InfoTrends Overview of Document Capture Market

Hello, my name is Jon Reardon and I am the group director of office document technology services for InfoTrends, Inc. For those of you who may be unfamiliar with InfoTrends, we are an industry analyst firm that conducts market research and consulting services in the document imaging industry.

I will be making a daily blog entry on this site for the balance of this week. I will be exploring several topics related to the document capture (scanning) segment of office document solutions. More specifically I will be writing about the drivers of document capture, one per day: economy, environment, mfp influence on distributive capture, and regulatory compliance.

I think it is always important to establish a conceptual framework up front in terms of how InfoTrends views our market here in the U.S. from the perspective of revenue size. Having said that, we forecast the U.S. document solutions market to enjoy a healthy growth, at an aggregated compound annual growth of 27 percent. In terms of revenue dollars, 2006 was sized at approximately $611,000,000 and in 2011 at slightly more than $2,000,000,000! This is quite significant as we only forecast the copier hardware (color & mono; single function and multi-function) market growing at a CAGR of 4.9 percent in revenue over the same forecast period ($12,464,000,000 in 2006 and forecasted to reach $15,800,000,000 in 2011)

Back to the document capture/routing forecast,  InfoTrends reports that this solutions segment will enjoy consistent, healthy growth (CAGR of 28%) over our last five year forecast period (2006-2011).  We have charted revenues of $253,400,000 in 2006 and forecast the market at $855,000,000 in 2011.

Interestingly enough, eCopy is one of the primary document capture leaders here in terms of revenue and licenses sold.

Moving from document capture market size to market trends, at the macro level of the U.S. market, InfoTrends believes:

• That document capture awareness has grown over the last 10 years, where it has moved from a specialty or vertical application to mainstream.
• The document capture pie has grown in overall size.
• That the proliferation of MFP’s delivering simple scanning capabilities has educated the general office worker on the ease and benefits of document capture.
• Document solutions in general are also playing a role in the capture market peaking workgroup’s interest to digitize information.
• Compliance initiatives in certain verticals are also requiring the capture of traditional hardcopy documents. And,
• Scanning is Alive and Kicking! – But, what technology will capture the captured page?

Thank you!

Jon K. Reardon

Group Director, InfoTrends

Comments

[Tristam Wallace]

Nice post Jon, and we are looking forward to your insights all this week. I was particularly glad to see you make mention of the tie between document capture and document solutions in workgroups/departments. More and more of our customers are moving beyond scan-to-folder and scan-to-email activities and are using eCopy to digitize documents and add them to workflows and LOB or ECM software applications. Having easy-to-use document capture technology that is readily available to office workers (and is IT friendly) makes the integration of paper into electronic workflows a reality.

[Jon Reardon]

As a point of clarification, some of you may have been questioning the overall revenue value cited in my first blog entry regarding total size of the US document solutions market. This specific forecast sizes the US “office/workgroup” market which is a much smaller in comparison to the “enterprise” market and therefore appears low in revenue value. In contrast to the office/workgroup forecast we have sized the US enterprise market at approximately $5,500,000,000 in revenue value in 2006. 2010 is forecasted to grow to approximately $10,450,000,000 in 2010 with a CAGR of 17%. On a related note, we segment the enterprise market from a software/service perspective along these lines: DM (document management), ECM (enterprise content management), WCM (web content management), DAM (digital asset management), RM (records management) and XML. Document capture is nested in the DM segment.”

[Ralph Gammon]

John:

I'm sorry, I'm still not sure I understand your numbers. "We forecast the U.S. document solutions market to enjoy a healthy growth, at an aggregated compound annual growth of 27 percent. In terms of revenue dollars, 2006 was sized at approximately $611,000 and in 2011 at slightly more than $2,000,000!" Do you mean $611 million?

Thanks.

[Jon Reardon]

Ralph, thank you for pointing out my oversight. I have updated the numbers in my blog accordingly.

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