & Life Sciences Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Component
    - 7.3.5.2.2. By NLP Type
    - 7.3.5.2.3. By Deployment Mode
    - 7.3.5.2.4. By End User

8. Asia Pacific NLP in Healthcare & Life Sciences Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Component
- 8.2.2. By NLP Type
- 8.2.3. By Deployment Mode
- 8.2.4. By End User
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China NLP in Healthcare & Life Sciences Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Component
    - 8.3.1.2.2. By NLP Type
    - 8.3.1.2.3. By Deployment Mode
    - 8.3.1.2.4. By End User
- 8.3.2. India NLP in Healthcare & Life Sciences Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Component
    - 8.3.2.2.2. By NLP Type
    - 8.3.2.2.3. By Deployment Mode
    - 8.3.2.2.4. By End User
- 8.3.3. Japan NLP in Healthcare & Life Sciences Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Component
    - 8.3.3.2.2. By NLP Type
    - 8.3.3.2.3. By Deployment Mode
    - 8.3.3.2.4. By End User
- 8.3.4. South Korea NLP in Healthcare & Life Sciences Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Component
    - 8.3.4.2.2. By NLP Type
    - 8.3.4.2.3. By Deployment Mode
    - 8.3.4.2.4. By End User
- 8.3.5. Australia NLP in Healthcare & Life Sciences Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Component
    - 8.3.5.2.2. By NLP Type
    - 8.3.5.2.3. By Deployment Mode
    - 8.3.5.2.4. By End User

9. Middle East & Africa NLP in Healthcare & Life Sciences Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Component
- 9.2.2. By NLP Type
- 9.2.3. By Deployment Mode
- 9.2.4. By End User
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia NLP in Healthcare & Life Sciences Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Component
    - 9.3.1.2.2. By NLP Type
    - 9.3.1.2.3. By Deployment Mode
    - 9.3.1.2.4. By End User
- 9.3.2. UAE NLP in Healthcare & Life Sciences Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Component
    - 9.3.2.2.2. By NLP Type
    - 9.3.2.2.3. By Deployment Mode
    - 9.3.2.2.4. By End User
- 9.3.3. South Africa NLP in Healthcare & Life Sciences Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Component
    - 9.3.3.2.2. By NLP Type
    - 9.3.3.2.3. By Deployment Mode
    - 9.3.3.2.4. By End User

10. South America NLP in Healthcare & Life Sciences Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Component
- 10.2.2. By NLP Type
- 10.2.3. By Deployment Mode
- 10.2.4. By End User
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil NLP in Healthcare & Life Sciences Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Component
    - 10.3.1.2.2. By NLP Type
    - 10.3.1.2.3. By Deployment Mode
    - 10.3.1.2.4. By End User
- 10.3.2. Colombia NLP in Healthcare & Life Sciences Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Component
    - 10.3.2.2.2. By NLP Type
    - 10.3.2.2.3. By Deployment Mode
    - 10.3.2.2.4. By End User
- 10.3.3. Argentina NLP in Healthcare & Life Sciences Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Component
    - 10.3.3.2.2. By NLP Type
    - 10.3.3.2.3. By Deployment Mode
    - 10.3.3.2.4. By End User

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global NLP in Healthcare & Life Sciences Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. SAS Institute Inc.
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. IBM Corporation
15.3. Microsoft Corporation
15.4. Google LLC
15.5. IQVIA Inc
15.6. Oracle Corporation
15.7. Inovalon
15.8. Dolbey Systems, Inc.
15.9. Averbis GmbH