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Medical Transcription Software Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud /Web Based and On Premises/Installed), By Type (Voice Capture and Voice Recognition), By User (Radiologists, Clinicians, Surgeons, and Others), By Healthcare Facility (Hospitals, Diagnostic Centers, Clinics, and Others), and Regional Forecast, 2023-2030

Last Updated: June 03, 2024 | Format: PDF | Report ID: FBI101572



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The global medical transcription software market size was valued at USD 1.98 billion in 2022 and is projected to grow from USD 2.27 billion in 2023 to USD 6.45 billion by 2030, exhibiting a CAGR of 16.1% during the forecast period.

Medical transcription software is a specialized application designed to convert voice-recorded medical reports into accurate and formatted text documents, facilitating seamless documentation of patient information. Various benefits associated with the software, such as efficiency, minimal manual errors, and assurance of timely and precise medical records documentation, are expected to ultimately support the growth of the market during the forecast period.

Moreover, the growing number of initiatives and research activities by market players to develop novel software integrated with advanced technologies for clinical documentation are further expected to spur the medical transcription software market growth during the forecast period. Furthermore, the increasing collaborations between market players and research institutes to expand the presence of the software in order to increase its customer base is expected to boost the market growth.

For instance, in August 2021, Nuance Communications, Inc. collaborated with Cooper University Health Care with an aim to expand the deployment of the Nuance Dragon Ambient experience to around 90 locations in more than 20 specialties. Ambient eXperience is the clinical intelligence solution that documents patient encounters with efficiency and accuracy.


Increased Demand for Telemedicine Services Boosted Market Expansion amid COVID-19 Pandemic

The COVID-19 impact on the market growth was positive. The sudden increase in the demand for the telemedicine services contributed to the increased adoption of transcription software and services in healthcare. Moreover, the rise in the adoption of electronic health records along with telemedicine for the timely and precise diagnosis of the disease contributed to the positive growth of the market during the pandemic.

  • For instance, according to the OECD/European Union (2020) Health at a Glance report, over 50 million Europeans downloaded digital contact tracing apps in the first nine months of 2020. In addition, the adoption of telehealth and telemedicine increased during the pandemic owing to a surge in the number of COVID-19 cases and lockdowns limiting face-to-face care.

Furthermore, many of the players introduced products and services for hospitals specifically in order to reduce time in medical transcription. For instance, in March 2021, Speech Processing Solutions GmbH launched Philips SpeechExec Enterprise, speech-to-text software, with fully integrated Dragon Nuance Medical One (DMO) speech recognition software.

In 2021 and 2022, the market witnessed a bounce back to normalcy like the pre-pandemic year and is expected to grow at the moderate growth rate during the forecast period.

Medical Transcription Software Market Trends

Transition from Traditional Medical Transcription Services to AI-Powered Speech Recognition Solutions

In recent years, the market has seen adoption of transcription software in medical sector due to technological advancements. The market is witnessing a notable shift from traditional medical transcription services to artificial intelligence (AI)-powered speech recognition solutions. AI-powered solutions, such as speech recognition technology, offer faster and more precise transcriptions, reducing manual errors and streamlining the entire transcription process.

In modern times, healthcare services and technologies are transitioning from traditional engines to data-driven technologies that have the capacity to predict future possibilities based on available medical information. These factors have led to increased cost-effective treatment, and also significantly improved patient outcomes as clinical decisions are based on sound data.

Moreover, the adoption of AI-powered speech recognition solutions has aided healthcare professionals in strongly focusing on patient treatment rather than clinical documentation. In addition, the development of these technologies has reduced turnaround time and has offered better technical capabilities than traditional services during radiology reporting.

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Medical Transcription Software Market Growth Factors

Growing Importance of Clinical Documentation in Healthcare to Boost Market Growth

One of the prominent drivers behind market growth is the increased awareness of clinical documentation for the provision of quality patient care. Healthcare providers are increasing the usage of this software due to its efficiency in maintaining thorough records of patient encounters and treatment plans. The growing importance of clinical documentation, driven by regulatory requirements and for enhanced patient care and outcomes, is anticipated to boost this market growth.

For instance, in May 2021, new regulations were introduced in Europe, including process descriptions for EHR manufacturers. This process description is beneficial for EHR manufacturers to fulfill the regulatory body regulations. This process description also guides manufacturers in obtaining a CE mark for their novel products.

Furthermore, increased awareness and the importance of clinical documentation in emerging markets are also expected to boost the adoption of EHR/EMRs, which is expected to eventually fuel the growth of the global market. Such increasing focus of the market players to collaborate for the development and introduction of new advanced products, are expected to boost the demand and adoption of this software in the market during the forecast period.

Technological Advancements in Medical Transcription to Propel Market Growth

In recent years, the market has seen some notable technological advancements, such as voice recognition, artificial intelligence, and machine learning. These technologies are being widely used in healthcare technologies for the improvement of treatment outcomes and clinical documentation, leading to a surge in the market growth during the forecast period.

Furthermore, transcription software improves accuracy through advanced features such as speech recognition and natural language processing. Natural language processing (NLP) algorithms in transcription software proactively transform the description into meaningful words, making the treatment more efficient and better.

  • According to Folio3, an AI business solution company, NLP helps machines perform many complex and repetitive tasks, including context, translation and more. In addition, NLP's ability to analyze the content of text helps machines understand poorly structured data.

Moreover, benefits associated with this transcription software, such as reduction of the time duration required at the time of patient encounters and improvement of the patient satisfaction are expected to propel the market growth during the forecast period.


Issues Associated with Software Adoption and Risk of Cyber-Attacks May Limit Market Growth

Medical transcription software uses vast amounts of confidential information, making it susceptible to breaches if not properly secured. The risk of data leaks, unauthorized access, or ransomware attacks poses a significant barrier to the adoption of medical transcription software in developed as well as developing countries.

The security breaches of healthcare facilities through the usage of transcription software can compromise the brand presence and legal consequences of the software provider, thereby hampering the revenue generation of the company.

  • For instance, according to the news published by TechTarget, Inc., in November 2023, Perry Johnson & Associates (PJ&A), which provides transcription services to healthcare organizations, disclosed a data breach that occurred in May 2023. Cook County Health (CCH) and Northwell Health have reported being impacted by the incident.

Moreover, certain factors, such as the high cost of this software and lack of adoption in emerging nations, are anticipated to hamper the market growth during the forecast period.

Medical Transcription Software Market Segmentation Analysis

By Deployment Analysis

Cloud/Web Based Segment Dominated Due to Its Enhanced Agility

Based on deployment, the market is segmented into cloud/ web based and on premises/installed.


The cloud/web based segment held the largest market share in 2022 and is expected to expand at a substantial CAGR during the forecast period. The largest share of the segment is attributed to factors such as improved agility, scalability, and one-click installation. Moreover, the growing focus on digitalization of the healthcare sector is also leading to the segmental growth in the market.

  • For instance, The Brazil – Country Commercial Guide reported in March 2023 that the Ministry of Health announced investments of USD 83.0 million for the digitalization of the public basic healthcare system for the period of 2020 to 2028. The increasing investments in the digitalization of the healthcare sector is supporting the growing penetration, and adoption of this software in the market.

On the other hand, the on premises/installed segment is projected to grow at a significant growth rate during the forecast period owing to the benefits such as data security, less time consumption, and total ownership of the software. In addition, on premises software enables the customization of software, aligning it with the company’s requirements, and others, which are some additional factors supporting the growth of the segment.

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By Type Analysis

Increase in Technological Advancements in the Software to Spur the Voice Recognition Segment Growth

Based on type, the market is segmented into voice capture and voice recognition.

The voice recognition segment is anticipated to account for the highest revenue in this market during the forecast period. Voice recognition technology solutions are capable of converting real-time speech-to-text with the help of Natural Language Processing (NLP) algorithms. Such advanced functionality is allowing physicians to lower the documentation time. In addition, increasing technological advancements in the software are further resulting in the growing adoption of voice recognition AI solutions among hospitals, clinics, and other healthcare settings.

  • For instance, in October 2022, PhysicianOne Urgent Care adopted Augnito’s voice recognition AI solutions across its 20+ locations in the U.S. with an aim to transform its clinical workflows to reduce the administrative burden on providers and improve the quality of clinical documentation.

On the other hand, the voice capture segment is anticipated to grow during the forecast period. Active marketing strategies implemented by key players providing various types of voice capture technologies are anticipated to drive the voice capture segment growth.

By User Analysis

Introduction of Advanced Solutions for Healthcare Professionals to Boost the Clinicians Segment Expansion

On the basis of user, the market is segmented into radiologists, clinicians, surgeons, and others.

The clinicians segment is anticipated to register the highest CAGR and also hold the largest medical transcription software market share during the forecast period. The growth is attributed to the higher number of patient encounters. Furthermore, the implementation of government regulations for the consolidation of clinical documentation and the introduction of advanced software for healthcare professionals are expected to drive the clinicians segment growth during the forecast period. 

For instance, in July 2023, Amazon launched the generative AI-based clinical documentation software called HealthScribe in order to provide physicians with advanced software to create transcripts of patients visits.

The radiologists segment is expected to account for a considerable CAGR in the global market during the forecast period owing to the increasing number of medical imaging procedures across the globe. Furthermore, the sustainability of the software to offer solutions for complex diagnostic imaging challenges and ease of use and interoperability are further expected to support the segmental growth during the forecast period.

Furthermore, others segment, including allied health professionals and others is also growing due to increasing utilization of the software among these users to improve the clinical flow among healthcare professionals.

By Healthcare Facility Analysis

Increased Focus of Hospitals on Better Management of Patient Information is Propelling its Growing Adoption

Based on healthcare facility, the market is segmented into hospitals, diagnostic centers, clinics, and others.

In 2022, hospitals held the highest share in the market. The increasing number of private hospitals and their constant focus on the improvement of hospitals infrastructure is majorly contributing to the segment growth. In addition to this, growing investments towards digitalization of the healthcare sector in the developed countries, leading to growing adoption of this transcription software among medical professionals in the market, is expected to boost the segmental growth.

  • For instance, according to the data published by Discovery Therapy in October 2023, there are approximately 165,000 hospitals in the world. Such a large number of hospitals is supporting the growing demand for medical transcription software, thus contributing to the segmental growth in the market.

The clinics segment is expected to grow at a moderate CAGR during the forecast period. The increasing number of diagnostic procedures is supporting the adoption of this software to improve the clinical workflow of data among healthcare professionals, thus supporting the growth of the segment in the market.


Based on region, this market is divided into Europe, North America, the Asia Pacific, and the rest of the world.

North America Medical Transcription Software Market Size, 2022 (USD Billion)

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North America market for medical transcription software dominated with a revenue of USD 0.92 billion in 2022 and is expected to continue its dominance during the forecast period. The rapid adoption of EHR and EMR in the market is enabling the key players to launch the software in the region. Moreover, the growing number of hospitals and clinics in the U.S. and Canada is majorly responsible for the growth of this region.

Europe market for medical transcription software held the second-largest share in 2022 and is anticipated to expand at a moderate growth rate during the forecast timeframe. The growth is attributed to the presence of highly qualified clinicians coupled with the growing government strategies to promote the use of this software among healthcare professionals. Furthermore, a higher emphasis on the utilization of advanced technologies in order to streamline clinical workflow and documentation in major countries such as the U.K., Germany, and France is likely to boost the growth of the European market.

  • For instance, in March 2022, Voicepoint AG, a Swiss cloud service provider for medical speech recognition solutions, partnered with Dragon Medical One to offer its services in various European countries. Thus, the increasing number of launches of voice recognition software is anticipated to support the growth of the region in the market.

On the other hand, the Asia Pacific market for medical transcription software is expected to expand at the highest CAGR during the forecast period. The market growth across the region is attributed to the increasing prevalence of chronic disorders and injuries resulting in the growing number of diagnostic procedures supporting growing adoption of this software in the market.

The market in the rest of the world region is expected to expand at a comparatively lower CAGR during the forecast timeframe. The growth is attributed to increasing utilization of medical transcription software among healthcare professionals to manage the clinical workflow, thus supporting the growth of the market.

List of Key Companies in Medical Transcription Software Market

Key Companies Dominate Due to Diversified Cloud Based/Web Based Software Portfolio

The market is consolidated due to the presence of prominent players with significant share. Key players such as Nuance Communications, Inc (Microsoft), Philips Dictation, and M8Modal (3M) were the leading players in the market in 2022.  The dominance of Nuance Communications, Inc. (Microsoft) in the market is due to its hold on unique technology, wide range of product offerings, robust distribution network, superior quality and post-sale support, and strong brand presence.

Other companies such as Acusis LLC, Dolbey Systems, Inc., DeepScribe Inc., ZyDoc Medical Transcription, Xelex Digital, LLC (WebChartMD), and others held substantial market shares due to increasing R&D activities along with the increase in the launches globally is projected to propel the demand for the transcription software in the market by 2030.

  • For instance, in 2019, DeepScribe Inc. announced the launch of its ambient voice AI technology. This launch summarized the natural patient-physician conversation and reduced the burden of improving business outcomes.



  • March 2023 - Nuance Communication, Inc. (Microsoft) integrated artificial intelligence technology GPT-4 into its DAX Express. DAX Express includes GPT-4, OpenAI’s latest large language model technology that can reason in a human-like manner.

  • March 2023 - Nuance Communication, Inc. (Microsoft) announced Dragon Ambient eXperience (DAX) Express, a clinical notes application for healthcare workers powered by artificial intelligence that helped clinicians reduce administrative burdens by automatically generating a draft of a clinical note within seconds after a patient visit.

  • November 2022 - 3M launched 3M M*Modal Fluency Direct, the latest speech and AI-powered technology, at the 2022 HIMSS Middle East Health Conference & Exhibition in Riyadh. This technology ensured the acceleration of clinical documentation processes across healthcare facilities and reduced the administrative burden on healthcare professionals.

  • April 2022: Speech Processing Solutions GmbH (Philips Dictation) collabrated with  Sembly AI, an American start-up, to launch a brand-new speech technology solution for meetings.

  • September 2021 - Speech Processing Solutions GmbH joined forces with Nuance Communications. This agreement enabled Speech Processing Solutions GmbH to become a one-stop shop for healthcare solution partners and resellers providing dictation, speech recognition, and transcription software.


An Infographic Representation of Medical Transcription Software Market

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The report focuses on industry overview and market dynamics, such as the drivers, restraints, opportunities, and medical transcription software market trends. Besides this, it provides information related to technological advancements and key industry developments in the market. Furthermore, the report focuses on revenue models and key features of solutions for selective players and analysis of the pros and cons of the transcription software in the healthcare industry. In addition, the impact of COVID-19 and the industry overview during the pandemic are covered in the report.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)

Growth Rate

CAGR of 16.1% from 2023-2030


By Deployment

  • Cloud /Web Based

  • On Premises/Installed

By Type

  • Voice Capture

  • Voice Recognition

By User

  • Radiologists

  • Clinicians

  • Surgeons

  • Others

By Healthcare Facility

  • Hospitals

  • Diagnostic Centers

  • Clinics

  • Others

By Geography

  • North America (By Deployment, By Type, By User, By Healthcare Facility, and By Country)

    • U.S.

    • Canada

  • Europe (By Deployment, By Type, By User, By Healthcare Facility, and By Country/Sub-region)

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Scandinavia

    • Rest of Europe

  • Asia Pacific (By Deployment, By Type, By User, By Healthcare Facility and By Country/Sub-region)

    • Japan

    • China

    • India

    • Australia

    • Rest of the Asia Pacific

  • Rest of the World ( By Deployment, By Type, By User, By Healthcare Facility and By Country/Sub-region)


Jignesh Rawal ( Assistant Manager -Healthcare )

Jignesh is a skilled practitioner with over 8 years of extensive experience in market analysis an...Read More...

Frequently Asked Questions

Fortune Business Insights says that the global market stood at USD 1.98 billion in 2022 and is projected to reach USD 6.45 billion by 2030.

In 2022, the North America market stood at USD 0.92 billion.

The market is expected to exhibit a CAGR of 16.1% during the forecast period (2023-2030).

By deployment, the cloud/web based segment led the market in 2022.

North America dominated the market in 2022.

Key factors, such as the contributing factors such as growing importance of clinical documentation in healthcare, technological advancements in transcription, and operational benefits and enhanced flexibility of transcription software are expected to drive the market growth.

Nuance Communications, Inc., Speech Processing Solutions GmbH (Philips Dictation), and M8Modal (3M) are the top players in the market.

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