Document AI Market Projected to Grow to $35.34 Billion by 2031
News related to:MarketsandMarkets™ · 2 min read
DELRAY BEACH, Fla., Sept. 18, 2026 /CourierPR/ -- MarketsandMarkets™ has projected the Document AI Market to grow significantly, from USD 17.51 billion in 2026 to USD 35.34 billion by 2031, at a Compound Annual Growth Rate (CAGR) of 15.1%. The report, which includes 350 market data tables and 59 figures spread through 300 pages, provides a comprehensive forecast for the Document AI Market from 2021 to 2031.
According to the report, the 2025 market size is estimated at USD 14.77 billion. By 2026, the market size is projected to reach USD 17.51 billion. The market is expected to witness substantial growth, with the 2031 projected market size reaching USD 35.34 billion.
The report highlights that the solutions segment is estimated to account for the largest market share of 64.2% in 2026. Additionally, the unstructured document segment is positioned to dominate the Document AI Market in 2026, reflecting the vast volume of emails, contracts, reports, and other free-form content generated across enterprise operations.
By use case, the marketing and sales segment is expected to grow at the fastest CAGR of 17.2% during the forecast period. The Asia Pacific region is estimated to register the highest CAGR of 17.1% during the forecast period.
RAG-enabled Document AI systems, which integrate generative AI with secure enterprise knowledge bases, are expected to play a significant role in the market. These systems enable factually accurate and context-aware document summarization, drafting, and reporting, significantly reducing hallucination risks and enhancing reliability in critical use cases such as compliance documentation, audit reports, and contract management.
In terms of verticals, the BFSI sector is projected to grow at the highest CAGR in the Document AI Market during the forecast period. This growth is driven by the sector's need to automate high-volume document workflows such as loan processing, KYC verification, claims management, and regulatory reporting.
North America is expected to hold the largest market share in 2026, driven by strong enterprise digitization, regulatory compliance mandates, and large-scale AI investments by US and Canadian organizations. The region benefits from a mature data infrastructure and early adoption of AI in document-intensive industries, including banking, insurance, healthcare, and government services.
The report identifies the top five players in the Document AI Market, which collectively hold 27.2% of the market share, indicating a fragmented market. The top 10 key players, contributing around 38.2% of the total market share, include IBM, Google, Microsoft, AWS, Oracle, Hyland, Salesforce, Tungsten Automation, ABBYY, and SAP.
In the investment and funding context, Reducto announced a USD 75 million Series B led by Andreessen Horowitz, with participation from Benchmark, First Round Capital, Y Combinator, and BoxGroup, bringing total funding to USD 108 million. Instabase announced a USD 100 million Series D led by the Qatar Investment Authority (QIA), with existing investors Greylock Partners, Andreessen Horowitz, and Index Ventures supporting its AI-based unstructured document-processing platform for financial services, insurance, and government customers at scale.
The report concludes that the Document AI Market is poised for significant growth, driven by the increasing demand for automated document processing and the need for compliance and regulatory reporting in various industries. MarketsandMarkets™, a recognized leader in growth consulting and program management, continues to provide insights and forecasts for the evolving Document AI landscape.