the worldwide market today and in 2021 #capture17...vertical market forecast 2013 act 2014 act 2015...

Capture Software The Worldwide Market today and in 2021

#Capture17

Mike Spang Vice President Research

Harvey Spencer Associates Copyright 2017 Harvey Spencer Associates, Inc.

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

Copyright 2017 Harvey Spencer Associates, Inc.

The Overall End User Market 2016 Value = $3.6bn


• Original estimated 6% • 5 year 2016-21 CAGR is projected at

10.4% • Estimating the Document Capture

market will exceed $6bn by 2020

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2014 2015 2016 2017 est

The market grew at over 10% in 2016

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

Image Capture

-3-5 %

Transaction Capture

10-12 %

Growth (Including Desktop

& boxed OCR)

Copyright 2017 Harvey Spencer Associates Inc.

Cloud Capture +150 %

Cloud Capture

On Demad Image

On Demand Transaction

Batch Image

Batch Transaction

Capture Revenue Breakout

Copyright 2017 Harvey Spencer Associates, Inc

Gradual Shift from Software License to: • SW maintenance • Recurring revenue models

SW License

Professional Services

others (e.g. sw maintenance)

Recurring Revenue from

Hosted Capture Services

2016

Capture Output Destinations


Shift from In house & Personal Archive Cloud – Hybrid, Outsourced, Public

Personal Archive

12%

In-house (inc. private cloud)

78%

Public Cloud 5%

Private Cloud (Outsourced)

3%

Hybrid Cloud

2%

2016

Capture Destinations

In House, which includes private cloud will continue to dominate

Hybrid cloud will experience strong growth

There is a continued decrease in Personal Archive in favor of Collaborative Content Services

2014 2015 2016 2017 2018 2019 2020

Public Cloud

Private Cloud(Outsourced)

Hybrid Cloud


North America

US increased at WW market rates of +10%

Canada grew in the 7-8% range

+10 % 2015-16 growth

USA

Canada


EMEA

Germany

France

UK up

Benelux & Italy

Eastern Europe

Mid East & Turkey

Africa down

10% Growth in EMEA


UK

Germany

France Iberia (Spain & Portugal)

Benelux

Italy

Scandinavia

Rest of EEC & Switzerland

Eastern Europe

Turkey Mid East Africa

Asia Pacific

Japan moderate growth

Australia/NZ up

China strengthened

India, South Korea good growth

Australia/ New Zealand

Japan

China

India

So Korea

Indonesia

Singapore/Malaysia

Rest of Asia

Just under 8-10% growth in ASPAC


Latin America

Mexico up

Columbia up

Rest of Latin America up

Brazil low growth

Bouncing back from Recession


Latin America

Andes (Chile, Peru,

Ecuador, Bolivia)

Brazil

Mexico

Colombia

Rest of Latin America (inc. Caribbean)

Regional Growth through 2020


North American Growth – 9-10%

EMEA Growth – 9-10%

ROW Growth - 10 - 11% range

$3.6 bn $5.7 bn

North America

EMEA

ROW

2016

North America

EMEA

ROW

2021

WW Vertical Markets

Banking & Financial Services strong again

Insurance

Central Government

Manufacturing

Healthcare slowed

Banking and Financial Services

Insurance

Healthcare

Fed or Central Gvt

State & Local Gvt

Telecoms & Utilities

Manufacturing

Logistics & Trans

Grade School

Education (ages 5-18)

Higher Education

Retail

Legal

Svc Bureaus & Outsourcers


Vertical Market Forecast

2013 act 2014 act 2015 act 2016 act 2017 2018 2019 2020 2021

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


Capture By Business Size


Watching a shift from Enterprise to Mid Market

0%

10%

20%

30%

40%

50%

60%

70%

EnterpriseMid market SMB

2014

2015

2016

Business Activities


Case Management is supplanting Records Management and then Accounting as a Capture output Destination

Accounting

Case Management

Discovery

Records Management

Check Payment Deposits

Other

2016

Accounting

Case Management

Discovery

Records Management

Check Payment Deposits Other

2021

Input Source Document Capture

Traditional Hardware related Capture is trends lower in favor or Mobile and Electronic Borne Capture

Scanner

MFP

Fax

Email

Mobile

Still Images Other

2016

MFP

Fax

Email

Mobile

Still Images Other

2021


Leading Vendors

• 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

Lexmark

Nuance

EMC

Open Text IBM

Next 5

Rest of Market

Before Consolidation

Kofax

Open Text

Nuance

IBM

Hyland

Next 5

Rest of Market

After Consolidation


Kofax Nuance

Hyland

ABBYY

IBM

Canon/ IRIS

Open Text

Vendor Position in the Capture Market

Copyright 2017 – Harvey Spencer Associates Inc.

All rights reserved Note: bubble size represents approximate revenue position

Market Share

Market Growth

*Kofax includes former Readsoft *Hyland Includes former Perceptive, & Brainware *OpenText includes former EMC

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

2nd half has historically been stronger


The Future of Capture

Scanning Image Enhancement

OCR/ICR Barcode

OMR Dynamic Workflow

Language Translation Textual Classification

Semantics Sentiment Analysis

Video Voice

Document

Capture Services

Extended

Capture Services

Business Process

Analytics Workflow

In

teg

ration

Capture becomes integral to the business process solution

Business Rules

Processing


Capture 2.o US Opportunity

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2015 2016 2017 2018 2019 2020

$ 0

00

Capture Services PotentialMarket

Document Capture ServicesPotential Market

Document CaptureAddressable Market


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

lll

Capture Industry Challenge: Look to evolving business applications plus new

means of reaching the customer. Add value and impact business processes


Thank you [email protected]

Twitter: @hsassocs


the worldwide market today and in 2021 #capture17...vertical market forecast 2013 act 2014 act 2015...

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