Optical Character-Recognition Software Developers in the US Industry Market Research Report Now Available from IBISWorld

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In the five years to 2012, revenue for the Optical Character-Recognition Software Developers industry is expected to increase at an annualized rate of 1.6% to $386.9 million. The industry has grown as downstream markets move records into the “cloud,” and more businesses go paperless. OCR software developers have started to move into the mobile arena, with major players investing heavily in research and development (R&D) for mobile applications. In the five years to 2017, the industry is expected to benefit from the movement of medical records online. However, the industry will experience increasing competition from open source software developers, which produce and distribute OCR software at no charge to the end user. For this reason, industry research firm IBISWorld has added a report on the Optical Character-Recognition Software Developers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The movement of medical records online will stimulate demand for OCR software

In the five years to 2012, revenue for the Optical Character-Recognition Software Developers industry is expected to increase at an annualized rate of 1.6% to $386.9 million. While revenue declined marginally during the recession due to a fall in private investment in computers and software, it is estimated to grow 6.6% in 2012 as businesses resume reinvesting in their computer infrastructure. During the year, the industry will benefit from record-high corporate profit, low interest rates and capital expenditures that are 100.0% tax deductible in fiscal 2012. According to industry analyst Kevin Culbert, “over the past five years, industry operators have benefitted from an increasingly digital-centric world.” The industry has grown as downstream markets move records into the “cloud,” and more businesses go paperless.

Optical character-recognition (OCR) software developers have started to move into the mobile arena, with major players investing heavily in research and development (R&D) for mobile applications. Culbert says “large firms have also acquired other operators to increase their product portfolios and to expand language coverage and distribution channels.” For example, in 2011, major player Nuance Communications acquired Equitrac to increase revenue from multifunction printer manufacturers. As a result of these acquisitions, the number of industry operators is expected to fall at an average of 9.6% annually to 23 in the five years to 2012.

In the five years to 2017, IBISWorld forecasts that industry revenue will continue growing. During that time, the Optical Character-Recognition Software Developers industry is expected to benefit from the movement of medical records online. The plan, which was passed in 2010 as part of the Obama administration's healthcare form plan, will give tax incentives to health insurers and medical professionals to switch from paper to digital records. However, the industry will likely experience increasing competition from open source software developers, which produce and distribute OCR software at no charge to the end user.

For more information visit IBISWorld’s Optical Character-Recognition Software Developers in the US industry page

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This industry develops and distributes optical character recognition software, which electronically translates scanned images of handwritten, typewritten or printed text into machine-encoded text. This software is used to convert books and documents into electronic files, to computerize record-keeping systems in offices and to publish text onto websites.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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