Global Optical Character Recognition Market to Grow at 12% CAGR, Expected to Reach USD 34.16 Billion by 2032

Posted  by GoPhotonics

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The Brainy Insights, a market research company, published a report on, "Optical Character Recognition Market Size by Component, End Use, Industry Vertical, Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2023 to 2032". According to the report, 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.

Optical character recognition is converting a text image into a text format that a computer can read. Document scans, document photos, scene photos, and text with subtitles overlaid on images can all be processed using this method. The main advantage of OCR data processing is that it makes all digitised documents completely text-searchable. With the help of this, professionals can quickly look for numbers, addresses, names, and other attributes that help them identify the document they are looking for. OCR technology has many advantages. Time is saved, and procedures are optimised, increasing production and efficiency. Effectiveness resulted in financial savings.

Key Insight of the Global Optical Character Recognition Market 

North America will dominate the market during the forecast period. 

The advancements in OCR technologies are driving the expansion in the region. The market will benefit from having major companies driving innovation. OCR technology is increasingly in demand across industries as a result of expanding automation and digitization, which is fueling the market's expansion. The existing digital infrastructure and the availability of OCR services and solutions further aid the expansion of the regional market.

In 2022, the solutions segment dominated the market with the largest market share of 57% and market revenue of 6.27 billion. 

The component segment is divided into solutions and services. In 2022, the solutions segment dominated the market with the largest market share of 57% and market revenue of 6.27 billion. 

In 2022, the B2B segment dominated the market with the largest market share of 64% and market revenue of 7.04 billion. 

The end-use segment is divided into B2B and B2C. In 2022, the B2B segment dominated the market with the largest market share of 64% and market revenue of 7.04 billion. 

In 2022, the BFSI segment dominated the market with the largest market share of 35% and market revenue of 3.85 billion. 

The industry vertical segment is divided into retail, government, transport and logistics, IT and telecom, BFSI, education, healthcare, manufacturing and others. In 2022, the BFSI segment dominated the market with the largest market share of 35% and market revenue of 3.85 billion. 

Advancement in market 

The open-source OCRmyPDF project, which can be used to add an optical character recognition (OCR) text layer to PDF files so they may be searched or copied and pasted, has released a significant update. Working with scanned PDF text files is a snap with OCRmyPDF, and it gets even better with OCRmyPDF v15. OCRmyPDF 15 upgrades its dependencies and needs for Python. Additionally, this release has discontinued support for 32-bit Linux and Windows operating systems. As a result, many of its dependencies are now only compatible with 64-bit operating systems. Tesseract is still used as the OCR engine by OCRmyPDF.

Market Dynamics 

Driver: The growing digitization and automation of industries. 

The market has grown rapidly in recent years with increased automation and digitization across all industries. For example, the usage of OCR in the public sector has expanded due to the digitalization of government records for improved operational efficiency, speedier service delivery, and transparency. Similarly, the market's growth would be aided by the digitization and automation of BFSI, retail and E-commerce, healthcare, education, and other industries. The market will expand because organisations use OCR more frequently to increase productivity, efficiency, and resource optimisation. 

Restraints: The high development costs of OCR systems. 

The high development costs of OCR systems stem from their capital-intensive nature. These services and solutions are also expensive in terms of business expenses. As a result, the expense of creating OCR technology will impede the market's expansion. Furthermore, OCR systems rely on the quality of the input image or picture, which may not be processed effectively enough to provide comprehensive and accurate results, resulting in inaccurate classifications and poor-quality descriptions. 

Opportunities: The combination of AI and OCR. 

Technological developments in deep learning, machine learning, and artificial intelligence have allowed researchers and developers to enhance OCR technologies, increasing precision, accuracy, speed, and output. Over the course of the projection period, the market will expand as a result of improved OCR technology integration and performance brought about by the ongoing advancements in AI and machine learning. 

Challenges: data security and privacy concerns. 

Most businesses and consumers utilize third-party OCR solutions and services, which increases the risk of data theft. These instances can risk businesses and have a detrimental effect on individuals. Without a proper regulatory framework governing the use of OCR and ensuring accountability and transparency for solutions and service providers, the market is expected to have limited growth.

Some of the major players operating in the global optical character recognition market are: 

Key Segments covered in the market: 

  • By Component 
    • Solutions
    • Services
  • By End Use 
    • B2B
    • B2C 
  • By Industry Vertical 
    • Retail
    • Government
    • Transport and Logistics
    • IT and Telecom
    • BFSI
    • Education
    • Healthcare
    • Manufacturing
    • Others 
  • By Region 
    • North America (U.S., Canada, Mexico)
    • Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
    • Asia-Pacific (China, Japan, India, Rest of APAC)
    • South America (Brazil and the Rest of South America)
    • The Middle East and Africa (UAE, South Africa, Rest of MEA)

Click here to read the report titled, 'Optical Character Recognition Market Size by Component, End Use, Industry Vertical, Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2023 to 2032'.
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