The global disclosure management market size is expected to grow from USD 493.0 million in 2017 to USD 1,066.0 million by 2022, at a Compound Annual Growth Rate (CAGR) of 16.7% during the forecast period. Due to the significant need for managing the financial information within organizations, disclosure management solutions are expected to gain significant market traction in the coming years. The need to minimize the rate of human errors is additionally supporting the growth of the market.
Increasing awareness that is accelerating business expansion, particularly in the developing countries of Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America, is expected to increase the adoption of disclosure management solutions, which in turn, would create further opportunities for the growth of this market. The changing regulations, leading to the restructuring of business operations and processes, is a major factor that is expected to impact the market growth.
Banking, Financial Services, and Insurance (BFSI); healthcare; manufacturing; retail and eCommerce; Information Technology (IT) and telecom; government and defense; media and entertainment, and others (transportation and logistics, and energy and utilities) are among the major verticals leveraging the benefits of disclosure management solutions and services substantially.
The BFSI vertical is expected to have the fastest growth rate in the disclosure management market. In this digital era, due to the ever-increasing qualitative and quantitative disclosure requirements, such as executive compensation, environmental impact reporting, and risk exposures; and the increasing proliferation of electronic reporting formats, the demand for disclosure management solutions is expected to gain pace. Disclosure management solutions assist organizations in maintaining the consistency between similar or dissimilar information reported in reports for different stakeholders, and efficiently re-purposing the same reports for different information delivery channels, both internal and external. Many banks and financial institutes are using disclosure management solutions to provide recurring annual disclosure statements, which helps instill a sense of faith in their customers.
Large numbers of organizations have adopted the cloud deployment model, as it offers the benefit of cost savings and reduces the security burden. Over the past few years, technologies have emerged at a fast rate. Therefore, vendors are keen on offering cloud-based disclosure management solutions. Moreover, the rising demand in enterprises to improve the productivity while maintaining quality is another important factor supporting the cloud deployment of disclosure management solutions. It also improves the business agility and increases collaborations by shared services. Some of the other factors that are expected to drive the demand for cloud deployment are ready availability and better visibility of data. Additionally, cloud-based solutions make it easy for users to apply the disclosure management process to the entire organization and assist in maintaining a competitive market edge by eliminating the integration roadblocks of the supporting infrastructure and enabling organizations to focus more on improving their competencies. For instance, many multinational companies must adhere to regional compliance and regulation policies while filing income tax returns. Moreover, to ensure the smooth functioning of business processes, many teams have to work in a collaborative environment to ensure deadlines are met.
Asia Pacific (APAC) is expected to register the highest CAGR during the forecast period. The increasing penetration of global multinational corporations has led to the introduction of new regulations and business opportunities in APAC. Numerous critical business organizations that belong to verticals, such as BFSI, healthcare, and manufacturing, are showing an interest in digitalization, which is expected to accelerate the adoption of technologies in the coming years. As companies in this region have realized the importance and need for disclosure reporting, a majority of the global organizations operating in this region are adopting disclosure management solutions. Furthermore, China has implemented the “Made in China 2025” vision to speed up digital transformations in the manufacturing industry. Cloud services are also gaining traction in this region, and companies are migrating their businesses to advanced, integrated cloud platforms to save time and reduce costs. Furthermore, enterprises in the BFSI vertical in this region are investing in disclosure management solutions to modernize their applications and IT infrastructure for accomplishing omnichannel strategies. The highly competitive environment in the APAC region is expected to drive the need to promote and manage sales and marketing activities to build brand awareness and increase the overall profitability.