Global Optical Character Recognition Market - 2023-2030

Global Optical Character Recognition Market - 2023-2030

Global Optical Character Recognition Market reached US$ 12.2 billion in 2022 and is expected to reach US$ 31.6 billion by 2030, growing with a CAGR of 15.2% during the forecast period 2023-2030.

The ongoing changes in the adoption of digital transformation across various industries led to have massive increase in the volume of paper documents that need to be digitized and processed. OCR significantly enhances the efficiency and productivity of data by automating the extraction process and it eliminates the need for manual data entry which leads to reduced errors and saves time.

Many businesses are adopting OCR that automates various processes such as invoice processing, contract management and data extraction from various forms and this automation leads to have faster decision-making process and improved efficiency. The healthcare industry has wider adoption of OCR as it converts patient records, medical charts and prescriptions into digital format.

North America is among the growing regions in the global optical character recognition market covering more than 1/3rd of the market and the region is the hub for technological innovations. Organizations are adopting OCR which converts paper-based documents into digital format. Basically, OCR is used in research institutes and it enhances accessibility and supports online learning platforms.

Dynamics

Adoption of OCR for Visually Impaired Person

Optical character recognition has involved significant advancements in AI, machine learning and computer vision and these advancements have more accurate and reliable OCR capabilities which makes it feasible to accurately convert printed text into digital formats that can be read by assistive devices. The integration of OCR with AI and machine learning technologies enables continuous improvement of recognition accuracy.

Machine learning algorithms can adapt to different fonts, styles and languages, enhancing the OCR's ability to recognize and convert text effectively. For instance, on 7 July 2023, a team of students from the Ramaiah Institute of Technology’s IEEE Computational Intelligence Society chapter in Bangalore, India, has developed an assistive device called OurVision to aid people who are visually impaired.

OurVision is a wearable device that utilizes computer vision techniques, including optical character recognition (OCR) and machine learning, to read text aloud and assist users in navigating their surroundings. The project received a grant of US$ 4,400 from EPICS in IEEE, a partnership between IEEE Foundation and generous donors.

Adoption of Optical Character Recognition in the Education Sector

Educational institutions often handle a large volume of paperwork, including student records, administrative documents and assessment materials. OCR speeds up data entry by automatically extracting information from paper-based forms, reducing manual data input errors and saving time. Libraries and archives in educational institutions use OCR to digitize and index historical documents, manuscripts and research papers and this ensures the preservation of valuable information while making it easily accessible to researchers and scholars.

For instance, on 24 August 2023, Kyndryl, the world's largest IT infrastructure services provider and USDC Projects India Pvt Ltd, a fast-growing online higher education services provider, have entered into a strategic collaboration to develop and manage a state-of-the-art university management platform. Kyndryl's solution is designed to cater to universities' specific needs, incorporating features such as AI-based exam evaluations and scoring, optical character recognition for digitization and an advanced attendance system.

Technology Advancement

The integration of deep learning techniques especially convolutional neural networks and recurrent neural networks, has greatly improved optical character recognition accuracy and these networks enable OCR systems to automatically learn and extract complex features from images, leading to higher recognition rates. NLP techniques have been incorporated into optical character recognition systems to enhance their understanding of context and semantics and this enables optical character recognition to accurately interpret and extract meaningful information from complex documents.

For instance, on 26 December 2022, InfoTrack, a legal technology provider, is leveraging advanced technologies from Amazon Web Services and ChatGPT to enhance the post-completion process for conveyancers. The goal is to accelerate AP1 submissions and ensure higher accuracy in the process.

InfoTrack utilizes Optical Character Recognition technology from Amazon Web Services and this OCR technology reads the uploaded documents, extracting data such as Applicants, Proprietors, Personal Representatives and Mortgage Details. Subsequently, ChatGPT's software is employed to automate the population of the AP1 form and validate it within InfoTrack's system.

Poor Quality Affecting the Market Demand

OCR accuracy is highly dependent on the quality of the input image. Poor image quality due to factors like low resolution, blurriness, distortion or noise can lead to errors in character recognition. OCR algorithms may struggle with recognizing complex fonts, handwritten text or stylized characters. Handwriting variations and artistic fonts can result in inaccuracies.

OCR may have difficulty preserving the original formatting and layout of the document and this can lead to errors in maintaining columns, tables, headers, footers and other structural elements. OCR systems may perform differently based on the type of document being processed. Layout variations, font changes and document-specific formatting can affect recognition accuracy.

Segment Analysis

The global optical character recognition market is segmented based type, application, end-user and region.

Digitalized Content and Leading Software Solutions Increases Market Demand Software is expected to be the major segment fueling the market growth with a share of about 1/3rd during the forecast period. As more content becomes digitized, there is a growing need to convert printed and handwritten documents into machine-readable text. Optical character recognition software plays a crucial role in this digital transformation process.

Optical character recognition software that supports multiple languages is in high demand as companies operate on a global scale. The ability to recognize and process text in different languages is essential for accurate data extraction and translation.

For instance, on 25 October 2022, Inspur Information, a leading IT infrastructure solutions provider, collaborated with Upstage, a Korean AI company, to build an advanced AI server architecture platform. Upstage is developing an AI-based B2B no-code/low-code software solution called AI Pack, with a core application named OCR Pack for document recognition.

Geographical Penetration

The Rising Digitalization and Partnerships in Asia-Pacific

Asia-Pacific is among the major regions in the global optical character recognition market covering around 1/4th of the market in 2022. The region actively pursuing digital transformation initiatives across various sectors, including government, finance, healthcare and education. OCR plays a crucial role in digitizing and processing large volumes of paper-based documents, contributing to overall digitalization efforts.

For instance, on 24 August 2022, Tata Power Delhi Distribution Ltd implemented an AI-based forensic meter reading solution in collaboration with data capture and AI developer Anyline. This solution employs optical character recognition technology to enhance meter reading accuracy and reduce non-technical losses for the North Delhi region. The partnership with Anyline reflects Tata Power-DDL's commitment to leveraging advanced technologies to benefit its customers.

Competitive Landscape

The major global players in the market include ABBYY, Adobe, Captricity Inc., Anyline Gmbh, ATAPY Software, Google LLC, IRIS S.A, Microsoft, NAVER Crop and Open Text Corporation.

COVID-19 Impact Analysis

The pandemic accelerated the adoption of remote work and digital transformation across industries. As organizations shifted to remote operations, the demand for digitizing documents and automating data extraction through OCR increased. OCR played a crucial role in enabling remote workers to access and process information from scanned or printed documents.

The healthcare sector experienced an increased need for efficient data processing due to the pandemic. OCR helped healthcare professionals digitize and extract valuable information from medical records, test results and other documents, facilitating faster decision-making and patient care. Researchers and public health agencies needed to analyze a vast amount of data related to COVID-19 cases, treatments and outcomes.

AI Impact

AI-powered OCR systems use advanced machine learning algorithms to recognize characters and patterns in images and this results in higher accuracy rates compared to traditional OCR methods, especially when dealing with complex fonts, handwritten text or degraded images. AI-driven OCR solutions can support a wider range of languages and scripts. Machine learning models can be trained on diverse language datasets, enabling OCR systems to accurately recognize text in various languages.

AI-based OCR can adapt and learn from new data and this adaptability allows the system to improve its accuracy over time as it encounters more diverse examples, making it suitable for applications with evolving content. AI-powered OCR systems can analyze context and semantics to better interpret the meaning of text and this contextual understanding enables better comprehension of documents and supports more intelligent data extraction.

For instance, on 16 August 2023, Tricentis' Vision AI, an AI-based test automation feature in the company's flagship product Tricentis Tosca, the method and system for single pass OCR was invented by David Colwell. Vision AI employs a neural network comprising multiple algorithms to simultaneously scan multiple images around text and this advancement significantly improves the speed of OCR technology, reducing response time from an average of one second to just 40 milliseconds.

Russia- Ukraine War Impact

The conflict led to the closure or disruption of key transportation routes between Russia and Ukraine. Border closures, checkpoints and conflict zones have hindered the movement of goods by road, rail and even air in some cases. The conflict has disrupted supply chains that rely on the efficient movement of goods between Russia, Ukraine and neighboring countries. Companies that source raw materials, components or finished products from these regions have had to seek alternative routes or suppliers.

Trade between Russia and Ukraine, as well as with other countries, has been affected. Export and import activities have faced delays, restrictions and uncertainty due to the conflict and this has impacted industries dependent on cross-border trade. Transportation costs have risen due to the need for alternative routes, longer transit times and security measures. Uncertainty about the situation has also made long-term logistics planning more challenging.

By Type
* Software
* Services

By Application
* Retail
* BFSI
* Government
* IT Telecom
* Transport and Logistics
* Healthcare
* Others

By End-User
* B2B
* B2C

By Region
* North America
U.S.
Canada
Mexico
* Europe
Germany
UK
France
Italy
Russia
Rest of Europe
* South America
Brazil
Argentina
Rest of South America
* Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
* Middle East and Africa

Key Developments
* On 31 July 2023, Bluevine, a prominent provider of solutions for small business banking, unveiled its latest offering: an accounts payable solution aimed at simplifying the management of business payments for owners and their teams within their Bluevine Business Checking accounts. The platform employs optical character recognition to extract data from the bills, presenting them to users for quick verification and confirmation.
* On 2 August 2023, Viaccess-Orca (VO), Multi-Development and Construction Corporation (MDCC), Jose Paolo Calma, introduced Homeqube, a blockchain and artificial intelligence (AI)-driven homebuilding platform. The platform includes optical character recognition for automatic lot area plotting, agile design capabilities and auto-generation of essential documents before move-in.
* On 11 July 2023, Smart Data Solutions expanded its operations into India by establishing a Center of Excellence in Chennai and its expansion reflects the company's commitment for enhancing its capabilities and services in the region. The Center of Excellence is equipped with advanced technologies, including Optical Character Recognition to streamline data processing and deliver efficient solutions.

Why Purchase the Report?
* To visualize the global optical character recognition market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
* Identify commercial opportunities by analyzing trends and co-development.
* Excel data sheet with numerous data points of optical character recognition market-level with all segments.
* PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
* Product mapping available as excel consisting of key products of all the major players.

The global optical character recognition market report would provide approximately 61 tables, 59 figures and 185 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies