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Intelligent Document Processing (IDP) Growth Story:
10 times in 10 years

Jun 3, 2024

The IDP market is experiencing a significant upswing. The global market size was valued at approximately USD 1.1 billion in 2021, 1.45 billion in 2022, 1.75 billion in 2023 and is projected to grow up to 12.81 billion by 2030(1). This growth is propelled by several factors, including the rise in digital transformation investments and the demand for cost-effective and efficient document processing solutions.

Factors contributing to the growth of IDP

Reduces manual labor and increases efficiency

Reduces manual labor and increases efficiency

  • IDP can turn hours of manual data entry into just minutes.
  • It eliminates the need for labor-intensive data input, reducing errors and significantly boosting efficiency.
  • A company can reduce document processing costs by up to 60% through the automation of repetitive tasks and minimizing the need for manual data entry.
  • By automating manual processes, IDP eliminates the need for additional staff or outsourcing services, resulting in significant cost savings.

Uses AI and machine learning to process and comprehend complex documents

  • IDP utilizes technologies such as Artificial Intelligence, Machine Learning, Natural Language Processing (NLP), Intelligent Character Recognition (ICR), and Optical Character Recognition (OCR) to automate the entire document processing.
  • It can process documents much more efficiently than manual methods, which is especially beneficial when dealing with a large number of records.
  • Each document can take a skilled worker several minutes to complete, while IDP solutions only require a few seconds to process complex documents.
Uses AI and machine learning
data processing speed and accuracy

Increases data processing speed and accuracy, facilitating quicker decision-making and better business results:

  • IDP provides better data quality, making it easier to uncover insights that will guide business decisions.
  • The high accuracy of IDP enables improved decision making, which in turn enables more efficient processes.
  • Real-time data in workflows enables your organization to identify bottlenecks, monitor performance, and make data-driven decisions.

The Emergence of IDP

IDP solutions make use of advanced technologies such as machine learning (ML), natural language processing (NLP), optical character recognition (OCR), and computer vision (CV) to capture, classify, extract, and interpret data from structured, semi-structured, or unstructured documents. The inception of this technology dates back to the early 2000s when document management systems came into existence, allowing companies to digitize and store their documents electronically. The adoption of IDP has gained momentum in recent years as businesses aim to increase efficiency, accuracy, and cost-effectiveness across various industries.

COVID-19 and its Impact

The Intelligent Document Processing (IDP) market has experienced positive growth due to the COVID-19 pandemic. Prior to the pandemic, many businesses faced challenges in their digital transformation efforts due to issues such as complexity and cost. However, the pandemic made digital transformation an urgent priority as remote work became the norm. Companies needed to have centralized data repositories that provided access to important content from any location and device. IDP played a crucial role in organizing documents centrally and allowing users with appropriate permissions to access them. Moreover, IDP significantly reduced physical interactions and made processes less reliant on paper, thus contributing to safety measures. According to IBM's Global AI Adoption Index 2022, 31% of respondents reported that the pandemic-induced demands drove AI adoption within their organizations(2).

Adoption Across Industries

The use of Intelligent Document Processing (IDP) solutions is on the rise in industries such as:

Financial Services

Financial Services: The Banking, Financial Services, and Insurance (BFSI) sector is a major adopter of IDP solutions, driven by the need to process large volumes of semi-structured and unstructured documents such as KYC documents, invoices, insurance claims, bank statements, and checks.

Healthcare & Pharmaceuticals

Healthcare & Pharmaceuticals: In the healthcare and pharmaceutical industry, IDP is being used to process documents related to R&D, patient records, referrals, and claim-related documents. It’s also transforming the pharmaceutical sector by simplifying regulatory compliance and improving drug development.

Manufacturing

Manufacturing: The manufacturing industry is automating a lot of paper-laden manual work in areas such as invoices, order forms, change requests, proposals, and quality assurance records through IDP.

Retail & Consumer Goods

Retail & Consumer Goods: The retail industry is witnessing increased adoption of IDP in areas such as proof of delivery, custom declarations, driver logs, and maintenance logs.

These industries are leveraging IDP to enhance their operational efficiency, reduce costs, and improve decision-making processes.

Future Projections

The IDP market is projected to grow from USD 1.1 billion in 2021 to USD 12.81 billion by 2030, exhibiting a CAGR of 28.9% during 2021-2030. To date, North America has the largest share of IDP global market. The significant demand for IDP is majorly attributed to the increasing focus of organizations on digital transformation, need for efficient document management, and growing adoption of artificial Intelligence (AI) and Machine Learning (ML) technologies for business processes. As per the IBM Global AI Adoption Index Report 2022, 35% of companies reported using AI in their business to boost the automation of tasks and reduce costs.

These projections indicate a bright future for IDP, with its adoption expected to increase across various industries, driving significant market growth.

IntelyDoc – A Modern IDP Solution

If you’re seeking an IDP solution, then IntelyDoc is definitely worth checking out. IntelyDoc is a solution that can cater to the growing demands of businesses. It is an innovative IDP solution that empowers businesses to process complex and unstructured documents with unparalleled efficiency and accuracy, leading to an expedited decision-making process and superior business results.

Conclusion

The Intelligent Document Processing (IDP) market is expected to witness substantial growth in the coming years. As more businesses invest in digital transformation projects, the demand for efficient and cost-effective document processing solutions has increased. This trend is expected to drive the adoption of IDP solutions, leading to the market's projected growth of USD 12.81 billion.

Resources

1.  Intelligent Document Processing Market Size, Share - 2031 (alliedmarketresearch.com)

2. IBM Global AI Adoption Index 2022 (ibm.com)

author profile

Ashish

Staff Engineer

“ Try out IntelyDoc and save thousands of hours by automating your Document Processing workflows. ”