Optical Character Recognition Market Size was valued at USD 10.8 Billion in 2022. The Optical Character Recognition market industry is projected to grow from USD 12.44 Billion in 2023 to USD 38.59 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.20% during the forecast period (2023 - 2032). Increased productivity and a surge in the use of automated recognition technologies are the key market drivers boosting the expansion of the market.
Figure 1: Optical Character Recognition Market Size, 2023-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Market CAGR for optical character recognition is being driven by the expanding technological breakthroughs. Texts in printed or physical documents can be converted into machine-readable formats using optical character recognition (OCR) technology. It takes out and repurposes scanned documents, image-only PDFs, and camera photos. With the use of OCR software, one can modify the original text by removing letters from photos and translating them into words and eventually sentences. OCR technology is also widely used in BFSI, healthcare, retail, tourism, logistics, transportation, government, and other industries.
Additionally, all corporate organization operations are now faster and easier to access thanks to digitalization. Data is becoming an increasingly important component of corporate success as technology advances. Data that has been digitally transformed is easily shared, accessed, and stored by computers and other devices having computational power. Businesses that were founded prior to the enterprise sector's widespread adoption of digitalization have also begun utilizing technologies like optical character recognition (OCR) to transform their analog data into digital format. The technology is also being used more and more in the BFSI and healthcare industries to create digital copies of invoices, cheques, and other paperwork.
Moreover, OCR technology is frequently utilized to enable text-to-speech technologies to translate textual content into speech, hence improving accessibility for blind and visually impaired people. Sorting letters in post offices and papers at law offices and courts, processing invoices, orders, and other documents, and preserving historical and cultural texts are some more uses for this technology. Among the many advantages of optical character recognition technology for businesses are the reduction of human error, improved work management, lower costs associated with digitizing documents, and the elimination of time spent physically inputting data into computers. Moreover, it provides heightened document security and better customer service, which drives demand in BFSI and retail among other industries.
For instance, AI-powered smart glasses that enable blind and low-vision people to have hands-free access and improve their quality of life in daily living have been made available by Envision, a smartphone app that assists those who are blind or visually impaired. These smart glasses will be able to recognize characters optically. Thus, result in driving the Optical Character Recognition market revenue.
The Optical Character Recognition Market segmentation, based on type includes Software, and Services. The software segment dominated the market. The software market has grown as a result of the increasing need to digitize and lessen reliance on physical documents in order to save money, energy, and time. Additionally, the market has expanded as a result of augmented reality's growing acceptance in industries including healthcare, BFSI, and retail.
Figure1: Optical Character Recognition Market, by Type, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Optical Character Recognition Market segmentation, based on Vertical, includes BFSI, Retail, Transport, and Logistics. The BFSI category generated the most income. The usage of OCR, which improves performance and automates laborious tasks for financial services, is responsible for the growth. It helps with operations like data input, document scanning, credit card scanning, and other data conversions into a structure that computers can understand.
The Optical Character Recognition Market segmentation, based on End-use includes B2B, and B2C. The B2B segment dominated the market. The increase is ascribed to the use of software by different companies to integrate intelligent features with optical recognition technology, enabling users to retrieve data from forms that have been saved. Businesses will be able to use and access their data more easily and effectively by organizing it digitally. Furthermore, it does away with the need for human data entry.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Optical Character Recognition market area will dominate this market. This can be linked to the dominance of the region being facilitated by the presence of major market participants in the United States and the early adoption of new technologies in enterprises.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: OPTICAL CHARACTER RECOGNITION MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Optical Character Recognition market has the second-largest portion of the market. Growing educational opportunities, the trend of sustainable development, and the increase in online identification and transactions are driving the expansion of the region's market. Further, the German Optical Character Recognition market had the biggest market share, and the UK Optical Character Recognition market was the European market with the quickest rate of growth.
The Asia-Pacific Optical Character Recognition Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. The growth can be ascribed to the sharply rising investments in artificial intelligence (AI) and associated technologies. Moreover, China’s Optical Character Recognition market had the biggest market share, and the Indian Optical Character Recognition market was the Asia-Pacific region's fastest-growing market.
Leading market players are putting a lot of money on R&D to expand their product lines, which helps to fuel the market's ongoing expansion for optical character recognition. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Optical Character Recognition industry must provide reasonably priced goods.
Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global Optical Character Recognition industry to help customers and expand the market segment. In recent years, the Optical Character Recognition industry has provided some of the biggest benefits to medicine. Major players in the Optical Character Recognition market, including ABBYY, Adobe, Anyline GmbH, ATAPY Software, CVISION Technologies, Inc., Exper-OCR, Inc., Captricity Inc., Creaceed S.P.R.L., Google LLC, and others, are engaging in research and development activities in an effort to boost market demand.
ABBYY specializes in optical character recognition (OCR), process intelligence, data capture, and intelligent document processing. The company serves clients globally and focuses mostly on software as a service models. The OCR program ABBYY FineReader is among ABBYY's most well-known offerings. The company invested in machine learning (ML), natural language processing (NLP), and artificial intelligence (AI) after introducing optical character recognition (OCR). The original ABBYY FineReader text recognition program was published in July 1993. In May 2023, ABBYY and Pipefy have formed a strategic alliance to provide an integrated solution that accelerates digital transformation efforts across a range of sectors, including insurance, financial services, and human resources.
Adobe Inc., formerly known as Adobe Systems Incorporated, was established in Delaware and is headquartered in San Jose, California. Historically, Its attention has been on software utilized in the creation and dissemination of a wide variety of material, such as print, multimedia/video, animation, graphics, photography, and illustrations. Adobe Photoshop, Illustrator, Acrobat Reader, and the Portable Document Format (PDF) are among its main products. A variety of tools, mostly for creating, editing, and sharing audio-visual content, are also included. In November 2020, Adobe declared that it would buy Workfront, a company that offers software for marketing cooperation, for US$1.5 billion. The purchase was finished in the first part of December 2020.
October 2022: ABBYY unveiled its Proof of Identity solution, which provides an all-in-one answer for quick identity verification and affirmation, addressing the serious identity fraud issues that businesses & consumers confront.
November 2022: Anyline announced the release of the Tire Tread Scanner, a device that accurately and consistently measures tire tread depth by utilizing mobile data capture, OCR, and artificial intelligence.
January 2023: As LEAD announced, an update to LEADTOOLS Version 22 was just made available. One of the most significant updates in the latest edition is the ability to add eSignatures to documents and PDFs.
| Report Attribute/Metric | Details |
| Market Size2022 | USD 10.8 Billion |
| Market Size 2023 | USD 12.44 Billion |
| Market Size2032 | USD 38.59 Billion |
| Compound Annual Growth Rate (CAGR) | 15.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Vertical, End-use, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled | Â ABBYY, Adobe, Anyline GmbH, ATAPY Software, CVISION Technologies, Inc., Exper-OCR, Inc., Captricity Inc., Creaceed S.P.R.L., and Google LLC; |
| Key Market Opportunities | ·      increased productivity and a surge in the use of automated recognition technologies |
| Key Market Dynamics | ·      As technology advances, data is becoming more and more important for business expansion. |
Frequently Asked Questions (FAQ) :
In 2022, the market for optical character recognition was thought to be valued USD 10.8 billion globally.
From 2023 to 2032, It is anticipated that the global market will grow at a 15.20% compound annual growth rate (CAGR).
North America held the most market share worldwide.
ABBYY, Adobe, Anyline GmbH, ATAPY Software, CVISION Technologies, Inc., Exper-OCR, Inc., Captricity Inc., Creaceed S.P.R.L., and Google LLC. are the leading companies in the market.
The software sector dominated the market in 2022.
The BFSI held the most market share worldwide.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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