Optical Character Recognition Software Market Size, Share, Growth, and Industry Growth, By Type (On-premises and Cloud-based), By Application (Large Enterprises and SMEs), Regional Forecast From 2023 To 2030

Updated On: 20 November 2023

OPTICAL CHARACTER RECOGNITION SOFTWARE MARKET REPORT OVERVIEW

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The global optical character recognition software market size is expected to be USD 871.4 million in 2022 and the market is projected to touch USD 1518.6 million by 2028, exhibiting a CAGR of 9.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with optical character recognition software experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

Optical character recognition is a mechanical or electronic conversion of images of handwritten, printed, or typed text into machine-encoded text from a document, scene photo, scanned document photo, or subtitle text imposed on an image. The software used to read these handwritten, type, or printed texts is called optical character recognition software. It is widely used in printed paper data records or data entry, whether invoices, automatic receipts, passport documents, static data printouts, or any other suitable documentation. 

Early iterations worked on one font at a time and required training with photos of each character. Today, sophisticated systems with support for a range of digital image file formats inputs and a high degree of recognition accuracy for the majority of fonts are the norm. Some systems have the ability to reproduce structured output that closely resembles the original page, including columns, graphics, and other non-textual elements. Early optical character recognition techniques can be linked to telegraphy and the development of reading aids for the blind. Emanuel Goldberg created a device in 1914 that could read characters and translate them into telegraph code.

COVID-19 Impact: Shutdown of Manufacturing Industries Impeded Market Growth

The world was affected by the COVID-19 outbreak and its dissemination. Supply chain disruptions it has had a significant impact on the global industrial sector. The pandemic has had a substantial impact on all image recognition end users. Global demand for image sensors has declined as a result of the decline in smartphone and auto production. Because of this, there is now less production of image sensors, which presents a challenge to the expansion of the market. The sudden shutdown impeded the development and sale of the software.

LATEST TRENDS

"Escalating Demand for Cloud-Powered Image Recognition Solutions to Fuel Market"

The key companies are heavily investing on enhancing their optical character recognition software to optimize online and in-store retail execution. The demand for optical character recognition software increased even more due to the pandemic outbreak. AI provider and computer vision leveraged cloud and analytics solutions featuring the Graphic Processing Units (GPUs) for helping the companies in expanding their market, reducing audit costs, driving customer loyalty, and increasing performance. The steady adoption of OCR software is increasing due to its optimization in online and in-store retail execution to enhance optical character recognition software market growth.   

OPTICAL CHARACTER RECOGNITION SOFTWARE MARKET SEGMENTATION

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• By Type Analysis

By type, the market is segmented into on-premises and cloud-based.

• By End User Analysis

Based on end-user, the market is classified into large enterprises and SMEs.

DRIVING FACTORS

"Need For Profitable and Efficient Retail Execution Process to Fuel Product Demand"

The management of consumer contacts, product marketing both offline and online, and inventory control in retail spaces are all being revolutionized by image recognition technologies. More and more, internet shopping is being done using image recognition technologies. For instance, Snap, the parent company of Snapchat, is now developing a visual product feature for Snapchat, which is anticipated to make use of image recognition tools and enable users to capture object images and explore, recognize, and buy items on Amazon. Merchants and entrepreneurs have realized that traditional techniques of marketing, sales promotions, and visual merchandising which is not viable in the business as a result of the boom in the e-commerce sector, and much more so during the pandemic period. 

"Enhanced Customer Service and Documents Security Offered By Software to Aid Market Growth"

Optical character recognition software adoption is expected to gain steady adoption because of its benefits offered by it. It improves document security and customer service, which may be the major factor for escalating the adoption of the service. Moreover, the adoption of the product in large enterprises and small-medium-sized enterprises is accelerating. The use of optical character recognition software in the logistics and transportation industry is expected to fuel growth in the market. The existence of warehouses and drivers is most likely to propel optical character recognition software market growth.

RESTRAINING FACTORS

"High Cost of Installation to Hamper Market Growth"

The high cost involved in the development of optical character recognition software may hinder the adoption of service in many medium-sized organizations. Companies that lack financial resources don’t adopt such software even if it makes them interested in increasing productivity. These factors are forecasted to hamper growth in the market. 

OPTICAL CHARACTER RECOGNITION SOFTWARE MARKET REGIONAL INSIGHTS

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"North America to Dominate Market Due to Presence of Key Players"

North America is forecasted to hold 39% of the optical character recognition software market share owing to the presence of key market players coupled with the steady adoption of advanced technologies.

Europe is most likely to show commendable growth in the market attributable to the steady economic growth in the region. The region is expected to hold 31% of the total market share in terms of growth.

Asia Pacific is estimated to hold 25% of the market share by virtue of the significantly rising investment in AI (Artificial intelligence) and other related technologies. The rising technology industry in developing countries such as India, China, and Japan is anticipated to gain regional growth.

KEY INDUSTRY PLAYERS

"Key Players Focusing on Innovative Technology Development to Grow in Market"

Businesses are working on developing new technology to offer more easy ways to increase product portfolio. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms. An extensive worldwide consumer base and the execution of operations through specialized distribution networks are other characteristics. The key companies strive to gain a higher part of the optical character recognition software market share by launching new products. 

List of Market Players Profiled

• ABBYY (U.S.)
• Adobe (U.S.)
• Wondershare Software (China)
• Veryfi (U.S.)
• Hyland Software (U.S.)
• Docuphase (U.S.)
• PDFTron Systems (Canada)
• Ephesoft (U.S.)
• Oxcyon (U.S.)
• Foxit Maestro (U.S.)
• Cognex (U.S.)
• GRM Information (U.S.)
• EchoVera (Canada)
• Anyline (Austria)
• IRIS (Canon Group) (U.S.)
• OCR Solutions (U.S.)
• Prime Recognition (India)
• Trumpet Symphony (U.S.)

REPORT COVERAGE

Along with the product description, there is also an overview of the item. The research takes a wide view of the industry. Effects of the epidemic and the ensuing lockdown. The most recent trend on the market is what's now driving growth. The likelihood of the variables promoting market expansion is high. The factors that are forecasted to cause optical character recognition software market growth to stagnate. There is a thorough regional study of the market. The article also includes information on significant players and their corporate headquarters.