Capture Software The Worldwide Market today and in 2021 #Capture17 Mike Spang Vice President Research Harvey Spencer Associates
Capture Market Overview WW Document Capture Market Current & Forecast Capture Segment Revenue Percent Regional Updated Vertical Markets & Key Applications Competitive Landscape Capture 2.0 Market Direction 2021
The Overall End User Market 2016 Value = $3.6bn The market grew at over 10% in 2016 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 Original estimated 6% 5 year 2016-21 CAGR is projected at 10.4% Estimating the Document Capture market will exceed $6bn by 2020 $500 $0 2014 2015 2016 2017 est
What Happened? Cloud Capture Services - Plus Including Cloud Collaborative Services and Cloud Service Integration Cloud Capture Services revenues exceeded $150m Cloud Capture Services revenues - up more than 150% Capture provides fuel for predictive analytics
Technology Segmentation Transaction Capture (Including Desktop & boxed OCR) Image Capture -3-5 % 10-12 % Growth Cloud Capture +150 % Cloud Capture Batch Transaction On Demad Image On Demand Transaction Harvey Spencer Associates Inc. Batch Image
Capture Revenue Breakout Recurring Revenue from Hosted Capture Services 2016 Gradual Shift from Software License to: SW maintenance Recurring revenue models others (e.g. sw maintenance) SW License Professional Services Harvey Spencer Associates, Inc
Capture Output Destinations Private Cloud (Outsourced) 3% Public Cloud 5% 2016 Personal Archive 12% Hybrid Cloud 2% In-house (inc. private cloud) 78% Shift from In house & Personal Archive Cloud Hybrid, Outsourced, Public
Capture Destinations In House, which includes private cloud will continue to dominate Hybrid cloud will experience strong growth Public Cloud Private Cloud (Outsourced) Hybrid Cloud There is a continued decrease in Personal Archive in favor of Collaborative Content Services 2014 2015 2016 2017 2018 2019 2020
North America Canada +10 % 2015-16 growth USA US increased at WW market rates of +10% Canada grew in the 7-8% range
EMEA Turkey Mid East Africa Eastern Rest of Europe EEC & Switzerland UK 10% Growth in EMEA Italy Scandinavia Benelux Germany Germany France UK up Benelux & Italy Eastern Europe Mid East & Turkey Africa down Iberia (Spain & Portugal) France Harvey Spencer Associates Inc.
Asia Pacific Just under 8-10% growth in ASPAC Japan moderate growth Australia/NZ up Singapore/Mal aysia China strengthened Indonesia So Korea India Rest of Asia Australia/ New Zealand India, South Korea good growth China Japan
Latin America Rest of Latin America (inc. Caribbean) Colombia Mexico Latin America Andes (Chile, Peru, Ecuador, Bolivia) Bouncing back from Recession Mexico up Columbia up Rest of Latin America up Brazil Brazil low growth Harvey Spencer Associates Inc.
Regional Growth through 2020 2021 2016 ROW EMEA ROW North America EMEA North America $3.6 bn $5.7 bn Harvey Spencer Associates, Inc North American Growth 9-10% EMEA Growth 9-10% ROW Growth - 10-11% range
WW Vertical Markets Higher Education Grade School Education (ages 5-18) Logistics & Trans Svc Bureaus & Outsourcers Retail Legal Banking and Financial Services Insurance Banking & Financial Services strong again Insurance Central Government Manufacturing Telecoms & Utilities State & Local Gvt Fed or Central Gvt Healthcare Manufacturing Healthcare slowed Harvey Spencer Associates, Inc
Vertical Market Forecast Banking and Financial Services Insurance Healthcare Fed or Central Gvt State & Local Gvt Manufacturing Logistics & Trans Grade School Education (ages 5-18) Legal Svc Bureaus & Outsourcers 2013 act 2014 act 2015 act 2016 act 2017 2018 2019 2020 2021
Capture By Business Size 70% 60% 50% 40% 30% 20% 10% 0% 2014 2015 2016 Enterprise Mid market SMB Watching a shift from Enterprise to Mid Market
Business Activities Check Payment Deposits Other 2016 Check Payment Deposits Other 2021 Accounting Accounting Records Management Records Management Discovery Discovery Case Management Case Management Case Management is supplanting Records Management and then Accounting as a Capture output Destination Harvey Spencer Associates, Inc
Input Source Document Capture Mobile 2016 Still Images Other Still Images Other 2021 MFP Email Scanner Mobile Fax Fax MFP Email Traditional Hardware related Capture is trends lower in favor or Mobile and Electronic Borne Capture Harvey Spencer Associates, Inc
Leading Vendors Before Consolidation After Consolidation Rest of Market Lexmark Rest of Market Kofax Nuance Open Text Next 5 IBM EMC Open Text Next 5 Hyland Kofax remains the market leader Nuance is supplanted by OpenText for 2nd IBM moves up to #4 as a result of consolidation Hyland is now moves into the top 5 IBM Nuance
Vendor Position in the Capture Market Canon / IRIS IBM Open Text Market Share ABBYY Nuance Kofax Hyland *Kofax includes former Readsoft *Hyland Includes former Perceptive, & Brainware *OpenText includes former EMC Note: bubble size represents approximate revenue position Market Growth Harvey Spencer Associates Inc. All rights reserved
First Half 2017 Modest growth in the first half of the year Industry consolidation is stabilizing WW Economic Growth is moderate but consistent Continued shift to recurring revenue models 2 nd half has historically been stronger
The Future of Capture Document Extended Capture Services Capture Services Scanning Image Enhancement OCR/ICR Barcode OMR Dynamic Workflow Language Translation Textual Classification Semantics Sentiment Analysis Video Voice Business Rules Processing Integration Business Process Analytics Workflow Capture becomes integral to the business process solution Harvey Spencer Associates Inc.
$ 000 Capture 2.o $12,000 US Opportunity $10,000 $8,000 $6,000 $4,000 Capture Services Potential Market Document Capture Services Potential Market Document Capture Addressable Market $2,000 $0 2015 2016 2017 2018 2019 2020
Future Capture Opportunity Platform - based on a cloud architecture Modular Part of API economy Speed to Market More flexible, faster integrations Go to Market Usage based pricing New channels of distribution
Capture 2.0 is a broader definition of Capture Examples: Video Classification eg Conduent Vehicle Passenger Detection System for HOV lanes. Identifies number of occupants in vehicles with 95% accuracy at speeds 0-100 mph. Image Classification Pictometry Eagleview OnSite combines property imagery, property data and analytics to determine potential property damage. Voice to Text Google Cloud Speech API speech analytics opens up opportunities such as real time insights from call centers
Cloud Application Platforms Google Cloud Platform Amazon Web Services Microsoft Azure Cloud Platform IBM Bluemix Oracle Cloud Heroku
Future Robotic Process Automation From simple repetitive programmable tasks to tasks that require automated decision making Assisting the workforce with the support of Artificial Intelligence Kofax Kapow Blue Prism Automation Anywhere UiPath Verint WorkFusion
Capture Software 2021 Growth will come to those who move beyond Document Centric Capture to Extended Capture capabilities Cloud services accelerate There are market opportunities for those nimble enough to align with emerging application solution providers Capture Industry Challenge: Look to evolving business applications plus new means of reaching the customer. l l l Add value and impact business processes
Thank you mike.spang@hsassocs.com Twitter: @hsassocs Harvey Spencer Associates Inc.