RECORD KEEPING SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Record Keeping System Market Drivers:

• Increasing Regulations and Compliance Requirements: Regulatory compliance is a major driver propelling the growth of the record keeping system market. Numerous regulations across sectors mandate organizations to properly manage data, digitize records, and retain them for stipulated time periods. For instance, regulations such as Health Insurance Portability and Accountability Act (HIPAA) in healthcare, Gramm-Leach-Bliley (GLBA) in banking, Sarbanes-Oxley Act (SOX) in public accounting. Adhering to these regulations necessitates robust record management systems. Organizations are increasingly adopting electronic record keeping systems to stay compliant. The integration of records management capabilities in business productivity tools like Microsoft 365 and Google Workspace is also driving adoption. Proper audit trails, security protocols, backup, archiving, etc. in these systems help meet compliance needs.
• Transition from Paper-based to Digital Record Keeping: Many organizations traditionally relied on paper-based records stored in physical files and cabinets. However, the limitations of paper records like taking up space, risk of physical damage, and difficulties in accessing and sharing information are driving a transition to digital record keeping. The statistics from the United Nations indicate that over 75% of leading companies had wholly digitized their critical records such as customer, vendor, and employee data by 2022, compared to less than 25% in 2019. Digitizing records into scanned electronic copies or born-digital formats enables easy online access, sharing, backup, and recovery. It also saves physical space and infrastructure needed for paper storage. Cloud-based record management systems further enable anytime, anywhere access to records across devices.
• Rising Need to Unlock Value from Unstructured: Organizations are accumulating vast amounts of unstructured data from documents, images, emails, social media, chats, etc. Managing this data effectively and tapping actionable insights can be transformational for enterprises. Record keeping platforms integrated with analytics capabilities allow structuring of unstructured data, extracting metadata, and generating reports. According to the United Nations Educational, Scientific and Cultural Organization (UNESCO) data, during the peak of lockdowns in 2020, over 1.5 billion learners were affected due to school and university closures globally, necessitating the rapid adoption of e-learning solutions backed by sophisticated record management capabilities. Predictive analytics applied to records can reveal trends and patterns to aid decision-making. Big data analytics helps uncover insights like policy impacts, customer behavior patterns, operational efficiency opportunities etc.
• Integration of Emerging Technologies like AI, ML, and Blockchain: Incorporation of technologies like artificial intelligence (AI), machine learning (ML), natural language processing, Blockchain, etc. into record keeping systems is enhancing functionality. AI enables auto-classification of records using metadata, automatically tagging, and linking related records. ML improves records search, accelerates information discovery, and predicts archive needs. Blockchain provides tamper-proof chains of records custody. Chatbots assist in records requests and queries. The adoption of these technologies is making record keeping and management more intelligent.

Record Keeping System Market Opportunities:

• Adoption in Emerging Economies: Emerging economies like India, Brazil, Indonesia, etc. represent significant growth opportunities for record management solution providers. Large population, fast developing economy and infrastructure, initiatives like Digital India and demonetization are driving technology adoption in these countries. As of December 2021, over 1.3 billion Indians have received a 12-digit Unique Identity number through the Aadhaar biometric ID program, according to India's UIDAI authority. This is helping reduce fraud and duplication in welfare programs while enabling cash transfers, banking, and e-governance services for many citizens who previously lacked documentation Regulatory policies like India’s eGovernance policy mandating government records digitization is increasing demand for record keeping systems. Government projects providing impetus to records digitization in education, healthcare, etc. Expanding tech infrastructure, internet connectivity, and cloud adoption offers avenues for record management vendors. Local partnerships and solutions tailored to market needs can help tap these high-potential markets.
• Integration of Record Keeping with Business Processes: Tight integration of record keeping capabilities into business systems like ERP, CRM, HRMS, etc. rather than as a separate solution can boost adoption. Built-in compliant records management allows organizations to achieve process efficiency and automation goals while meeting regulatory needs. According to Gartner, in November 2023, Blockchain has the potential to affect and expand all records management procedures, ensuring the security and integrity of records. For instance, capturing customer communication records directly within CRM systems, integrating contracts management, and eSignatures into Salesforce, or adding student records management into college ERPs can provide user convenience and single source of truth.
• Transition from On-Premise to SaaS Models: Cloud-based record keeping systems are gaining strong momentum owing to affordable pricing models, easier maintenance, ubiquitous access, scalability to store growing data, and continuous feature upgrades. SaaS solutions avoid large CapEx of on-premise systems. The diverse applications of SaaS models for record-keeping systems range from accounting and finance to document management and customer relationship management. SaaS solutions offer businesses greater scalability, flexibility, and cost-efficiency, along with improved accessibility and security for managing various types of records and data. Hypercontext is an example of a SaaS application that provides document management solutions. It allows teams to collaborate, set goals, and provide feedback, all in one place.
• New Use Cases across Industries: Innovative use cases and applications of record keeping solutions across diverse verticals also offer growth opportunities. For instance, in banking, integrating record keeping with customer identity verification, KYC, and transaction analysis enables fraud prevention and compliance. In insurance, linking records management with claims processing improves efficiency. In logistics, combining record keeping with asset tracking, inventory management etc. enhances visibility. Leveraging use-case specific capabilities can expand solution adoption across verticals. For instance, India’s Ayushman Bharat Digital Mission aims to develop a digital health ecosystem in the country through the creation of databases for health facilities, professionals and citizens to uniquely identify them and link records across various systems.