Document Management System Market Trends

Growth Drivers

• Paperless strategies by governments propelling market growth: Implementation of several paperless strategies worldwide to enhance efficiency, reduce costs, and promote sustainability, drives the growth of the document management system market. Initiatives such as e-governance, digital documentation, and regulatory mandates push organizations to adopt DMS for secure storage, retrieval, and compliance. For instance, in 2021, the Dubai government announced going fully paper-free, removing over 336 million sheets of paper used for government transactions every year, marking a major step towards making Dubai a smart city of the future. 

• Growing cloud computing and software-as-a-service implementation: Firms are adopting various strategies for cloud computing and software implementation in document management systems. For Instance, in November 2021, Open Text Corporation revealed a detailed update to the OpenText Content Cloud, the Cloud Editions (CE) 21.4 launch at OpenText World. The platform is further expected to have profound integrations with Salesforce and Microsoft 365. Such developments are projected to boost the market significantly in the upcoming years.

Challenges

• Integration of document management systems with internal applications incurs high costs: The average prices of the most popular document management systems can vary significantly based on the number of consumers, the features required, the installation fees, and the system's type (cloud-based, on-premises, or hybrid). In addition to the price of the software itself, the costs of system upkeep and installation must also be considered. Even though the preliminary cost of the software may be low, there are frequently additional costs to consider. Numerous of these price barriers contribute to the market's slowing expansion.

• Growing data privacy concerns associated with document management systems: It is challenging the market by increasing the need for compliance with regulations such as GDPR and HIPAA, securing against unauthorised access, and preventing data breaches. Organizations must implement encryption, role-based access controls, and secure cloud storage to protect sensitive information. Additionally, user concerns over data tracking, third-party access, and cyber threats make trust and transparency essential for DMS providers to remain viable.