Optical Character Recognition (OCR) Market Trends and Analysis by Region, IT Infrastructure, End-Use and Segment Forecast to 2030
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How is our ‘Optical Character Recognition’ report different from other reports in the market?
- The report presents in-depth market sizing and forecast at a segment level for more than 15 countries including historical and forecast analysis for the period 2021-2030 for market assessment.
- Detailed segmentation by IT Infrastructure type – Software and Services, End-Use type – B2B and B2C, and by Vertical type – BFSI, Government, Healthcare & Pharmaceuticals, Information Technology, Manufacturing, Retail & Consumer Goods, and Others
- Detailed value chain analysis helps businesses identify areas where they can improve their efficiency and effectiveness, reduce costs, and enhance their competitive advantage.
- The report offers key market drivers and challenges along with technological and regulatory trends impacting the OCR market.
- The report further presents an overview of different use cases and the future of OCR technology, which is expected to help stakeholders to understand and identify new application areas.
- The competitive landscape includes the latest M&A deals, vendor growth innovation matrix, and key venture financing/private equity investors in the OCR market that will help the stakeholders in the ongoing process of identifying, researching, and evaluating competitors, in order to glean insight to form their business strategies.
- The vendor growth innovation matrix included in the report divides the market players into four categories i.e., flagbearers, contenders, specialists, and experimenters, which will help value chain participants in understanding how competition is performing based on their revenue growth and their R&D efforts.
- Competitive profiling and benchmarking of key players in the market to provide a deeper understanding of industry competition.
- The report can be a valuable tool for stakeholders to improve their operations, increase customer satisfaction, and maximize profitability by analyzing the latest OCR trends, tracking market growth and demand, and evaluating the existing competition in the market.
We recommend this valuable source of information to anyone involved in:
- BFSI Companies
- Healthcare Providers
- Legal Services Firms
- Government Agencies
- Retail Companies
- Management Consultants
- Technology Companies
- Manufacturing Companies
- Researchers and Academics
- Venture Capital/Equity Firms
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Optical Character Recognition Market Overview
The optical character recognition (OCR) market will be valued at $11.7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 15.4% over the forecast period. The use of OCR technology continues to evolve and expand as businesses and individuals recognize its potential to streamline workflows, improve data management, and enhance accessibility to information.
OCR technology has experienced a significant boost in the market in recent years due to increasing demand for OCR being deployed to automate data entry tasks by capturing information from forms, invoices, surveys, or other structured documents. It eliminates manual data entry errors, accelerates data processing, and improves overall accuracy.
North America region dominates the OCR market. The region’s strong position in the OCR market can be attributed to its technological advancements and innovation in various industries driven by research and development activities, investments in artificial intelligence (AI) and machine learning (ML), and the presence of leading technology companies. In North America, many prominent OCR solution providers and vendors offer a range of products and services. These companies include ABBYY, Adobe Systems Incorporated, Google LLC, IBM Corporation, Microsoft Corporation, and Nuance Communications, among others.
Government agencies are increasingly utilizing OCR technology for automatic reading and recognition of printed text on identification documents, such as passports, driver’s licenses, or ID cards. It helps streamline identity verification processes in various sectors, including travel, finance, and law enforcement.
Optical Character Recognition Market Outlook, 2021-2030 ($ billion)
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OCR performance heavily relies on the quality of the input images. If the images are blurry, low resolution, distorted, or have uneven lighting, OCR accuracy may significantly decrease. Overcoming image quality issues can be challenging, especially when dealing with old or damaged documents. In addition, OCR algorithms are typically trained on specific languages and fonts. When dealing with unfamiliar languages or uncommon fonts, OCR accuracy may decline. Addressing these challenges requires ongoing research and development efforts to improve OCR algorithms, expand training datasets, and optimize preprocessing techniques. While OCR technology has made significant advancements, there are still scenarios where manual intervention or post-processing steps are necessary to ensure accurate results.
| Market Size (2023) | $11.7 billion |
| Market Size (2030) | $31.9 billion |
| CAGR (2023-2030) | 15.4% |
| Forecast Period | 2023-2030 |
| Historic Data | 2021-2022 |
| Report Scope & Coverage | Industry Overview, Value Chain, Revenue Forecast, Regional Analysis, Competitive Landscape, Company Profiles, Growth Trends |
| IT Infrastructure Segment | Software and Service |
| End-Use Segment | B2B and B2C |
| Regional Segment | North America, Europe, Asia-Pacific, Central & South America, and Middle East & Africa |
| Vertical Segment | BFSI, Manufacturing, Information Technology, Retail & Consumer Goods, Healthcare & Pharmaceuticals, Government, and Others. |
| Key Companies | ADOBE Inc, International Business Machines Corp, Microsoft Corp, Open Text Corp, Amazon Web Services Inc, Google LLC, Nuance Communications Inc, ABBYY, Kofax Inc, and Nano Net Technologies Inc (NanoNets) |
Optical Character Recognition Market Segmentation by IT Infrastructure
The OCR market by IT Infrastructure type is bifurcated into software and services segment. The service segment is expected to be the fastest-growing IT infrastructure segment with a CAGR of over 17% over the forecast period. The demand for OCR services such as consulting, outsourcing, implementation, and integration of platforms and third-party OCR products has contributed to the growth of the services segment. Many companies prefer to outsource their OCR requirements to specialized service providers. Outsourcing OCR tasks can save time, resources, and infrastructure costs. Service providers with expertise in OCR technologies can efficiently handle large volumes of documents, ensuring accurate and timely results.
Optical Character Recognition Market Share by IT Infrastructure, 2023 (%)
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The software segment is leading the market with more than 75% revenue share in 2023 and is projected to experience a compound annual growth rate of 14.8% over the forecast period. The demand for OCR software is driven by the increasing need for digitization, automation, and efficient management of documents and data across industries such as finance, healthcare, legal, logistics, and more. As organizations seek to streamline their operations, improve data accuracy, and enhance productivity, the demand for OCR software is expected to continue to grow.
Optical Character Recognition Market Segmentation by End-Use
The B2B segment is leading the market with a maximum revenue share in 2023 and is projected to experience a compound annual growth rate of 15.9% over the forecast period. The market is driven by the need for digital transformation, efficiency improvements, and data-driven decision-making. B2B companies across industries are adopting OCR technology to digitize their paper-based documents and streamline document management processes. OCR enables the conversion of physical documents into searchable and editable digital formats, making them easily accessible, searchable, and manageable.
OCR plays a crucial role in automating invoice processing and accounts payable functions in B2B organizations. OCR technology can extract key invoice data, such as vendor information, line item details, and totals, enabling faster and more accurate processing, reducing manual intervention, and improving invoice cycle times.
Optical Character Recognition Market Share by End-Use, 2023 (%)
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The B2C end-use segment is also projected to experience significant growth of over 9% CAGR over the forecast period. The segment includes B2C customers that often use mobile banking and finance applications that employ OCR technology. B2C customers utilize OCR technology through expense management apps. By capturing images of receipts using their smartphones, the OCR technology in these apps can extract information such as the merchant’s name, date, and amount. This enables users to automate expense tracking and streamline reimbursement processes.
In addition, B2C customers with visual impairments or reading difficulties benefit from OCR technology in the form of text-to-speech applications. OCR software can convert printed text into speech output, allowing users to access and consume written content in an audible format.
Optical Character Recognition Market Segmentation by Vertical
Based on vertical, the OCR market has been categorized into BFSI, healthcare & pharmaceuticals, manufacturing, government, information technology, retail & consumer goods, and others. Among these, BFSI, healthcare & pharmaceuticals, information technology, and government accounted for more than 70% market share in 2023. The BFSI vertical captured over 45% of the market share in 2023. By leveraging OCR technology, the BFSI sector can streamline operations, improve efficiency, enhance compliance, and deliver better customer service. The ability to process and extract valuable data from various financial documents efficiently is crucial for maintaining a competitive edge in the industry.
Optical Character Recognition (OCR) Market Analysis by Verticals, 2021-2030
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The healthcare & pharmaceuticals vertical is also one of the lucrative markets for OCR. OCR technology in healthcare helps improve data accuracy, enhances operational efficiency, reduces administrative costs, and supports better patient care. The ability to extract and process information from medical documents efficiently is vital for healthcare providers to manage large volumes of data, comply with regulatory requirements, and deliver quality healthcare services. OCR plays a crucial role in automating data extraction and entry processes in healthcare. By leveraging OCR technology, healthcare providers can extract relevant information from medical documents, such as prescriptions, lab reports, and clinical notes. This data can be automatically entered into electronic systems, reducing manual data entry efforts, minimizing errors, and improving operational efficiency.
Similarly, in the IT sector, OCR is used to capture data from forms, invoices, receipts, and other structured or semi-structured documents. This eliminates manual data entry efforts, improves data accuracy, and speeds up data processing. OCR technology enables the IT sector to perform text recognition and search within documents, images, and other textual content. OCR is used in the IT sector for language processing and translation purposes. By recognizing and extracting text from documents and images, OCR technology facilitates language translation services, multilingual search functionalities, and natural language processing applications.
Optical Character Recognition Market Analysis by Region
North America is leading the market with a maximum revenue share in 2023 and is projected to experience a compound annual growth rate of 14.5% over the forecast period. The OCR market in North America has been significant and is expected to continue growing. North America, comprising countries like the United States and Canada, has a large number of businesses across various industries, including healthcare, finance, legal, and government, where OCR technology finds extensive applications.
Optical Character Recognition Market Share by Region, 2023 (%)
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The US accounted for the maximum revenue share in the regional market due to high awareness and understanding of OCR technology. Organizations in North America have been increasingly adopting digital transformation initiatives to streamline their operations, improve efficiency, and reduce paper-based processes. OCR technology plays a crucial role in these efforts by enabling the conversion of physical documents into digital formats.
The European region holds the second position in the OCR market in terms of revenue share in 2023. The region is projected to witness moderate growth over the forecast period with a CAGR of around 14.5% over the forecast period from 2023 to 2030. In addition, the OCR market in the Asia-Pacific (APAC) region has been experiencing significant growth and is expected to continue expanding. The region accounted for the third dominant position in the global OCR market and is also projected to experience significant growth over the forecast period. APAC is a region with diverse economies and industries, including manufacturing, healthcare, banking, e-commerce, and government, which present substantial opportunities for OCR technology adoption.
GlobalData estimates that the CAGR of China’s OCR market during the forecast period from 2023 to 2030 will be 17.6%, with revenues in 2030 totaling over $4.2 billion. The OCR market in China has been gaining significant momentum in recent years. China, as one of the world’s largest economies and with a robust technological landscape, offers a fertile ground for the growth of OCR technology. The Chinese government has been actively promoting digital transformation initiatives across various sectors, including healthcare, finance, education, and government services. These initiatives emphasize the importance of efficient data management, automation, and digitization, all of which align with the capabilities of OCR technology.
Optical Character Recognition Market - Competitive Landscape
The global OCR market is highly competitive with several key players offering OCR software and services. The companies compete in the OCR market by offering diverse OCR solutions, including software development kits (SDKs), cloud-based APIs, and integrated OCR functionality within their software suites. They differentiate themselves through factors such as accuracy, language support, integration capabilities, industry-specific solutions, and additional features like intelligent data extraction and automation. The OCR market is dynamic and competitive, with companies constantly innovating and improving their offerings to meet the evolving needs of businesses across various industries.
Segments covered in the Report
Leading Players in the Optical Character Recognition (OCR) Market
- ADOBE Inc
- International Business Machines Corp
- Microsoft Corp
- Open Text Corp
- Amazon Web Services Inc
- Google LLC
- Nuance Communications Inc
- ABBYY
- Kofax Inc
- Nano Net Technologies Inc (NanoNets)
Other Optical Character Recognition (OCR) Market Vendors Mentioned
LEAD Technologies, Rossum, PSPDFKit GmbH, ProcessMaker Inc, and IRIS S.A.
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Optical Character Recognition Market Segments and Scope
GlobalData Plc has segmented the OCR market report by IT infrastructure, end-use, vertical, and region:
Global Optical Character Recognition Market IT Infrastructure Outlook (Revenue, $ Million 2021-2030)
- Software
- Service
Global Optical Character Recognition Market End-Use Outlook (Revenue, $ Million 2021-2030)
- B2B
- B2C
Global Optical Character Recognition Market Vertical Outlook (Revenue, $ Million 2021-2030)
- BFSI
- Manufacturing
- Information Technology
- Retail & Consumer Goods
- Healthcare & Pharmaceuticals
- Government
- Others
Global Optical Character Recognition Market Regional Outlook (Revenue, $ Million, 2021-2030)
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Indonesia
- Rest of Asia Pacific
- Central & South America
- Brazil
- Mexico
- Argentina
- Rest of Central & South America
- Middle East & Africa
- Saudi Arabia
- United Arab Emirates (UAE)
- South Africa
- Rest of Middle East & Africa
Scope
• This report provides overview and service addressable market for Optical Character Recognition (OCR) market
• It identifies the key drivers and challenges impacting growth of the OCR market over the next 12 to 24 months.
• It includes global market forecasts for the OCR market and analysis of latest M&A deals, macroeconomic trends, technology trends, regulatory trends,
• It contains details of latest M&A deals in the OCR space and a timeline highlighting milestones in the development of OCR technology.
• The detailed value chain consists of five layers: Hardware Manufacturers, Input Data Preparation, OCR Software Development, Integration and Distribution, and End Users.
Key Highlights
The global optical character recognition (OCR) market will be valued at $11.7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 15.4% over the forecast period. The use of OCR technology continues to evolve and expand as businesses and individuals recognize its potential to streamline workflows, improve data management, and enhance accessibility to information. OCR technology has experienced a significant boost in the market in recent years due to increasing demand for OCR being deployed to automate data entry tasks by capturing information from forms, invoices, surveys, or other structured documents. It eliminates manual data entry errors, accelerates data processing, and improves overall accuracy.
Reasons to Buy
• This market intelligence report offers a thorough, forward-looking analysis of the global optical character recognition (OCR) market by IT infrastructure, end-use, vertical, regional segments, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
• Accompanying GlobalData’s Forecast products, the report examines the drivers, challenges, M&A deals, use cases, and trend analysis in OCR market.
• Detailed segmentation by IT infrastructure type – software and service. Further, the report also highlights segmentation at end-use level – B2B and B2C along with vertical and regional segmentation.
• The report includes 100+ charts and tables providing in-depth analysis of the market size, forecast, and supporting factors which are tailor-made for an executive-level audience, with enhanced presentation quality.
• The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in OCR markets.
• The competitive section of the report helps in identifying the flagbearers, experimenters, contenders, and specialists based on their growth and innovation performance in the OCR industry which will help stakeholders analyse competition penetration.
• The broad perspective of the report coupled with comprehensive, actionable detail will help OCR vendors and other companies succeed in the growing OCR market globally.
Key Players
ADOBE IncInternational Business Machines Corp
Microsoft Corp
Open Text Corp
Amazon Web Services Inc
Google LLC
Nuance Communications Inc
ABBYY
Kofax Inc
Nano Net Technologies Inc (NanoNets)
Table of Contents
Table
Figures
Frequently asked questions
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What is the OCR market growth rate?
The OCR market is expected to grow at a CAGR of 15.4% over the forecast period (2023-2030).
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What is the key OCR market driver?
OCR technology has experienced a significant boost in the market in recent years due to increasing demand for OCR being deployed to automate data entry tasks by capturing information from forms, invoices, surveys, or other structured documents.
-
What are the key OCR market segments?
IT Infrastructure Segment: Software and Service
End-use Segment: B2B and B2C
Vertical Segment: BFSI, Manufacturing, Information Technology, Retail & Consumer Goods, Healthcare & Pharmaceuticals, Government, and Others
Regional Segment: North America, Europe, Asia-Pacific, Central & South America, and Middle East & Africa
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Which are the leading OCR companies?
The leading OCR companies are ADOBE Inc, International Business Machines Corp, Microsoft Corp, Open Text Corp, Amazon Web Services Inc, Google LLC, Nuance Communications Inc, ABBYY, Kofax Inc, and Nano Net Technologies Inc (NanoNets).
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Is there a third level of segmentation in the report?
GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy. However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third-level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.
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