Intelligent Document Processing Booms Digitalization
Intelligent document processing refers to software that converts unstructured and semi-structured information into useable data. It is next-generation automation capable of capturing, extracting, and processing data from a wide range of document formats.
The global intelligent document processing market is expected to grow at a CAGR of approximately 35.4% during the forecasted period 2021–2027.
Today, various documentation such as membership applications, charity gift papers, and other documents exist in large quantities. Similarly, under operating circumstances, businesses have documents in large quantities. Almost all industries have huge piles of documents, which require digitization.
The proliferation of digital material has resulted in a plethora of document formats, styles, and new input methods of varied qualities and comprehension. Existing capture technologies can no longer scale due to the proliferation of digital material such as text, video, images, and sound. For example, the fingerprint lock system is utilized to provide recognition and positional information to retrieve data requisite for certain document formats or comparable matches.
The AI application of document processing has accelerated due to advancements in AI and easy tools. Businesses receive a massive amount of semi-structured and unstructured data in the form of sales orders, invoices, and customer communications. It is challenging to arrange data using the rule-based automation tools, thus, businesses use intelligent document processing solutions to handle data and data mining, increasing data quality for analysis.
Growing demand to process the huge number of semi-structured and unstructured data by the enterprises in less time, increasing investments in digitalization, and the adoption of cloud-based document processing solutions are contributing to the growth of the intelligent document processing market.
Advanced Technologies in Document Processing subjected to Drive the Market Growth
In the contemporary era, digitalization has become essential for a company that wants to stay competitive. Artificial intelligence (AI)-enabled technology has quickly transitioned from fringe to mainstream. As a result, sophisticated technologies must be integrated with existing intelligent document processing.
Intelligent document processing is capable of improving the efficiency of corporate operations by utilizing a variety of technologies. Corporate operations refer to technologies such as OCR, ML, and NLP combined with intelligent document processing. Organizations worldwide are investing heavily in these technologies to improve user experience and remain competitive in an ever-changing market environment.
Furthermore, businesses may use these technologies to save money, improve operation efficiency, remain ahead of the competition, and differentiate the product offerings. Vendors in the intelligent document processing industry should concentrate on these upcoming technologies.
Increase in Semi-Structured and Unstructured Document Processing in Organizations
According to various estimates, more than 75% of business data is unstructured, and traditional automation technologies tussle to automate operations using unstructured data. When businesses expand, so does their client base, procedures, and incoming papers. Businesses deal with surplus semi-structured and unstructured information to remain competitive in the market.
Manually processing these vast volumes of papers takes an inordinate amount of time, compelling businesses to process huge amounts of semi-structured and unstructured information with more precision and speed.
Intelligent document processing solutions help companies automate client delivery automation, classify incoming credit applications for bank loan approval, online verification of documents, and clause detection in legal documents.
The COVID-19 pandemic has hastened the use of intelligent document processing in businesses. Employees have limited or no access to tangible documents due to the lockdown. Thus, there is a raising need for digitalization and document automation, with intelligent document processing becoming a need by 2021.
Solution Segment to Grow Exponentially
The solution segment is projected to get the largest market share during the forecast period. Unstructured and semi-structured records can be converted into new records through intelligent document processing technology.
Intelligent document processing is a new type of technology that collects, retrieves, and analyzes information from a variety of file types automatically. It uses Artificial intelligence, including natural language processing (NLP), machine learning (ML), image processing, and deep learning to classify, categorize, and extract useful information and authenticate the information obtained.
On-Premises Segment is Projected to Dominate the Market
During the projection period, the on-premises category is expected to account for the highest market share. On-premise deployment refers to the installation of apps on a company's facility rather than a third-party location. On-premise solutions are supplied with a service agreement and a one-time licensing cost.
Only large businesses can afford to adopt these solutions as they require a strong infrastructure and a personal data center. As a result, SMEs frequently face the decision of whether to use cloud or on-premise solutions.
Government Sector to Grow Rapidly
The government vertical's intelligent document processing market is projected to be driven by the rising need for flexibility, improved data protection, and advanced intelligence. It is difficult to manage document backlogs while providing services that individuals require. Cities with smart governance take time, especially on outdated, paper-based systems such as invoice processing.
Citizens can stay connected and informed by installing an IDP solution that can read, process, and output relevant, accurate data rapidly. They will also be able to receive answers and vital services sooner.
North America Projected to Dominate the Market in Future
During the projected period, the North American region is projected to become the biggest market share owner worldwide. The U.S., Canada, and Mexico account for the maximum market share in this region. Regional firms are leading the way in machine learning, artificial intelligence, computer vision, and natural language processing, which is assisting the market's expansion. Another key factor in North America's adoption of intelligent document processing is the existence of major companies such as Kofax, WorkFusion, ABBYY, IBM, Automation Anywhere, Parascript, Extract Systems, and Hyland.
The transportation and logistics, healthcare, BFSI, and manufacturing businesses are always the first to use intelligent document processing technology. Numerous businesses are focused on automating their internal operations, opening up the potential of fine-tuning and simplifying business activities utilizing intelligent document processing. All these factors are expected to boost the adoption of intelligent document processing in the North American region.
The prominent players of the intelligent document processing market include ABBYY, IBM, Kofax, WorkFusion, Automation Anywhere, Appian, UiPath, Datamatics, AntWorks, Parascript, Hyperscience, OpenText, Hyland, Extract Systems, Infrrd, Celaton, HCL Technologies, Kodak Alaris, Rossum, InData Labs, Ephesoft, IRIS, Evolution AI, BIS, and AmyGB, along with other regional players. Product launches are a top priority for market players as they seek to extend their product portfolio and match customer needs. Due to a large number of players in the market, the vehicle tracking system is highly fragmented.
In February 2020, Kofax enhanced its Intelligent automation platform, including the integration of secure print management and market-leading digital workforce management for Kofax RPA.
In April 2019, WorkFusion launched the Intelligent Automation Cloud platform. The platform uses WorkFusion's proprietary low-code ML technology that helps pace up the business processes and reduces costs.
Intelligent Document Processing Market Segmentation
By Deployment Mode
Frequently Asked Questions (FAQs)