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The intelligent document processing market size is projected to reach a value of USD 7.38 billion, with an accelerated CAGR of 40.94% between 2023 and 2028. The Intelligent Document Processing (IDP) market is experiencing significant growth, driven by several key factors. The increasing adoption of big data analytics is a major catalyst, enabling organizations to automate document processing and extract valuable insights from unstructured data. Additionally, the reduction of document management costs through digital transformation is a significant motivator. Cloud-based deployment solutions are also gaining traction, providing scalability and flexibility. This market analysis and report delve deeper into the drivers, trends, and challenges shaping the IDP landscape.
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Intelligent Document Processing (IDP) is an advanced technology that utilizes Artificial Intelligence (AI) and Machine Learning (ML) to extract data from various types of documents, such as invoices, contracts, and forms. IDP automates the document processing workflow, reducing manual effort and errors. IBM is a key player in the IDP market, offering Watson AI-powered solutions. Generative AI is a new trend in IDP, enabling the creation of new documents from existing ones. Enterprises across industries, including Transportation and Logistics, Government and Defense, and the Airlines industry, are investing in digital transformation to automate document processing using IDP. Robotic Process Automation (RPA) is also being integrated with IDP to streamline processes further. ML algorithms, such as Optical Character Recognition (OCR), are used to extract data from unstructured documents. IDP is also used in Invoice processing and Fraud detection in the Insurance industry. AI Platform Providers are offering pre-built IDP solutions to cater to the increasing demand.
One of the key factors driving market growth is the growing use of big data analytics. There has been an increasing adoption of big data analytics among enterprises as it offers many business benefits, including improving customer service and operational efficiency, devising effective marketing strategies, identifying new revenue opportunities, and gaining competitive advantages over rivals.
As several enterprises generate structured, unstructured, and semi-structured data, it can be directly integrated with the analytics solution. Hence, this data can be harnessed and analyzed using IDP software solutions after digitization. With the help of IDP software provider solutions, it enables organizations to utilize the information stored in physical documents with the help of digital transformation. Therefore, the growing use of big data analytics is leading to an increase in demand for IDP software provider solutions which will drive the growth of the market focus during the forecast period.
Integration of IDP software with ML is the key trend in the market. Organizations recognize the value of data in driving business operations, decision-making, and revenue growth. However, a significant challenge lies in managing the vast amounts of unstructured data contained within electronic document management systems. For example, a 100-page PDF contract document may be categorized by Intelligent Document Processing (IDP) software into a folder hierarchy with relevant metadata tags.
Moreover, these tags facilitate document retrieval based on content type. However, they do not enable the extraction and understanding of contextual information within the document without manual intervention. Advancements in artificial intelligence technologies, such as Machine Learning (ML) and Generative AI, are revolutionizing IDP solutions. Thus, such trends will shape the growth of the market during the forecast period.
Risks of data theft and cyberattacks is the major challenge that affects the growth of the market. The Intelligent Document Processing (IDP) market is witnessing significant growth due to the increasing digitization of documents and data in various industries, particularly in sectors such as BFSI, where sensitive information is prevalent. IDP solutions employ advanced technologies like Machine Learning (ML), Generative AI, and deep learning to automate document processing and extract data from unstructured formats.
Moreover, enterprises across verticals, including transportation and logistics, are adopting IDP solutions to streamline business functions and improve operational efficiency. AI Platform Providers like IBM offer cloud-deployed IDP solutions for large enterprises to ensure secure and efficient document processing. However, data privacy concerns pose a challenge to the adoption of IDP systems. Confidential data in digitized documents and online documents, including personal and financial information, are at risk from cyberattacks. Hence, the above factors will impede the growth of the market during the forecast period.
The market share growth by the solution segment will be significant during the forecast period. There is a rise in demand for the solutions segment of the market due to its ability to automate document processing tasks, streamline workflow, and improve accuracy. Due to an increasing amount of data generated every day, businesses are facing challenges in processing and managing data efficiently, leading to high demand for IDP software provider solutions.
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The solution segment was valued at USD 535.60 million in 2018. Some of the key benefits of IDP software include the ability to process unstructured data, reduce the time required to process large amounts of data, and eliminate errors caused by human intervention. Thus, it has resulted in the rise in adoption in industries across healthcare, finance, legal, and insurance. For example, in the healthcare industry, there are wide applications of IDP solutions as they are being used to streamline the processing of medical records, insurance claims, and patient information. Hence, such benefits are expected to drive the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the prominent regions with the highest share in the market is North America as enterprises in the region are tech-oriented and have invested in technologies such as business process management software and IDP software solutions to digitize their workflows. IDP software is one of the key technologies that enterprises invest in to digitize their paper-based processes around most of the operating segments, including finance, human resources, operations, and marketing. As a result, enterprises are witnessing quick return on investment (ROI) on document capture software implementations and improving profitability. Hence, such benefits are expected to drive market growth in the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Intelligent Document Processing (IDP) is revolutionizing the way enterprises handle business documents by leveraging artificial intelligence (AI) and machine learning (ML) technologies. IBM is a key player in this market, offering IDP solutions that use ML and deep learning (DL) to extract data from various document formats. IDP solutions automate business functions such as invoice processing, fraud detection, and customer onboarding, making them essential for industries like transportation and logistics, where document handling is voluminous. Generative AI and computer vision are the latest additions to IDP, enabling advanced information structuring and data extraction.
Moreover, AI platform providers offer cloud deployment options, allowing large enterprises to implement IDP solutions with ease. IDP solutions are deployed in two modes: on-premises and cloud. On-premises deployment is preferred by some enterprises due to data privacy concerns. IDP solutions are transforming industries like government and defense, airlines, and insurance, where document handling is critical. Digital transformation investments in these verticals are expected to propel the growth of the IDP market. However, challenges like data privacy concerns and the need for standardized document formats remain. Overall, IDP market is poised for significant growth, driven by the increasing adoption of AI technologies and the need for automation in document processing.
The market is rapidly advancing across various sectors such as Healthcare and Life Sciences, Retail and Consumer Goods, and the Government and public sector. Powered by Natural Language Processing (NLP) and Machine Learning (ML), IDP solutions automate the extraction of information from structured and unstructured content in documents. The market landscape depends on the International Monetary Fund (IMF), ML (Machine Learning), Deployment mode, On premises, small and medium size enterprises, Vertical, Retail and E commerce, and On premise deployment. This technology supports small and medium enterprises (SMEs) in streamlining operations through efficient data handling. IDP solutions offer flexible deployment modes, including On-premises and On-premise deployment, catering to diverse needs in the Healthcare and pharmaceutical industry, Retail and E-commerce, and other verticals. As organizations prioritize accuracy and speed in data processing, IDP plays a crucial role in enhancing document management and operational efficiency across industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 40.94% |
Market growth 2024-2028 |
USD 7.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
31.94 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, Germany, China, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABBYY Solutions Ltd., Adobe Inc., Alphabet Inc., Amazon.com Inc., Automation Anywhere Inc., Capgemini Service SAS, Celaton Ltd., DATAMARK Inc., Datamatics Global Services Limited, Dell Technologies Inc., International Business Machines Corp., Kofax Inc., Lexmark International Inc., M Files, Microsoft Corp., OpenText Corp., SAP SE, SS and C Technologies Holdings Inc., UiPath Inc., and WorkFusion Inc. |
Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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