Nuance - Dragon

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Market Size US - Healthcare Medical Transcription (Speech Recognition Technology)

After extensive research for the market size for speech recognition technology within the healthcare medical transcription market in the Unites States, my colleagues and I have determined that there is no publicly available data on this topic, nor were we able to identify alternative data that would have permitted triangulation of this figure. However, we were able to identify some key findings that may prove useful for your project. First, global market size for medical transcription services market was valued at $41.4 billion in 2012, and it is expected to expand at a CAGR of 5.6% during the time frame from 2013 to 2019. Second, this data yields an estimated global market size calculation of $54.4 billion in 2017. Finally, the market size for the medical transcription market in North America is projected to reach $18 billion in 2019, and it is projected to grow at a CAGR of 5%+ from 2013 to 2019. Below you will find a discussion of our findings.

METHODOLOGY

In order to determine the market size for speech recognition technology within the healthcare medical transcription market in the United States, my colleagues and I extensively researched this topic, exploring market reports and other reliable resources that would provide key financial figures. However, our findings revealed that while this data is available in a variety of market research reports, those reports are available as paid content only, and therefore this data could not be accessed. If these reports would be valuable to you, an additional example can be accessed here. Further research into other relevant data points that might have permitted triangulation of the market size for speech recognition technology in the healthcare medical transcription industry in the United States was unavailable, so we were also unable to provide an estimate of the requested market size. However, we did identify some key findings, which are discussed below. All figures are reported in United States dollars.

THE US HEALTHCARE MEDICAL TRANSCRIPTION MARKET SIZE

Publicly available data indicates that in the United States, 32% (over 670 million documents) of the 2.1 billion patient encounters documented in were produced by dictation and transcription. While this figure alone provides some indication of the size of the overall healthcare medical transcription market, without the corresponding total market size for clinical documentation, we were unable to triangulate an overall calculation of the healthcare medical transcription market in the United States. Although websites like iHealthCareAnalyst provide full reports on the market size for medical transcription services, the data is available as paid content only.

GLOBAL DATA ON THE MARKET SIZE FOR THE MEDICAL TRANSCRIPTION SERVICES

Expanding our scope to the global market size for medical transcription services, we identified some publicly available data of interest. The global market for medical transcription services was estimated at $41.4 billion in 2012. At the time of publication of this report in 2014, the market was predicted to grow at a CAGR of 5.6% from 2012 to 2019. Utilizing a future value calculator, these figures were used to triangulate an estimated market size of $54.4 billion in 2017. However, we also identified more aggressive estimates of global market size for medical transcription services, which suggests the market will reach $70 billion by 2021. This estimate is based on a CAGR of 6.3% from the year 2017 to 2021.

NORTH AMERICA'S MARKET SIZE FOR THE MEDICAL TRANSCRIPTION SERVICES

During our research, we identified a 2016 report, which segmented market size for medical transcription services by geographical location, including Asia Pacific, North America, Europe, and "Rest of the World." Among these regions, North America was reported to have the largest overall medical transcription market size, at 29.7% of the global market. The size of the North American market is believed to be the result of the impact of enhanced medical services documentation in the United States. According to this report, the medical transcription services market size of North America is expected to reach $18 billion in 2019, with a 5% CAGR during the forecast period of 2013 to 2019.

CONCLUSION

In summary, despite extensive research for the market size for speech recognition technology within the healthcare medical transcription market in the Unites States, there is no publicly available data on this topic, although reliable market reports are available for purchase. However, we did identify two key findings that may be relevant to your project. First, we identified an estimate of the global market size for medical transcription service of $41.4 billion, with a CAGR of 5.6% from 2012 to 2019. This figure permits us to estimate the global market size for medical transcription services to be $54.4 billion in 2017. Additionally, the North American medical transcription services market size is projected to be $18 billion in 2019, with a 5% CAGR during the forecast period of 2013 to 2019.
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CAGR - Nuance (Dragon)

As of the fourth quarter of 2017, Nuance reported a solid performance in their new bookings and recurring revenue which was attributed to the demand for its Dragon Medical cloud solution, more specifically, their “voice biometrics and omni-channel and digital offerings, and clinical documentation improvement solutions.” Since revenue is only reported on the company Nuance as a whole, not by its Dragon products, by using Nuances’ projected revenues for 2018 at $2050M and entering them into a CAGR calculator, we find that the four- year CAGR for Nuance — Dragon is estimated to be 3.13%.

NUANCE COMMUNICATIONS YEARLY PROJECTSIONS

2018 Revenue of $2,050M with an EBITDA of 30.0% and a growth rate of 5.7%
2019 Revenue of $2,122M with an EBITDA of 31.1% and a growth rate of 3.5%
2020 Revenue of $2,240M with and EBITDA of 34.8% and a growth rate of 5.6%
2021 Revenue of $2,319M with and EBITDA of 34.8% and a growth rate of 2.0%

NUANCE COMMUNICATIONS

In 2017, Nuance communications released two AI products for the healthcare market. This may be due to the expected 50% annual growth of the AI healthcare market. Nuance’s new AI Marketplace for Diagnostic Imaging gave the companies shares a slight lift in 2017. Nuance already has a strong foothold in the AI market place in the enterprise and automotive markets. The Nuance name is already well-known to many investors and in many industries. According to an investment website, the company has already worked with large companies and continues to be one of the most sought after for the artificial intelligence segment."

nuance “fast facts” page:

Company strengths:
• “Approximately 14,000 employees”
• “Regional offices in 35 countries
• “Worldwide headquarters in Burlington, MA, United States”
• “International headquarters in Dublin, Ireland”
• “Sales representation in more than 70 countries
Innovative solutions:
• “Nuance speech solutions support up to 80 different languages.”
• “Nuance holds more than 4,300 patents and patent applications.”
• “A team of 1,200 services personnel oversees the implementation of Nuance solutions.”
• “A team of more than 2,000 voice and language scientists, developers and engineers”
• “Nuance maintains one of the world’s largest libraries of speech data.”
• “More than 2,000 partners help bring our solutions to market.”
• “Nuance has won awards for its solutions in every major product family.”
Proven Use:
• “Nearly two-thirds of Fortune 100 companies rely on Nuance solutions.”
• “The 8 largest handsets and 10 largest auto makers use Nuance solutions.”
• “Nuance solutions have shipped in more than 5 billion mobile phones and approximately 110 million voice-enabled vehicles globally.”
• “There are more than 22 million registered users of Nuance desktop solutions.”
• “Millions of mobile consumers have downloaded our Dragon Mobile Apps.”
• “Nuance solutions transcribe more than 7 billion lines of medical data annually.”
• “More than 10,000 hospitals in the U.S. use Nuance healthcare solutions.”
• “More than 150,000 doctors and caregivers use Dragon Medical.”

VOICE RECOGNITION MARKET

The global voice recognition technologies market as a whole is expected to increase from $104.4 billion to $184.9 billion between 2016 – 2021 with a CAGR of 12.1%. The consumer market is also expected to grow at a five-year CAGR of 12% from $54.4B to $95.9B during the same forecast period. The enterprise market will follow the same growth patterns with a five-year CAGR of 12.4%, rising from $44B to $79B between 2016-2021.
According to an industry report, “in the enterprise and healthcare sectors, voice recognition technologies are allowing physicians, soldiers, and other users to accomplish more by reducing the time consumed by written communications. The military sector, the industry's largest investor, uses the technology to increase operational efficiency and for precision driving. North America remains the leading market in that sector, but Asia-Pacific countries are rapidly increasing their market shares.”
This same report also states that “among the underlying technology areas, the nascent market for speaker variation segment in speech analytics should demonstrate the highest five-year CAGR, at 17.6% from 2016-2021.”
According to Michal Sullivan, a BCC research analyst, “the implementation of analytics across voice recognition systems is critical to support greater responsiveness and enable automation.”

"The largest markets are voice-activated mobile search and advertising services, which have overtaken interactive response systems and automatic speech recognition. Mobile search is growing faster than all other areas at a CAGR of 21.1%, which reflects the powerful combination of a richer than ever storehouse of data."

CONCLUSION

In conclusion, the estimated four- year CAGR for Nuance Dragon is estimated to be 3.13%, with annual revenue rising from $2,050M in 2018 to $2,319M in 2021. The global voice recognition technologies market as a whole is expected to increase from $104.4 billion to $184.9 billion between 2016 – 2021 with a CAGR of 12.1%.

Sources
Sources