Nuance

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Market Share US - Nuance (Dragon) and other players.

Nuance has an estimated 58.37% market share of the US speech recognition technology as applied to healthcare medical transcription market. Competitors Aviacode, Amphion, Precyse and Wit.ai have an estimated 2.70%, 1.86%, 0.86% and 0.16% market share, respectively.

METHODOLOGY

As requested, this response builds upon a previous one on the healthcare medical transcription speech recognition technology market size. Since the market size for the US was determined not to be publicly available, for the purposes of this project we have used North America's medical transcription services market size as an approximation, and the basis for our calculations.

Please note that, whereas Nuance is a public company and its financial information is disclosed, its competitors are not — since these companies are private and do not have the obligation to disclose their financial information, their market shares are calculations based on estimations made by independent sources.

Please note that all numbers below are estimations and should be taken as such. Any discrepancies or contradictions in the information that arose during research have been noted below.

FINDINGS

According to Transparency Market, the global transcription market size was US$41.4 billion in 2012 with a CAGR 2012-2017 of 5.6%, which results in US$54.4 billion as of 2017.

2012- $41.4 billion (41.4 x .056= 2.3184) ( 41.2+2.3184)=43.718)
2013- $43.718 billion (43.7184 x .056=2.43) 43.718+2.43=46.149
2014- $46.149 billion (46.149 x .056= 2.58) 46.149+2.58=48.733
2015- 48.733 billion (48.733 x .056=2.73) 48.733+2.73=51.46
2016 $51.463 billion ( 51.463 x .056=2.88)= 54.4 billion
2017- $54.4 billion

A report by Markets and Markets pointed out that Speech Recognition Technology (SRT) was US$6.19 billion in 2017 — so assuming all of it is healthcare, this would mean 11.37% of medical transcription global would be performed by SRT.
(6.19 billion/ 54.4 billion =.1137 or 11.37%)

The North America transcription market size is expected to reach US$18 billion by 2019, with a 5% CAGR 2014-2019, so for 2017 the market reached US$16.25 billion. Despite North America being made by more countries than just the US, for the purposes of this request we will take this figure as an approximation for the US market. Applying the 11.37% we calculated above, we can assume US$1.85 billion of that market is SRT.

2019- $18 billion (18x.05=.9) 18-.9=17.1 billion
2018- $171. billion (17.1 x.05=.855) 17.1-.855=$16.25billion
2017- $16.25 billion

In 2017 Nuance reported US$1.93 billion in revenue, with US$1.08 billion in profit. Taking revenue as a whole, Nuance's gains surpass our estimations of the entire healthcare SRT market — presumably because healthcare is only one sector of Nuance's business (Dragon), albeit its fastest growing one. However, the company does not breakdown its revenue by product, and this information is not disclosed in any public document, which does not allow us to calculate market share using Dragon's sales.

If we take Nuance's total profit to calculate market share, US$1.08 billion, it would result in Nuance having an estimated 58.37% of the market.

(1.08/1.85= .5837 or 53.37%)

Following the same formula, we can calculate the market share of some competitors, such as Aviacode (with a revenue of US$50 million, a market share of 2.70%), Amphion (with a revenue of US$34.5 million, a market share of 1.86%), Precyse (with a revenue of US$16 million, a market share of 0.86%) and Wit.ai (with a revenue of US$3 million, a market share of 0.16%).

CONCLUSION

To wrap up, Nuance has an estimated 58.37% market share of the US speech recognition technology as applied to healthcare medical transcription market, whereas competitors Aviacode, Amphion, Precyse and Wit.ai have an estimated 2.70%, 1.86%, 0.86% and 0.16% market share, respectively.
Sources
Sources