Medical Transcription Service Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Medical Transcription Service Market is segmented By Service Type (Consultation Report, History and Physical Examination Reports, Discharge Summary, Operative Report, Others), By Mode Of Procurement (Outsourcing, Offshoring, Both), By End-Users (Hospitals, Clinics, Diagnostic Center, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The global medical transcription service market reached US$ 43.46 billion in 2023 and is expected to reach US$ 65.70 billion by 2031 growing with a CAGR of 5.3% during the forecast period 2024-2031.

Medical transcription(MT) encompasses the conversion of various types of audio recordings into written documents, including reports, letters, surveys, medical conference proceedings, interviews, and referrals dictated by healthcare professionals. Medical transcription reports may consist of consultations, psychiatric evaluations, discharge summaries, and recordings of patient medical histories.

Medical transcriptionists may be employed in various settings, including hospitals, where they work on-site. Alternatively, they may work remotely as telecommuting employees for outsourced transcription services. Some MTs are directly employed by or contracted with healthcare providers to handle their transcription needs. These MTs adhere to strict guidelines regarding medical terminology and formatting throughout the transcription process.

MT reports are incorporated into the patient's electronic medical record, allowing healthcare providers to access them instantly and enhancing coordinated care. Medical transcription services are especially advantageous for hospitals and healthcare facilities that favor electronic storage of medical records, as they manage the substantial volume of patient data and related documentation efficiently.

Market Scope

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Market Dynamics: Drivers

Rising technological advancements

The demand for the global medical transcription service market is driven by multiple factors. One of the key factors is the rising technological advancements. The incorporation of voice recognition technology, artificial intelligence (AI), and machine learning into medical transcription workflows improves both efficiency and accuracy.

Automated transcription tools minimize human errors and simplify the documentation process, enabling healthcare providers to dedicate more time to patient care. Artificial Intelligence is rapidly transforming the healthcare sector, with AI-powered medical transcription playing a crucial role in transforming medical professionals' records of patient information.

The rise of digitalization has led healthcare to transition from paper-based documentation to Electronic Health Records (EHRs), signifying a major change in the industry. EHRs have introduced numerous benefits, including improved accessibility to patient information.

Moreover, key players in the industry are more focused on the AI-driven technological advancements that would propel this market growth. For instance, in October 2023, NextGen Healthcare introduced an artificial intelligence (AI) solution aimed at interpreting conversations between patients and providers in real-time, summarizing appointments, and documenting care plans. The new tool, NextGen Ambient Assist, generates AI-driven subjective, objective, assessment, and plan (SOAP) notes that are directly integrated into the electronic health record (EHR), enhancing provider efficiency and improving patient care, according to the healthcare technology provider.

Also, in March 2023, Nuance Communications, launched Dragon Ambient eXperience (DAX) Express, an AI-driven clinical notes application that generates draft clinical notes within seconds after patient visits. This tool aims to reduce the administrative workload for healthcare professionals by utilizing ambient AI to analyze unstructured data, such as conversations, alongside OpenAI's GPT-4 model. DAX Express is designed to enhance clinical efficiency, allowing clinicians to focus more on patient care rather than paperwork.

Restraints

Factors such as data privacy & compliance, shortage of skilled professionals, compliance with regulation, and lack of accurate documents & quality issues, are expected to hamper the market.

Market Segment Analysis

The global medical transcription service market is segmented based on service type, mode of procurement, end-user, and region.

The history & physical examination reports segment accounted for approximately 48.6% of the global medical transcription service market share.

The history & physical examination reports segment is expected to hold the largest market share over the forecast period. The history and physical (h&p) report is a critical component of a patient's medical record, typically created upon admission to a healthcare facility. It provides a comprehensive overview of the patient's current illness, medical history, and findings from a thorough physical examination.

The H&P is an essential tool for healthcare providers, enabling them to collect and record a patient's complete medical history, current symptoms, and overall health condition. It forms a vital part of the patient's medical record and is instrumental in guiding subsequent diagnosis, treatment planning, and ongoing patient care. This detailed document is produced by physicians through a combination of patient interviews, physical examinations, and a summary of any relevant tests that have been conducted or are awaiting results.

Moreover, key players in the industry research studies and government initiatives & key developments help to drive this segment growth in the market. For instance, in October 2022, according to Black Book Market Research, they surveyed 4,021 medical practices, hospitals, and healthcare organizations, including 2,826 coding professionals, to determine the top-performing vendors among in-demand computer-assisted coding, clinical documentation improvement software, speech recognition, transcription systems, and outsourced coding services. The survey aimed to assess the gaps and urgencies of coding technology administration in the healthcare industry.

Also, in October 2023, the Department of Veterans Affairs launched a new artificial intelligence tech sprint aimed at motivating American innovators to develop AI-focused tools that assist clinicians with note-taking and facilitate the integration of patients' medical records. This initiative is part of a broader effort to address healthcare worker burnout and improve the efficiency of care provided to veterans.

In addition, major player's innovative product launches and technological advancements would propel this market growth. For instance, in April 2024, Accesswire reported on the launch of OrthoScribe, an AI-powered medical transcription and speech analysis solution developed by orthopedic surgeon Dr. Sravan Dhulipala in partnership with Hannibal AI. This innovative product aims to transform how healthcare professionals, particularly orthopedic surgeons, document patient interactions. OrthoScribe is designed to capture and transcribe clinical conversations in real-time, automatically converting them into comprehensive notes that can be directly integrated into a clinician's Electronic Health Record (EHR) system. 

Similarly, in July 2023, Amazon introduced a new clinical documentation service called HealthScribe, enabling healthcare providers to generate medical notes using generative AI automatically. This tool, part of Amazon Web Services (AWS), allows clinicians to create clinical applications that utilize speech recognition and generative AI to transcribe patient visits, highlight essential details, and produce summaries for integration into electronic health records (EHRs).

Market Geographical Share

North America accounted for approximately 43.2% of the global medical transcription service market share. 

North America region is expected to hold the largest market share over the forecast period owing to the high adoption of electronic health records (EHRs), growing medical documentation needs, and increased awareness and implementation of medical documentation driving this market growth in the region.

Moreover, in this region, a major number of key players presence, a well-advanced healthcare system, and technological advancements help to propel this market growth. For instance, in December 2021, Ezra announced the launch of its Ezra Reporter. This AI-driven tool assists medical professionals by simplifying complex findings from radiology reports into clear, easily understandable language for patients. By minimizing the time required for healthcare providers to review these reports, Ezra's solution also generates cost savings that can be passed on to patients.

In addition, government initiatives and key developments drive this market growth in the region. For instance, in July 2024, the U.S. Department of Veterans Affairs (VA) intends to award contracts to the winners of its AI Tech Sprint competition for ambient medical transcription services. The agency revealed that Abridge AI, Inc. and Nuance Communications, Inc., two AI platform providers for the healthcare industry, will supply their AI-powered tools to transcribe clinical encounters and automatically generate notes for patient visits within the VA healthcare system.

Market Segmentation

By Service Type

• Consultation Report
• History and Physical Examination Reports
• Discharge Summary
• Operative Report
• Others

By Mode of Procurement

• Outsourcing
• Offshoring
• Both

By End-User

• Hospital
• Clinics
• Diagnostic Centers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • The rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia-Pacific
• Middle East and Africa

Market Competitive Landscape

The major global players in the medical transcription service market include ACCESSWIRE, Amazon Web Services, Inc., 3M, DataMatrix Technologies, Inc., Mediscribes, Inc., ScribeMedics, The Dictation Source, SMARTMD, EHR Transcriptions, Inc., and MOS Medical Transcription Services (MTS) among others.

Key Developments

• In November 2023, Amazon Web Services (AWS) announced a major upgrade to its Amazon Transcribe service, powered by a new multi-billion parameter speech foundation model trained on millions of hours of audio data across over 100 languages. This next-generation system significantly expands Transcribe's automatic speech recognition (ASR) capabilities, delivering substantial improvements in the accuracy of 20-50% for most languages and even bigger jumps of 30-70% for challenging telephony speech.
• In August 2022, AI startup Abridge secured $12.5 million in funding and launched an enterprise medical transcription solution aimed at reducing provider burnout. This solution can be integrated with electronic medical records systems and is also compatible with telemedicine appointments through an API. Healthcare providers can record any medical conversation, whether with a patient or a team member and receive a transcript within minutes.

Why Purchase the Report?

• To visualize the global medical transcription service market segmentation based on service type, mode of procurement, end-user, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of the medical transcription service market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping is available in Excel consisting of key products of all the major players.

The global medical transcription service market report would provide approximately 62 tables, 55 figures, and 183 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies