Optical Character Recognition Market Share, Size, Trends, Industry Analysis Report, By Type (Software, Services); by Vertical; By End-use; By Region; Segment Forecast, 2023- 2032
- Published Date:Mar-2023
- Pages: 114
- Format: PDF
- Report ID: PM3056
- Base Year: 2022
- Historical Data: 2019-2021
Report Summary
The global optical character recognition market was valued at USD 10.63 billion in 2022 and is expected to grow at a CAGR of 13.2% during the forecast period. The market is driven by several factors, including the increasing need for digital transformation, the growth of the digital document management market, and the rising use of mobile devices for capturing and processing text-based data. Additionally, the advancements in machine learning and artificial intelligence are also driving the growth of the OCR software market, as these technologies are used to improve the accuracy and speed of OCR systems. For instance, in January 2023, the Cognex Corporation added Optical character recognition (OCR) to the In-Sight 2800 vision system. With the help of edge learning technology, the new “ViDi(TM) EL Read” tool easily deciphers readable characters on shiny, low-contrast, & irregular surfaces.
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One important aspect driving the expansion of the worldwide market is the introduction of OCR (optical character recognition) system operations in the transportation and logistics sector. Outbound transport resources, including drivers, pallets, trucks, containers, etc., are used throughout the loading and unloading procedure. To ensure that the right batch of products is placed on the specified truck and attached with the shipping documents that go with the vehicle, the OCR technology scans the vehicle license plate, trailer number, container number, driver's license, etc. In other words, OCR in logistics management provides managers with accuracy and visual tracking of the supply chain's third party.
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Industry Dynamics
Growth Driver
The optical character recognition (OCR) market is rapidly growing as the demand for efficient and accurate digitization of various forms of text-based data continues to increase. The increasing need for digital transformation and the shift toward paperless operations is driving the growth of the optical character recognition market. OCR technology enables organizations to digitize and automate various tasks, such as data extraction, document search, and document management. Various industries, including banking, healthcare, government, retail, and transportation, are seeing increased demand for OCR technology.
Report Segmentation
The market is primarily segmented based on type, vertical, end-use and region.
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By Type |
By Vertical |
By End-use |
By Region |
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The software segment is expected to held largest market share during the forecast period
The software segment held the largest market share in the global market in 2022. Optical character recognition (OCR) software transforms a text picture into a machine-readable text format. This makes it possible to automate tasks that would otherwise require manual data entry, such as data extraction, document search, and text-to-speech conversion, driving the demand for this software in enterprises. Various OCR software products are available on the market, ranging from free and open-source solutions to highly specialized, enterprise-level solutions.
In November 2022, Contractor Compliance introduced the OCR module, accessible to business clients with both assisted & automated procedures. The platform enables business clients to handle more intricate workflows, ingest more data from other parties, and employ automated approvals to dispose of third-party submissions without human participation.
The services segment is estimated to grow at a high CAGR during the projected period. Services in OCR include data extraction services, OCR cleanup services, and data capture services. The benefits include consulting and implementation services and training and support services. As more and more organizations adopt OCR solutions to improve their efficiency and streamline their operations, the demand for the segment is expected to increase.
The BFSI segment is expected to dominate the market in 2022
The BFSI segment held the dominant position in the market. Banks automate scanning bank statements using OCR-based solutions due to the volume of client data and bank statements, allowing for speedy and error-free storage and retrieval. Automating the OCR process for bank statements removes unnecessary duties like manual data input and bank statement reconciliation, banking operations are streamlined, and onboarding and offboarding of new clients are sped up.
The transport and logistics industry is anticipated to grow at the fastest CAGR during the forecast period. The logistics & transport industry deals with enormous amounts of paperwork and manual data extraction from invoices, bills of lading, customs papers, packing lists, certificates of origin, etc., which is inherently labor-intensive and prone to mistakes.
OCR in logistics management enables scanning of purchase order numbers, manufacturer's serial numbers, delivery notes, customs papers, and others, which not only speeds up the data input processes but also assures improved accuracy in submitted documents. The above-mentioned factors are driving the market during the forecast period.
The B2B segment accounted for the largest market share in 2022
The B2B segment held the largest market share in 2022 and is expected to grow significantly during the forecast period. Enterprises use OCR technology for processing and data extraction from photos, scanned documents, and other types of written or printed text. Businesses that need to automate data processing and information management operations, such as document management, invoice processing, and data input, are boosting the growth of this segment. For instance, in July 2022, for real-time verification and requirement closure of the clients during underwriting, ICICI used Instant Optical Character Recognition (OCR), which uses Vision AI for OCR technology and allows for immediate feedback on documents.
The B2C segment is expected to grow moderately during the forecast period. OCR technology is used by people and customer-oriented organizations to process and extract data from photographs, scanned documents, and other types of written or printed text. Several companies offer B2C OCR solutions, including Adobe, ABBYY, and CamScanner for ease, accessibility, and preservation, end users who need to digitize their personal or business-related documents can do it using technology.
Asia Pacific region is expected to exhibit high CAGR during the forecast period
North America held the largest market share in 2022 due to the presence of key players with a high level of technology adoption and a well-developed infrastructure, which has led to significant growth in the OCR market. Companies offer a range of OCR solutions for different purposes, including desktop OCR, mobile OCR, cloud OCR, and real-time OCR. In February 2023, Kofax released the most recent version of TotalAgility, a low-code Intelligent Automation Platform, with features including improved Intelligent Document Processing (IDP), additional low-code design features, and improved DevSecOps capabilities. TotalAgility enables developers and business users to adopt automation, expand automation securely in the cloud among distributed workforces, and improve enterprises' ability to manage vital, unstructured data out of the box.
Asia Pacific region is expected to grow at the highest CAGR during the forecast period. China, India, Japan, South Korea, and Australia are the market leaders for OCR in the Asia Pacific region. These nations are distinguished by a sizable and expanding population as well as a high degree of economic and technical development. They are thus among the biggest users of OCR technology in the area.
Competitive Insight
Some of the major players in the global optical character recognition market include ABBYY, Adobe, Anyline, Microsoft Corporation, ATAPY Software, Captricity, Creaceed., CVISION Technologies, IBM, NTT DATA, LEAD Technologies, Exper-OCR, Google, Prime Recognition, NAVER Corp., & Open Text Corporation.
Recent Developments
- In January 2023, ChimpKey launched its service that transforms PDF files into XML and EDI formats. This service may easily convert large volumes of PDF data into structured forms for business operations. With this service, clients can precisely extract data from PDF documents and convert it to XML or EDI format using cutting-edge optical character recognition (OCR) technology.
- In January 2023, SailoTech launched its new product iKapture. The document processing and optical character recognition features of iKapture ensure that the time-consuming data input and manual duties are removed by quickly, precisely, accurately, and securely extracting the necessary information from the document. Using machine learning and artificial intelligence, iKapture assists in processing the gathered data in various forms.
Optical Character Recognition Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 12.02 billion |
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Revenue forecast in 2032 |
USD 36.73 billion |
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CAGR |
13.2% from 2023 - 2032 |
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Base year |
2022 |
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Historical data |
2019 - 2021 |
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Forecast period |
2023- 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2023 to 2032 |
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Segments covered |
By Type, By Vertical, By End-use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
ABBYY, Adobe Inc., Anyline GmbH, Microsoft Corporation, ATAPY Software, Captricity Inc., Creaceed S.P.R.L., CVISION Technologies, Inc., IBM, NTT DATA Corporation, LEAD Technologies, Inc., Exper-OCR, Inc., Google LLC, Prime Recognition Corporation, NAVER Corp., and Open Text Corporation |
FAQ's
Key companies in the optical character recognition market are ABBYY, Adobe, Anyline, Microsoft Corporation, ATAPY Software, Captricity, Creaceed., CVISION Technologies, IBM, NTT DATA, LEAD Technologies, Exper-OCR, Google, Prime Recognition.
The global optical character recognition market expected to grow at a CAGR of 13.2% during the forecast period.
The optical character recognition market report covering key segments are type, vertical, end-use and region.
Key driving factor in optical character recognition market are growing adoption of OCR due to the integration of advanced capabilities
The global Optical Character Recognition Market size is expected to reach USD 36.73 billion by 2032.
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