Market Overview:
The global Optical Character Recognition market was valued at USD 8.9 billion in 2023 and is expected to reach USD 23.38 billion by the year 2030, at a CAGR of 16.45%.
An optical character recognition system that can recognize and distinguish between printed and written characters in documents using any kind of digital device. Through a mix of software solutions that allow the conversion of the document into machine learning languages, optical character recognition systems are enhanced and built. Optical character recognition involves some components, including location segmentation, scanners, software, and more.
Digitalization and increase in investment in advanced technology is growing the requirement for Optical Character Recognition. The market of Optical Character Recognition is growing speedily with the digitalization of industries across the globe. Companies increased efficiency and accuracy with the help of digitalization which enhanced the market growth. The rapidly expanding BFSI and IT & Telecom industries are driving the growth of the optical character recognition market. The analyst of Introspective market research has divided the optical character recognition market into segments based on software, services, verticals, and regional market size. Due to technical advances and improved features that focus on Artificial Intelligence, Intelligent character recognition, etc., major manufacturers and industry players are investing in the Optical Character Recognition market, which is driving up the market size and compound annual growth rate.
Top Key Players Covered in The Optical Character Recognition Market:
- IBM (U.S)
- Google (U.S)
- Adobe (U.S)
- Nuance Communications (U.S)
- Lead Technologies Inc. (U.S)
- Microsoft (U.S)
- ABBYY (U.S)
- Canon Inc. (Japan)
- NAVER Corp (South Korea)
- Seal Systems (U.S), and Other Major Players
Market Dynamics and Factors:
Digitalization has sped up and improved the accessibility of all procedures. Data is becoming an increasingly important component of business growth as technology advances. Digitalized data is easily shared, accessed, and stored, and it can be processed by computers and other devices having computational capabilities. Businesses that were founded before digitalization became the standard in the business world have also begun to digitize their physical data utilizing techniques like optical character recognition (OCR) software. The technology is also being used more and more in the BFSI and healthcare industries to create digital copies of invoices, checks, and other documents.
OCR integration has great potential to streamline medical record digitalization and automate legal document processing, especially in the healthcare and legal industries. OCR systems are also sought after by real estate companies to effectively handle large amounts of documentation. Users' expectations for text extraction from photos while on the go are being met by the growing need for mobile OCR software. An additional profitable prospect is integration with enterprise software, particularly document management systems. Accessibility-focused optical character recognition (OCR) tools have a market, and government grants or tenders may provide financing. The range of opportunities is completed by multilingual OCR solutions that meet the various language needs of the worldwide market.
The Optical Character Recognition Market Report Highlight:
- By Component Insights, the services segment is anticipated to have the greatest CAGR. Company owners who want to obtain summarized data and use it to make better decisions outsource their data extraction services. Optical character recognition operations are outsourced by a multitude of companies.
- By Verticals Type Insights, the transport and logistics area are anticipated to demonstrate profitable growth. OCR increases paperless productivity in the transportation and logistics sector by enabling machine-readable data capture. OCR solutions are used by the transportation and logistics sector in a variety of ways, including automating the processing of transport orders, recognizing documents, and streamlining the expedition process to save time. Soon, character recognition is expected to find use in a variety of industries.
- By Region, in the market, North America is dominant. The growing demand for virtual and advanced technologies to handle the vast amounts of structured data kept in multinational corporations is driving growth in the optical character recognition market. Throughout the forecast period, the United States is anticipated to play a major role in dominating the North American Optical Character Recognition market due to the product's numerous industrial and commercial uses in the education and BFSI industries.
Key Industry Development:
- In December 2023, financial services company Citi and trade documentation solution provider Traydstream teamed up to give Citi's customers access to automated trade document processing features. Traydstream's modular technology uses AI and OCR to enhance its offerings and create a seamless digital customer experience.
- In September 2023, to help software developers create their own Landing AI-based applications, Landing AI, a provider of computer vision platforms, has introduced Landing AI App Space, an advanced repository of use cases and applications. Users would be able to create applications utilizing OCR capabilities connected to the Landing AI platform with this App Space.
- In May 2023, ABBYY and Pipefy have established a strategic relationship to provide an integrated solution that expedites digital transformation activities across many industries, such as insurance, financial services, and people operations. Pipefy's process automation features were combined with ABBYY's OCR technology to create a powerful solution that streamlines workflows.
The Optical Character Recognition Market Segmentation:
By Offerings
- Software
- Services
By End-user
- Retail
- BFSI
- Government
- Education
- Healthcare
- IT & Telecom
- Others
For this report, Introspective Market Research has segmented the Optical Character Recognition Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
