Intelligent Document Processing Market

Intelligent Document Processing (IDP) is an advanced technology that uses artificial intelligence (AI) and machine learning (ML) to automate the extraction and processing of data from various documents. It is a revolutionary technology that has the potential to transform businesses, making them more efficient and cost-effective.

IDP enables the automation of repetitive manual tasks involved in processing various types of documents, such as invoices, receipts, contracts, and forms. It can extract data from these documents and classify them according to their content. This technology can significantly reduce errors and inaccuracies in document processing, ensuring that businesses operate more effectively.

One of the significant benefits of IDP is that it can process large volumes of documents in a short time. This makes it an ideal solution for organizations that receive thousands of documents daily. With IDP, businesses can process documents in real-time, thereby enabling faster decision-making.

IDP also allows for better data analysis, which is critical for businesses. It can provide valuable insights into customer behavior and preferences, helping businesses to make data-driven decisions that lead to increased revenue and growth.

The benefits of IDP are not limited to businesses alone. It also offers significant advantages to customers, who benefit from faster processing times and more accurate information. Customers can expect better and more personalized services, leading to increased satisfaction and loyalty.

Dynamics of Intelligent Document Processing Market

Drivers in Intelligent Document Processing Market

The market for intelligent document processing is set to experience significant growth, reaching over USD 3.5 billion during the forecast period. This growth is being driven by a shift toward digital transformation, with many companies investing in digital, AI, and automation technologies to streamline operations and drive revenue. These investments are reliant on actionable data to achieve their intended value, and as such, many businesses are undergoing digital transformation journeys to digitize data and information, automate processes, and learn from better analytics.

While this transformation is underway for many companies, data privacy concerns pose a challenge for the market. Documents processed by intelligent document processing solutions often contain sensitive and personal information, making any data breaches a significant threat to market growth. Nevertheless, the growing adoption of technology and digitalization among developing countries like India, South Africa, and Indonesia is expected to offer significant growth opportunities for the market.

Intelligent document processing is now a key component of business process automation, and many organizations across verticals such as BFSI, healthcare and life sciences, retail and consumer goods, and transportation and logistics are adopting solutions to enhance and personalize customer experiences. To keep up with modern-day requirements and eliminate the need for paper-intensive and manual processes, enterprises are swiftly adopting modernization and innovation. The ongoing technological advancements from RPA to AI are transforming the landscape of automation, and this is anticipated to create business opportunities for intelligent document processing solution providers to offer data analytics solutions to improve the data mining and decision-making process.

Restraints in Intelligent Document Processing Market

The growth of the intelligent document processing market is hindered by the need for enterprises to comply with governance and compliance requirements across all industries. Compliance helps organizations to comply with industry standards and regulations. To meet federal regulations and mandates like the Sarbanes-Oxley Act (SOX), General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPAA), and Freedom of Information Act, many businesses have had to make significant changes to their internal processes and IT systems. However, regulations for document processing are becoming increasingly strict, and changing compliance requirements in recent years have posed multiple challenges for market players. Changing governance and compliance requirements can disrupt existing automated workflows and may require resetting of automated workflows. Therefore, addressing these changing governance and compliance requirements is a restraining factor for the adoption of intelligent document processing solutions.

Opportunities in Intelligent Document Processing Market

The adoption of AI and ML by leading organizations has been on the rise, as they seek to gain a competitive edge by delivering a superior customer experience. Organizations are focused on providing real-time updates to enhance business productivity and communication, which can ultimately lead to increased customer satisfaction. In healthcare, intelligent document processing can offer significant benefits, such as reducing the threat of electronic health records and managing big data analytics without incurring additional costs. Intelligent document processing has become essential in many industries, as it offers advantages over traditional OCR technologies. Customer satisfaction is a critical factor in the adoption of intelligent document processing solutions, as they can automate tasks and provide added benefits such as auto-classification, auto-categorization, and easy searchability. With the increase in document processing time and customer expectations for faster and more accurate results, the need for an intelligent document processing solution is becoming increasingly important.

Challenges in Intelligent Document Processing Market

One of the challenges in utilizing intelligent document processing technology is misjudging its possibilities. It is essential not to underestimate the potential of this technology and to set realistic goals for innovation. Seeking advice from experienced partners and exploring the technology's capabilities can help in avoiding this challenge. It is recommended to start with small steps and gradually expand into the technology, focusing on solid business cases that support the implementation of intelligent document processing.

Intelligent document processing technology is particularly useful for highly administrative and document-intensive processes that require a high degree of standardization. Despite not being the first solution that comes to mind for most people, intelligent document processing can yield significant cost savings across a wide range of essential business and government procedures. This technology seamlessly integrates with various automated workflows and business processes, making it the next-generation data extraction tool that overcomes the limitations of traditional Optical Character Recognition (OCR) in extracting data from complex and non-standard documents.

Integrating intelligent document processing solutions can enable businesses to aggregate unstructured data into a structured format. These solutions typically involve data science and machine learning applications, which are the most popular and widely used intelligent document processing tools. They encompass assets accessed through a provider's pooled intelligent document processing architecture, on-demand services, storage, computer networks, software, and applications. Overall, utilizing intelligent document processing can help businesses achieve greater efficiency, accuracy, and cost savings in their administrative processes.

Ecosystem of Intelligent Document Processing Market

The segment of services by component is expected to show a higher Compound Annual Growth Rate (CAGR) during the forecast period. These services play a crucial role for solution vendors as they provide seamless integration of the solution with the enterprise's system, along with training and support. As the adoption of intelligent document processing solutions increases, the demand for these services is also expected to rise. This is because they help enterprises reduce costs, increase overall revenue, and enhance performance. The services segment is projected to exhibit a CAGR of 30% over the forecast period, which can be attributed to the availability of services offered by market players like Open Text Corporation, which provides training and professional services for its OpenText Intelligent Capture solution.

The cloud deployment mode is expected to grow with the highest CAGR during the forecast period. The adoption of cloud-based solutions for intelligent document processing is increasing as AI platform providers focus on developing robust cloud-based deployment for their clients. Moreover, the cloud deployment mode provides additional flexibility for business operations and real-time deployment ease to companies implementing real-time analytics. Cloud-based deployment has made it easy for users to apply predictive capabilities to the entire organization. The market is segmented based on component into solution and services, with the solution segment holding the maximum revenue share of 61.6% and expected to register a CAGR of 26% over the forecast period. The growth of the segment can be attributed to the availability of various intelligent document processing platforms and software packages offering multiple features such as fast processing and intelligent data classification. The market is segmented based on deployment into cloud and on-premise. The cloud segment accounted for the largest revenue share of 56% and is projected to grow at the highest CAGR of 30% over the forecast period. The on-premise segment held a revenue share of 39% and is expected to capture significant growth, especially in industries like healthcare and Banking, Financial Services, and Insurance (BFSI), which require greater compliance requirements. This is because on-premise deployment offers enhanced security.

During the forecast period, the global intelligent document processing market is expected to be dominated by the large enterprises segment in terms of market share. These enterprises have displayed a stronger inclination towards advanced technologies like AI/ML, OCR, NLP, and Google Vision, compared to SMEs. Large enterprises, particularly in verticals such as BFSI, healthcare, retail, and telecommunications, have a significant amount of data across different business functions that require analysis for entity extraction, text classification, summarization, and sentiment analysis. They need intelligent document processing solutions to identify patterns in data and develop chatbots to carry out various tasks. The market is segmented into Small and Medium Sized Enterprises (SMEs) and large size enterprises based on organization size. The large enterprises segment is expected to hold the largest revenue share of 76% during the forecast period. Intelligent document processing is an effective and scalable solution for large enterprises, which helps them manage vast amounts of data, reduce operational costs, and enhance internal workflows.

On the other hand, the Small and Medium Sized Enterprises (SMEs) segment is expected to achieve the highest CAGR of 34% during the forecast period. The growth of this segment can be attributed to the growing interest of SMEs in digital technologies, particularly after the COVID-19 pandemic. According to a 2021 white paper by the World Economic Forum, SMEs represent over 90% of all enterprises worldwide and are interested in technologies such as Artificial Intelligence (AI) and cloud computing.

According to industry forecasts, the BFSI (Banking, Financial Services, and Insurance) sector is expected to be the largest market for intelligent document processing solutions during the forecast period. The BFSI vertical is just one of the many industries that utilize intelligent document processing solutions to enhance their operational efficiency. Other verticals that use these solutions include government, healthcare and life sciences, retail and e-commerce, manufacturing, transportation & logistics, and other verticals such as IT services, telecommunications, education, energy and utilities, sales, CRM, and HR.

Banks, in particular, are increasingly adopting intelligent document processing solutions to optimize their productivity, reduce costs, and enhance customer experiences. These solutions are also used to streamline workflows and help employees focus on more high-value projects. In addition, the need to ensure seamless execution of transactions and eliminate bottlenecks in workflows is driving the adoption of intelligent document processing in the BFSI vertical.

The intelligent document processing market has been segmented into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America is expected to be the largest market for intelligent document processing solutions during the forecast period. The US and Canada are the primary countries driving the growth of the North American market. Key vendors of intelligent document processing solutions are driving adoption of the technology in the US. The early adoption of automation-based technologies is expected to drive the growth of the market in Canada.

APAC is projected to be the fastest-growing region in the intelligent document processing market. This is due to the rising investments for digital transformation, the adoption of new technologies, and the growing GDP in APAC countries. The region is home to rapidly growing economies, such as China, Japan, and India. Rapid economic development, globalization, digitalization, and the increased adoption of cloud-based technologies are other key factors driving the growth of the market in this region.

The market for intelligent document processing is segmented based on technology into machine learning, Natural Language Processing (NLP), and computer vision. Machine learning segment held the largest revenue share of 43% and is anticipated to witness the highest CAGR of 33% during the forecast period. Machine learning technology is used for data extraction and classification in intelligent document processing solutions.

The Natural Language Processing (NLP) segment held a revenue share of 31% and is expected to grow at a CAGR of 26% over the forecast period. NLP technology is utilized to comprehend and interpret information from text. The computer vision segment is projected to grow at a CAGR of 27% over the forecast period. This technology leverages Optical Character Recognition (OCR) to recognize text and then uses Artificial Intelligence (AI) to analyze information.

Dominating Companies in Intelligent Document Processing Market

• ABBYY
• IBM
• KOFAX
• WORKFUSION
• AUTOMATION ANYWHERE
• APPIAN
• UIPATH
• DATAMATICS
• DELOITTE
• ANTWORKS
• PARASCRIPT
• HYPERSCIENCE
• OPENTEXT
• HYLAND
• EXTRACT SYSTEMS
• CELATON
• HCL TECHNOLOGIES
• EPHESOFT
• IRIS
• BIS
• KODAK ALARIS
• HIVE
• OCROLUS
• INDATA LABS
• ACODIS
• EVOLUTION AI
• INFRRD
• ROSSUM
• AMYGB
• HYPATOS
• IN-D

Recent Developments in Intelligent Document Processing Market

• In October 2021, cloud-based data analytics provider, Alteryx, announced its acquisition of data management and governance platform, Amlgo, for $300 million. The acquisition is expected to strengthen Alteryx's capabilities in intelligent data processing and document extraction.
• In May 2021, UiPath, a leading Robotic Process Automation (RPA) platform, announced its acquisition of Cloud Elements, an API integration platform, to enhance its intelligent automation capabilities. The acquisition will enable UiPath to offer better connectivity and integration between its RPA platform and other business systems.
• In September 2020, IBM announced a partnership with Box, a cloud content management platform, to integrate its AI-powered intelligent document processing capabilities into the Box platform. The partnership aims to improve the speed and accuracy of document processing for Box users.
• In July 2019, cloud-based document management and workflow automation provider, Conga, announced its acquisition of contract management software provider, Octiv, to enhance its intelligent document processing capabilities. The acquisition enabled Conga to offer a more comprehensive set of document automation solutions.
• In April 2019, data analytics provider, Tableau, announced a partnership with automation software provider, Automation Anywhere, to integrate their respective platforms and offer intelligent document processing and data automation capabilities to their customers. The partnership aimed to enable users to easily extract data from unstructured documents and automate data-driven tasks.
• In January 2022, UiPath announced the acquisition of Cloud Elements, a leading API integration platform provider, to expand its intelligent automation capabilities, including document understanding and processing.
• In December 2021, Adobe announced its acquisition of U.K.-based Intelligent Document Processing (IDP) software provider, Paragon Document Solutions, to enhance its Adobe Document Services offerings.
• In November 2021, Hyland Software acquired SolutionNet International, a provider of document management, intelligent capture and workflow automation solutions for healthcare organizations, to expand its healthcare offerings.
• In October 2021, Kofax, a provider of Intelligent Automation software, announced a partnership with Fujitsu to offer intelligent document processing and robotic process automation solutions to help enterprises automate their business processes.
• In September 2021, Iron Mountain, a storage and information management services company, acquired Egnyte, a cloud content collaboration and governance platform provider, to enhance its intelligent content services capabilities.
• In June 2021, Adobe announced a partnership with ServiceNow to integrate its Adobe Sign electronic signature solution with ServiceNow's Now Platform, enabling automated document workflows and digital signatures.
• In May 2021, Xerox announced its acquisition of CareAR, a provider of augmented reality software solutions, to enhance its digital transformation offerings, including intelligent document processing.
• In February 2021, Ephesoft, a provider of enterprise content capture and data discovery solutions, announced a partnership with Alfresco, an open source content services platform, to offer intelligent document processing solutions to their customers.

In conclusion, Intelligent Document Processing is an innovative technology that offers significant benefits to businesses and customers alike. With IDP, businesses can automate their document processing tasks, reduce errors, improve efficiency, and make more informed decisions. It is a game-changing technology that has the potential to revolutionize the way businesses operate in the future.