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The global intelligent document processing market size was valued at USD 1.33 billion in 2022. The market is projected to grow from USD 1.75 billion in 2023 to USD 12.81 billion by 2030, exhibiting a CAGR of 32.9% during the forecast period.
Intelligent Document Processing (IDP) is a cutting-edge solution for extracting and classifying documents using various technologies, such as Natural Language Processing (NLP), Optical Character Recognition (OCR), computer vision, and Machine Learning (ML). IDP-extracted data can be used by businesses to reduce manual efforts and discover insights in structured and unstructured documents.
Industries, such as BFSI, healthcare, and manufacturing deal with a huge number of text documents every day. For instance, the insurance industry is considered one of the most paper-intensive industries and deals with more than 100 million documents each year. Processing such large volumes of structured and unstructured data presents a significant challenge to businesses. Hence, an increasing number of companies are turning to innovative technologies, such as intelligent document processing for extracting data efficiently and effectively.
The significant demand for intelligent document processing is majorly attributed to the increasing focus of organizations on digital transformation, need for efficient document management, and growing adoption of artificial Intelligence (AI) and ML technologies for business processes. As per the IBM Global AI Adoption Index Report 2022, 35% of companies reported using AI in their business to boost the automation of tasks and reduce costs. AI-powered document processing also accelerates corporate decision-making by accurately extracting valuable insights from documents and incorporating them into systems or processes.
Businesses are actively incorporating IDP platforms to boost digital transformation. For instance,
COVID-19 Pandemic Propelled Digital Transformation Across Various Industries, Augmenting Market Growth
The COVID-19 pandemic significantly accelerated digital transformation across various industries in most countries on account of social distancing and other stringent measures imposed by governments globally. Before the pandemic, digital transformation was lagging owing to various factors, such as complexity and cost. However, the outbreak turned digital transformation into an urgent priority. According to the International Monetary Fund (IMF), digitalization advanced by an average of 6 percentage points across advanced economies.
As more businesses increasingly adopted digital technologies, IDP became one of the crucial tools on their digital transformation journey. The sudden shift to remote work made it necessary for businesses to have centralized data repositories that gave access to content on any device, irrespective of the location and time. IDP made it possible to organize documents centrally by giving access to users with appropriate permissions. In addition, it significantly reduced physical interactions and paper-intensive processes, contributing to safety measures.
The necessity for widespread integration of digital technology to overcome the uncertain business dynamics might drive the global intelligent document processing market growth post-pandemic.
Advancements in Technologies such as AI and Machine Learning (ML) to Aid Market Growth
The rapid advancements in AI and Machine Learning (ML) are expanding the market growth. According to the Artificial Intelligence Index Report 2023 by Stanford University, the number of AI publications grew from 200,000 in 2010 to almost 500,000 in 2021. In 2021, the most published AI fields of study were computer vision (30,075), algorithm (21,527), and data mining (19,181). In addition, the report also highlighted that AI is most likely to have been integrated into robotic process automation (39%), computer vision (34%), and Natural Language (NL) text understanding (33%). AI advancements will fuel the market by improving accuracy, efficiency, and capabilities. Natural Language Processing (NLP) and computer vision can improve data extraction capabilities, even from unstructured documents.
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Increasing Need for Automated Document Management to Fuel Market Growth
As businesses grow, the amount of business documents also increases. These documents include reports, files, and records that are related to various business functions. Handling and organizing these documents are crucial to save valuable time, increase accuracy, and reduce costs. As per a survey, manual data entry errors in the supply chain, procurement, and other business functions cost businesses more than USD 600 billion every year. To overcome this concern, companies are expected to increasingly adopt Intelligent Document Processing during the forecast period. IDP leverages machine learning algorithms to precisely extract information from documents, reducing dependence on manual data entry. In addition, the rise of cloud computing is further augmenting the adoption of IDP as cloud computing allows firms to access and manage their documents anywhere and at any time.
Data Security Concerns Coupled with Challenge of Handling Unstructured Data to Hamper Market Growth
IDP involves the processing of sensitive information. Hence, data security and privacy have become some of the major concerns that are anticipated to hinder the market growth. Moreover, the challenge of handling unstructured documents also poses a significant challenge for the widespread adoption of IDP. Unstructured documents lack a predefined format. Thus, extracting valuable insights from such documents requires the use of advanced AI models.
Growing Need for Accurate Data Entry to Boost IDP Demand in Finance & Accounting Functions
Based on function, the market is divided into finance & accounting, human resources, supply chain & procurement, and others. The finance & accounting function segment is expected to hold the largest market share during the forecast period. With the help of IDP, the finance & accounting department can automate various tasks, such as invoice processing and financial reporting, thus reducing manual data entry errors. IDP also improves visibility into financial data, allowing better decision-making.
In addition, the supply chain & procurement function segment is expected to show the highest CAGR during the forecast period. IDP is an essential tool for businesses to boost their supply chain efficiency. It quickly captures valuable data from purchase orders and invoices, thus saving time and reducing cost.
Adoption of Cloud-based Solutions to Increase Owing to Their Cost Efficiency and Scalability
Based on deployment model, the market is divided into on-premises and cloud. The cloud segment is anticipated to record the highest CAGR during the forecast period. Companies are increasingly turning to cloud-based solutions due to their various benefits, such as cost-effectiveness, better data recovery, and accessibility. Employees can have access to important documents from anywhere, at any time, and using any device, thus boosting collaboration and productivity. According to a “2021/2022 Digital Transformation & Cloud Survey” report by Baker McKenzie, 77% of organizations were scaling up digital transformation and their top priority for investment was cloud computing (85%) for storing, mining, and securing data.
SMEs to Increase Adoption of Intelligent Document Processing to Boost Productivity
Based on enterprise type, the market is segmented into small and medium-sized enterprises and large enterprises. The Small and Medium-sized Enterprise (SME) segment is expected to display the highest CAGR during the forecast period. Digitalization has a significant impact on SMEs and offers lucrative growth opportunities. Adoption of advanced technologies helps SMEs boost productivity and efficiency as well as sustain the market competition.
In addition, the largest market share is anticipated to be held by large enterprises owing to the increasing importance of data-driven decision-making, thereby encouraging collaboration, improving agility, reducing human error, and boosting operational efficiency.
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Growing Focus on Efficiency and Automation to Surge Product Demand in BFSI Industry
Based on industry, the market is segmented into BFSI, healthcare & life sciences, retail & e-commerce, manufacturing, government, IT & telecom, and others (construction, travel & transportation, and energy & power).
The BFSI segment is expected to hold the largest intelligent document processing market share during the forecast period. The BFSI sector faces many challenges owing to the complexities of handling large volumes of documents and back-office inefficiencies. Banks often have to deal with time-consuming and repetitive tasks. In addition, the role of finance auditors is quite complex and prone to human errors. To overcome such challenges, the BFSI sector is increasingly leveraging advanced technologies, such as IDP. This technology helps BFSI institutions automate repetitive activities accurately, boost overall business performance, and deliver a better experience to employees as well as customers.
The healthcare & life sciences segments are set to register the highest CAGR. The healthcare & life sciences industry is embracing automation rapidly to streamline operations, improve patient service, eliminate clerical errors, and free up resources.
Geographically, the market is fragmented into five major regions including North America, South America, Europe, the Middle East & Africa, and Asia Pacific.
North America Intelligent Document Processing Market Size, 2022 (USD Billion)
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North America is expected to account for the largest market share during the forecast period owing to the presence of well-established players, increased automation across various industries, and significant technological advancements in the region. The U.S. has maintained its dominant position in North America due to rapid developments in digitization. Collaborations, mergers & acquisitions, and partnerships by key players will contribute to the region’s market growth. For instance,
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Furthermore, the Asia Pacific market is expected to show the highest growth rate during the forecast period owing to the presence of the world’s fastest-growing economies, such as China, India, Vietnam, the Philippines, and Singapore. The pandemic significantly accelerated the digitalization trend in this region. Asia Pacific is home to a growing number of technology giants as well. Companies in this region are increasingly adopting advanced technologies, such as IDP to stay ahead of the competition.
The market in Europe is driven by the presence of high-quality digital infrastructure and an increasing focus on process automation in various sectors including BFSI, healthcare, and manufacturing.
The Middle East and Africa (MEA) market growth is majorly attributed to the rapid adoption of digital technologies in this region to enhance processes and services.
In South America, the growth of SMEs as well as expansion of cloud computing platforms are anticipated to fuel the market growth.
Key Players Are Focused On Strengthening Their Market Position with Continuous Developments
The global market is consolidated by leading players, such as ABBYY, Rossum, AntWorks, Hyperscience, Celaton, qBotica, UiPath, Automation Anywhere Inc., Hyland Software Inc., and Kofax Inc. These key players are expanding their operations by adopting strategies, such as mergers, acquisitions, product launches, collaborations, and partnerships. For instance,
An Infographic Representation of Intelligent Document Processing Market
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The report offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments in the market. It also provides an elaborative analysis of the market dynamics, emerging trends, and competitive landscape. The report also offers key insights, such as the implementation of automation in specific market segments, recent industry developments, such as partnerships, mergers, funding, acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro & micro economic indicators, and major industry trends. This detailed analysis provides a comprehensive view of the market and its potential for growth and development.
2019 - 2030
2023 – 2030
2019 - 2021
CAGR of 32.9% from 2023 to 2030
Value (USD billion)
By Deployment Model
By Enterprise Type
According to Fortune Business Insights, the global market is predicted to reach USD 12.81 billion by 2030.
In 2022, the market value stood at USD 1.33 billion.
The market is projected to record a CAGR of 32.9% during the forecast period of 2023 – 2030.
The finance & accounting function segment dominated the market in 2022.
Increasing focus of organizations on data-driven decision-making coupled with surge in digitalization will aid the market growth.
Some of the top players in the market are ABBYY, Rossum, AntWorks, Hyperscience, Celaton and others.
North America dominated the market due to the presence of major market players.
By industry, the healthcare & life sciences segment is expected to show the highest CAGR during the forecast period.
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