Cloud Dictation Solution Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware and Software), By Enterprise Type (Large Enterprises and Small and Medium Enterprises (SMEs)), By Industry (Healthcare and Life Sciences, Legal and Law Enforcement, Architecture, Construction and Real Estate, Media, Journalism and Entertainment, and Others), and Regional Forecast, 2023 – 2030

The cloud dictation solution market size was valued at USD 860.3 million in 2022 and is projected to grow from USD 952.0 million in 2023 to USD 2,096.7 million by 2030, exhibiting a CAGR of 11.9% during the forecast period. North America dominated the global market with a share of 63.78% in 2022.

A cloud dictation solution is a tool that allow users to change pronounced words into text using cloud-based servers and machine learning algorithms. It allows users or dictators to speak instead of typing. It is an effective and reliable alternative to on-premise dictation software and traditional typing methods. The application has a text-to-speech recognition feature and converts spoken words to text. Cloud dictation solution offers advantages to users, regardless of sector, such as legal and law enforcement, healthcare, journalism, and business. The key factors driving cloud dictation solutions are increased productivity, accuracy, cost-effectiveness, mobility, customized and modified workflow, and ease of use.

COVID-19 IMPACT

Increased Adoption of Cloud-Based Solutions to Tackle Workload during COVID-19 Pandemic Boost the Cloud Dictation Solutions

COVID-19 has impacted the world’s economies and businesses as well. Some industries have experienced a significant negative impact, while others had a substantial positive impact due to change and adapting ways of working and living to deal with the pandemic. The pandemic has driven a necessary deviation in business-architecture assumptions. Many organizations have had to shift their cloud infrastructure strategies while declining on-premises workloads, whether public cloud or private cloud. According to Deloitte insights, 59% of the enterprise demanded adopting cloud services, whereas 64% of full-time employees reportedly worked in remote places during a pandemic.

During the pandemic, speech technology has been widely adopted into business automation workflows. Working remotely was a necessary scheme implemented by many legal firms, as law practices are dictation-driven; they had an on-premise dictation management system to manage their workflow, which created the challenge of making the transition from desktop dictation to cloud easy and efficient.

LATEST TRENDS

Rising Demand for Solutions Across Industries to be Key Trendsetters for the Cloud Dictation Solution Market

Cloud-based services store data on remote internet servers than on local servers, physical hardware, and personal computers. Cloud technology integrated into dictation solutions increases productivity and improves system versatility, mobility, and flexibility with a built-in disaster recovery program. These technologies are game-changers for healthcare, legal, and media businesses. Dictation solutions help reduce the word error rate and allow better accuracy in grammar and spelling when creating court filings or providing legal advice. It enables easy communication, real-time collaboration, and centralized data storage for lawyers to collaborate and share information. In addition, the adoption of cloud technology is expected to grow in healthcare owing to numerous healthcare solutions, such as diagnostic imaging, digital dictation, EMRs, HIEs, and clinical informatics, are integrating into cloud technology to maximize their impact.

DRIVING FACTORS

Increasing Digitization across the Businesses to Improve the Workflow Processes Aids Market Growth 

The digital age has generated technological advancement that supports modernization and digitization, creating positive business outcomes. The introduction of cloud dictation solutions created a valuable tool for businesses and organizations as it digitized a large amount of audio data into text format. Speech-to-text technology enables users to dictate documents, email responses, and other text without manually entering any information into a machine. It eliminates the barrier between a user's views and digital output, streamlining business processes, saving time, and increasing productivity. According to the Speech Recognition in Workplace Report, employees occupy 60% of their time working with documents. Also, looking for lost papers takes up 30-40% of a team member's time. After adopting the speech technology, the report stated that the organizations reduced paperwork handling and saved an astounding amount of time.

RESTRAINING FACTORS

Lack of Accuracy in Metalinguistic Languages to Hinder Demand for Cloud Dictation Solution Market

Organizations' speech-to-text software is preferred when considering their dictation requirements. Cloud dictation solutions have significantly advanced in the past decade, but their use has many limitations. Factors frequently hindering speech recognition solutions' continuous performance include background noise, punctuation, accent, fluency, and speaker identification. End-user expectations and the complexity of use and integration hinder cloud dictation adoption. Speech recognition is difficult to implement in real-time environments due to the capital and infrastructure required. Developers and engineers are exceeding challenges related to speech systems. Additionally, background noise can be a significant barrier when trying to improve the accuracy of a speech recognition model. When the system is open to the real world, various background noises, such as white noises, cross talk, and other alterations, can disrupt speech recognition.

SEGMENTATION

By Component Analysis

Increasing Demand of Software Segment to Create the Dominance of the Market

The market is divided into software and hardware based on component. Software dominates the market as small and medium-scale enterprises are inclined to adopt cloud-based dictation software over portable or device-integrated solutions due to benefits such as cost-effectiveness, easy-to-use, and working efficiency. Moreover, it increased productivity over time-consuming traditional dictation methods. Also, cloud dictation solution software has remote access and can connect multiple locations to the same server. Integrating with other cloud-based applications with easy maintenance and updates is easy. Hence, the software is expected to  reflect cloud dictation market growth in the upcoming years.

By Enterprise Type Analysis 

Large Enterprises Focusing on Surging Spending for Better Productivity to Drive the Market Growth

The market is bifurcated into large enterprises and Small and Medium Enterprises (SMEs) based on enterprise type. Cloud dictation solutions are adopted and deployed by large-scale organizations and SMEs as well. However, large enterprises are expected to grow with the largest market share during the forecast period. Also, it is likely to increase their spending on various components as large enterprises require more functionalities.

Moreover, small and mid-sized enterprises are expected to be the fastest-growing segment with the highest CAGR for 2023-30.

By Industry Analysis 

Healthcare and Life Sciences Industry Gaining Consistent Growth Rate for Cloud Dictation Solutions

Based on the industry verticals, the market is categorized into healthcare and life sciences, legal and law enforcement, architecture, construction and real estate, media, journalism, and entertainment, ,out of which the healthcare sector is growing by more than 20% per year and is expected to reach approx. USD 9.5 Billion in upcoming years. Most of these implementations are used for storing data and hosting mission-critical applications such as  Electronic Health Record (EHR) systems and data analytics for smooth operations.

Healthcare organizations are consistently growing through research and development and mergers and acquisitions; physicians and co-workers must actively cope and perform procedures/follow-ups with patients. Here, portable cloud dictation devices and dedicated mobile applications configured with smartphones play a crucial role in moving the process smoothly. Also, encrypted and secure cloud technology offers physicians mobility and flexibility, increasing patient engagement.

REGIONAL INSIGHTS

The exhaustive report covers North America, Europe, Asia Pacific, and the Rest of the World regions. These regions are further studied across leading countries.

Cloud dictation solution generates insights from customer conversations. For instance, Amazon Transcribe call analytics extracts meaningful insights from customer conversations to improve customer engagement and agent productivity. Similarly, Nuance Communications' cloud-based AI Speech recognition software, Dragon Professional Anywhere, can be integrated seamlessly with organizations' workflows, which would help accelerate productivity. The increased demand for analytics and cost-effective cloud-based solutions to improve business operations is projected to boost market growth.

In North America, the healthcare, legal, and law enforcement industries are expected to grow with the highest CAGR and hold the maximum market cloud dictation solution share during the projection period. For instance, in June 2022, athenahealth, the U.S.-based healthcare company, launched an AI-powered voice assistant, athenaOne. The athenaOne is powered by Nuance. With the launch of athenaOne, athenaHealth expanded the voice capabilities across mobile electronic health records for healthcare professionals. The U.S. holds the largest share in 2022 due to partnerships and collaborations among organizations expected to fuel this region's market growth. For instance, in September 2022, Dolbey Systems, Inc. collaborated with Orchard Software Corporation to enable grocers and pathologists to use voice commands and speech recognition in their Laboratory Information System (LIS).

Europe is expected to show significant market growth during the forecast period. Cloud-based dictation devices are ideal solutions for organizations working in or transitioning to new or hybrid office environments. These cloud-hosted solutions allow legal professionals to work on their terms without losing the benefits of having a regular office workspace. Recently, the European Commission launched the Speech Recognition project to create a solution to help public administrations and European institutions. For instance,

In June 2022 – The U.K.-based voice recognition startup, Speechmatics raised USD 62 million to expand its geographic presence across Asia and the US.

In November 2021 - Amberscript, an Amsterdam-based AI speech recognition startup, raised USD 10.2 million in funding to improve its product offerings.

Asia Pacific is forecast to show a higher growth trajectory. Growing digitization and adopting advanced technologies like cloud deployment, big data, and artificial intelligence will likely drive the demand across various industries such as BFSI, healthcare & life sciences, legal, and journalism. For instance, in November 2020, Gnani.ai, an AI startup, launched a new speech recognition-based solution for the Indian Armed Forces. The solution uses automatic speech recognition, speech-to-text, and machine translation to translate Mandarin into English.

Across the Rest of World, the healthcare and architecture, construction, and real estate industry hold the maximum market share during the projection period owing to increased technological infrastructure, economic shift from oil to data, and rising investments.

KEY INDUSTRY PLAYERS

Prominent Players Have Been Engaging Into Relevant Partnerships to Strengthen Market Positioning

Key market vendors engage in relevant partnerships to develop new, advanced solutions aligned with customers’ requirements. They also focus on integrating their existing product portfolio with advanced technologies to provide flexible solutions with unique features. Additionally, government initiatives empower SMEs to bring their online business fuel market cloud dictation software growth.

Cloud dictation solution providers nowadays are shifting towards digitization and dictation, as well as speech and voice recognition markets are part of it as they encourage the use of cloud-based digital dictation to achieve the result of optimal efficiency in the end. Various providers now offer mobility suites to professionals who can instantly capture documents on smartphones and tablets, create a digital document using their applications/tools, and place it on the cloud server.

List of Key Companies Profiled:

• Nuance Communications, Inc. (Microsoft Corporation) (U.S.)


• Speech Processing Solutions GmbH (Philips) (Austria)


• 3M (U.S.)


• Dolbey and Company, Inc. (U.S.)


• Voicepoint AG (Switzerland)


• Crescendo Systems Ltd. (U.K.)


• Arrendale Associates, Inc. (U.S.)


• SpeechWrite (U.K.)


• Lexacom (U.K.)


• Dictalogic (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Speech Processing Solutions launched two new models, the DVT 1600 Voice Tracer and DVT 2015 Voice Tracer Audio Recorder. These devices offer quick and accurate transcription capabilities using Sembly’s AI Speech-to-Text cloud software, with the DVT 1600 featuring discreet recording, a 360-degree microphone, and convenient file transfer through USD type-c interface.


• April 2023: 3M HIS partnered with AWS to accelerate and develop AI innovation in clinical documentation. The partnership enabled 3M to utilize AWS Machine Learning (ML) and Artificial Intelligence (AI) services to improve the delivery of 3M's clinical documentation solutions.


• April 2023: Speech Processing Solutions have partnered with Nuance to provide advanced dictation and transcription workflow solutions, with the company being recommended as a preferred successor for the Winscribe solution. The partnership ensures a smooth transition for clients by offering improved speech recognition capabilities, workflow functionalities, and secure solutions.


• September 2022: Nuance Communications, Inc. stated that Liberty Global had expanded to use Nuance Dragon TV for customers who use Virgin Media O2 in the U.K. This extension includes new features to better support customers with visual impairments, such as reading program information aloud. Nuance Conversational AI powers Nuance Dragon TV, and presently handles 1.5 billion interactions monthly, making the regular user make 100 voice requests.


• July 2021: SpeechWrite launched a new feature on its mobile application ‘Authors’, which enables users to include attachments of multiple types and sizes, through dictations and separate attachments. It enhanced the functionality of the mobile application.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation