Intelligent Document Processing Market Trends

Growth Drivers

• Increasing digital transformation initiatives: The drive for digital transformation is fueling the influx of investments in the intelligent document processing market. Among the OECD countries, Korea, Denmark, and the United Kingdom ranked top in the Digital Government Index (DGI) with scores of 0.9, 0.8, and 0.7, respectively. This shift of governments to digitalization indicates an increased need for IDP solutions in the government sector. Companies are keen on pursuing cloud-based intelligent document processing solutions to cut down infrastructure costs.
• Rising volume of unstructured data and integration with Robotic Process Automation (RPA): The advent of the Internet has led to a massive boom in unstructured information, such as graphics, emails, and documents.  In December 2023, the European Commission reported that 42.5% of enterprises in the EU were incorporated with cloud computing services in 2023 for email, office software, and storage purposes. Technology companies are also investing actively to integrate robotics in IDP solutions. For example, in November 2024, Tungsten Automation launched TotalAgility 8.1. The technology has established strengths in IDP, RPA, and others, allowing organizations to form and orchestrate intelligent processes faster than ever.
• Regulatory pressure on organizations to enable auditable, traceable data processing: The regulatory pressure for auditable, traceable data, and labor shortage across various industries are accelerating the demand for IDP solutions. These laws are stricter in Europe, and developing economies like India are also focusing on the same. In August 2023, the government of India published the Digital Personal Data Protection Act, 2023, the country’s first comprehensive data protection framework. The need for handling data securely in businesses is likely to attract them to IDP solutions.

Challenges

• Shortage of skilled workforce: Skilled labor shortage is creating a slump in business processes, increasing the demand for automation in document-intensive processes.  As revealed by the International Information System Security Certification Consortium in October 2023, a shortage of around 4 million cybersecurity experts was looming across various industries. The rate of labor participation in different industries is also hovering around 83.6% in 2025, from a 20-year surge of 83.9% in August 2024. Thus, industries are experiencing a rising need for IDP solutions to keep the document processing efficient, disruption-free, scalable, and cost-effective.
• High initial investment and complexity in integration: Investment in the integration of IDP solutions is significantly high for businesses with low-investment capabilities. The high computational and processing costs influence the cost of integrating IDP solutions to be high. The compatibility of every ID solution with existing organizational technologies cannot be ensured, which is expected to lead to disruptions and delays in enabling business procedures. Therefore, integrating IDP solutions wisely is a significant area of challenge for businesses.