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The global medical transcription software market size was valued at USD 1.32 billion in 2019 and is projected to reach USD 4.89 billion by 2027, exhibiting a CAGR of 17.8% during the forecast period.
Medical transcription refers to the process of transcribing the voice-recorded patient story by the physician or healthcare practitioners during patient consultations. These transcribes are referred by the physicians for treatment decisions as well as for future reference, therefore it is of critical importance to generate these transcriptions with higher accuracy. This software dramatically reduces the clinical documentation time and allows physicians to focus more on the patient’s treatment plans. Furthermore, remote access to dictation platforms allows physicians to dictate from anywhere and anytime, leading to higher adoption of medical transcription software. In the current scenario, several factors are offering a lucrative environment for the adoption of these product offerings. There is a massive adoption of these technologies in numerous spheres of healthcare for the streamlining of the clinical workflow.
Positive Surge in the Global Market Amid COVID-19 Pandemic
The COVID-19 pandemic has had pronounced impacts on certain healthcare segments due to the slowdown in non-emergency procedures and healthcare services. While the healthcare industry has registered declines in certain markets, the medical transcription software has registered a positive impact due to the coronavirus pandemic. For instance, the COVID-19 pandemic has hastened the launches of new product offerings in this software due to a strong surge in demand. For instance, in March 2020; ZyDoc introduced it’s free COVID-19 EHR documentation services to all healthcare providers and hospitals affected by COVID-19 impact.
The global medical transcription software market is expected to witness a positive impact and result in improved growth in 2020 due to COVID-19. Since the adoption of digital health technologies, telemedicine and EHR are expected to grow during the pandemic, the demand for this software as well as transcription services is expected to increase in 2020. Overall, the pandemic has created increased awareness about the benefits of digital health technologies, which will lead to stronger adoption of solutions including transcription software during the forecast period. The pandemic is also expected to make favorable regulatory changes that will lead to the faster adoption of digital health.
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Rising Need for Digital Documentation to Drive the Market Growth
One of the most critical industry trends is the increased need for digital documentation across several spheres of healthcare as they contribute to the ease of the management and treatment of chronic and serious diseases. 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. For instance, in recent years the number of MRI (Magnetic Resonance Imaging) scans has grown exponentially. According to a study conducted by OECD Health in 2018, the number of MRI scans in OECD countries has grown by an estimated 6.5% during 2014-2018. This extensive number of diagnostic procedures has led to the demand for automated transcription solutions, which can reduce turnaround time and hence increase the number of scans per day.
Transition from Traditional Transcription Services to AI-Powered Solutions to Boost Market Growth
In recent times, there has been a greater transition from traditional transcription techniques to more sophisticated techniques of medical transcription software such as AI (Artificial Intelligence) powered solutions. This transition has a host of advantages such as lowered times required for transcription, and also greater accuracy. For instance, the standard time for the traditional transcription process takes around 24 hours. Furthermore, costs are incurred per line (around 62-65 characters make one line) or on the usage/hours basis. There are certain shortcomings in the traditional medical transcription process such as higher turnaround time, higher costs due to outsourcing of resources, and risk of inaccuracy in data due to misinterpretation of dictation. Furthermore, AI-powered voice recognition solutions can be installed on-premises and offer better technical aid as compared to traditional services during radiology reporting.
Growing Importance of Clinical Documentation in Healthcare to Boost Market Growth
One of the prominent drivers for global medical transcription software market growth is the increased awareness of clinical documentation for the provision of quality patient care. Acts such as HITECH in the United States and other legislatures are boosting the adoption of EHR/EMRs in the emerging markets. 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. Moreover, government regulations and acts are projected to boost the adoption of clinical documentation systems such as the new digital health law passed in Germany in 2019, which is eventually expected to boost the growth of the global market during the forecast period.
Technological Advancements in Transcription Software to Propel Market
Some of the key drivers include technological advancements such as voice recognition, artificial intelligence, and machine learning which are being widely used in healthcare technologies for the improvement of treatment outcomes and clinical documentation. Especially, in medical transcription, voice recognition is expected to play a significant role during the forecast period as it is three times faster as compared to keyboard typing. Furthermore, the cost required for transcribing the file with the help of the voice recognition platform is comparatively lower, resulting in a lower cost of overall documentation. Coupled with increased preference for digital documentation in healthcare, these factors are expected to contribute to the surge of the market growth.
Low Software Adoption and Risks of Cyber Attacks to Hamper Market Growth
Despite, the strong advantages associated with medical transcription software, critical factors are limiting the global market growth. The restraining factors include the risk of cybersecurity breaches, the lack of healthcare IT infrastructure in emerging markets, and the issues relating to software adoption such as workforce training. For instance, according to a study conducted by the Health and Human Services Office of the Inspector General in 2018, an estimated 60.0% of the hospitals in the US have experienced EHR data security breach at some point of the time. The efficient adoption of this software is limited due to causes such as training complications, issues with narration, and also problems with accents. Significant healthcare IT spending, awareness about this software, and active contribution of healthcare authorities are some of the pre-requisites for the efficient adoption of these product offerings. But, in the emerging markets, these often serve as limitations as the healthcare infrastructure often do not have these, and this leads to the limiting of market growth.
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Cloud/ Web Based Segment to Grow at the Highest CAGR During the Forecast Period
Based on deployment, the market can be segmented into cloud/web based and installed/on-premises.
The cloud/ web based segment is projected to hold the dominant medical transcription software market share owing to the deployment of cloud web based software. Upcoming launches of advanced cloud-based software and increasing adoption of electronic health records are expected to surge the growth of this segment. On the other hand, installed/on-premises segment is anticipated to lose its market share due to the higher maintenance costs associated with it.
Some of the other factors that have contributed to the high growth of the cloud/ web based are the benefits of cost-effectiveness, ease of use in massive workload, and smoother transactions. Moreover, the expansion of healthcare IT infrastructure across the globe is also expected to create growth opportunities for the global market during the forecast period.
Hospitals Segment Accounted for the Highest Market Share in 2019
On the basis of the end user facility, the global market can be segmented into hospitals, diagnostic centers, clinics, and others. In terms of end-user facility, the hospitals segment is anticipated to grow at the strongest CAGR. This is especially due to the rising demand for advanced healthcare facilities and an increased emphasis on clinical documentation across the globe. Moreover, the rising number of hospitals in developing countries is leading to the generation of a lucrative environment for the adoption of these product offerings during the forecast period. Clinics amongst the end-user facility segment are projected to register strong CAGR owing to increasing adoption of EHR/EMRs in clinics, which is expected to create a favorable environment for the higher number of installations of this software.
Dictation technology is enabling the rapid pace of conduction of diagnostic procedures, which is resulting in lowered patient waiting time. Coupled with this, increased adoption of voice recognition technology for medical transcription is also expected to drive the growth of the diagnostic centers segment in the global market. Others segment in the global market, which includes, ambulatory surgery centers, specialty clinics etc. is also expected to register a positive CAGR.
Voice Recognition Segment Dominated the Market in 2019
On the basis of type, the global market can be 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 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. Additionally, benefits offered by voice recognition such as improved accuracy, reduced cost, and improved flexibility are expected to drive the voice recognition type segment during the forecast period.
Voice capture is anticipated to hold a strong market share in the developing regions. Active marketing strategies implemented by key companies operating in the type of voice capture technologies are anticipated to drive the voice capture segment.
Clinicians Segment to Register a Higher CAGR during the Forecast Period
On the basis of the end user, the global market can be segmented into radiologists, clinicians, surgeons, and others. The clinicians’ segment is anticipated to register the highest CAGR, and also the largest share of the global market due to the higher number of patient encounters. Furthermore, the implementation of government regulations for the consolidation of clinical documentation is expected to drive the clinicians’ segment in the forecast period.
Radiologists are expected to account for a considerable CAGR in the global market owing to the increasing number of medical imaging numbers of procedures across the globe. However, surgeons and others (allied healthcare professionals, etc.) are expected to have lesser market shares owing to comparatively lesser patient encounters leading to the reduced need for medical transcription.
North America Medical Transcription Software Market Size, 2016-2027 (USD Million)
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In terms of the regions, the global market can be segmented into North America, Europe, Asia Pacific, and the Rest of the World. The North American market was the most dominant and stood at USD 631.9 million in 2019. The dominance of this region is attributable to the growing need for clinical documentation, technological upgradations in the product offerings, emphasis on maintaining patient information in structured formats, and regulations imposed by government authorities. For instance, in March 2018, Epic, one of the considerable players in the EHR market, announced an agreement with Nuance Communications, Inc. with an aim to integrate speech recognition technology in EHR systems. Europe is anticipated to register strong growth during the forecast due to the increasing adoption of cloud and voice recognition technologies in healthcare. Furthermore, a higher emphasis on the utilization of advanced technologies in order to streamline clinical workflow and documentation in major countries like the UK, Germany, France is likely to boost the growth of the European market. The Asia Pacific region is projected to register the highest CAGR due to rising awareness about clinical documentation, and greater need for better treatment outcomes for patients. The Rest of the World segment is expected to register positive growth in the forecast period due to improvement in healthcare infrastructure in regions such as Latin America, and Middle East & Africa.
Strong Portfolio of Nuance Communications, Inc., M*Modal IP LLC (3M), and Philips Dictation (Speech Processing Solutions GmbH) to Enable their Dominance in the Global Market
The global market is a highly consolidated market with the top 3 players dominating a considerable share of the market. As of 2019, Nuance Communications is considered to be the leading player in the global market. The company reinforces its strategic and dominant position in the global market owing due to its unique technology, strong and varied range of product offerings, robust distribution network, sophisticated quality, and post-sales support. This company coupled with Philips Dictation (Speech Processing Solutions GmbH) currently dominated the global market with over half the market share in terms of revenue. Philips Dictation (Speech Processing Solutions) is considered to be second leading player in the global market. Certain factors such as considerable market hold in emerging nations, strong supply chain network and focus on collaborations with healthcare institutions is expected to maintain its position in this market. Other prominent players operating in the global market are MModal IP LLC (3M), Zydoc Medical, Acusis LLC, and Others.
The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Various key insights provided in the medical transcription software market report are key industry developments - partnerships, mergers and acquisitions, technological developments in medical transcription software, revenue models and key features of solutions for selective players, transcription services versus voice recognition software - pros and cons, and adoption of advanced AI-powered voice recognition solutions for key countries. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
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Value (USD billion)
By End User Facility
By End User
Fortune Business Insights says that the global medical transcription software market size was USD 1.32 billion in 2019 and is projected to reach USD 4.89 billion by 2027.
In 2019, the North America market value stood at USD 631.9 million.
Growing at a CAGR of 17.8%, the market will exhibit steady growth in the forecast period (2020-2027).
The cloud/ web based deployment segment is expected to be the leading segment in this market during the forecast period.
The increasing importance of clinical documentation in healthcare and operational benefits and enhanced flexibility of transcription software are major factors driving the growth of the market.
Nuance Communications, Inc., M*Modal IP LLC (3M), and Philips Dictation are major players of the global market.
North America dominated the market share in 2019.
Increased awareness, increasing adoption of EHR/EMRs, cost benefits, and government regulations would drive the adoption of these solutions.
Dictation technologies, voice recognition, and transition from traditional medical transcription services to AI-Powered voice recognition based medical transcription are the hyper-market trends of this market.
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