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.
1.
Research Sources
We at Zettabyte Analytics have a
detailed and related research methodology focussed on estimating the market
size and forecasted value for the given market. Comprehensive research
objectives and scope were obtained through secondary research of the parent and
peer markets. The next step was to validate our research by various market
models and primary research. Both top-down and bottom-up approaches were
employed to estimate the market. In addition to all the research reports, data
triangulation is one of the procedures used to evaluate the market size of
segments and sub-segments.
Research Methodology
1.1. Secondary Research
The secondary research study involves various sources and databases used
to analyze and collect information for the market-oriented survey of a specific
market. We use multiple databases for our exhaustive secondary research, such
as Factiva, Dun & Bradstreet, Bloomberg, Research article, Annual reports,
Press Release, and SEC filings of significant companies. Apart from this, a
dedicated set of teams continuously extracts data of key industry players and
makes an extensive and unique segmentation related to the latest market
development.
1.2. Primary Research
The primary research includes gathering data from specific domain
experts through a detailed questionnaire, emails, telephonic interviews, and
web-based surveys. The primary interviewees for this study include an expert
from the demand and supply side, such as CEOs, VPs, directors, sales heads, and
marketing managers of tire 1,2, and 3 companies across the globe.
1.3. Data Triangulation
The data triangulation is very important for any market study, thus we
at Zettabyte Analytics focus on at least three sources to ensure a high level
of accuracy. The data is triangulated by studying various factors and trends
from both supply and demand side. All the reports published and stored in our
repository follows a detailed process to obtain a reliable insight for our
clients.
1.4. In-House Verification
To validate the segmentation
and verify the data collected, our market expert ensures whether our research
analyst is considering fine distinction before analyzing the market.
1.5. Reporting
In the end,
presenting our research reports complied in a different format for straightforward
valuation such as ppt, pdf, and excel data pack is done.