Demand rebounded steadily as healthcare providers transitioned to electronic records
Los Angeles, CA (PRWEB) August 16, 2012
The Document Management Services industry is currently valued at an estimated $5.0 billion, and over the five years to 2012, industry revenue has grown at an average annual rate of 1.9%. The industry is composed of companies that provide outsourced records storage, document destruction services and digital conversion of paper-based records to commercial and government clients. As a result of regulations mandating company records retention, the Document Management Services industry benefits from sustained demand for document storage. Nevertheless, the severity of the recent recession “resulted in a contracting number of US businesses, decreasing the industry's available target market,” says IBISWorld industry analyst Caitlin Moldvay. “Moreover, greater commercial focus on cost-cutting initiatives sparked lower overall records volumes for documents storage as companies consolidated document volumes to decrease expenses.” As a result, industry revenue dipped 4.1% in 2009. In the years since the recession, industry revenue has rebounded steadily, driven in part by increased demand from healthcare providers transitioning to electronic-based records, which has boosted demand for digital conversion services.
There are an estimated 1,500 companies competing in the Document Management Services industry . According to Moldvay, over the past two decades, industry giants such as Iron Mountain, Recall (the US-subsidiary of Brambles Limited) and Cintas Corporation have increasingly acquired regional operators in order to achieve cost savings through economies of scale and provide nationwide coverage for larger organizations. The acquisition activity has contributed to the industry's medium level of market share concentration and slow growth in enterprise numbers over the past five years. The number of firms is forecast to grow by a stronger rate over the next five years. In spite of this trend, major industry players will continue to acquire smaller companies both domestically and internationally, thus increasing their market share.
Over the five years to 2017, the Document Management Services industry is expected to achieve steady growth. Rising business formation during the period will expand the scope of the industry's commercial target market and benefit industry revenue. The key challenge among industry operators is demonstrating improved cost savings and data security to companies by outsourcing document management services rather than keeping records management in house. The industry will continue benefiting from the continued conversion of paper-based medical records to electronic versions, which healthcare organizations are mandated to have in place by 2015 or face reimbursement reductions. This legislation will prompt greater demand for digitization services, positively affecting the industry. For more information, visit IBISWorld’s Document Management Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies which store information and records for other companies and government clients. Industry services involve records management, secure document destruction and data protection and recovery services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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