There’s no doubt that we’re seeing rapid growth in the adoption of Intelligent Document Processing (IDP) solutions. Analyst firm Everest Group reveals in its IDP Playbook that this is evidenced by the rapid growth of the IDP market.
The firm estimates that in 2018 the IDP independent technology vendor market size was USD350-450 million, and is likely to increase by 70-80% to USD1-1.5 billion by 2020.*
What are the key growth drivers?
So, what are the key drivers behind the growth of IDP? Everest Group cites:
The rising need for enterprises to process large volumes of semi-structured and unstructured documents with greater accuracy and speed.
Increased adoption of complementary technology solutions, such as RPA (Robotic Process Automation).
Demand among enterprises to enable end-to-end process automation with integrated RPA and IDP.
Improved sophistication of AI (Artificial Intelligence) technologies powering IDP solutions, which significantly increases the accuracy rates in processing documents compared to traditional OCR (Optical Character Recognition).
Who are the early adopters of IDP?
BFSI (Banking, Financial Services and Insurance) is the earliest and largest adopter of IDP solutions, driven mainly by the need to process huge volumes of semi-structured and unstructured documents, such as KYC (Know Your Customer) documents and invoices.
IDP solutions are also highly prevalent in the healthcare industry, where they are deployed across use cases such as patient onboarding, support of electronic medical records, and processing physician referrals.
CPG & retail, travel and logistics, manufacturing, and telecom are also increasingly deploying IDP solutions to process documents in proof of delivery, custom declarations, driver logs, maintenance logs, etc.
IDP adoption across different business functions
Industry-specific processes such as customer onboarding, mortgage processing, trade finance, legal documents, claims, and patient registration have seen high adoption of IDP solutions to date.
Within Finance and Accounting, accounts payable and accounts receivable are the most common use cases for IDP solutions, driven by the high volume and error-prone nature of these processes
Increased adoption is also being seen among procurement and HR functions owing to enhanced focus on reducing operational costs and increasing workforce productivity within these functions.
Organisations of all sizes are adopting IDP
The adoption of IDP solutions seems to be distributed almost equally among small-, mid-, and large-sized buyers. Volume of documents and time spent on processing appear to be the key criteria for applicability.
A significant chunk of adoption among large-sized buyers is being driven by RPA partners and system integrators. Point solutions, that are typically focused on a specific business function or industry, are increasingly being adopted by mid-sized and small-sized buyers.
But regardless of industry or organisation size, there’s no doubt that IDP is forging ahead rapidly.
Get the full IA picture
To find out more about IDP adoption, download your copy of the Everest Group IDP Playbook now.
(*Based on revenue estimates of 16 IDP technology vendors projected out to estimate the total IDP technology vendor market)