AI-Based Optical Character Recognition Market expected to reach USD 23.456 billion by 2030

AI-Based Optical Character Recognition Market Trends & Forecast

According to a research study published by Knowledge Sourcing Intelligence (KSI), the AI-based optical character recognition market will expand from USD 11.369 billion in 2025 to USD 23.456 billion in 2030 at a CAGR of 15.59% during the forecast period.

An artificial intelligence-based optical character recognition tool is a form of advanced software that helps in automating the extraction and recognition process of multiple types of documents or images. It helps minimize the rate of error and enhances the processing speed. The increasing sector output of the BFSI industry is among the major factors propelling the growth of the global AI-based OCR market during the forecasted timeline.

In the BFSI sector, the AI-based optical character recognition solution helps in enhancing the KYC or identity verification process of the documents, and can also create digital copies of documents. The AI-based OCR solution also helps in enhancing the efficiency and accuracy of document verification, increasing customer satisfaction. The global BFSI Sector witnessed significant growth, for instance, the Government of the UK, in its report, stated that in 2023, the financial and insurance sector contributed about 8.8% or GBP 208.2 billion to the nation’s GDP.

AI-Based Optical Character Recognition Market Report Highlights

• The AI-based OCR market is segmented into image, documents, and scanners. Among these, the documents segment dominates the market, as businesses and government organizations increasingly rely on OCR to digitize invoices, contracts, forms, and other official paperwork. The surge in digital transformation and the need to convert physical records into searchable and analyzable data further strengthen the dominance of this segment.
• End-users of AI-based OCR include BFSI, government, airports, healthcare, retail, and others. The BFSI sector leads the market, as banks and financial institutions widely use AI-OCR to automate data entry, process checks, verify customer identity (KYC), and streamline loan and compliance documentation. The high transaction volume and need for accuracy and security in BFSI make it the largest consumer of OCR technology, though healthcare and government are also emerging as fast adopters.
• The North America region is expected to witness significant growth in the AI-based optical character recognition market. In the US, the increased intake of artificial intelligence in OCR technology is showing rapid growth at this time. This is due to rapid advancement in artificial intelligence and digitizing business operations and the inclination toward greater automation in work efficiency. The demand for AI-based OCR is rising in the United States, marking its entry into a broader trend of digitization and automation. Recent product launches of leading businesses have expanded advantages in AI technologies, and government support has primed the AI-based OCR growth space. Further, several noteworthy developments have occurred during 2023 and 2024 in the AI-based OCR sector in the United States. For instance, the introduction of Transcribe AI by Revvity; advanced data entry that will change the operations of a clinical laboratory in 2024 when it will apply AI-supported optical character recognition technologies that transcribe handwritten information on test-request forms.

Report Coverage:

Report Metric	Details
AI-Based Optical Character Recognition Market Size in 2025	US$11.369 billion
AI-Based Optical Character Recognition Market Size in 2030	US$23.456 billion
Growth Rate	CAGR of 15.59%
Drivers	Increasing usage of smartphones in the global market Rising demand for AI-based OCR for image input
Restraints	High Implementation Costs Accuracy Limitation with Complex Documents
Segmentation	Input Type End-Users Geography
List of Major Companies in AI-Based Optical Character Recognition Market	Google Inc. Eden AI Rossum Alphamoon Microsoft Inc.

AI-Based Optical Character Recognition Market Growth Drivers and Restraints

Growth Drivers:

• Increasing usage of smartphones in the global market: The increasing adoption and utilization of smartphones in the global market are among the key factors propelling the growth of AI-based OCR platforms during the forecasted timeline. Smartphones help in enhancing the consumer experience to the AI-based OCR platforms and it also increases the reach of the technology to a vast population. The global population using smartphones witnessed significant growth during the past few years and is further expected to rise during the forecasted period.
• Rising demand for AI-based OCR for image input: There’s a rising demand for Optical Character Recognition based on AI for image input. The demand is growing by leaps and bounds, driven primarily by the requirement for effectively extracting data from images in various industries such as e-commerce, government, business operations, and many more. The predominant reason for this surge is the growing digitization and automation of processes, particularly in data entry applications, because such AI OCR systems yield higher productivity and accuracy. Moreover, Governments are increasingly turning to AI-OCR system solutions in recognition of better data management processes and service delivery. They are scalable AI systems that fit into any number of organizations, including large government agencies, to manage massive numbers of documents and different sources of data with accuracy. Further, automation of inspection with the aid of AI OCR in manufacturing thereby reducing cost while also increasing the traceability of the product.

Restraints:

• High Implementation Costs: AI-based OCR solutions often require significant upfront investments in software, training data, and integration with enterprise systems. For small and medium enterprises, these costs can be prohibitive and slow adoption.
• Accuracy Limitation with Complex Documents: Despite advancements, AI-based OCR still struggles with handwritten text, low-quality scans, complex layouts, and documents in multiple languages or fonts. This reduces reliability in industries requiring high precision.

AI-Based Optical Character Recognition Market Key Development

• Partnership: In April 2025, ABBYY introduced ABBYY Document AI, available through a self-service application programming interface (API). The ABBYY Document AI API was built with the developer’s experience in mind, allowing users to effortlessly transform unstructured business documents into structured, highly accurate data with just a few lines of code, making it easier to try, integrate, learn and purchase industry leading optical character recognition (OCR) and intelligent document processing (IDP) solutions.

AI-Based Optical Character Recognition Market Segmentation

Knowledge Sourcing Intelligence has segmented the AI-Based Optical Character Recognition Market based on input type, end-users, and region:

AI-Based Optical Character Recognition Market, By Input Type

• Image
• Documents
• Scanners

AI-Based Optical Character Recognition Market, By End-Users

• BFSI
• Government
• Airports
• Healthcare
• Retail
• Others

AI-Based Optical Character Recognition Market, By Region

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others
• South America
  • Brazil
  • Argentina
  • Others
• Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • Others

AI-Based Optical Character Recognition Market Key Players

• NAVER Cloud Corp
• IDCentral
• Cognex Corporation
• Klippa App BV
• Qualitas Technologies
• Nano Net Technologies Inc
• Docsumo
• AI Gen Co Ltd
• Google Inc.
• Eden AI
• Rossum
• Alphamoon
• Microsoft Inc.