PUBLISHER: Orion Market Research | PRODUCT CODE: 1527033
PUBLISHER: Orion Market Research | PRODUCT CODE: 1527033
Intelligent Document Processing Market Size, Share & Trends Analysis Report by Enterprise Type (Small, and Medium-Sized Enterprises, and Large Enterprises), by Function (Finance & Accounting, Human Resources, Supply Chain & Procurement, and Others (Legal, Marketing)), by Deployment (On-premise, and Cloud), and by Industry (BFSI, Healthcare & Life Sciences, Retail & E-Commerce, Manufacturing, Government, IT & Telecom, and Others (Construction, Travel & Transportation, Energy & Power)), Forecast Period (2024-2031)
Intelligent document processing market is anticipated to grow at a CAGR of 23.7% during the forecast period (2024-2031). The market growth is attributed to the rising use of automation in document processing, the adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) in document processing, and organizational efforts to reduce cost alongside increasing overall efficiency. In recent years, the market has recorded an exponential increase in usage of intelligent document processing software in industries such as BFSI, healthcare & life sciences, retail & e-commerce owing to an increase in the number of documents to be processed. Further, the market trends are moving towards an increase in cloud-based offerings, integration of human-in-the-loop (HITL) systems, and enhanced customer experience through reducing response time.
Market Dynamics
Rising Adoption of Intelligent Automation by Organizations
The growth in the intelligent document processing market is driven by the rising adoption of intelligent automation across organizations to increase productivity and efficiency. Major functions in the organization such as marketing, HR, finance, and analytics are utilizing intelligent document processing software to gather insights, scan documents, and shortlist candidates, resulting in reduced workload and optimal decision-making process. For instance, according to the report by World Economic Forum, by 2025, automation and a new division of labor between humans and machines will disrupt 85 million jobs globally in medium and large businesses across 15 industries and 26 economies and more than 80.0% of business executives are accelerating plans to digitize work processes and deploy new technologies, while 50.0% of employers are expecting to accelerate the automation of some roles in their companies.
Increasing Digitalization in Developing Nations
The other factor driving the market growth is increasing digitalization, especially in developing countries such as India, African nations, and Brazil, among others. Most developing nations are increasingly investing and transforming their functioning across industries to optimize resources and streamline processes to create cost efficiency and better workforce utilization. Moreover, countries have integrated document processing software into administrative workflows to digitize application, verification, and KYC procedures. For instance, in Indian governments, DigiLocker has provided a dedicated cloud-based platform as a personal space to residents for storage, sharing, and verification of documents & certificates, thus it is helping in eliminating the use of physical documents. Over 13.5 crore users are registered with DigiLocker and over 562 crore documents are accessible via DigiLocker. Similarly, the Electronic Human Resource Management System (eHRMS): eHRMS application is responsible for the maintenance of employee records in electronic form, from hiring to retirement. The project includes scanning/digitization of the service book to capture the legacy data and provision of numerous online services through various modules; namely Service Book, Leave, LTC, Personal Information, Reimbursements, Advances, Tour, and Helpdesk, among others.
Cloud is the Prominent Deployment Type Segment
Cloud-based deployment types have been growing since the launch of cloud-based storage services, as companies use the model to decrease cost, increase collaboration & productivity, and reduce hardware constraints. Moreover, owing to changes in business models and working conditions, individuals and organizations require documents and processes to be available beyond geographical constraints, creating scope for the deployment type. For instance, in March 2024, Quantiphi, an AI-first digital engineering company, announced that Dociphi, its Intelligent Document Processing SaaS Platform, is available on Google Cloud Marketplace, allowing businesses to minimize manual tasks and save time and resources.
BFSI is the Dominant Industry
BFSI is the dominant industry in the market owing to the increasing rate of physical documentation, adoption of digital platforms for data collection and storage, organization efforts to replace repetitive back-office tasks with automation and increasing personnel efficiency. For instance, in October 2021, CGI collaborated with the Bank of Montreal (BMO) and the National Bank of Canada (NBC) to test the application of intelligent process automation in document capture, identification, and classification as part of the CGI Trade360 global trade platform's transaction flow. The pilot's goal is to help these banks and others speed their digital transformation by automating paper document flows, resulting in improved trade finance operations, compliance, and relationship management.
The global intelligent document processing market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
North America holds the highest share of global intelligent document processing attributed to factors including the presence of major AI & ML technology companies such as Google, Oracle Corporation, IBM, and Amazon Web Services, the growing trend of automating workflows by organizations in the region, increasing investments in AI & ML technology, organizational efforts to optimize asset allocation, and ample government support. For instance, in October 2023, Moody's Corporation and Google Cloud announced a new strategic partnership to investigate combining Moody's expertise in financial analysis with Google Cloud's advanced generative AI (gen AI) technologies to assist Moody's customers and employees in leveraging new large language models (LLMs) to gain new financial insights and summarize financial data more quickly.
Asia-Pacific is the Fastest Growing in Intelligent Document Processing market
The major companies serving the global intelligent document processing market include Amazon Web Services, Inc., ABBYY Solutions, IBM Corporation, Microsoft Corporation, and Oracle Corporation, among others. The market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion, among others. For instance, in June 2023, Ripcord and Oracle established a partnership that promises to transform document processing for enterprises globally. This integration combines Ripcord's Document Intelligence as a Service (DIaaS) with Oracle ERP products to provide a one-of-a-kind solution that transforms how businesses manage documents and activate data.