Global Optical Character Recognition Market Overview
The key driver impacting the optical character recognition market is the rapid advancement in OCR technology. The recent OCR software arrives with superior features that conquer typical problems associated with formatting and typographical (misprints, spelling mistakes) complexities. Due to such technology progression, the cost of data capturing is lowered, which in turn augmented the demand for OCR technology. Also, enterprises are constantly spending money on developing technologies to raise efficiency and productivity in work. For instance, in August 2020, an Indian multinational corporation, Infosys, in collaboration with Blue Prism Limited(a U.K.-based multinational software corporation), introduced an Artificial Intelligence-driven solution to automate help desk operations. Moreover, increasing adoption of OCR due to the integration of advanced capabilities across transportation, BFSI, and other industries contributes to optical character recognition market demand in the later years.
According to Value Market Research, the global Optical character recognition market size was valued at about USD 8 billion in 2020 and is expected to grow at a CAGR of around 17% during the forecast period 2021 to 2027.
The growing demand for OCR apps due to rising smartphone users across the globe will likely augment the need for optical character recognition in the forecast period. In addition, OCR software apps are being designed for laptops and desktops. For instance, Capture2Text is free OCR software for Windows 10 and offers keyboard shortcuts that quickly recognize anything on the screen. However, the high resolution or high quality hampers the market in the long run. In addition, the limitations in giving accurate output are negatively impacting the market growth. Nevertheless, the industry trends, massive investment in technology might provide massive market opportunities to the market's key players.
The optical character recognition market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as extending product portfolio, acquisitions, contracts, amalgamation, product upgrades to raise their market share globally. The key players taken in the report are ABBYY, ATAPY Software, Creaceed S.P.R.L., Exper-OCR, Inc., LEAD Technologies, International Business Machines Corporation, NAVER Corp., Open Text Corporation, Captricity Inc., CVISION Technologies, Inc., Microsoft, Adobe, IntSig Information Co., Ltd., Nuance Communications, Inc., Anyline GmbH, IRIS S.A., Google LLC.
In this research report, the Optical Character Recognition market is segmented by type, vertical, end-use industry, and region.
Analysis by Type:
By type, the report is segmented into software and services. The software segment dominates the type segment with the highest share of 82% in 2020. It is due to increasing requirements in data-driven organizations for converting physical documents into digital form. Moreover, the growing integration of the latest technologies to raise the accuracy of scanned data contributes to the software segment's growth in the forecast period.
Analysis by Vertical:
By vertical, the report is segmented into retail, BFSI, government, education, transport and logistics, healthcare, IT & telecom, manufacturing, and others. The BFSI segment dominates the vertical segment with the highest share of 20% in 2020. It is due to the high penetration of OCR technology in the banking business to scan diverse types of receipts, documents, and checks to convert all the information into a form understood or recognized by a computer that contributes to the BFSI segment's growth in the forecast period. For instance, In March 2020, a Japanese commercial bank, Sony Bank Inc., had introduced a new English-language online banking service for non-Japanese residents. This app utilizes OCR technology to make the account opening process quicker and easier.
Analysis by End-Use industry:
By end-use industry, the report is categorized into B2B and B2C. The B2B segment is the dominating segment with a market share of 76% in 2020. It is because several businesses use software solutions to unite character recognition technology with smart features, such as PDF export, to allow their clients to draw data out of archive formats. Moreover, it enables companies to systematize their data digitally and make it functional and accessible globally, contributing to the B2B segment's growth in the forecast period.
Analysis by Region:
In the regional outlook of the global Optical character recognition market, the North American region dominated with the largest market share of 40% in 2020. It is due to the rising penetration of AI applications among other advanced technologies in the region. Moreover, the growing inclination of enterprises towards cloud-based optical character recognition software due to its cost, ease of use, and cost-effective contribution to the tremendous market growth across North America.
Market Segmentation covered in the Report:
- Desktop-based OCR
- Mobile-based OCR
- Cloud-based OCR
- Implementation & Integration
By End-Use Industry
- Transport and Logistics
- IT & Telecom
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.