Optical Character Recognition Market Growth | 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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What is optical character recognition?

Optical character recognition (OCR) also referred to as Optical Character Reader, is a system that offers a full alphanumeric recognition of handwritten or printed characters at electronic speed by simply scanning the form. The OCR technology offers a complete form processing and document capture solution. In general, OCR utilizes a modular architecture that is scalable, open, and workflow controlled.

Key Players

The following are the key players operating in the optical character recognition market-

• 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)

Market Dynamics

The optical character recognition market is driven by a host of factors, some of which are noted below:

The warehouses and truck drivers are increasingly using mobile-based OCR systems to extract and read the incoming indexes, parcel codes, product catalogs, invoices, loading/transport, goods receipts, and goods returns among others.

Rising applications of OCR systems in the transportation & logistics sector.

The rail freight, trucking, sea freight, and air freight companies, coupled with express, courier, & parcel companies are roping in the OCR-based services to institute data management solutions.

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Segment Analysis

Type

The market has been bifurcated into software and service. 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.

Vertical Type

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. 

End-Use Type

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. 

Regional Analysis

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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Segmentation

This report studies the market covering a period of 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 optical character recognition market is segmented into the following categories. 

By Type

• Software
• Service

By Vertical Type

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

By End-Use Type

• 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)

Report Features

This report provides market intelligence in the most comprehensive way. 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?

Target Audience

The target audience of the optical character recognition market includes-

• Companies
• Distributors
• BFSI companies
• Government organizations

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. In order 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.

Research Methodology

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 10 detailed primary interviews with the market players across the value chain in all four regions and with 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

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.