The global Optical Character Recognition market size was valued at US$ 8.46 billion in 2020 and is anticipated to grow at a CAGR of 17.7% during forecast period 2021 to 2030.
The optical character recognition technology is used to convert content on physical documents into digital form. It helps users to convert different types of images and documents into an editable format. Furthermore, it is used in various industries, such as the logistics and transportation industry, BFSI, and others. Government, banking, retail, healthcare, manufacturing, and other sectors also have wide adoption for OCR technology. With the rising age of digitalization, enterprises invest a lot of money in technologies to increase work efficiency and productivity. For instance, in August 2020, Infosys Limited, an Indian multinational corporation, launched an AI-driven solution to automate helpdesk operations in collaboration with Blue Prism Limited, a U.K.-based multinational software corporation. This solution combines the AI and NLP (Natural Language Processing) with automation platform and OCR capabilities.
Numerous benefits of optical character recognition technology have helped companies save time spent on entering data manually in a computer, enhancing work management, reducing the cost of converting documents into digital form, and reducing manual errors, among others. It also offers other benefits such as improved customer service and increased security of documents, significantly propelling demand across industries, including BFSI and retail. Increased focus of cognitive solution developers on integrating advanced technologies to improve accuracy is also expected to significantly drive the market growth in the near future. For instance, in May 2020, THIRDEYE, an AR/ VR enterprise solutions provider, partnered with NuEyes, a vision impairment solutions provider. Under this partnership, NuEyes will introduce smart glasses to assist people with vision loss. These smart glasses will use ThirdEye’s lightweight X2 MR Glasses that have optical character recognition capability.
The software segment led the market in 2020, accounting for over 80% share of the global revenue. The high share can be attributed to the increasing requirement in data-driven organizations for converting physical documents into digital form. The software segment is further divided into mobile-based OCR, desktop-based OCR, cloud-based OCR, and others. Most optical character recognition software is available in open source, so organizations can quickly deploy it within their workflow. Integration of advanced technologies to increase the accuracy of scanned data has further propelled the software segment's growth. Several companies continue to offer OCR software with the latest technologies and features, which propels the availability of software for buyers. For instance, in June 2020, iText Group nv (HQ Belgium), Inc., a global PDF libraries and solutions provider, launched the iText pdfOCR as a part of the iText 7 PDF SDK. This newly launched software offers OCR functionality to convert images into a fully searchable PDF compliant format, and printed text in scanned documents.
The service segment accounted for a market share of 17.6% in 2020 and is expected to expand at a CAGR of 18.2% over the forecast period. Outsourcing services dominated the service segment in 2020 and accounted for a market share of 44.2%. Business owners outsource their data extraction services to get synthesized information and utilize it for better decision-making. There are numerous companies offering outsourcing services for optical character recognition operations. For instance, Flatworld Solutions Pvt. Ltd. offers OCR clean-up services, document digitizing services, document scanning services, and conversion services. Furthermore, in May 2019, Amazon Web Services, Inc. announced the general availability of Amazon Textract. Amazon Textract is a fully managed service that utilizes machine learning to extract texts and data.
The BFSI segment led the optical character recognition market in 2020, accounting for over 19% share of the global revenue. The high share can be attributed to the penetration of OCR technology in the banking industry to scan different types of documents, receipts, and checks and to convert all the information into a form recognized or understood by a computer. For instance, ABBYY, a digital intelligence company, provides digital banking solutions for banks and financial institutions. For instance, DBS Bank, a Singapore-based banking and financial services corporation, has employed ABBYY Mobile OCR Engine to extract and fill in the relevant information in its on-the-go loan application. It enhances and simplifies the customer experience with loans. In March 2020, Sony Bank Inc., a Japanese commercial bank, launched a new English-language online banking service for non-Japanese residents. This app uses OCR technology to make the account opening process easier and quicker.
Character recognition is anticipated to continue finding applications across various industries in near future. For instance, in the transport and logistics industry, OCR can help in scanning the tracking numbers of parcels and postal codes of delivery locations rather than necessitating that they are noted down physically, thereby speeding up the overall processing, tracking, and shipping of packages, and the subsequently reducing costs. For instance, The MARINE DIGITAL SYSTEM SIA offers a solution called DIGIdock, for recognizing scanned photos and copies of documents, and downloading data to an electronic archive of documents accounting system. It contains universal functionality for small and medium-sized companies in the transport & logistics and warehouses industry.
The B2B segment led the market in 2020, accounting for over 75% share of the global revenue. The high share can be attributed to the fact that several businesses use software solutions to combine character recognition technology with intelligent features, such as PDF export, to enable their customers to pull data out of archived forms. It allows companies to organize their data digitally and make it usable and accessible. Also, it eliminates the manual data entry process. For instance, Philip Morris Products S.A., a Russian retail and consumer goods company, uses Smart Engines Service LLC’s identity document capture technology in its mobile survey application. It enables the collection of personal data of the respondents for verification purposes.
Business organizations are using OCR for information retrieval using searchable PDF format. Such software allows the conversion of image-only PDF files and paper documents into searchable files, including an invisible overlay containing searchable text to the scanned bitmap image of the paper document. It enables using a digital file system as a searchable database to find names, phrases, and keywords to help locate the information needed. Furthermore, government firms and officials use OCR solutions to scan legal documents, including driver’s licenses, insurance certificates, passports, and vehicle number plates.
North America dominated the market in 2020, accounting for over 38% share of the global revenue. This can be attributed to the rising penetration of AI applications among other advanced technologies in the region. For instance, the American Foundation for the Blind, a U.S.-based non-profit organization, provides various assistive technology products, including OCR systems, for visually impaired people. Besides, in August 2020, Microsoft, the U.S.-based tech giant, released its latest technology called Read API to extract printed texts, handwritten texts, currency symbols from images, digits, and multi-page PDF documents.
The Asia Pacific regional market is expected to exhibit the highest CAGR of 19.4% over the forecast period. The growing technology industry in the emerging economies of Asia Pacific is particularly promoting the adoption of solutions with OCR capabilities. The regional market is witnessing heavy investments in AI and related technologies. For instance, in May 2020, DataGrand, a Chinese AI startup, has closed its B+ funding round worth USD 38 million, to scale up its business. The company focuses on the development of NLP and OCR, among other AI technologies. Besides, in April 2020, Cogent Labs Inc., a Japanese AI start-up, has raised a Series C funding round worth USD 13 million that brings its total funding to USD 39 million. The company offers Tegaki, an AI-based OCR service that scans handwritten documents.
CVISION Technologies, Inc.
International Business Machines Corporation
IntSig Information Co.,Ltd. Corporation
LEAD Technologies, Inc.
Nuance Communications, Inc.
Open Text Corporation
Implementation & Integration
Transport and Logistics
IT & Telecom
Middle East and Africa (MEA)
The Optical Character Recognition market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Optical Character Recognition market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Optical Character Recognition market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Optical Character Recognition market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Optical Character Recognition market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Optical Character Recognition capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Optical Character Recognition by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Optical Character Recognition market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Optical Character Recognition market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Optical Character Recognition market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Optical Character Recognition industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Optical Character Recognition market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Optical Character Recognition market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Optical Character Recognition market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Optical Character Recognition market. These factors have benefited the growth of the global market for Optical Character Recognition. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Optical Character Recognition. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Optical Character Recognition are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
To strategically profile the key players and comprehensively analyze their growth strategies.
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