Optical Character Recognition (OCR) allows a client to automate their manual data collection and extraction processes. Whether the business uses hand-written or typed documents, current OCR technology can discern the text and convert it into a digital file. The demand for contactless solutions during Covid propelled the growth of OCR services. In 2022, its market value was $10.63 billion. The interesting thing to note here is that it is projected to grow at a Compound Annual Growth Rate (CAGR) of 13.2%, raising its value to $36.73 billion. Another study suggests a growth rate of 16% for the same period. Here are some key factors behind the unprecedented growth of OCR technology:
Digital has become the new norm today, not only in business but in personal lives as well. To stay updated with technological advancements, businesses need to make their data operations – entry, retrieval, sharing, and access – faster and more efficient. OCR technology is the primary solution for all these operational functions. Where paper-based manual tasks take hours to perform the same work, OCR can complete them in just a few moments. This is why businesses around the globe have been adopting this technology at a fast pace.
The very first advantage firms and organisations observe after implementing OCR technology is the savings in time and monetary resources. Instead of plunging assets into data collection and entry processes, a seamless solution is the better way to go. Similarly, OCR technology helps in reducing processing times and increasing customer satisfaction. All these advantages ultimately lead to business growth and scaling opportunities. Unlike the manual method, this time the firms have the advantage to scale without worrying about spending extra resources.
One of the key reasons behind the wide adoption of OCR technology is the use of advanced AI in it. These AI models are trained on an exhaustive list of data sources and can achieve relatively high accuracy. Moreover, these AIs continue to improve using refined data and coding inputs from the developers. Another feature that contributes to the growth of AI-powered OCR technology is its understanding of additional languages. Therefore, organisations prefer a tool that costs less and makes fewer errors than humans.
In this digital dawn, there is a surging demand in businesses for improved accuracy, trust, and scalability of operations. Since OCR technology fulfils these verticals and establishes security principles as well, organisations are rushing to deploy OCR solutions. Moreover, it is highly unlikely that any business operating today will not benefit from this technology. The goal of OCR is to replace manual data extraction with a digital solution, and this objective is universal to all businesses.
The banking and finance segment is dominating the current market of OCR technology. Given the amount of client data and demand for scanning bank statements, it becomes imperative for the industry to implement an automated solution. Moreover, OCR services provide additional security and error-free data collection resulting in the ease of complicated workflows. As more and more banks realise the importance of third-party OCR solutions, the market will continue to grow.
Apart from finance, the logistics and transportation segment has seen huge benefits from implementing OCR technology. From maintaining an inventory, saving incoming and outgoing parcels, and reading bills, OCR can help in all verticals of this segment. No wonder all key players in the space are eager to deploy these solutions. Every organisation now observes OCR as a potent technology to increase operational functions. Since it also aids in reducing costs, businesses are more than happy to invest.
Now that Covid is almost gone, the number of travellers around the world is increasing. This introduces a challenge for the authorities to introduce streamlined processes. For this purpose, key regions around the world are utilising OCR technology to read passports. The best part about such solutions is their adaptability to the client’s needs. The service will depend on the capacity, analysis type, and other requirements set by the client. In 2021 alone, the market for passport OCR solutions was valued at $502 million. The forecasts predict an increase of 9.1% in CAGR.
Even though optical character recognition services provide a customer-centric solution, they enjoy more success in the B2B segment. Just a glance at the operational costs can indicate the benefit of using OCR technology in enterprises. This is why not only large organisations but small startups as well are using this service to pave the way for their success. The ongoing innovations will further broaden the customer base of this technology, ushering in a new era of data extraction and collection.