Cloud-Based Medical Transcription Software Market Size, Share & Industry Analysis, By Type (Medical Scribe Software, Medical Dictation Software, Speech Recognition Software, and Others), By Specialty (Cardiology, Neurology, Radiology, Oncology, and Others), By End-user (Hospitals & ASCs, Diagnostics Centers, Specialty Clinics, and Others), and Regional Forecast, 2025-2032

The global cloud-based medical transcription software market size was valued at USD 1.97 billion in 2024. The market is projected to grow from USD 2.26 billion in 2025 to USD 6.74 billion by 2032, exhibiting a CAGR of 16.9% during the forecast period. North America dominated the cloud-based medical transcription software market with a market share of 46.7% in 2024.

Cloud-based transcription software converts audio recordings of medical professionals' dictated notes into written text. This stores data on remote internet servers rather than local servers and is done by premise-based medical transcription software. Clinicians over the internet can operate this software, which is more affordable due to low setup costs. The cloud based medical transcription software typically includes features such as speech recognition, medical vocabulary, and the adoption of electronic health records (EHR) systems, allowing for more accurate and efficient transcription.

Furthermore, various healthcare providers are integrating cutting-edge technological advancements such as AI in transcription software to optimize business operations. This transcription software assists in increasing the efficiency of the documentation process of healthcare services. Various software providers are also focusing on the healthcare sector and customizing their product offerings to cater to the growing demand of patients with the integration of AI.

• For instance, in August 2023, Oracle and NVIDIA Corporation collaborated to utilize the NVIDIA Riva speech and translation AI software tool kit in the Oracle Cloud Infrastructure (OCI) Container Engine. The collaboration aims to facilitate the transcription of healthcare domain-specific audio recordings to text and assist in adopting electronic health records (EHR) systems documentation.

The global market has grown robust, with predictions indicating a continued growth trajectory.

Some key players operating in the market, which include Microsoft, DeepScribe, INVOX Medical, and Amazon Web Services, Inc., offer robust solutions for medical transcription models.

MARKET DYNAMICS

MARKET DRIVERS

Scalability Provided By SaaS to Drive Market Growth

The rising demand for telehealth services is boosting the cloud-based medical transcription software market growth. The increasing use of telemedicine platforms due to remote healthcare demand also boosts transcription software usage. Medical transcription tools bridge the gap between patients and healthcare providers and avoid miscommunication, thus facilitating prompt diagnosis.

The rise in telemedicine and remote patient monitoring requirements has increased the demand for accurate and efficient documentation of virtual consultations. Medical transcription software facilitates the transcription of telehealth sessions, ensuring that patient records are comprehensive and updated. These factors highlight the need for efficient documentation software and digitalization of healthcare services.

• For instance, in November 2024, the National Institute of Health (NIH) published a report titled “Unveiling the Adoption and Barriers of Telemedicine in US Hospitals: A Comprehensive Analysis (2017-2022)”. It reported that telemedicine encountered a 75% growth, rising from approximately 111.4 million in 2020 to nearly 194.4 million in 2021.

Additionally, advanced health tech SaaS companies are transforming by facilitating a seamless, cost-effective, and quick transition toward the cloud. With their subscription-based pricing models, they are democratizing access to cloud technologies and empowering hospitals to harness the power of cloud computing without making a large upfront investment.

MARKET RESTRAINTS

Cybersecurity Risk Associated with Cloud-Based Medical Transcription to Hamper Market Growth

Although cloud-based medical transcription software provides various scalability opportunities, the market may witness restrictions due to cybersecurity risks and data protection failure. This cloud-based medical transcription software is prone to cyberattacks, data breaches, unauthorized access, and insider threats. Failure to comply with data-protecting regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and General Data Protection Regulation (GDPR) can result in civil penalties.

• For instance, in December 2024, Colonial Behavioral Health and a medical transcription service provider used by the Veterans Health Administration experienced ransomware attacks that involved potential patient data theft.

MARKET OPPORTUNITIES

Advancements in Natural Language Processing to Reduce Administrative Load and Provide Market Expansion Opportunities

The advancement in AI and natural language processing (NLP) offers lucrative opportunities for the market by providing more precise, effective, and consistent documentation solutions. With the assistance of NLP, real-time translation services can be employed effectively. With more training modules, AI and natural language processing are expected to reach a higher level of superiority. They can have better contextual understanding with multilingual and low-resource language support. Furthermore, various key industry players invest in developing AI and NLP mechanisms and focusing on strategic acquisitions.

• For instance, in December 2024, HEALWELL AI Inc. acquired Mutuo Health Solutions. The acquisition offered access to the company’s flagship product, the Auto Scribe platform. This development aligned with the company's strategy to enhance AI-enabled healthcare technology.

MARKET CHALLENGES

Stringent Regulations and Compliance with Data Security Measures

Adopting cloud-based medical transcription software requires adherence to stringent regulations such as HIPAA & GDPR and EHR integration, which demands transparency, accountability, and robust data protection measures. These frameworks aim to ensure the safety, accuracy, and ethical use of artificial intelligence AI transcription tools. Managing sensitive patient data also raises privacy risks, demanding secure handling and compliance.

CLOUD-BASED MEDICAL TRANSCRIPTION SOFTWARE MARKET TRENDS

Increasing Focus on Development of Multilingual Medical Transcribing Software is a Prominent Trend

The growing need for scalability and accessibility due to globalization and the rise of AI-featured medical transcription software shifted the focus of companies on developing multilingual transcribing software. These multilingual features expand market access and assist in overcoming language barriers across different countries with accurate medical records documentation.

• For instance, in October 2024, ScribeRyte AI, a medical scribing platform, introduced its new translation capability, enabling Spanish-speaking patient/provider dialogue to be instantly converted into highly accurate English clinical notes, ready to be integrated into any electronic medical record (EMR).

Another prominent trend observed is mobile-first accessibility, wherein integration with mobile devices allows healthcare professionals to dictate notes on the go, improving productivity and record-keeping. These factors offer a prominent market expansion over the forecast period.

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Segmentation Analysis

By Type

Collaboration with Key Players to Launch Advanced Application in Medical Dictation Propel Medical Scribe Software

Based on type, the market is divided into medical scribe software, medical dictation software, speech recognition software, and others.

The medical scribe software segment will dominate the market over the forecast period. The increasing need to reduce administrative load and enhance patient care boosts innovation in the segment. These developments maximize revenue and propel its growth.

• For example, in November 2024, a medical platform, Jameda, launched Noa Notes, Germany’s first AI-powered application. The application is designed for documentation of nearly all physician-to-patient sectors.

The medical dictation software is projected to grow with a moderate CAGR during the forecast period. Dictation software helps physicians quickly turn their words into text, making note-taking and paperwork more efficient. This streamlines the efforts by healthcare providers toward patient care.

• For instance, in March 2024, Cloud Solutions signed a partnership agreement with Augnito, an innovative Voice AI solution provider. The collaboration permitted the integration of the company’s speech-to-text software into its flagship product, the Health Information System VIDA. The software's advanced speech recognition algorithms reduce the need for manual data entry, hence increasing its speed.

The speech recognition software is projected to grow with a significant CAGR during the forecast period fueled by the strategic initiatives by key players to launch new technologies.

• For instance, in October 2024, Advanced Media, Inc. launched VoXT One, a unified meeting-minute solution platform in Japan. The AI voice recognition transcription assistance application ‘ScribeAssist’ equipped with AmiVoice, an AI voice recognition system, was introduced by the Saitama Region to all territories.

By Specialty

Surging Cases of Cancers Contributed to Oncology Segment’s Dominance

Regarding specialty, the market is divided into cardiology, neurology, radiology, oncology, and others.

The oncology segment held the largest cloud-based medical transcription software market share in 2024. The escalating cases of cancers drive the increasing need for efficient documentation of medical records and technological advancements to expand point-of-care solutions.

• For instance, in January 2025, DeepScribe collaborated with Flatiron Health, a leading health tech company dedicated to expanding the point of care solutions in oncology. The collaboration brought DeepScribe’s AI documentation to clinicians using Flatiron's cloud-based electronic medical record platform named OncoEMR.

The cardiology segment held a significant portion of the cloud-based medical transcription software share in 2024 owing to rising incidence of heart diseases and patient visits to hospitals. Additionally, rising drug development for cardiovascular diseases increases the demand for precise documentation and thus propels the demand for medical transcription software.

• For instance, in October 2024, DeepScribe partnered with CardioOne. The partnership aimed to adopt AI medical scribe technology, remove administrative work, and enhance the efficiency of independent cardiologists by expanding their focus on patient care.

On the other hand, the neurology segment is estimated to grow at a moderate CAGR over the forecast period. Rapid digitization and the need to update, store, and share neurological records are major growth factors. Due to the burden of medical transcription, there is a growing trend to outsource notes to medical transcription services for neurologists, and cloud-based transcription software can assist in addressing this challenge. These factors enable key companies to launch medical transcription software catering to the specific needs of neurologists.

• For instance, in June 2024, ZyDoc launched ZyScribe, mobile-friendly, HIPAA-compliant neurology transcription services.

By End-user

Rising Demand for Maintaining Structured Administrative Workload from Hospital & ASC Drive Segmental Growth

As per end-user, the market is segmented into hospitals & ASCs, diagnostics centers, specialty clinics, and others.

The hospitals & ASCs segment is expected to grow substantially during the forecast period. The rising prevalence of chronic diseases and increasing patient visits propelled the demand for cloud-based transcription software. Moreover, increasing collaborations between major players to offer advanced solutions for these settings contributes toward the growth of the segment.

• In June 2024, Prescribe Digital, a pioneer in healthcare technology, declared an exclusive partnership with Voice Recognition Australia to promote and distribute Amplify+, their AI-powered clinical documentation workflow solution, to hospitals and medical clinics across Australia. This partnership aims to revolutionize medical healthcare in the Australian market by introducing scalable, speech-enabled AI-powered documentation solutions.

The specialty clinics segment is expected to grow at a stable CAGR in the forecast period. Key players are streamlining their expansion efforts for launching digital health cloud platforms specifically designed for specialty clinics.

• For instance, in October 2023, PureHealth launched a dedicated healthcare cloud, offering digital health as a service platform called ‘PureNet.’ Built on advanced cloud computing technologies, the platform connected existing and new healthcare service providers to streamline and digitalize their operations with minimum investments. The Healthcare Cloud is fully operational in clinics, labs, and digital health platforms.

The other segment comprises individual practitioners and medical academic institutes that are anticipated to grow with a moderate CAGR during 2025-2032. Key industry players are focusing on providing innovative healthcare solutions for primary care physicians and these developments heighten the segment's growth prospects.

• For instance, in September 2023, Hint Health and OpenAI developed a new AI-powered medical transcription tool. The tool leveraged OpenAI's large language models to help direct primary care physicians using Hint's platform. This also helped them have more time with their patients and less time taking notes, enhancing patient care by streamlining note-taking and transcription.

CLOUD-BASED MEDICAL TRANSCRIPTION SOFTWARE MARKET REGIONAL OUTLOOK

In terms of region, the global market is divided into North America, Europe, Asia Pacific, and the rest of the world.

North America

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The North American market stood at USD 0.92 billion in 2024 and is estimated to emerge as the dominant region in the global market. Incorporating advanced technologies and focusing on utilizing advanced tools for conducting monotonous workflows are leading the region’s growth.

U.S.

In North America, the U.S. is the largest market with the presence of major companies having cutting-edge offerings in AI for transcription and greater adoption of these technologies. This confluence is projected to allow the U.S. market to witness stellar growth across the forecast period.

• In July 2023, Amazon Web Services, Inc. launched a new HIPAA-eligible service empowering healthcare software to build clinical applications that automatically generate preliminary clinical notes by analyzing patient-clinician conversations.

Europe

Europe is anticipated to hold the second-largest position in terms of revenue share over the forecast period. The increase in remote patient monitoring and the rising administrative workflow of healthcare professionals in the region propels the market’s growth.

• For instance, in April 2025, Corti, the leading AI infrastructure provider for healthcare, allowed access to its healthcare-specialized Dictation API. Powered by Solo foundation model, this specialized API is democratizing access to premium dictation technology. This enables software vendors of all sizes to compete with existing solutions and tailor them to the highly specialized needs of diverse practitioners across healthcare.

Asia Pacific

Asia Pacific is projected to witness the highest CAGR owing to the digitalization of healthcare systems in emerging economies. The rise in demand for efficient transcription solutions in the region encourages key industry players to collaborate, acquire, and expand their product offerings.

• For instance, in March 2022, Irish health-tech company T-Pro acquired Australian medical transcription technology provider SyberScribe.

Rest of the World

Markets in the rest of the world are expected to account for a moderate market share during the forecast period. However, there is a growing demand for faster and more efficient documentation of medical records to promote various collaborations and expand their offerings in the market.

• For instance, in January 2025, Augnito, an India-based leader in medical voice AI technology, collaborated with Almoosa Health, a premier healthcare provider in Saudi Arabia, to integrate Augnito’s Omni AI Scribe across Almoosa Specialist Hospital. These developments marked pivotal advancements in AI-driven healthcare innovation for the hospital.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Innovative Solution Launches by Major Companies to Boost Their Market Prominence

The cloud-based medical transcription software has a semi-fragmented competitive structure comprising major companies, including Deepgram, Microsoft Corporation, and INVOX Medical. The prominent market share of these companies is attributable to new product launches, strong research and development initiatives, key product offerings, and important strategic partnerships to uphold their market presence.

• For instance, in May 2025, Oracle, Cleveland Clinic, and G42 announced a strategic partnership to launch an AI-based global healthcare delivery platform. The initiative aims to improve patient care and public health management by leveraging AI, nation-scale data analytics, and intelligent clinical applications. These partnerships further maintain the companies’ prominent market presence.

A few major companies in the market are 3M, NXGN Management, LLC., Google, and Siemens Healow are emphasizing on launches of new solutions and strategic partnerships/collaborations to bolster their revenue share across 2025-2032.

LIST OF KEY CLOUD-BASED MEDICAL TRANSCRIPTION SOFTWARE COMPANIES PROFILED

• Deepgram (U.S.)
• INVOX Medical (U.K.)
• Amazon Web Services, Inc.  (U.S.)
• 3M (U.S.)
• NXGN Management, LLC. (U.S.)
• Google (U.S.)
• Siemens Healow (Sunoh.ai) (U.S.)
• Healthcare Private Limited (Germany)
• Microsoft (U.S.)
• WebChartMD (U.S.)

KEY INDUSTRY DEVELOPMENTS

• March 2025: Deepgram unveiled its Nova-3 Medical, which is an AI-enabled real-time speech-to-text (STT) model, tailored for transcription in the demanding healthcare environment. It reduced transcription errors in the newer model. The model addressed the growing need for accurate and efficient transcription in the U.K.’s public NHSand private healthcare landscape.
• March 2025: Microsoft launched a new voice-activated AI assistant named ‘Dragon Copilot’ that combines capabilities from its dictation solution, Dragon Medical One, and ambient listening solution, DAX Copilot, into one tool. This enabled doctors to quickly pull information from medical sources and automatically draft clinical notes, referral letters, and post-visit summaries.
• February 2025: Vuzix Corporation, a leading supplier of smart glasses, waveguides, and augmented reality (AR) technology, collaborated with TranscribeGlass, a Connecticut-based company specializing in real-time speech-to-text transcription solutions, to launch their AI-powered transcription service using Vuzix Z100 smart glasses.
• November 2024: WellSky, a global health and community care technology and services company, announced the launch of SkySense, a suite of artificial intelligence-powered tools designed to increase operational and clinician efficiencies. Providers will benefit from the SkySense extract, transcribe, and summarize tools to automate forms and reduce documentation time and errors while increasing patient-provider interaction.
• October 2024: eClinicalWorks announced that Beaumont Internal Medicine & Geriatric Associates (BIMGA) successfully utilized Sunoh.ai for clinical documentation. Sunoh.ai reassured providers of documentation burnout, allowing them to focus better on patient care.

REPORT COVERAGE

The global cloud-based medical transcription software report includes a comprehensive global market analysis that considers the key market dynamics impacting the global market, such as drivers, growth opportunities, restraints, and challenges. In terms of the key insights included in the market report, the following are key insights: key industry developments, technological advancements in these solutions, etc. The market research report also includes a detailed analysis of key segments such as type, specialty, and end-user.

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Report Scope & Segmentation