In recent years, the market for intelligent document and data processing (IDP) has undergone a major transformation, driven by both technological innovations and growing demands on the market. Automation in companies worldwide. The latest report from global analyst firm Infosource provides a detailed overview of the state of the global IDP market in 2023 and an outlook for the coming years.
In this blog post, we take a look at the latest developments and opportunities, summarize the key findings of the report and highlight which trends are particularly exciting for companies looking to further develop their automation processes.
What is IDP and why is it important?
Before we get into the details of the report, it is worth giving a brief overview of what exactly IDP means. IDP describes the use of software and services designed to capture, classify and transform unstructured business data - such as documents, emails or even images - into valuable information. This data can then be used in business processes, for analysis or to meet compliance requirements.
What makes IDP particularly relevant is its ability to help companies efficiently process the huge mountain of data that is thrown at them every day. Automating these processes not only saves time and money, but also reduces human error and improves overall accuracy.
Strong growth in the IDP market
According to the report by Infosource the global IDP market grew by an impressive 15 % in 2023 compared to the previous year, which corresponds to a market volume of 7 billion US dollars. This growth exceeded even pre-pandemic growth rates and shows how much companies around the world are investing in business process automation.
One notable trend is the increasing integration of Generative AI (GenAI) in IDP solutions. Companies are realizing that these new technologies are capable of not only classifying documents and extracting data, but also fully automating complex business processes. Although the adoption of GenAI is still in its infancy, the author of the report expects to see a sharp increase in demand for such solutions in the coming years.
Regional developments in Europe
In the EMEA region, particularly in Eastern Europe and the Middle East, the market also saw double-digit growth. Favorable exchange rates for the euro and the British pound played a role here, which had a positive impact on growth. Demand for IDP solutions also grew at a high single-digit rate in the German-speaking region last year.
Analysts expect double-digit market growth in Western Europe over the next few years. Growth expectations for the Middle East are particularly strong. However, there are concerns about the impact of the EU AI regulation, which could slow down the adoption of GenAI-based IDP solutions in EU countries over the next few years. Now that GenAI technologies have been established as part of IDP solutions, companies have had positive experiences with the new installations and uncertainties regarding the EU AI regulation have been reduced, market growth is expected to increase.
Vertical markets and new use cases
A particularly interesting part of the report deals with the vertical markets and the specific use cases of IDP solutions. The financial sector, including Banks and Insuranceremains the largest market for IDP and recorded double-digit growth in 2023. The public sectorThe growth in the public sector, particularly at federal level, has also been strong, while local and state authorities are making slower progress due to budget problems.
At Public health the post-pandemic recovery continued, and here too the market recorded double-digit growth rates. Demand for IDP solutions in the Manufacturing industry also increased as companies overcame their supply chain problems after the pandemic and are now investing more in automation.
Particularly noteworthy is the strong interest in IDP solutions for case management and the automation of accounting processes. Case management, which includes the management of customer inquiries and cases, grew by over 15 % in 2023. This trend is expected to continue in the coming years as companies increasingly rely on end-to-end automation solutions to improve their customer communication and internal processes.
Significant progress is also being made in accounting. More and more companies are relying on IDP solutions to automate incoming invoice processes, with related areas such as supplier management and order validation also being automated.
Opportunities for the future
A look into the future shows that the IDP market is far from having reached its zenith.
Infosource forecasts continued strong growth until 2028, with an expected market volume of over 12 billion US dollars.
Particularly in the areas of Process automation and generative AI, there are enormous opportunities. However, caution is also required. The cost of implementing GenAI technologies and the time required to develop specialized Language models could lead to delays in investments in the short term. Regulatory uncertainties, particularly in the EU, also pose a challenge.
In the long term, however, companies in industries with high data volumes, such as telecommunications, energy and financial services, in particular will benefit greatly from the possibilities offered by GenAI-based IDP solutions. The automation of business processes and the reduction of manual tasks through AI-supported systems promise enormous increases in efficiency.
Conclusion - IDP developments and opportunities
Infosource's report paints a clear picture of where the intelligent document processing market is heading. The integration of GenAI, the increasing demand for End-to-end automation and growth in vertical markets such as finance and healthcare will have a significant impact on developments in the coming years. Companies that focus on these trends at an early stage have the opportunity not only to make their processes more efficient, but also to remain competitive. For providers of IDP solutions, this means that they must continue to develop their offerings in order to keep pace with the latest technological developments and meet the growing demands of their customers.
The potential is enormous, and those who take the right steps now will benefit from the opportunities of this dynamic market in the coming years, says Petra Beck from Infosource.
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