Intelligent Document Processing Market Analysis by Component (Solutions and Services); by Deployment mode (Cloud and On-Premises); by Organization Size (Small & Medium Enterprises and Large Enterprises); by End User Vertical (BFSI, Healthcare, Retail, Government, Life Sciences) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4826 | Published Date: Apr 14, 2023
The global intelligent document processing market size is estimated to reach ~USD 122 Billion by the end of 2035 by growing at a CAGR of ~40.50% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of intelligent document processing was ~USD 2 Billion. The growth of the market can be attributed to the rising need of enterprises to process large volumes of structured and unstructured documents with utmost accuracy and speed. Further, the increasing investments in digital transformation and adoption of efficient document processing solutions like Artificial Intelligence (AI) across the globe are also expected to add to the market growth. According to reports, 31% of organizations in US have adopted AI into their document processing system, post the COVID 19 pandemic. Hence the share of intelligent document processing solutions is predicted to increase further in the years to come.
In addition to these, factors that are believed to fuel the market growth of intelligent document processing include the growing technology adoption and digitalization in developing countries like India, Indonesia. Further, the rise in proliferation of digital material resulting in digital documents with different styles, increased investments in the field are also expected to boost the market growth. For instance, the digital document solutions market in India is said to observe over 25% increased investments, for developing better, efficient document processing solutions. All these factors are predicted to present the potential for market expansion over the projected period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~40.50% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2035) |
~ USD 122 Billion |
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Regional Scope |
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Growth Drivers
Rise in Adoption of Advanced technologies – On account of the increasing rates of adoption of advanced technologies in organizations and businesses, the market is expected to expand more in the upcoming years. By integrating a number of technologies, intelligent document processing can increase business operations' efficiency and improve document outsourcing. Corporate operations refer to the use of intelligent document processing along with technologies like OCR, ML, and NLP. It is estimated that organizations on an average are allocating 64% of tech spend in operations and around 36% in the growth and innovation sectors. This is bound to boost the growth of the market in the forecast period.
Rising Need for Semi-Structured and Unstructured Document Processing – According to various reports, more than 75% of business data at present are unstructured. As businesses grow, clientele base, procedures expand and hence a need to process the vast volumes of papers occurs. With manual processing lacking in time and accuracy, digital processing solutions demand is anticipated to grow.
Increasing Shift Towards Digital Transformation– Increasing investments in digital transformation is a major factor that boosts the market growth. According to the most recent report, global digital transformation investments will accelerate to 55% of all information and communications technology investments by the end of 2024.
Rise in the Need for Improving Customer Satisfaction – It is expected that organizations incorporate newer technologies like AI, Machine Leaning (ML) to deliver the best experience to customers and gain competitive advantage. The first factor in better customer experience includes the real-time updates. Intelligent document processing solutions is used to attain this and hence is anticipated to drive the market growth. It was discovered that 45 to 50% organizations around the globe are adopting AI and ML into their processing systems by 2023.
Challenges
The global intelligent document processing market is segmented and analyzed for demand and supply by deployment into Cloud and On- Premises. Out of the two types of intelligent document processing, the cloud segment is estimated to gain the largest market share of about ~57% in the year 2035. The growth of the segment can be attributed to the increasing development of cloud solutions in the World. For instance, ABBYY Vantage OCR Skill automated cloud OCR service was launched in 2022, and this can help with converting unstructured documents into structured and actionable content within less time. Further, the cloud intelligent document solutions ease of deployment and cost effectiveness are other factors estimated to boost the market growth.
Growth in on-premise segment of intelligent document processing market could be attributed to the advanced security features it offers. This leads to deployments in many sectors like BFSI, healthcare.
The global intelligent document processing market is also segmented and analyzed for demand and supply by end-user into BFSI, healthcare, retail, government and life sciences. Amongst these five segments, the BFSI segment is expected to garner a significant share in the year 2035. The growth of the segment is attributed to the large volume of documents processed on a daily basis by the BFSI sector in regards to providing products and services. With COVID 19 pandemic, the BFSI sector witnessed a massive shift to AI as supply chains were disrupted and manual processing was halted. According to reports, BFSI sector CEO’s have quoted the need of AI enabled Intelligent Document Processing solutions that can help with productivity and overall revenue. On the other hand, the need for seamless execution of transactions and ensuring streamlined workflow is also projected to witness a massive CAGR during the forecast period. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global intelligent document processing market includes the following segments:
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By Component |
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By Deployment Mode |
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By Organization Size |
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By End User Vertical |
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The market share of Intelligent Document Processing in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the high digitization and adoption of technological advancements in the region. For instance, reports suggest that the new and advanced technology adoption rate in North America as 42%. The presence of major intelligent document processing such as Kofax, WorkFusion, ABBYY, IBM, Automation Anywhere, Parascript, Extract Systems, and Hyland in the region is another factor that is anticipated to boost the market growth. Further, the early adoption of automation based-technologies in Canada is also anticipated to contribute to the market growth in the region. In addition, the region's expanding businesses and their need to automate internal operations are also anticipated to boost the market growth during the forecast period.
The Asia Pacific market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The growth of the market can be attributed majorly to the improving technology infrastructure and increasing investments in the digital transformation sector. For instance, research cites that digital transformation spending in Asia Pacific is forecast to reach USD 540 Billion by 2024, marking a growth of about 18% from 2022. The growing GDP of Asia Pacific countries like China, Japan, India along with growing rate of digitalization are expected to boost the market growth in the forecast period. There is also an increased adoption of cloud technologies and solutions in the region that are anticipated to contribute to the market growth. Further, the presence of intelligent document processing solution vendors such as HCL Technologies, Datamatics Global Services Ltd, Singapore based AntWorks are also anticipated to boost the market growth during the forecast period.
Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing need of automated data integrational processes. The region has been attracting foreign direct investments especially in countries such as Germany, UK. This as a result has increased the need for intelligent document processing in the region. These are the various factors that are anticipated to boost the market growth during the forecast period.
ABBYY launched the no-code platform Vantage 2 and AI Marketplace to reconstruct digital transformation. Vantage 2 delivers ready-to-use AI skills for intelligent automation. The ABBYY Marketplace allows users to incorporate cognitive skills to accelerate their automation initiatives.
Automation Anywhere announced the launch of the new cloud based Epic Fast Healthcare Interoperability resources. This can automate operations for Epic Systems in the US.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing need for improving customer experiences, rising digitalization and increasing rate of adoption of modern technologies are the major factors driving the market growth.
Ans: The market size of intelligent document processing market is anticipated to attain a CAGR of ~40.50% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of skilled professionals, changing government and compliance standards are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are ABBYY, Automation Anywhere, Inc., Kofax Inc., WorkFusion, Inc., UiPath, IBM, Appian, HCL Technologies Limited, HYPERSCIENCE, AntWork .
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component, deployment mode, organization size, end user vertical, and by region.
Ans: The cloud segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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