IDP uses AI technologies such as natural language processing (NLP), computer vision, deep learning, and machine learning (ML) to classify, categorize, and extract relevant information as well as validate the extracted data.
What Factors Influence IDP Growth Market?
According to a report from Markets and Markets, the global Intelligent Document Processing market size is expected to grow from USD 0.8 billion in 2021 to USD 3.7 billion in 2026, at a Compound Annual Growth Rate (CAGR) of 36.8% during the forecast period.
The major factors that are expected to drive the growth of this market include:
- the rising need for enterprises to process large volumes of semi-structured and unstructured documents with greater accuracy and speed
- increasing investments in digital transformation, and
- the rising adoption of cloud-based document processing solutions
The key factor that restrains the market growth is that enterprises across all verticals need to adhere to governance and compliance requirements. For instance, the GDPR guidelines for Personally Identifiable Information (PII) protection mandates that any records containing personal and private information must be digitally secured through encryption.
The report is segmented on the basis of component, deployment, organization size, technology, vertical, and region.
The component segment is divided into Solutions and Services. The solutions segment is predicted to hold the largest market size during the forecast period. IDP solutions help transform unstructured and semi-structured information into usable data. Services offered by most IDP solution vendors include professional services and managed services.
By deployment mode, the intelligent document processing market is segmented into Cloud and On-Premises. The cloud segment is expected to grow at a higher CAGR during the forecast period, owing to factors such as cost-effectiveness and scalability. Cloud deployment offers various benefits, mainly easy availability and scalability, reduced operational costs, and hassle-free deployments. The cloud deployment for IDP using different disruptive technologies is expected to grow with the increasing awareness of the benefits of cloud-based solutions. On-premise deployment refers to the installation of applications on the premises of an organization rather than its installation at a remote facility. The restraining factor is that the deployment mode requires a strong infrastructure and a personal data center and so, only large organizations can afford to deploy these solutions.
Based on organization size, the market is segmented into SMEs and Large Enterprises. Large enterprises are the leading adopters of IDP solutions and services, due to the increasing need to analyze the structured and unstructured data collected over the years. These enterprises focus on delivering enhanced customer experience and gaining a leading edge in the market. SMEs are expected to register significant growth in the global market, as cost-effectiveness is an important need for the same. SMEs usually opt for Software as a Service (SaaS)-based intelligent document processing solutions due to cost constraints. The SaaS model further minimizes IT requirements.
By technology, the market has the following segments: Natural Language Processing (NLP), Optical Character Recognition (OCR), Machine Learning (ML), Artificial Intelligence (AI), Robotic Process Automation (RPA), and Deep Learning (DL).
Based on Vertical, the market comprises BFSI, Government, Healthcare and Life Sciences, Retail and eCommerce, Manufacturing, Transportation & Logistics and Others (ITeS, telecom, HR, CRM, sales, education, and energy and utilities). The growing demand for greater flexibility, enhanced data security, and advanced intelligence is expected to drive market growth in the government vertical.
Region-wise, the market is divided into North America (U.S., Canada), Europe (UK, Germany, France, Rest of Europe), APAC (China, Japan, India, Rest of APAC), Latin America (Brazil, Mexico, Rest of Latin America) and MEA (Middle East, Africa). North America is expected to be the major contributor to the market during the forecast period, owing to the key factors that enterprises in the region are most progressive in terms of AI, ML, NLP, and computer vision adoption and the presence of key players in the region, thereby boosting the growth of the document analysis market.
Industries such as BFSI, transportation and logistics, manufacturing, and healthcare & life sciences are mainly adopting IDP solutions. Many organizations are shifting their focus towards automating internal business functions and such factors are expected to have led to the high adoption of IDP solutions in North America.
Major Vendors Operating in Intelligent Document Processing Market
Major vendors operating in this market include ABBYY (US), IBM (US), Kofax (US), WorkFusion (US), Automation Anywhere (US), Appian (US), UiPath (US), Datamatics (India), Deloitte (England), AntWorks (Singapore), Parascript (US), Hyperscience (US), OpenText (Canada), Hyland (US), Extract Systems (US), Infrrd (US), Celaton (UK), HCL Technologies (India), Kodak Alaris (UK), Rossum (UK), InData Labs (Belarus), Ephesoft (US), IRIS (Europe), Evolution AI (England), BIS (US), and AmyGB (India). Businesses can rely on experienced document scanning companies that can provide document processing services including RPA services, and more.