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Intelligent Document Processing Market Research Report—Global Forecast till 2027

Intelligent Document Processing Market Research Report: Information by Component (Solutions and Services {Professional Services and Managed Services}), Deployment Mode (Cloud-Based and On-Premises), Organization Size (Small & Medium-Sized Enterprises and Large Enterprises), Technology (Natural Language Processing (NLP), Optical Character Recognition (OCR), Robotic Process Automation (RPA), Google Vision, Deep Learning (DL), Machine Learning (ML), and Artificial Intelligence (AI)), Vertical (BFSI, Government & Public Sector, Retail and ...

ID: MRFR/ICT/9148-HCR | July 2021 | Region: Global | 99 pages

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Intelligent Document Processing Market Overview


The intelligent document processing market was valued at USD 765.2 million in 2020 and is projected to reach USD 6,785.2 million by 2027 with a CAGR of 35.4% during 2021–2027.


Intelligent document processing solutions transform unstructured and semi-structured information into usable data. Organization data is at the heart of digital transformation; unfortunately, 80 percent of all organization data is embedded in unstructured formats such as business documents, emails, images, and PDF documents. Intelligent document processing (IDP) is the next generation of automation, capturing, extracting, and processing data from a range of document formats. It uses artificial intelligence technologies such as natural language processing (NLP), deep learning, computer vision, and machine learning (ML) to classify, categorize, and extract appropriate information and validate the extracted data.


Furthermore, document processing is a familiar term for many enterprises and is something that business functions have been performing daily for several years. It is the process of translating the content of a document (electronic or physical) into something actionable and with meaning. The tasks required to carry out document processing tend to be repetitive and manual, and due to the high volumes received, they become labor-intensive and often less than rewarding for the staff.


Intelligent document processing is gaining attention because it provides disruptive solutions to automate data extraction projects that were previously extremely difficult, if not impossible, to solve. Intelligent document processing solution provides direct cost saving, ease of use, higher accuracy, process efficiency, and strategic goal boost, among other advantages.


The amount of data generated by enterprises is growing exponentially, which along with the rising need for enterprises to process large volumes of semi-structured and unstructured documents with greater accuracy and speed, are the major drivers fuelling the growth of the intelligent document processing market.


Data has changed the world human lives in. Currently, enterprises utilize data to introduce new business models, generate new revenue streams, enhance customer experience, create personalized services, and become more agile. This reliance is only ever-increasing with time as the world experiences unprecedented data volume growth. The growth in data volume and variety poses unique challenges in terms of data management. Without the right data strategy, business leaders will find themselves with heaps of data that are difficult to utilize and analyze, resulting in organizations experiencing operational inefficiencies and, ultimately, a loss in profits. Intelligent document processing can be applied to a wide variety of business use cases across all industries where knowledge workers continue to process documents manually. Examples include horizontal use cases, such as purchase order processing and invoice processing, as well as industry-specific use cases, such as insurance claims, know your customer, and loan applications, among others. Thereby, data-centric sectors are the major end-users of the intelligent document processing solution. According to the latest Survey, the banking, financial services and insurance (BFSI) and healthcare industries made up more than 50% of the entire intelligent document processing customer base.


Market Dynamics


Drivers


  • Amount of Data Generated byEnterprises is Growing Exponentially


The amount of data across businesses is growing rapidly with the boom in digital transformation. According to industry experts, worldwide data is expected to exceed 175 zettabytes by 2025. With most of this information locked in text, emails, PDFs, and scanned documents. Banking, financial, healthcare, education, the government sector has always been facing issues to process documents manually. However, with the introduction of intelligent document processing tools, the processes get streamlined. Organizations receive a high volume of semi-structured and unstructured documents such as invoices, sales orders, and customer correspondence, which often can’t be fully processed using rules-based automation software. Therefore, intelligent document processing solutions have gained significant importance across businesses and are expected to witness a high adoption rate during the projected period. 


Rising Need for Enterprises to Process Large Volumes of Semi-Structured and Unstructured Documents with Greater Accuracy and Speed


Currently, businesses across the globe generate a tremendous volume of data on a daily basis. To process unstructured and semi-structured documents is a complex task for businesses. Accuracy and speed is the prime factor which has become more important across the businesses. OCR is also available for few years in the market for document processing; however, speed and accuracy have not been proved to achieve as compared to IDP. On the other hand, businesses are seeking rapid speed in document processing with great accuracy as small errors can lead to downtime and loss. As a result, IDP has emerged as a reliable software tool that uses AI technology to process complex unstructured and semi-structured data. Therefore, the demand has surged exponentially across the businesses for the intelligent document processing market and is expected to boost even more during the projected period. 


Restraints 


  • Changing Governance and Compliance Requirements


Worldwide regulations towards the processing of the document are becoming tighter in recent years. Moreover, compliance requirements also change from time to time that is expected to pose major restraints for the intelligent document processing market. Especially across the US and countries in Europe, the document and data processing regulations change from time to time. To be compliant with these regulations is expected to act as a major restraint factor for the intelligent document processing market players. However, prominent players are making rapid technological advancements in intelligent document processing solutions.


Opportunities


  • Integration of RPA with Intelligent Document Processing (IDP) Solutions


Integration of RPA with IDP solutions is expected to be a major opportunity for the intelligent document processing market during the forecast period. Intelligent document processing is an essential ingredient of intelligent automation. However, automation can reach only so far as data is available to work with. Using standard RPA systems, setting up data extraction to run automation is often a separate third-party project, which adds ongoing costs and fragile integration points. Effectively extracting data and structuring information helps automating the lion’s share of business processes that today rely on manual intervention and inputs. Embedding IDP within the RPA platform is what enables business users to automate processes end-to-end. 


IDP and RPA, together, provide a simple yet effective tool to automate enterprise business processes. As RPA, IDP tools are completely non-invasive, integration-friendly, and are extensively applicable across industries and business functions. Therefore, integrating RPA with IDP could be a major opportunity for the industries and present lucrative sales and revenue opportunities for the intelligent document processing market players. 


Impact of COVID-19


Introduction


COVID-19 firstly originated in early 2020 in Wuhan, China, and rapidly spread across the globe. The worldwide cases have surpassed 183 million as of now and continue to rise. The pandemic forced lockdown situations across all the major economies and prompted the imposition of numerous restrictions such as travel barriers, closure of the shops and markets, work from home, import-export ban, and others. Governments all over the globe made various guidelines to stop the further spread of the COVID-19. Despite this, the coronavirus cases increased significantly and continue to rise. The COVID-19 pandemic hit all the major industries such as manufacturing, trade, hospitality, leisure, oil and gas, tourism, automotive, and transportation. Nevertheless, the COVID-19 pandemic hit the intelligent document processing market in some areas. COVID-19 pandemic also accelerated the demand for intelligent document processing in some industries.


Intelligent Document Processing for Innovation in Life Sciences Regulations


In the wake of the COVID-19 pandemic, many life sciences organizations are seeking efficiency and control over the regulatory process more than ever before. There is an increased urgency for speed, accuracy, and simplified processes in the Regulatory Information Management (RIM) space and prioritizing projects that will quickly deliver the most patient value.


Intelligent Document Processing in the Insurance Sector


RPA, coupled with intelligent document processing skills, can help in reducing the human intervention when it comes to registering insurance claims, thus reducing the burden on insurance customer advisors. The insurance sector has emerged as a major vertical amidst the pandemic, which isincreasingly using intelligent document processing technology coupled with RPA. 


Transformation Of Businesses


COVID-19 has transformed the future of business. Despite all the negative consequences, the pandemic has initiated some encouraging changes. COVID-19 has accelerated the digitalization from a ‘nice to have to a ‘must have’ for many organizations, forcing them to adapt and modernize quickly to keep their operations running. 


Cloud-Based Deployment Gained Rapid Popularity


The pandemic has forced work from home to major industries, which has surged the demand for cloud-based deployments. The developing nation’s enterprises were on a steady pace toward cloud adoption for the better part of the decade, and COVID-19 has acted as a catalyst for the same.


Post-pandemic scenario


In the COVID-19 and post COVID-19 era, paperless transactions and remote operations are becoming a new normal. Intelligent Document Processing technology enables micro, small, and medium entities and large enterprises to jump-start a paperless e-office. Post-pandemic is expected to start a new era of paperless documents in most of the economies.


Cumulative Growth Analysis


YOY Growth to Expand at a Strong Rate


According to MRFR, the intelligent document processing market is expected to witness 33 to 39 percent YOY growth every year during the projected period. The increasing IT spending, exponential growth in data volumes, rising adoption of cloud-based solutions, and increasing demand for automated document processing without human intervention amidst the COVID-19 pandemic are expected to boom the intelligent document processing market growth during the projected period.


Value Chain Analysis/Technology Analysis/Regulatory Implications


The global intelligent document processing market supply chain has evolved from a traditional approach to a set of highly efficient processes, including procurement, system integration, and distribution. The supply chain of the intelligent document processing market involves the designers & programmers, software/platform developers, system integrators, and endusers. 


Segment Overview


The global intelligent document processing market has been segmented into component, deployment mode, technology, organization size, and vertical.


Based on the component, the intelligent document processing market has been bifurcated into solutions and services. The solutions segment accounted for the larger market share and is expected to retain its dominance throughout the projected period. This can be attributed to the adoption of advanced intelligent processing software solutions across the industry verticals. Solutions being deployed on the on-premises and cloud deployments.


Based on deployment mode, the intelligent document processing market has been bifurcated into on-premises and cloud-based. The cloud-based deployment model is expected to grow with significant CAGR during the forecast period. In the last couple of years, software as a service model has gained exceptional traction among small and large businesses. Several large enterprises are utilizing cloud-based models using a hybrid cloud approach.


Based on the technology, the intelligent document processing market has been classified into Natural Language Processing (NLP), Optical Character Recognition (OCR), Robotic Process Automation (RPA), Google Vision, Deep Learning (DL), Machine Learning (ML), and Artificial Intelligence (AI).


By organization size, the global intelligent document processing market has been segmented into small & medium-sized enterprises and large enterprises. The small & medium-sized enterprises segment held the larger market share within the market. This can be attributed to the increasing numbers of SMB’s as well as their interest in the use of intelligent document processing solutions. Major SMB’s are integrating intelligent document processing with the RPA, which is the major trend witnessing within the intelligent document processing market.


Based on verticals, the intelligent document processing market has been segmented into BFSI, government & public sector, retail and e-commerce, manufacturing, healthcare and life sciences, transportation & logistics, and others. The government & public sectors, BFSI, healthcare, and life sciences are the major verticals that are generating significant revenue for the intelligent document processing market.

Global Intelligent Document Processing Market, 2018–­2027 (USD Million)

Global Intelligent Document Processing Market, 2018–­2027 (USD Million)
Source: MRFR Analysis


Regional Analysis


The global intelligent document processing market is expected to gain significant revenue from the various continents during the projected period. The geographic analysis of the global intelligent document processing market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America is further classified into the US, Canada, and Mexico. Europe is further classified into the UK, Germany, France, and the Rest of Europe. The Asia-Pacific is further segmented into China, Japan, India, and the Rest of Asia-Pacific.


North America Holds the Largest Share in the Market 


North America holds the leading share within the intelligent document processing market primarily due to the rapid adoption in the various industry verticals and the rise in IT spending. The rapid adoption of advanced technologies such as AI, ML, NLP, and computer vision is significantly high among enterprises. The presence of prominent vendors in the region such as ABBYY, Kofax, IBM, WorkFusion, Parascript, Hyland, Automation Anywhere, and Extract Systems is also a key factor driving the adoption of intelligent document processing in the region. Industries such as government, BFSI, transportation & logistics, manufacturing, and healthcare & life sciences are at the forefront of adopting intelligent document processing solutions.


Europe Grips Second Highest Share in the Global Market


Europe holds the second position in the intelligent document processing market in terms of revenue. The UK, Germany, and France are the major growth engines of the market. The UK holds the leading share within the European intelligent document processing market. Germany and France are also contributing significant revenue for the European market. Benelux and Nordic countries have shown significant deployment of intelligent document processing solutions. 


The APAC region is expected to be the Fastest Growing Continents


Asia-Pacific (APAC) is expected to grow with the fastest CAGR rate during the forecast period. The region has seen a rapid boom in intelligent document processing market growth due to increased automation across industry verticals. The countries such as China, Japan, India, South Korea, and Australia are the major growth engines of the APAC region's intelligent document processing market growth. Furthermore, Southeast Asian countries such as Malaysia and Singapore also have emerged as the major market for the intelligent document processing market in recent years. APAC is filled with numerous small and medium-sized organizations, which could fuel major opportunities during upcoming years.


Competitive Analysis


The global intelligent document processing market is highly competitive with the presence of several leading vendors. However, some of these players have created goodwill within the market by offering advanced solutions coupled with a client satisfaction approach.


IBM (US), Kofax (US), WorkFusion (US), ABBYY (US), and Automation Anywhere (US) are the prominent players within the market which have captured the largest client base across the globe. Some of these prominent players have adopted some organic and inorganic strategies such as mergers, acquisitions, partnerships, strategic alliances, and product launches, among others, in order to gain a competitive advantage. Moreover, some of the leading players are constantly focusing on technological advancements to offer advanced and upgraded solutions as per the dynamic market needs. The vendors compete in terms of software types, deployment, after-sales services, among other factors. Technological advancements are mandatory for new entrants to compete against the leading giants within the market.


List of Key Companies Covered in this Report:-



  • IBM (US)

  • Kofax (US)

  • WorkFusion (US)

  • ABBYY (US)

  • Automation Anywhere (US)

  • Appian (US)

  • UiPath (US)

  • Datamatics (India)

  • Deloitte (UK)

  • AntWorks (Singapore)

  • OpenText (Canada)

  • Celaton (UK)

  • HCL Technologies (India)

  • Kodak Alaris (UK)


Key Developments in Intelligent Document Processing Market:


In Sept. 2020, Appian introduced intelligent document processing or IDP. IDP lets Appian users leverage artificial intelligence to transform unstructured data from their business documents into structured data.


In May 2020, Deloitte and UiPath, the enterprise Robotic Process Automation (RPA) software company, announced they are working together to deliver Deloitte Intelligent Document Processing (DIDP), an on-premise or cloud-based automation accelerator that enables capturing documents before extracting, classifying, and verifying their data for processing. The integrated technology comprises Optical Character Recognition (OCR), Human-in-the-Loop (HITL), Machine Learning (ML), and the UiPath RPA. The power of DIDP is its ability to handle multiple document types by processing any type of structured or semi-structured document, ranging from invoices to contracts.


In Oct. 2020, IBM announced a new low-code, AI-led document processing capability for the IBM Cloud Pak for Automation.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the global intelligent document processing market has based on component, deployment, technology, organization size, vertical, and region.


Based on Component



  • Solutions

  • Services

  • Professional Services

  • Managed Services


Based on Deployment Mode



  • Cloud-Based

  • On-Premises


Based on Technology



  • Natural Language Processing (NLP)

  • Optical Character Recognition (OCR)

  • Robotic Process Automation (RPA)

  • Google Vision

  • Deep Learning (DL)

  • Machine Learning (ML)

  • Artificial Intelligence (AI)


Based on Organization Size



  • Small & Medium-Sized Enterprises

  • Large Enterprises


Based on Vertical



  • BFSI

  • Government & Public Sector

  • Retail and E-Commerce

  • Manufacturing

  • Healthcare and Life Sciences

  • Transportation & Logistics

  • Others


Based on Region



  • North America

  • Europe

  • Asia-Pacific

  • South America

  • Middle East & Africa



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 6,785.2 million
  CAGR   35.4% CAGR
  Base Year   2020
  Forecast Period   2021-2027
  Historical Data   2018-2019
  Forecast Units   Value (USD Million)
  Report Coverage   North America (US, Canada, and Mexico), Europe (UK, Germany, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), Middle East & Africa, South America
  Segments Covered   â€¢ By Component (Solutions, Services {Professional Services, Managed Services}) • By Deployment Mode (Cloud-Based, On-Premises) • By Technology (Natural Language Processing (NLP), Optical Character Recognition (OCR), Robotic Process Automation (RPA), Google Vision, Deep Learning (DL), Machine Learning (ML), Artificial Intelligence (AI)) • By Organization Size (Small & Medium-Sized Enterprises, Large Enterprises) • By Vertical (BFSI, Government & Public Sector, Retail and E-commerce, Manufacturing, Healthcare and Life Sciences, Transportation & Logistics, Others)
  Geographies Covered   
  Key Vendors   
  Key Market Opportunities   
  Key Market Drivers   â€¢ Drivers • Amount of data generated by enterprises is growing exponentially • Rising need for enterprises to process large volumes of semi-structured and unstructured documents with greater accuracy and speed


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Frequently Asked Questions (FAQ) :

The global intelligent document processing market is predicted to grow at a 35.4% CAGR between 2021- 2027.

The global intelligent document processing market will touch USD 6,785.2 million by 2027.

North America will lead the global intelligent document processing market.

Integration of RPA with IDP solutions is the key factor driving the global intelligent document processing market growth.

Key contenders profiled in the global intelligent document processing market include IBM, Kofax, WorkFusion, ABBYY and Automation Anywhere.