AI-Based Optical Character Recognition Market Size, Share, Opportunities, And Trends By Input Type (Image, Documents, Scanners), By End-Users (BFSI, Government, Airports, Healthcare, Retail, Others), And By Geography - Forecasts From 2023 To 2028

Optical character recognition is the application of AI technology and software in the conversion of visual image and digital text input into machine-readable input structure. The ability of artificial intelligence-based optical character recognition technological solutions to process handwritten texts and the integration of AI-based OCR software with other technologies including machine learning algorithms are widening the application scope of the optical character recognition market across various sectors such as the BFSI, healthcare, retail, transportation, and other sectors. Hence, in view of the advancements in AI technology and the increasing AI adoption rates across all major economies of the world, it can be anticipated that the optical character recognition market will significantly expand over the forecast period

Market Drivers

• Digitalization of business processes

The digitalization of the business operations of companies in different business fields due to increasing demand for transparency and virtual access to information is creating opportunities for the advancement of the AI-enabled OCR software market. Optical Character Recognition and Intelligent Character Recognition technologies are the most commonly used devices for the digitalization procedures of a company. The OCR and ICR software applications amalgamated with document scanning software helps in automating the extraction of relevant data and re-entering the extracted data on digital storage spaces. The universal shift among companies and brands operating in different sectors of an economy towards digitalization is contributing majorly to the market demand for AI-based OCR tools.

• The rigorous paperwork in the BFSI and logistics sectors

The incorporation of AI-based OCR software in the banking and financial services industry and the logistics division of different operating companies enables customers to reduce the resources and time spent in performing the meticulous amount of paperwork. The logistics sector deals with large volumes of data related to billing and shipment procedures and streamlining the logistics activities with OCR software aids in extracting required data from shipping invoices, delivery bills, and purchase orders. For instance, the InstSig OCR platform comprises several OCR tools, one of which is utilized for automating the logistics and supply chain department. Apart from this, the banking and financial services industry is another sector that deals with enormous paperwork filing requirements. The availability of several OCR software such as Hyperscience, Ascend Software, Kfax, and Docsumo with customized features to enable their applications in the financial services and banking sector assists in reducing the paperwork load by automating the analysis of bank statements, invoices, and receipt documents, and the verification of customers. Hence, the digitalization of various business activities and the heavy amount of paperwork in the BFSI and logistics sector will propel the growth of the optical character recognition market over the forecast period.

The inaccuracy of AI-enabled OCR software to analyze blurry images is restraining the growth of the optical character recognition market.

The effective working of AI-based optical recognition character software applications requires a clear visual input or text image. The scanned image of any document to be processed using OCR software must contain characters that can be differentiated from the image background and should have proper alignment structure along with accurate image resolution. In case of a blurry image or input, the accuracy of OCR software plummets significantly leading to unreliable output which must further be manually verified. This could slow down the adoption of AI-enabled OCR technology by companies dealing with a heavy amount of documents that need to be constantly processed with higher precision rates. However, AI-powered OCR products can be integrated with deep learning solutions or image editing software to reduce the disturbances in the image and enhance the image quality.

Key Developments

• In October 2022, the Korean subsidiary of Inspur Information, Inspur Korea collaborated with an AI-tech startup company, Upstage to launch an improved version of AI Pack by Upstage with OCR Pack as one of its core functions. The integration of the GPU server technology of Inspur Korea into the AI pack application by Upstage will enable its customers to use these software solutions with either no coding or low coding requirement.
• In September 2022, HealthPlix Technologies introduced a new AI-assisted OCR application, SmartScan to scan through the lab reports of patients and organize the information about the health vitals of patients on the EMR software platform.

The AI optical character recognition market in the Asia Pacific is expected to grow during the forecast period.

The AI optical character recognition market in the Asia Pacific region is experiencing significant growth due to the escalating investments in the AI field and the emergence of new AI technological startup companies. Hive.ai by Hive Company, ThinkAutomation by Parker Software, Adobe PDF Library by Datalogics Inc., Invoice Extractor by Affinda, and FineReader PDF by Abbyy are a few popular AI-based OCR software used across different countries in the Asia Pacific region. In addition to this, the AI software with OCR features released by leading technology companies such as Microsoft Azure, Google Cloud Vision, and Amazon Rekognition are experiencing growing demands from APAC countries. In addition, the growth of the e-commerce retail segment in Asian countries is resulting in a further increase in OCR software demand. The application of AI-based OCR software by e-commerce businesses helps in verifying online customers’ identities to prevent any theft incidents and obtain detailed information about products in a time-efficient manner. Therefore, considering such factors contributing to the growth of AI-based OCR applications, it can be anticipated that the optical character recognition market in the Asia Pacific region will expand over the forecast period.

AI-Based Optical Character Recognition Market Scope:

Key Market Segments:

• By Input Type
  • Image
  • Documents
  • Scanners
• By End-Users
  • BFSI
  • Government
  • Airports
  • Healthcare
  • Retail
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Singapore
    • Indonesia
    • Others