The analyst firm currently tracks 456 companies with an Intelligent Document Processing (IDP) product or feature, marking a 15% increase over the previous year. Why are there so many IDP vendors? Senior Analyst Dan Lucarini explains the main reasons.
Deep Analysis, an analyst firm, published an article on July 7, 2025, in which Dan Lucarini, Senior Analyst at Deep Analysis, examined the global Intelligent Document Processing (IDP) market, which consists of no fewer than 456 IDP companies.
While the majority of the market revenue (55.9%) still comes from pure-play IDP vendors, there are also other categories such as Document AI from hyperscalers that are rapidly gaining market share. For this reason, Dan Lucarini has segmented the global IDP market into seven different categories: IDP products, Document AI, automation, DM/ECM/KM, business applications, unstructured data, and services.
So, is the IDP market overcrowded and will there be a major market shakeout? Dan Lucarini: “The short answers to those questions are, respectively: maybe, and no. The market is far more complex than it seems to anyone who only reads the basic IDP market reports from other analyst firms.”
Dan’s five main reasons for the sheer number of IDP vendors: 1) “Documents are vastly diverse and endlessly variable and, despite vendor claims and dreams, no single platform or product can do it all.”; 2) “The proliferation of IDP cloud APIs has also made it much easier to add IDP functionality into a workflow or business application.”; 3) IDP founder stories such as “We came across a business that was getting less than 50% accuracy from the installed solution and we got them to 95% with our AI! So, we started a company.”; 4) “With the rise of LLMs and RAG (retrieval-augmented generation), businesses are finally realizing the urgency of extracting good information from their unstructured data. Several companies have emerged to focus on this new market demand.”; 5) “IDP is a multi-billion-dollar market with solid growth potential. We estimate the market could double within the next four years.”
In February, Deep Analysis published its report ‘Intelligent Document Processing Market Analysis 2025-2028: IDP At The Crossroads’, in which the analyst firm provides a comprehensive look into the IDP software market, forecasts its size and growth over the next four years, shares key findings from a recent survey of 57 IDP companies, and more.
Headquartered in Philadelphia, analyst firm Deep Analysis provides deep expertise and actionable guidance in the business technology world, with a focus on the unstructured data automation market, including Intelligent Document Processing (IDP).
You can find Dan Lucarini’s full blog here.
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