The global Intelligent Document Processing (IDP) market is currently experiencing a significant surge, demonstrating an impressive Compound Annual Growth Rate (CAGR) of 37.5%. A recent study by MarketsandMarkets projects the IDP market to reach a substantial value of $5.2 billion by 2027, a noteworthy increase from $1.1 billion in 2022. The market size report reveals that in 2022, the IDP market was valued at USD 1284.88 Million, and it is anticipated to reach USD 7874.08 Million by 2028, with a CAGR of 35.28% between 2022 and 2028.
The analysis spans from 2018 to 2022 for historical data, while the forecast extends from 2023 to 2028. Fortune Business Insights adds to this narrative, forecasting a significant growth of the IDP market to USD 12.81 billion by 2030, with a CAGR of 32.9% from 2023 to 2030.
Driving the growth are several key factors. Firstly, organizations are integrating advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) to enhance customer satisfaction and gain a competitive edge. Real-time updates, facilitated by document outsourcing services, play a crucial role in delivering an optimal customer experience, with estimates suggesting that 45 to 50% of global organizations will adopt AI and ML into their processing systems by 2023.
Additionally, the ongoing digital transformation, steering businesses towards paperless and digital workflows, has significantly contributed to market growth. Intelligent document processing has become instrumental in managing documents within digital systems. By the end of 2022, global spending on digital transformation is expected to surpass USD 1 trillion.
However, challenges persist. The ever-changing governance and compliance standards pose a hurdle, requiring frequent adjustments to automated workflows, leading to disruptions. There is also a shortage of skilled professionals in the field, and many organizations underestimate the efficiency of Intelligent Document Processing solutions.
In terms of market specifics, the North American IDP market alone accounted for USD 0.61 billion in 2022, highlighting the region’s substantial contribution to market growth. Across various industries, the rise of digital transformation has been a driving force, particularly in finance and accounting functions where there is a growing demand for accurate data entry. Furthermore, the Banking, Financial Services, and Insurance (BFSI) sector are expected to witness increased usage of IDP due to a heightened focus on efficiency and automation.
In conclusion, the Intelligent Document Processing market is on a robust growth trajectory, fueled by technological advancements and a growing emphasis on digital transformation.