The global optical character recognition market was valued at USD 11 billion in 2022 and grew at a CAGR of 12% from 2023 to 2032. The market is expected to reach USD 34.16 billion by 2032. The increasing demand for optical character recognition in the BFSI sector will drive the growth of the global optical character recognition market.
The method used to transform a text image into a machine-readable text format is called optical character recognition. The electronic or mechanical translation of photographs of typewritten, handwritten, or printed text into machine-encoded text is known as optical character recognition. It is also referred to as an optical character reader. This process can be applied to scanned documents, photos of documents, scene photos, or text with subtitles superimposed on images. OCR data processing has the major benefit of making all digitized documents fully text-searchable. Professionals may swiftly seek numbers, addresses, names, and other characteristics that distinguish the document they are searching for with the aid of this. OCR technology offers many benefits. It reduces time and optimizes processes, which improves efficiency and productivity. Efficient translated to cost savings. OCR is frequently incorporated into other AI technologies to improve accessibility and deployment. Therefore, Advances in AI algorithms, deep learning methodologies, and image processing technologies indicate that OCR systems will improve in the near future and achieve greater precision, effectiveness, and capacity.
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The increasing automation and digitization in industries – the increasing automation and digitization across industries has enabled the market to grow exponentially over the past few years. For instance, digitizing government records for better operational efficiency, faster service deliveries, and transparency has increased the use of OCR in the public sector. Similarly, the digitization and automation in BFSI, retail and E-commerce, healthcare, education and others will also augment the market's growth. The increasing use of OCR by businesses to improve their efficiency and productivity and achieve resource optimization will also contribute to the market's growth.
The high cost of developing OCR technology – OCR technologies are capital-intensive. Furthermore, these services and solutions are costly for commercial expenditure. Therefore, the cost of developing OCR technology will hamper the market's growth. Additionally, OCR technologies rely on the quality of the input image or picture, which doesn't necessarily process well enough to offer complete and accurate results, leading to low-quality descriptions and misleading classifications.
The integration of AI and OCR – the technological advancements in artificial intelligence, machine learning and deep learning have enabled innovators and developers to improve OCR technologies, their precision, accuracy, speed and results. The continued growth of AI and understanding of machine learning will improve the integration and functioning of OCR technologies, and thereby, the market will grow during the forecast period.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global optical character recognition market, with a 41% market revenue share in 2022.
The advancements in OCR technologies are driving regional growth. The presence of key market players driving innovation will bode well for the market. The increasing automation and digitization have led to the rising demand for OCR technology across industries, thereby augmenting the market's growth. The well-established digital infrastructure and access to OCR services and solutions augment the regional market's growth.
North America Region Optical Character Recognition Market Share in 2022 - 41%
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The component segment is divided into solutions and services. The solutions segment dominated, with a market share of around 57% in 2022. The increasing presence of market players offering OCR solutions has contributed to the segment's dominance in the industry. Furthermore, the retail consumption of OCR services, especially on smart connected devices, has enabled the segment to dominate the market. A wide range of solutions are being offered in the market. Additionally, the innovation leading to integrating AI technologies and big data into OCR software will enable the segment's growth during the forecast period.
The end-use segment is divided into B2B and B2C. The B2B segment dominated, with a market share of around 64% in 2022. Transactions or business dealings between businesses are referred to as business-to-business (B2B). Business-to-business (B2B) exchanges typically take place in the supply chain. OCR helps document and other paperwork processing faster, easier, and more accurate and thereby makes businesses highly efficient and productive. It also helps identify any bottlenecks, given the technological advancements that have enabled novel features to be integrated into OCR solutions. Analysis has been made easier, organized, systematic and complete. All these features are widely used by businesses on a commercial basis, thereby explaining the segment's dominance in the market.
The industry vertical segment is divided into retail, government, transport and logistics, IT and telecom, BFSI, education, healthcare, manufacturing and others. The BFSI segment dominated the market, with a market share of around 35% in 2022. The industry term for businesses that offer a variety of financial products or services is banking, financial services, and insurance, known as the BFSI vertical. Customers benefit from quicker access to information. Banks optimize their processes, which saves time and money; it also uses less paper and improves customer relationship management and satisfaction. For instance, OCR can scan a cheque from top to bottom and extract specific information, including the serial number, account number, IFSC code, amount, and signature. The automation and digitization of the BFSI sector will augment the segment's growth during the forecast period.
|Market Size||Revenue (USD Billion)|
|Market size value in 2022||USD 11 Billion|
|Market size value in 2032||USD 34.16 Billion|
|CAGR (2023 to 2032)||12%|
|Region||The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level.|
|Segments||Component, End Use and Industry Vertical|
As per The Brainy Insights, the size of the global optical character recognition market was valued at USD 11 billion in 2022 to USD 34.16 billion by 2032.
Global optical character recognition market is growing at a CAGR of 12% during the forecast period 2023-2032.
The market's growth will be influenced by the increasing automation and digitization in industries.
The high cost of developing optical character recognition technology could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global optical character recognition market based on below mentioned segments:
Global Optical Character Recognition Market by Component:
Global Optical Character Recognition Market by End Use:
Global Optical Character Recognition Market by Industry Vertical:
Global Optical Character Recognition Market by Region:
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