Optical Character Recognition Market Growth | 2023-2028

Market Insights

"The optical character recognition market is estimated to grow from USD 11.65 billion in 2022 to USD 27.16 billion by 2028 at a CAGR of 15.10% during the forecast period".

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Market Dynamics

Introduction

Optical character recognition (OCR) technology converts printed and physical documents into machine-readable texts, extracting letters from images and translating them into words and sentences. It is widely adopted in sectors like BFSI, healthcare, retail, tourism, logistics, transportation, government, and manufacturing, allowing access to alter the original text.

Market Drivers

The OCR market is expanding due to productivity improvements and automatic content recognition systems. DataPost Pte. Ltd. launched DataVio in July 2022, a cloud-based solution that uses OCR technology to extract data from text, images, or scanned documents, automating data extraction and processing.

Digitalization in business organizations has revolutionized processes, making data a critical element for growth. Companies have started using tools like optical character recognition (OCR) software to convert physical data into digital form, which is increasingly used in the Business Financial Services (BFSI) and healthcare sectors for creating digital copies of documents like checks and invoices. For example, Alfa-Bank, Russia's largest private bank, incorporated Smart Engines' computer-vision document scanning capabilities into its mobile banking application in February 2022. This app allows users to update their ID documents remotely, eliminating the need to visit an office.

OCR technology is being utilized for converting text into speech, making it accessible to blind and visually impaired individuals. It is also used for sorting letters, preserving historical and cultural texts, personal identification, and processing documents. In May 2022, OCR Canada acquired Day 2 Mobility Inc., a telecommunications company, providing a single point of connection with carriers, policy development, and excellent support services. This acquisition demonstrates the growing use of OCR technology in various applications.

Optical character recognition technology offers numerous benefits, including time savings, enhanced work management, reduced costs, and reduced manual errors. It also improves customer service and increases document security, driving demand across industries like BFSI and retail. Cognitive solution developers are focusing on integrating advanced technologies to improve accuracy, which is expected to drive market growth in the future. For example, Envision, a smartphone app for blind and low-vision users, introduced AI-powered smart glasses with optical character recognition capabilities, making everyday life more accessible.

COVID-19 Impact Analysis

The COVID-19 pandemic has positively influenced the optical character recognition sector. Governments worldwide have imposed lockdowns to contain the spread of the virus, people are bound to sit and work from home. To convert various document types, such as PDF files or images captured by a digital camera into editable, the demand for OCT technology boomed amid the pandemic.

Segment Analysis

By Type

"Software segment accounted for a market share of more than 80% in 2022". 

The market has been bifurcated into software and services. Under these, the software segment accounted for a market share of more than 80% in 2022 & is expected to maintain its dominance during the forecast period. owing to expanding requirements in data-driven organizations for converting physical documents into digital form. Most optical character recognition software is easily available in open source, so companies can rapidly deploy it within their workflow, thereby boosting segment growth. Whereas, the service segment held a market share of more than 17% in 2022.

By Vertical Type

"BFSI led the market with a share of more than 20% in 2022". 

The market has been bifurcated into retail, BFSI, government, education, transport and logistics, healthcare, it & telecom, manufacturing & others. Under these, the BFSI led the market with a share of more than 20% in 2022 & is expected to remain the most dominant as well as the fastest-growing segment during the forecast period. The usage of OCR, which assists with document scanning, credit card scanning, and data input by transforming all the data into a format that a computer can recognize and comprehend, may be credited with the rise of the financial services industry by optimizing performance and automating time-consuming tasks. 

By End-Use Type

"The B2B occupied a market share of more than 75% in 2022". 

The market is segmented into B2B & B2C. The B2B occupied a market share of more than 75% in 2022 & It is anticipated that the B2B segment will experience significant growth during the forecast period. The development is due to the introduction of software solutions by numerous firms that meld optical recognition technology with clever features that enable users to extract data from stored forms. It will give businesses the ability to digitally organize, store, and access their data. 

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Regional Analysis

"North America held the highest market share of more than 35% in 2022".

North America held the highest market share of more than 35% in 2022 and is projected to grow at a healthy CAGR during the forecast period. This is ascribed to the increasing penetration of AI applications among other advanced technologies in the region and increasing investments, which further bolsters the regional market growth during the review period.

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Key Players

The following are the key players in the Optical Character Recognition Market (arranged alphabetically)

• AnylineGitHub Inc. (US)
• Alibaba Group Holding Ltd (China)
• Abby Software Ltd (US)
• Adobe Systems Incorporated (US)
• CCi Intelligence Co. Ltd (China)
• CVSION Technologies Inc. (US)
• Exper-OCR Inc. (US)
• Microsoft Corporation (US)
• NTT Data Corporation (Japan)
• Paradatec Inc. (US)

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories. 

By Type 

• Software
• Service

By Vertical 

• Retail
• BFSI
• Government
• Education
• Transport and Logistics
• Healthcare
• IT & Telecom
• Manufacturing
• Others

By End-Use 

• B2B
• B2C

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s optical character recognition market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Option

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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