Optical Character Recognition Market Size, Share & Trends Analysis Report By Type (Software, Services), By Vertical (BFSI, Retail, Transport And Logistics), By End-use (B2B, B2C), By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the optical character recognition market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for optical character recognition market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of optical character recognition market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Optical Character Recognition Market Categorization:

The optical character recognition market was categorized into four segments, namely type (Software, Services), vertical (Retail, BFSI, Government, Education, Transport And Logistics, Healthcare, IT & Telecom, Manufacturing), end-use (B2B, B2C), and region (North America, Europe, Asia Pacific, South America, and Middle East & Africa).

Segment Market Methodology:

The optical character recognition market was segmented into type, vertical, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The optical character recognition market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into seventeen countries, namely, the U.S.; Canada; Mexico; Germany; the UK; France; Italy; Spain; China; Japan; India; Australia; South Korea; Brazil; Argentina; Saudi Arabia; UAE.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Optical character recognition market companies & financials:

The optical character recognition market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• ABBYY - ABBYY is a leading provider of solutions for business processes, various industries, and integrated systems. It is a key player in the field of content IQ, which aids digital workforces in comprehending and deriving meaning from enterprise content. By supplementing intelligent automation platforms like BPM and RPA, enterprises utilize content IQ to enhance their digital transformation. ABBYY's offerings include solutions for accounts payable automation, content IQ, robotic process automation, contract analytics, mailroom automation, mobile capture, digital document archiving, forms processing, document classification, and eDiscovery. It also caters to various sectors such as banking and finance, insurance, healthcare, public sector, legal, Shared Service Center (SSC), and business process outsourcing with its software solutions. ABBYY provides a range of recognition techniques including optical character recognition, intelligent character recognition, optical mark recognition, and optical barcode recognition. Its partners comprise Microsoft, EMC Square, FUJITSU, Intuit Inc., Konica Minolta Business Solution Europe GMBH, Kyocera Corporation, Fiat Chrysler Automobiles (FCA), Laserfiche, Lockheed Martin Corporation, Symantec Secure One Technology, M-Files Inc., Microtek, Fuji Xerox Co. Ltd., Nuix, Dell, HUAWEI, Panasonic Corporation, Ricoh Company Ltd., Toshiba Corporation, Sharp Corporation, and Scantron.

• Adobe - Adobe is a global software corporation that specializes in the creation of software products for creativity and multimedia, including Adobe Acrobat Reader DC, Adobe Dreamweaver CC, Adobe Flash Player, Adobe Creative Cloud, and Adobe Photoshop CC. The company's operations are divided into three segments: Digital Media, Digital Marketing, and Print & Publishing. The Digital Media segment, which contributes to nearly two-thirds of the company's total revenue, offers products that are perfect for web application developers and content creators. On the other hand, the Digital Marketing segment serves publishers, advertisers, and marketers. While Adobe operates worldwide, more than half of its revenue comes from the U.S. The company markets and sells its products through direct sales as well as retailers, systems integrators, resellers, and distributors.

• Anyline GmbH - Anyline GmbH, a startup based in Vienna, specializes in the development of optical character recognition technology. This technology leverages AI to scan and interpret written text for a variety of applications. The company’s offerings encompass document scanning, ID scanning, license plate scanning, meter reading, and serial number scanning. It caters to a diverse range of sectors such as utilities, government, transportation and automotive, travel & hospitality, among others. Anyline GmbH has patented a technology that enables smartphones to decipher various types of codes and digitized numbers, thereby reducing the time required for manual data access and eliminating typing errors in scenarios like utility meter scanning, serial number scanning, document scanning, and passport scanning.

• ATAPY Software - ATAPY Software is a provider of software development services in the fields of OCR/document imaging and data capture solutions. In addition, it offers top-notch contract programming services to the IT community and a variety of custom software development services in the realm of optical character recognition. The company has established a long-standing partnership with ABBYY Company, to provide substantial expertise and support in the company's product line and technologies. ATAPY Software operates across various business sectors, including OCR and data capture solutions, bespoke document imaging solutions, document management solutions and media services, and archive digitization. In the OCR and data capture solution sector, the company offers services that are based on ABBYY software and solutions that utilize modern OCR SDKs. In the custom document imaging solutions sector, the company provides on-demand document imaging filters to enhance OCR quality.

• Captricity Inc. - In January 2019, Captricity Inc. underwent a rebranding and emerged as VIDADO. The firm offers intelligent automation solutions that cater to the needs of the financial services, insurance, and pharmaceutical sectors. It stands out as an enterprise-level solution for enriching and digitizing data at a pace and scale that meets the demands of contemporary businesses. VIDADO extends its services to sectors such as insurance, financial services, healthcare, and government. The company's platform leverages advanced OCR technology to identify, digitize, enrich, and validate data. Its robust customer base includes notable names like Symmetry Financial Group, MetLife Inc., the Federal Election Commission of the USA, NewYork Life Insurance Company, the Food and Drug Administration, and Long Term Care Associates.

• Creaceed S.P.R.L. - Creaceed S.P.R.L. specializes in crafting creative and intuitive applications for iPad, iPhone, and Mac. The firm's suite of applications encompasses Inko, Prizmo Go, Hydra, Carbo, Prizmo, and Emulsio for iPhone and iPad. Additionally, its Mac offerings include Hydra, Prizmo, and Morph Age. The company's Prizmo application offers optical character recognition in 23 languages. Prizmo also boasts editing features, iCloud compatibility, and text-to-speech translation in 59 languages. Creaceed has introduced Prizmo 3.5, a new iteration featuring built-in OCR powered by machine learning and text translation capabilities rooted in deep neural networks.

• CVISION Technologies, Inc. - CVISION Technologies, Inc., a subsidiary of Foxit Software, specializes in OCR text recognition and PDF conversion technologies. It provides solutions for document capture through precise OCR, facilitating rapid and superior file compression. The company's product line includes PDF Compressor, Maestro OCR Recognition Server, Rendition Server Enterprise, Foxit PDF Editor, PDFCompressor Developer's SDK, OCR Engine, PDF Optimization Suite for Captiva, OpenText Captiva, ImageOptimization for Documentum, and PDFCompressor for Kofax. It offers services like file compression, OCR, PDF conversion, PDF linearization, and PDF/A compliance for archiving. The company caters to various sectors such as banking and financial services, tax and accounting, legal, government, healthcare, education, insurance, wireless telecom, scanning bureaus, web repositories, ASPs, and news & media. Its clientele includes Adobe, United Technologies, Xerox Corporation, Merck & Co., Inc., Sprint, Barclays Bank Delaware, Eastman Kodak Company, UnitedHealth Group, Intel Corporation, Accenture, Unilever, Nissan, National Cancer Institute, Consolidated Edison Company of New York, Inc., Lockheed Martin Corporation, and The Walt Disney Company.

• Exper-OCR, Inc. - Exper-OCR, Inc. specializes in the provision of optical character recognition services and software. The firm offers enterprise-grade optical character recognition software, which includes solutions for document imaging, form processing, data capture, and enterprise content management. Its business is divided into OCR SDK, OCR Software, and OCE services. The company provides a TypeReader server, an OCR solution that assists users in accomplishing document management and form processing tasks. It also offers a TypeReader desktop that transforms scanned documents into electronic files with enhanced features and increased speed. The company's product range also comprises WebOCR, an application mode of OCR applications. It introduces Machine Learned Fragment Analysis (MLFA), which delivers OCR technology that is faster and more accurate than traditional methods. The company caters to various industries and sectors such as IT service providers & IT experts, BPO service bureaus, start-ups, law firms, healthcare, insurance, banking & mortgage industry, traffic & logistics industry, government & non-profit organizations, architecture industry, publishing companies, and enterprise divisions.

• Google LLC - Google LLC is an internet and computer software solution provider company. The multinational company specializes in Internet-related services and products. The company is a wholly-owned subsidiary of Alphabet, Inc. It operates its business from 70 offices in over 50 countries across the globe. The company provides several products and services including API management, AI and machine learning, computing, data analytics, databases, developer tools, hybrid and multi-cloud, IoT, migration, networking, security, storage, G-suite, Google maps platform, cloud identity, chrome enterprises, Android enterprise, and Hire by Google. Google LLC offers optical character recognition under its AI & machine learning product category. Cloud Vision API can detect and extract texts from images. It also supports offline asynchronous image annotation for all the features. Optical character recognition is further categorized as detecting text and recognizing handwriting. Google’s optical character recognition software works for over 248 global languages. The company’s voice recognition product portfolio includes Google Now and application programming interfaces such as Google Cloud Search API.

• International Business Machines Corporation - IBM Corporation, also known as International Business Machines Corporation, is a global technology and consulting firm with operations in more than 170 countries. IBM provides solutions such as computer hardware and software, as well as IT consulting services. The company is known for its production and marketing of computer hardware, software, and middleware, and it offers infrastructure, consulting, and hosting services for a variety of applications, including nanotechnology and mainframe computers. IBM's desktop data collector segment includes optical character recognition, which allows for text extraction from graphic files. The company provides a range of services, including business, IT, outsourcing, financing, and lab services & training. Watson's Speech-to-Text is part of IBM's voice recognition offerings.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Optical Character Recognition Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2023, historic information from 2017 to 2023, and forecast from 2024 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Optical Character Recognition Market Report Assumptions:

• The report provides market value for the base year 2023 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.