Automatic Content Recognition Market Size, Share & Trends Analysis Report By Component (Software, Services), By Content, By Platform, By Technology, By Industry Vertical, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global automatic content recognition market size was estimated at USD 2.46 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 16.6% from 2023 to 2030. The factors driving the market growth include increased demand for personalized content and an upsurge in the popularity of digital platforms, including social media, streaming services, and online video-sharing platforms. In addition, automatic content recognition (ACR) technology solutions are increasing and enabling advertisers to deliver more relevant and targeted advertisements to potential customers.

The personalization feature in ACR technology can lead to higher engagement rates and comparatively more effective advertising campaigns than traditional models. Moreover, advances in machine learning (ML) and artificial intelligence (AI) are contributing to the growth of the content recognition industry, allowing companies to analyze vast amounts of data, and identify trends and patterns that were previously difficult to detect.

Smart TVs are becoming increasingly popular worldwide, with more people opting for this advanced technology for entertainment. Smart TVs and streaming devices offer an innovative range of features compared to traditional TVs, such as access to streaming services, voice control, and integration with other smart home devices. Smart TVs have quickly become the norm in households globally. As consumers continue seeking new and innovative ways to enhance their entertainment experience, the adoption of smart TVs is only set to grow in the future. 

ACR technology helps enable various smart TV features, including the convenience of voice control, personalized viewing experiences, and integration with other smart home devices, among others. Thus, demand for ACR technology in smart TVs is increasing with the increasing adoption of smart TVs worldwide. For instance, according to Leichtman Research, 71% of homes with TVs in the U.S. had connected smart TVs in 2022; however, this share of smart TVs is expected to reach 80% by December 2023. Such TVs can identify the content being played and provide relevant information and recommendations to users by analyzing the images and sounds of what is on the screen. This feature is enabled by content recognition technology. The data received from smart TVs' content recognition can enhance the viewing experience, as users can easily discover new shows or movies based on their preferences.

On the other hand, the rising move towards streaming services for the growing entertainment needs of users has led to the integration of content recognition technology solutions with streaming platforms. The continuously growing popularity of streaming devices is projected to create demand for content recognition as a standard feature in such devices, further boosting the overall ACR market.

The media and entertainment (M&E) industry players use ACR technology to stay competitive in the overall M&E ecosystem. The trend toward streaming devices and the need for more personalized viewing experiences are the major factors creating the demand for automatic content recognition in the media and entertainment industry. The streaming services are seeing rapid growth in developing countries. Thus, continuous growth in media streaming in developing countries is also contributing to the growth of the market. According to Conviva’s State of Streaming Q3 2021, the global streaming of content continued to increase, up 21% in Q3 2021 over Q3 2020, led predominantly by regions including Africa, Oceania, and Asia, witnessing a massive growth of 273%, 80%, and 45%, respectively, in 2021. This growth in media content streaming is expected to grow continuously in upcoming years, boosting the growth of the market.

Component Insights

In terms of component, the software segment held over 74% revenue share in 2022, owing to the rising demand for ACR software to identify and gather TV viewership data. Broadcasting stations (TV and Radio), film production companies, marketing and advertising agencies, and game developers are among the prominent users of ACR software tech. The technological advancement in devices such as smart TVs, smartphones, and tablets, among others, offers several opportunities for ACR software in varying applications, such as advertising ad monitoring, copyright protection, and license monitoring. Moreover, using ACR software in the AdTech industry to provide insights on engagement metrics, ad viewability, and conversion rates is expected to create growth opportunities for the segment.

The services segment is anticipated to register growth at a CAGR of nearly 18% over the forecast period. ACR services play an important role across various industries and applications as they facilitate content identification in real-time, second-screen experiences, where viewers can use smartphones or tablets to access supplementary information about the content, audience measurement and analytics, targeted advertising, content monitoring, and enhancement of the overall viewing experience. The growth of this segment is driven by continuous demand for implementation, upgrades, and maintenance services associated with the ACR software.

Content Insights

In terms of content, the audio segment held a significant revenue share of over 41% in 2022. This can be ascribed to the wide adoption of audio content across various devices. ACR allows the identification of audio content, such as music, spoken words, or sounds, which is crucial for various purposes, including tracking copyrighted content for licensing and royalty payments. ACR also enhances user experience by providing context-aware content recommendations. For instance, music streaming services use ACR to suggest songs or playlists based on what the user is currently listening to. Such advantages associated with audio content recognition are driving the segment’s growth.

The video segment is anticipated to register the fastest CAGR of over 17% over the forecast period. The increasing preference for video content for entertainment and branding/marketing purposes is contributing to the growth of this segment. According to the 2023 study from Wyzowl, an animated video production company, around 91% of consumers globally want to see online video content from the brands. This demand for video has led to the proactive production of video content by industries such as telecom, healthcare, BFSI, and others. The use of ACR technology by smartphone applications further creates growth opportunities for the market. For instance, in February 2022, Josh, the short video-sharing app, adopted the ACR technology from ACRCloud to manage musical content shared or uploaded by creators on its video platform.

Platform Insights

Based on platform, the smart TVs segment held the largest revenue share of approximately 70% in 2022 due to the increasing integration of ACR technology in smart TVs. This technology keeps track of all the content the user watches, creating lucrative opportunities for advertisers. Whenever the user is watching the TV, the ACR can identify the content and serve relevant advertisements, improving the Ad campaigns' efficiency by increasing viewer engagement. Several prominent smart TV manufacturers are now introducing this technology in their offerings. In 2022, LG Ads Solutions, the connected TV and cross-screen advertising service by LG Electronics released its proprietary ACR technology globally across all its TV models. As a part of this release, ACR was expected to replace the legacy technology on millions of smart TVs across Europe, Asia-Pacific, Africa, Latin America, and Australia. 

The over-the-top (OTT) segment is anticipated to witness the fastest CAGR of around 18% during the forecast period. An upsurge in worldwide usage of smart devices and content streaming services drives this growth. Smart devices such as Smart TVs and smartphones are equipped with built-in streaming apps. In addition, the overall growth of the global video streaming industry is expected to play a significant role in the demand for ACR technology in OTT applications. For instance, according to Grand View Research, Inc., the global video streaming market size was estimated at USD 89.03 billion in 2022 and is expected to grow at a CAGR of 21.5% from 2023 to 2030.

Industry Vertical Insights

In terms of industry verticals, the media & entertainment segment captured a revenue share of around 23% in 2022. The factors including the increasing use of innovative technology solutions; the rise of video-on-demand (VOD), over-the-top (OTT), and subscription-based streaming services; and the integration of analytics and artificial intelligence (AI) are fueling the growth of the global market in media & entertainment vertical. In addition, the proliferation of mobile TV and multi-screen services for content viewing has created a demand for media and entertainment companies to use ACR technology solutions to meet customer requirements of the content.

The healthcare segment is anticipated to witness the fastest CAGR of over 18% during the forecast period. ACR assists in automatically identifying and sorting medical documents and patient records. This not only streamlines the data and reduces errors but also helps physicians and nurses to focus on patient care. In July 2022, Nuance Communications, Inc. released Nuance Dragon Medical One clinical documentation software available through the Microsoft Marketplace and partner ecosystem. This innovative solution streamlines documentation workflow, improves patient care, and reduces administrative burdens. It combines advanced speech recognition and voice-enabled workflow capabilities that minimize clicks and repetitive as well as time-consuming tasks.

End-use Insights

In terms of end-use, the audience measurement segment captured a revenue share of over 40% in 2022. The ACR technology captures data from the internet-enabled TV or Smart TV to identify and collect TV viewership data. The technology further helps personalize the content recommendations and advertisements, enhancing the overall viewing experience by providing content aligning with the individual's preference. Moreover, it also helps content producers and broadcasters assess their shows' performance by analyzing the viewership data. It optimizes the audience measurement by combining content recognition with demographic data, thereby contributing to segmental growth.

The Ad-tracking segment is anticipated to witness the fastest CAGR of 18% over the forecast period. The constantly evolving AdTech landscape, the need for improved targeting and enhanced advertising strategies, and demand for innovative solutions to measure the effectiveness of ad placements boost the growth of the ad-tracking segment. ACR helps track and analyze ad exposures and offers the capability to manage the timing and frequency of ad placements to minimize ad fatigue.

Technology Insights

In terms of technology, the audio & video fingerprinting segment held the largest revenue share of over 36% in 2022. The segment growth is driven by increasing demand for content fingerprinting technology to identify video, images, or audio content with high accuracy. The technology is useful in several applications: data loss prevention, second screen synchronization and content verification, audience measurement and analysis, and enforcing and managing copyright. Moreover, the rising use of AI in integration with fingerprinting technology to understand the content at a deep level to identify it regardless of its format is further projected to create growth opportunities for the segment growth.

The optical character recognition (OCR) segment is anticipated to witness the fastest CAGR of around 17% over the forecast period due to the growing need for digital documentation. This technology converts texts, PDF documents, images, digital images, and handwritten or converted printed, scanned paper documents into machine-readable form. Moreover, it enables full-text search capabilities within scanned documents and images. This makes locating specific information within large volumes of textual content easy. For instance, Google LLC provides two types of OCR for documents, images, and videos. It allows extracting text and data from images and documents, turns unstructured content into business-ready structured data, and unlocks valuable insights.

Regional Insights

Based on region, North America held the largest revenue share of over 34% in 2022. The market growth in the region is driven by the high development of the media & entertainment industry, increasing technological advancements, and rising investment in the research and development of content recognition technologies. In addition, there is a high penetration of smart TVs and other connected devices in North America, further contributing to the demand for ACR solutions.

Asia Pacific is estimated to record a CAGR of over 18% from 2023 to 2030. Economically emerging countries, including China, Australia, India, and Japan, are seeing rapid growth in demand for smart devices, including Smart TVs, voice recognition devices, and streaming devices, fueling the market’s growth. According to the recent data from RUNTO, the total combined shipment volume of Chinese TV brands, including Xiaomi, Hisense, TCL, Haier, Skyworth, Changhong, and Konka, reached 8.52 million units in Q1 of 2023. On the other hand, the upsurge in video streaming trends in Africa and Latin America region is opportunistic for the growth of the market.

Key Companies & Market Share Insights

The key market players operating in the market are focusing on delivering technologically advanced solutions. They are also implementing various strategic initiatives, such as collaborations, mergers, acquisitions, and partnerships to gain a competitive edge in the market. For instance, in April 2023, Nuance Communications, Inc., launched Dragon Ambient eXperience (DAX Express), a fully automated, workflow-integrated clinical documentation application that combines conversational and ambient AI with GPT-4, OpenAI's newest model. Some prominent players in the global automatic content recognition market include:

• ACRCloud

• Apple Inc.

• Audible Magic Corporation

• Clarifai Inc.

• Digimarc Corporation

• Google LLC (Alphabet Inc.)

• Gracenote

• IBM Corporation

• KT Corporation

• Kudelski Group

• Microsoft Corporation

• Nuance Communications Inc.

Automatic Content Recognition Market Report Scope

Global Automatic Content Recognition Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automatic content recognition market report based on component, content, technology, platform, technology, industry vertical, end-use, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Services

• Content Outlook (Revenue, USD Million, 2018 - 2030)

  • Audio

  • Video

  • Text

  • Image

• Platform Outlook (Revenue, USD Million, 2018 - 2030)

  • Smart TVs

  • Linear TVs

  • Over-The-Top (OTT)

  • Others

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Audio & Video Watermarking

  • Audio & Video Fingerprinting

  • Speech Recognition

  • Optical Character Recognition (OCR)

  • Others

• Industry Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • Media & Entertainment

  • IT & Telecommunication

  • Automotive

  • Retail & E-commerce

  • Audience Measurement

  • Content Filtering

  • IT & Telecommunication Electronics

  • Government & Defense

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Audience Measurement

  • Content Enhancement

  • Broadcast Monitoring

  • Content Filtering

  • Ad-tracking

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa