Medical Transcription Software Market Expected to Reach $7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Medical Transcription Software Market," The medical transcription software market size was valued at $1.6 billion in 2021, and is estimated to reach $7 billion by 2031, growing at a CAGR of 15.5% from 2022 to 2031.

Medical transcription software converts digital voice recordings into text that will be used and accessed by medical professionals. Medical transcription software uses speech recognition and natural learning processing (NLP) technologies to convert speech to text and store recorded dictations. Medical transcription software reduces both, time and errors in clinical documentation workflows, so doctors can focus on delivering patient care.

The software can help alleviate the workloads of physicians and ultimately prevent burnout. Nurses, physicians, and doctors dictate or feed voice recordings into the medical transcription solution and the solution produces text and reports that can be stored within a patient’s digital files.

The global medical transcription software market trends which drive growth of the market include, rise in need of digital documentation and increase in adoption of medical transcription software. In addition, another significant factors that influences the growth rate of the medical transcription software market is increase in healthcare expenditure, and developed healthcare infrastructure. Furthermore, technology developments and innovation in medical transcription software, including speech recognition, artificial intelligence, and machine learning advancements, are anticipated to fuel the market growth.

However, increase in threat of cyberattacks and the potential misuse of patient-related confidential data restrain the market growth during medical transcription software market forecast. In addition, low adoption of medical transcription software due to lack of healthcare IT infrastructure in emerging countries, dearth of workforce training, and high cost of medical transcription software are major restraints for the growth of the global market, especially in the developing regions.

COVID-19 is a large family of viruses that causes illness ranging from common cold to more severe respiratory diseases. The COVID-19 pandemic has helped the medical transcription software industry grow significantly, owing to surge in coronavirus patients that has created an enormous demand for digital documentation, which, in turn, is expected to positively impact the global medical transcription software market.

The medical transcription software market size is segmented into deployment, type, end user facility, and region. By deployment, the market is categorized into cloud based and on premises. On the basis of type, the market is segregated into voice capture and voice recognition. By end user facility, the market is classified into hospitals and clinics, diagnostic centers, and others. Others include ambulatory surgical centers and healthcare systems. Hospitals and clinics segment is further segmented into private and public. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and Rest of LAMEA).

Depending on deployment, the cloud-based segment exhibited the highest growth in 2021, as cloud-based software is beneficial for small healthcare providers, as it is available at a low upfront cost, does not require in-house IT staff, and needs less time for implementation, which drives the growth of the segment during medical transcription software market analysis. 

On the basis of type, the voice recognition segment dominated medical transcription software market share in 2021. The market growth of this segment is driven by the affordability of file transcription, made possible by a voice recognition technology resulting in cost-effective documentation. 

On the basis of end user facility, the hospitals and clinics segment dominated the market in 2021 and is expected to remain dominant during the forecast period, owing to increase in applications of medical transcription software in hospitals and clinics, as it enables doctors to transcribe patient notes by voice dictation. 

Region-wise, North America has largest the medical transcription software market share in 2021 and is expected to continue this trend during the forecast period. This is attributed to surge in demand for better healthcare facilities, rise in demand for medical transcription solution, and government reforms for the acceptance of medical transcription in the region.

However, Asia-Pacific is expected to register highest CAGR of 17.2% from 2022-2031, owing to increase in prevalence of chronic disease, rise in awareness related to the use of medical transcription services, and surge in healthcare expenditure.

Key findings of the study
• By deployment, the cloud-based segment was highest contributor to medical transcription software industry in 2021.
• By type, the voice recognition segment dominated the market in 2021, and is expected to continue this trend during the forecast period.
• By end user facility, the hospitals and clinics segment dominated the market in 2021, and is expected to grow at a CAGR of 16.0%
• Region-wise, North America generated the largest revenue share in 2021, however, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.