Optical character recognition (O.C.R.) is one of the most promising technologies among automatic recognition systems specifically used in machine processes such as cognitive computing, machine translation, and text mining, among others. Over time, O.C.R. has progressed from a single-purpose reader to a multi-purpose reader with an interactive and device-independent system. This has resulted in a significant reduction in technology costs, making it among the most preferred alternatives over other character recognition systems. Additionally, the increased reliability offered by optical character recognition software has also positively contributed to the O.C.R. market’s growth.
The presence of numerous companies makes the O.C.R. market highly fragmented and competitive in nature. Competitive pricing is one of the major strategies used by key players to gain an edge in the optical character recognition market. The incorporation of artificial intelligence into optical character recognition systems has set the market on the rise between 2018 and 2026. Relatively lower speed and accuracy improvements are some of the major challenges for the optical character recognition market.
The banking sector plays a vital role in influencing the demand for O.C.R. software. Document digitization, as a part of minimizing paperwork, is the main factor driving the demand for optical character recognition software in the sector.
North America is the regional leader in the global market for optical character recognition due to incremental demand from the banking, financial services, and insurance sectors. Enterprises in this region are more inclined toward cloud-based optical character recognition software due to its ease of use and cost-effectiveness. Asia Pacific is also expected to witness steady growth in the O.C.R. market, mainly by small and medium enterprises. On account of massive investments in technology, China and India are at the forefront of adopting optical character recognition techniques.
Major drivers of the optical character recognition market:
- Increasing penetration of automatic recognition systems
- massive investment in technology
- rising inclination towards document digitization
Major challenges in the optical character recognition market:
- Speed improvement
- Accuracy improvement
- Competitive Pricing
The global optical character recognition market is segmented on the following basis:
- Desktop-based O.C.R.
- Mobile-based O.C.R.
- Cloud-based O.C.R.
- Multi-tenant O.C.R. (private cloud)
- Public Cloud
- Others (batch O.C.R., server-based O.C.R., etc.)
- Implementation and Integration
- Banking, Financial Services, and Insurance (B.F.S.I.)
- Retails and Hospitality
- Telecom and I.T.
- Others (Transportation & Logistics, Media & Entertainment, Manufacturing, etc.)
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Rest of Latin America
- Middle East and Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
Key players identified in the optical character recognition market include, but are not limited to:
Anyline GitHub, Inc., Microsoft Corporation, Alibaba Group Holding Ltd., Abby Software Ltd., Adobe Systems Incorporated, CCi Intelligence Co., Ltd., C.V.S.I.O.N. Technologies, Inc., Exper-OCR, Inc., Paradatec, Inc., N.T.T. Data Corporation, Google, Inc., LEAD Technologies, Inc., I.B.M. Corporation, Prime Recognition Corporation, Creaceed S.P.R.L., Anyline GmbH, Ripcord, Inc., Transym Computer Services Ltd., Ricoh Group, and Accusoft Corporation, among others,