Disclosure Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The Disclosure Management Market is expected to reach USD 1,879.30 million by 2027, registering a CAGR of 16.19% from 2022 to 2027.
Key HighlightsThe North American disclosure management market is expected to observe significant growth, owing to technologically advanced countries like United States and Canada. The increase in requirement is due to United States' SEC mandate, which requires all public and private entities listed with it to file their reports in the eXtensible Business Reporting Language.
The rising need to comply with industry regulations to sustain market competition is one of the key factors driving market demand for disclosure management in the region. This has propelled the companies to opt for the cloud deployment model and 24/7 availability of accessible information with low-cost maintenance services fueling the studied market in large enterprises, owing to its increasing focus on improving the customer experience.
Contemporary reporting is moving to the Internet, with the regulations in the North American region requiring company reports to be published in the eXtensible Business Reporting Language, an international business-information standard commonly known as XBRL. Typically, companies initially outsource the tagging of their XBRL reports, thereby adding incremental manual processes and controls and cost and time expenditures to their efforts. These incremental manual processes adversely affect the quality of XBRL formatted disclosures as recognized by the US Securities and Exchange Commission (SEC), which routinely provides feedback on common and material errors in company reports. Due to this, many regional companies are adopting disclosure management solutions.
A working paper published by the New York University School of Law examined the effects of late quarterly and annual filings on more than 2,000 companies that had never previously delayed SEC filing. They found that accounting issues are the most common reason for late filings and often determine the severity of the impact. Among the sampled companies, delayed SEC filings of Forms 10-Q and 10-K were an average of 41 days late when accounting was involved, more than three times later than the average delay because of corporate events (13 days) or uncertain reasons (11 days), where these delays could be addressed by the usage of robust disclosure management solutions by the company.
With the new regulations coming into force, companies are increasingly seeking effective disclosure management solutions. The US regulators are considering tougher disclosure requirements for investment firms in response to this year's implosion of Archegos Capital Management and trading gyrations in GameStop Corp.
Competitive LandscapeThe disclosure management market primarily comprises multiple international players such as SAP SE, Oracle Corporation, Workiva, Inc., Certent, Inc., etc., in a moderately fragmented and quite competitive environment. The market is witnessing multiple partnerships by the companies to expand their geographical presence, and the companies are continually updating their existing solutions to withstand the competition.
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