According to a new market report from Transparency Market Research, the global market for document extraction software is expected to grow to $12.6 billion in annual revenue by 2027. This represents an annual growth rate of approximately 10 percent over the course of the forecast period. The increasing demand for document extraction software solutions is mainly due to compliance initiatives, the digitalization of document management and intentions to optimize operational costs. But also the increasingly mobile workforce and the often associated need for document processing via mobile devices requires a fundamental reorganization of processes and the way in which documents are processed and organized in a company.
While the authors of the report are clearly optimistic about the long-term development of the market, they also point out the risks related to data sharing and security issues that arise with cloud and hybrid solutions as well as the often inadequate know-how regarding the company-wide scaling of such new technologies. These and possible other factors therefore represent potential obstacles for the anticipated growth.
In 2017, North America and Europe combined shared more than 50 percent of the global market shares. The strong dominance of North America is due to the maturity of the digital transformation and strongly promoted technological innovations. However, Germany and the UK, the markets of particular relevance to Europe, are also at an advanced stage of their digitalization. The Asia Pacific region closely follows Europe in terms of global relevance. And it's the region where Transparency Market Research anticipates the strongest market development in the upcoming years. In India and China in particular, where high investments are made in this particular field. However, the dominant leader - North America - in the global market is expected to be able to continue to defend its position.
Key drivers of market growth
As key drivers for market growth in a wide range of industries, ranging from banking to retail, the analyst team identified the ongoing digital transformation and the related digitalization of business processes, extensive investments in Big Data, Artificial Intelligence and Machine Learning technologies, and the increased use of SaaS and other cloud-based services.
Market-leading providers of such software solutions, which were discussed in the report, include the following players:
- Adobe Systems Incorporated
- Canon, Inc.
- Hyland Software, Inc.
- Artsyl Technologies, Inc.
- Eastman Kodak Company
- KnowedgeLake Inc.
- Oracle Corporation
- Kofax Inc.
- Xerox Corporation
- IBM Corporation
- Newgen Software Technologies Ltd.
- Nuance Communications, Inc.
Due to the latest achievements in the areas of Artificial Intelligence and Machine Learning and the new possibilities that this opens up for extraction solutions, there is great potential for new players here, who, due to their know-how and the sometimes radically different setups, can compete for market shares with established providers. We want to be one of them, and so we are working on our technologies with great commitment and verve. In the future, these will allow us and our customers to process all kinds of business documents autonomously in seconds and in superhuman quality. And this, so to speak, almost for free.
It's time for a paradigm shift!