The movement of medical records online will stimulate demand for OCR software
Los Angeles, CA (PRWEB) May 07, 2012
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.
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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.
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