Optical Character Recognition Market Size, Share & Trends Report

Optical Character Recognition Market Size, Share & Trends Analysis Report By Type (Software, Services), By Vertical (Retail, BFSI, Government, Education, Healthcare), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-210-5
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 151

Industry Insights

The global optical character recognition market size was valued at USD 5.27 billion in 2018 and is expected to register a CAGR of 13.7% from 2019 to 2025. The Optical Character Recognition (OCR) technology is used to convert content on physical documents into digital form. It is used to process images or documents using an OCR engine and obtain output in characters that can be recognized and analyzed further. It uses various techniques to convert handwritten texts and images into pdf, text, or other editable formats.

Digitalization in business organizations has made all the processes faster and more accessible. As companies are witnessing technologically advancements, data is becoming a critical element for growth. When data is converted to digital form, it can be processed by computers and a variety of devices with computing capacity. This data is easy to share, access, and store. Companies established before digitalization became a norm in the enterprise sector have also started using tools such as OCR to convert their physical data in digital form. The technology also finds increasing application in BFSI and the healthcare sectors for creating digital copies of checks, invoices, and other documents.

Asia Pacific optical character recognition market

The OCR technology is also being widely used for converting information available in text form into speech with the help of text-to-speech technologies, thus making it accessible to blind and visually impaired individuals. Other applications of the technology include sorting out letters at post offices and documents in law firms and courts along with preserving historical and cultural texts, personal identification, and processing invoices, orders, and other documents.

Numerous benefits of optical character recognition technology have helped companies save time spent on entering data manually in 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 OCR solution developers on integrating advanced technologies to improve accuracy is also expected to significantly drive the OCR market growth in near future.

Vertical Insights

OCR is anticipated to continue finding application 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 subsequently reducing costs.

In the banking industry, OCR-based applications are being used 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, in April 2018, ICICI Bank of India announced the launch of a digital application for smartphones and mobile devices, which can be used for capturing customer information in real time as a part of the Know Your Customer (KYC) scanning.

Digital application is equipped with optical character recognition so that handwritten documents can be scanned and data can be automatically stored in specific index fields in the application.OCR technology is also being widely used across several industries and is helping several companies in easing access to data, saving employee time, and augmenting productivity. Such benefits associated with the technology are expected to drive the growth of the optical character recognition market.

Type Insights

Based on type, the OCR market is segmented into software and services. Software segment acquired the dominant revenue share of more than 80% in 2018, due to increasing requirement in data-driven organization 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.

The cloud-based OCR segment is categorized into public and private cloud. The services segment is further segmented into consulting, outsourcing, and implementation and integration. Desktop-based OCR includes software solutions compatible with desktop computers. Mobile-based OCR software allows users of mobile devices such as tablets, mobile phones, and others, to scan documents from their device. Cloud-based OCR software enables image capture and document conversion on cloud with the help of web APIs and hosted services.

Global optical character recognition market

Demand for mobile-based OCR is expected to grow significantly over the forecast period, attributed to the fact that mobile-based OCR tools increase the mobility of users by allowing them to capture any invoice, bills, or other documents anytime and location. It also allows users to extract unstructured data from a variety of documents and create a database for future use. Increasing adoption of mobile-based OCR for applications such as scanning invoices for proof of delivery of goods will spur the segment growth.

In the services segment, the outsourcing sub-segment accounts for a major market share, attributed to the fact that a large number of companies hire third-party resources to convert huge volumes of data on physical documents into electronic data.

Regional Insights

North America accounted for more than 30% market share in 2018. Enterprises across various industries are focusing on collaborating with OCR vendors to develop software for document processing. For instance, In May 2019, Standard Chartered Bank announced the launch of Trade AI Engine, an augmented intelligence document processing solution developed in partnership with IBM. The solution aims to tackle the high-risk and time-consuming process of reviewing unstructured traditional documentary trade through a combination of Natural Language Processing (NLP), machine learning, and OCR. The partnership is aimed at enhancing the client experience in trade document processing through strengthened operational control and increased operational efficiency.

Asia Pacific is expected to witness a remarkable CAGR of 16.7% from 2019 to 2025. Numerous organizations operating in the manufacturing and government sectors in the region are integrating OCR software into their business processes to increase their business efficiency. Factors such as the rapid economic growth of countries such as China and India, rising adoption of smartphones, and the developing e-commerce sector are anticipated to further fuel the regional market growth.

Optical Character Recognition Market Share Insights

Some of the key participants include Google LLC; Adobe; International Business Machines Corporation; Microsoft Corporation; ABBYY; Anyline GmbH; Captricity Inc. (Vidado); CC Intelligence Corporation; Creaceed SPRL; CVISION Technologies Inc.; LEAD Technologies Inc.; Nuance Communication Inc.; Exper-OCR, Inc.; and Iris S.A.

The vendors focusing on launching products with new capabilities to their existing product portfolio. As data within an enterprise grows, the need for accurate scanning of this data and efficiency increases. In order to meet these demands, they are adding new features and services to their portfolio.

For instance, In April 2019, Lead Technologies Inc. added new web APIs to the LEADTOOLS cloud services. The new APIs include features for document and image merging, redaction, AAMVA ID recognition, and business card recognition. In document and image merging, some of the new API retains the text and uses OCR to merge an image.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 and 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million, and CAGR from 2019 to 2025

Region scope

North America, Europe, Asia Pacific, South America, MEA

Country scope

U.S., Canada, Mexico, Germany, U.K., France, Spain, Italy, China, Japan, India, Australia, South Korea, Brazil, Argentina, Saudi Arabia and UAE

Report coverage  

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report provides forecasts for revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global optical character recognition market report based on type, verticle, and region.

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Software

      • Desktop-based OCR

      • Mobile-based OCR

      • Cloud-based OCR

        • Private

        • Public

      • Others

    • Services

      • Consulting

      • Outsourcing

      • Implementation & Integration

  • Vertical Outlook (Revenue, USD Million, 2014 - 2025)

    • Retail

    • BFSI

    • Government

    • Education

    • Transport and Logistics

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • South Korea

    • South America

      • Brazil

      • Argentina

    • Middle East and Africa (MEA)

      • Saudi Arabia

      • UAE

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