IDP is next-generation document automation, a key component of intelligent automation solutions and BPA (Business process automation). Recently, one of the key players in the IDP market, Kofax unveiled the new industry report providing a clear understanding of how Intelligent Document Processing solutions may be able to help and where the IDP market is headed in the next 3–5 years. The report was prepared by Omdia, a technology research and consulting firm.
In general, this research will help readers understand the rapidly shifting IDP market landscape by identifying key drivers and barriers, market trends, dominant market segments, and significant market players and their view of market dynamics. It provides forecasts for IDP spending through 2026 with analysis on verticals, regions, and vendor market share.
Let’s learn the key messages of the report:
• The market will continue to be served by a wide range of IDP solutions providers and approaches. There are legacy document automation solutions providers, AI-first IDP startups, and hyperscalers like AWS and Google. There is a wide spectrum of solution options, including custom end-to-end IDP solutions, IDP as a component of larger intelligent automation solutions, platform tools for pro developers, no-code/low-code solutions for business users, and vertically focused or niche-focused solutions (vendor caters to financial or healthcare IDP, etc.).
• Unstructured enterprise data will be a challenge for decades to come. It is likely that macro forces in the form of other business process automation initiatives will shape the importance of IDP and potentially either accelerate IDP growth or see IDP investments directed into new business process automation (BPA) initiatives aimed at automating data inputs and outputs.
• Hyperscaler API tool/platform options will drive IDP growth over the forecast period. Omdia estimates that solutions from hyperscale players, such as AWS, Google, and Microsoft, will grow from 19% of total IDP spend in 2021 to more than 32% of total IDP spend in 2026.
• Lack of widespread ROI is proof that IDP is hurting market adoption, though the drag will gradually ease in 2022–24 as more IDP proof points become generally shared. By 2025, the lack of ROI proof will be minimal and will not inhibit IDP market adoption significantly.
• In 2025, the market share of IDP spend will remain fairly diversified. Omdia estimates that 17 vendors will represent 79–80% of IDP revenue in 2025. The significant difference between 2021 and 2025 is the composition of the biggest IDP players with larger market share positions.
• Hyperscalers will hold the top three spots in 2025 and represent 33% of market share.
The full report is available to download here.