The rising demand to meet regulatory compliance standards and audit management with improved visibility and control to strengthen corporate information governance, enhance security, and optimise business processes with automated workflows and streamline business processes by eliminating repetitive manual tasks are key factors expected to drive market growth. The demand for business content management is being driven by these causes.
The global enterprise content management market is estimated to increase at a CAGR of 9.8% over the forecast period, from USD 23.6 billion in 2021 to USD 37.7 billion in 2026.
The ECM market is fragmented due to the presence of a large number of firms. The major factors expected to drive ECM software adoption among enterprises and SMEs across a variety of verticals, including BFSI, retail and consumer goods, government and public sector, healthcare and life sciences, media and entertainment, telecommunication, IT and ITeS, and manufacturing, are increasing cloud adoption and digital transformation. Vendors in the market should expect additional prospects in developing nations throughout APAC and MEA. Businesses are facing new challenges as a result of the COVID-19 epidemic and the development of remote work environments. Following the new virus’s unexpected outbreak, several organisations scrambled to find a document management system that would simplify and streamline their operations. ECM solutions give you access to business-critical data from anywhere, whether you’re in the office or working remotely. In areas such as accounts payable, accounts receivable, human resources, and contract collaboration, organisations across many sectors are using ECM solutions to improve workflow efficiency, storage, security, compliance, and streamline the flow of business information.
Analysis of the worldwide enterprise content management market’s impact of COVID-19
Throughout the research, the influence of the COVID-19 pandemic on the market is discussed. The pandemic’s influence on the enterprise content management sector has been good. Businesses are facing new challenges as a result of the COVID-19 epidemic and the development of remote work environments. Following the new virus’s unexpected outbreak, several organisations scrambled to find a document management system that would simplify and streamline their operations. ECM solutions give you access to business-critical data from anywhere, whether you’re in the office or working remotely. In areas such as accounts payable, accounts receivable, human resources, and contract collaboration, organisations across many sectors are using ECM solutions to improve workflow efficiency, storage, security, compliance, and streamline the flow of business information.
Increased demand for meeting regulatory compliance standards and audit management with enhanced visibility and control to promote corporate information governance
Audits are a dreadful reality for any company. Businesses are making significant changes to their IT systems and internal processes to comply with government regulations and mandates such as the Sarbanes-Oxley Act, HIPPA’s severe security requirements, OSHA, and the Securities and Exchange Commission. With built-in audit trails that offer access histories and transactions for each document, enterprise content management makes this easier. Government regulations necessitate the preservation of various types of data and records, and the requirements are frequently complex. Checklists, standard forms, and automatic organisation are all tools that a good ECM can use to guarantee that the rules are followed. It’s a lot easier to show auditors exactly what they need to see with a single mouse click. Documents are highly traceable and security demands are met thanks to approval history and audit trails. Enterprise content management is a fantastic approach to better prepare your company for audits and protect it from lawsuits, reducing the risk of fines and penalties.
Misconceptions about data security and privacy issues are a source of restraint.
Organizations throughout the world are concerned about security and compliance, and they are hesitant to implement new solutions that include data handling or data migration from one platform to another. Data collection and transmission from one channel to another are part of enterprise content management. Many firms believe that enterprise content management solutions would lead to data breaches in their highly abstracted data sets due to a lack of sufficient information about security standards and their implementation.
The main reason for the slow adoption of enterprise content management solutions is concerns about data security. Users are hesitant to use these solutions because they are afraid of losing their critical master and reference data owing to data errors that occur during compilation or upgrade. Users believe that their data privacy is at risk, and that there will be no accountability for data losses or thefts, and that no mitigation would be offered. In actuality, this is a myth that stymies enterprise content management solution adoption.
Opportunity: AI-Integrated ECM is becoming more popular.
By being able to “read” the information on a document, Artificial Intelligence (AI) takes ECM to the next level. An ECM system powered by AI can identify, classify, analyse, and disseminate content in a variety of formats. Machine Learning, Image Recognition, Voice Recognition and Transcription, Natural Language Processing (NLP), and Natural Language Understanding (NLU) are some of the AI-based technologies that are driving the AI-Integrated ECM trend. Document processing, unstructured data processing, content management, better search, and collaboration are all part of the solution. According to a recent study conducted by an ECM vendor, 80 percent of company data is unstructured, and 70% of enterprise data is in free-form text such as emails, written papers, and comments, boosting need for AI-Integrated ECM.
Lack of a qualified labour and bad management in the creation of a user adoption process provide a challenge.
When firms transition from paper to digital document management, some go to great lengths to ensure document security. Without changing all of the processes, the new technologies should help people be more productive and efficient. People may operate slightly differently under the new system, but the process should remain largely the same. It’s difficult to pinpoint what causes a mistake when a business changes all of its processes and tools at the same time. As a result, once employees have become accustomed to the tools, firms should aim to maintain the tool while improving the process. Furthermore, it is critical to provide additional time for staff to learn and adjust to a new system. At the end of the day, user adoption is a process that every business must manage and drive.
During the forecast period, the services sector will have a bigger market share.
Due to the requirement for professional and managed services to ensure the efficient operation of ECM systems, the services segment for enterprise content management is predicted to grow at a faster CAGR. These services aid in the creation, assessment, and utilisation of ECM environments in order to prevent wasting time and effort on a disastrous implementation. To reduce downtime during the pre- and post-installation of ECM solutions, businesses require active support from trained personnel. These services give the required assistance to maintain business process efficiency, boost enterprise growth, and eliminate unnecessary operational costs.
In 2021, cloud deployment will have a higher market share.
The ECM market is divided into two types of deployments: on-premises and cloud. Because enterprises in many areas are increasingly adopting cloud for digital transformation, the cloud sector is likely to have a larger part of the enterprise content management market. When opposed to SMEs, large firms prefer the on-premises option since the budget allocation for installing ECM software products and services in company equipment is often higher.
During the forecast period, small businesses will account for the bulk of market share.
SMEs are defined as businesses having a workforce of one to 1,000 employees. SMEs have a limited marketing budget and frequently lack the tools and expertise needed to orchestrate efficient marketing campaigns. In comparison to large firms, these businesses confront more budget constraints and demand better approaches to address difficulties in order to improve the cost optimization of their business processes. During the forecast period, however, the SMEs segment is expected to increase at a faster CAGR. ECM facilitates the collection of documents, the gathering of pertinent data, and improved information governance. ECM systems also provide scalability, user-friendliness, simplicity of integration, better agility, and increased efficiency. These reasons are also predicted to accelerate the adoption of ECM solutions and services by SMEs.
During the forecast period, the IT and ITeS industry vertical would develop at the fastest CAGR.
Due to the massive number of content and documents, IT and ITeS is one of the fastest-growing industries in terms of adopting sophisticated technologies and services. Critical data is handled by IT service providers in a variety of industries, including BFSI, healthcare, education, and government and defence. Security standards and regulations such as HIPPA in healthcare, PCI DSS for credit card-related information, GLBA, SOX/J-SOX, NCUA, data privacy, and data residency rules must be followed. To manage these demands, businesses need a high-security infrastructure. As a result, in order to improve the customer experience, they are implementing enterprise content management to manage IT service delivery.