PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1425015
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1425015
Intelligent Document Processing Market size was valued at USD 1,512.23 Million in 2022, expanding at a CAGR of 32.2% from 2023 to 2030.
By processing structured, semi-structured, and unstructured documents, intelligent document processing (IDP) enables technology to read and process content in documents similarly to a human. AI and machine learning techniques are applied in this process.
Intelligent Document Processing Market- Market Dynamics
Increasing investment in digital transformation across different sector to propel market demand
The requirement for affordable and effective document processing solutions, together with rising investments in digital transformation, are factors propelling the market's growth. Furthermore, the industry has a lot of room to grow because of developing countries becoming more digitally advanced. Intelligent Document Processing (IDP) systems collect data from documents, classify it, and then extract pertinent data for additional integration and processing using technologies including computer vision, machine learning (ML), natural language processing (NLP), and optical character recognition (OCR). For example, to automate document processing and improve underwriting, digital business bank Grasshopper Bancorp, Inc. N.A. incorporated Numerated Growth Technologies, Inc.'s AI-powered automated spreading platform in June 2023.
IDP helps to increase compliance, decrease errors, and streamline workflows by automating document processing and data extraction from documents. For example, the US Department of Defense uses IDP to automate the military contract processing. This has decreased the possibility of fraud and helped the DoD save millions of dollars. In a similar vein, the National Health Service in the United Kingdom uses IDP to automate the processing of patient records. This has lowered the possibility of medical errors and increased the accuracy of patient records. Growing digitalization and technology use in developing nations like South Africa, Indonesia, and India will probably present the industry with substantial potential opportunities.
Intelligent Document Processing Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 32.2% over the forecast period (2023-2030)
Based on Component segmentation, solutions was predicted to show maximum market share in the year 2022, owing to rising number of IDP platforms & technology solutions.
Based on Technology segmentation, machine learning was the leading segment in 2022, mainly due to rise in automation in ML techniques.
Based on Deployment segmentation, cloud-based was the leading segment in 2022, mainly due to increase in scalability using cloud solutions.
Based on End-User segmentation, BFSI was the leading type in 2022, mainly due to rising need for documentation in BFSI sector.
On the basis of region, North America was the leading revenue generator in 2022, owing to growing adoption cutting edge technology, ML solutions.
The Global Intelligent Document Processing Market is segmented on the basis of Component, Technology, Deployment, End-User, and Region.
The market is divided into two categories based on Component: solution and services. The solutions dominate the market. The growing number of developments in IDP software solution is expected to boost the segment growth.
The market is divided into three categories based on Technology: machine learning, natural language processing (NLP), and computer vision. The machine learning dominates the market and is likely to maintain its dominance during the forecast period. Machine learning helps to improve accuracy in data extraction which is gaining traction.
The market is divided into two categories based on Deployment: on-premises and cloud-based. The cloud-based dominates the market and is likely to maintain its dominance during the forecast period. This is due to rising adoption of cloud-based solution with the development of big data and real-time data processing.
The market is divided into seven categories based on End-User: BFSI, manufacturing, healthcare, retail, transportation & logistics, IT & telecom, and others. The BFSI dominate the market and is likely to maintain its dominance during the forecast period. This is partly due to an increasing improve operational efficiency and quick response to consumer.
Intelligent Document Processing Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. North America is expected to dominate the market during the forecast period. The presence of major companies like ABBYY, located in the United States, Appian, and Open Text Corporation, based in Canada, together with increasing levels of digitalization and technology adoption are propelling the growth of the regional market. The North American market consists of the United States and Canada. The adoption of intelligent document processing technologies in the United States is driven by leading providers in the region. On the other hand, in Canada, the market is growing because automation-based solutions are adopted early. The expansion of the region is being aided by recent mergers and acquisitions by significant firms.
The market for intelligent document processing is somewhat consolidated competitive environment, with many well-known vendors alongside many upstarts and niche competitors. The major companies are spending money on R&D and innovation to give customers cutting-edge features. In addition, they are implementing tactics like acquisition and expansion to obtain a competitive advantage in the market. For example, in August 2022, U.S.-based Kofax Inc. announced the acquisition of U.S.-based Ephesoft Inc., an intelligent document processing solution provider.
In June 2023, Xiao-I, a prominent technology company, introduced an intelligent document processing product to accelerate enterprise digital transformation and empower various business scenarios.