Cost-saving, productivity benefits of Intelligent Document Processing solutions are accentuated by the current crisis; post-COVID-19 adoption expected to accelerate significantly in banking, insurance and healthcare industries.
Everest Group reports that the Intelligent Document Processing (IDP) market generated US$540 – $560 million in revenues in 2019 and achieved a nearly 60% growth from 2018 to 2019. However, Everest Group recently scaled back its 2020 growth projections for the IDP market by 50%, revising its original estimate of 50-60% CAGR to 27-30% due to the impact of the COVID-19 crisis.
Everest Group defines Intelligent Document Processing (IDP) as any software product or solution that captures data from documents (e.g., email, text, pdf, and scanned documents), categorizes and extracts relevant data for further processing using artificial intelligence (AI) technologies such as computer vision, optical character recognition (OCR), Natural Language Processing (NLP), and machine/deep learning (ML/DL).
“The IDP technology vendor market is certainly impacted due to the ongoing COVID-19 crisis and is currently experiencing a short-term dip in volumes and growth; however, as the economy recovers, we expect the IDP market to witness accelerated demand,” said Anil Vijayan, vice president at Everest Group. “Adoption of automation products in general, and IDP products specifically, will intensify considerably, particularly in those industries such as banking, insurance and healthcare, which are already leading the way in adopting IDP solutions. Post-COVID 19, these industries will seek to accelerate low-touch processing and faster turnaround times through automated extraction of data.”
“Several of the benefits of IDP solutions are being accentuated by the current crisis,” continued Vijayan. “For example, post-COVID-19, enterprises will want to automate as much as possible to reduce dependence on the human workforce and to cut costs. Automated extraction of data using IDP solutions will enable organizations to process large volumes of semi-structured and unstructured documents with low-touch processing, greater accuracy, and faster turnaround times, thus helping deal with volume fluctuations as well.”
Banking, financial services and insurance (BFSI) and healthcare enterprises continue to
be the major adopters of IDP solutions, together accounting for a 50% share of the market. Growth in each of these segments between 2018 and 2019 was significant, with BFSI posting a 50% CAGR and healthcare growing at 65-75%. BFSI use cases include customer onboarding, mortgage processing, trade financing and claims processing. Invoice processing, Know Your Customer (KYC) paperwork to prevent medical identity fraud, insurance claims, patient onboarding, and patient records are among the most common healthcare use cases of IDP solutions.
These findings are discussed in more detail in Everest Group’s recently published report “Intelligent Document Processing (IDP) State of the Market Report 2020 – Leave No Page Unturned With AI.” This research provides a detailed view of the current state of the IDP technology market, including market size and adoption trends, buyer satisfaction, product capabilities and trends, solution characteristics, vendor landscape, challenges to IDP adoption.
The report also offers Everest Group’s outlook for the IDP Market for 2020-2021. Trends expected for the coming year include:
- Package-based IDP solutions will become more prevalent due to the need for faster deployment.
- The current global pandemic will lead to more receptiveness among enterprises toward cloud-based solutions.
- Enhanced product capabilities such as software learning, user-friendly interfaces, pre-trained models, better integration with enterprise IT architecture, and security and data protection enhancements will make IDP adoption more attractive.
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About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com/.