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The global digital signature market size was USD 1.10 billion in 2019 and is projected to reach USD 7.99 billion by 2027, exhibiting a CAGR of 28.9% during the forecast period.
Digital signature offers secured and verified transactions to support the growing digitized businesses. The rising demand for e-businesses and paperless workflow is likely to drive the market. It is helping industries such as retail, BFSI, healthcare, government, IT & telecom among others to reduce the operational costs. Its implementation is offering a competitive edge to the enterprises across the industries. Similarly, increasing government support is likely to boost the market growth. For instance, in July 2020, the Securities and Exchange Board of India (SEBI), a market regulator in India allowed public listed companies to use electronic signature certifications for submissions that are made to the stock exchanges under certain disclosure norms till December 2020.
Social Distancing Norms to Accelerate the Use of Electronic Signature Amid COVID-19 Pandemic
The COVID-19 pandemic has accelerated the adoption of digital verification and signatures. The increasing online and remote work obligations is compelling the industries to adopt digital technology to continue their business. Governments across the countries are using and promoting digital signatures to reduce paper-based transactions to maintain social distancing norms.
In India, the government is focusing on utilizing the digital platform to its full potential. The government is endorsing digital modes of signature and verification such as smart ID/card readers, electronic signatures, smooth pass, biometric signatures, and more. For the short-term requirement of electronic signature, the Indian government is offering a one-time password after completing digital KYC.
Globally, the pandemic crises have forced the industries to shift towards digital platforms. BFSI is one of the key industries to witness the rapid implementation of digital platforms to deal with the changing environment. However, identity verification has been a major challenge for banks. The electronic signature assures verified communication between both the parties, thereby eliminating the chances of fraudulent transactions or communications. Similarly, the retail and healthcare industry is gaining traction in implementing the electronic signature technology during the pandemic. Thus, the market is expected to gain rapid growth post-pandemic period.
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Growing Paperless Trend to Boost Demand for Electronic Signatures
The growing digitalization is likely to revolutionize various industry workflow systems. The increasing adoption of dematerialization by most of the organizations is one of the essential factors propelling the growth of the electronic signature market. The paperless systems offer significant benefits such as convenience, speed, and excellent workflow efficiency. Digital documents help the organizations in reducing the expenses of the stationary. Similarly, it reduces the risk of misplacing an important document and keeps it secure for a long duration. The growing popularity of the paperless system has created the demand for electronic authorization.
A paperless system reduces client and customer waiting time and helps in building the client’s trust. For instance, in 2018 Indonesia’s two leading banks CIMB Bank and Mandiri Bank collaborated with PrivyID for booking systems using electronic signatures through smartphones. Similarly, India offers eMudra, a licensed eSign service provider to payment banks. Its unique identity capability helps in eliminating fraud cases and offers transparency in the organization. Thus, an increasing shift towards the adoption of electronic document systems is expected to boost the demand for these signatures.
Emphasis on Improved Customer Experience to Drive Market
Companies across the world are focusing on providing an enhanced customer experience by implementing digital platforms. Better customer experiences boost customer loyalty and brand name which helps in expanding the business. Thus, in today’s digital world, companies are more concerned about providing better and efficient customer services.
The enterprises are adopting digital and technologically advanced solutions to deal with customers. In 2018 IDC stated that around 2,000 global companies’ CEOs are adopting digital strategies to improve customer experience. As per the report, global spending on digital transformation was near USD 1 trillion in the year 2018. Traditionally, signing agreements between two parties involved huge stacks of papers, a lot of time, and traveling which consumed most of the time. The implementation of electronic signature offers fast and much more convenient options to the customers. Thus, increasing focus on offering better customer experience is anticipated to propel the market growth.
Rising Preference Towards Digitalization by BFSI Companies to Boost the Market Growth
The adoption of digitalization and automation has made BFSI companies witness remarkable changes in their processes. It has provided huge transparency and efficiency in the payment processes. Processes such as loan sanctioning, investments, among others that required client’s physical presence for the signature.
The digitalization has made it possible to conduct various tasks including account opening process, online bill payments, and more without being physically present. This has led to the increasing demand for digital signature in the BFSI industry. The technology offers an easy and fast documentation process by allowing real-time signing features. Further, it helps in reducing fraud cases such as signatures forging, document misplacement, or paper being stolen, and more. Thus, the rapid digitalization in the financial sector is driving the digital signature market growth.
Lack of Awareness Regarding Legality and Benefits of Digital Signature to Hinder the Market Growth
The demand for digitalization is rapidly growing across the industries. However, in some developing economies, the adoption of electronic signature is lower as compared to developed nations. This is mainly due to a lack of awareness regarding the benefits associated with these signatures. Also, misconception and lack of knowledge regarding its legality is one of the factors impeding its adoption. Companies are hesitant to utilize the technology owing to the various rules and regulations associated with it. Also, growing security concerns associated with data and the rising number of cyberattacks are expected to limit the digital execution of business processes. These factors are likely to hinder the growth of the market.
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Increasing Demand for Digital Solutions to Fuel the Software Segment Growth
Based on the component, the digital signature market is categorized as software, hardware, and services. The software market is expected to lead the market. Its capability to offer instant electronic signature conversion is likely to drive the software segment. The increasing implementation of the paperless work process is expected to boost the software implementation. Similarly, the managed services and professional services are likely to grow significantly owing to the increasing demand for the solution.
Growing Developments in Cloud Technology to Boost Cloud-based Digital Signature Demand
Based on the deployment, the market is categorized as on-premises and cloud. The on-premises segment is expected to gain maximum market share during the forecast period. The increasing concerns about cloud security has been one of the reasons for preferring on-premises deployment. However, with technological development and security advancement, the demand for cloud-based solutions is gaining traction. Further, to form new standards for cloud based electronic signature in-line with business and government regulations, business providers have created an international group of Cloud Signature Consortium.
Increasing E-Business Trend to Boost the Large Enterprises Market Share
Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises. Small and medium enterprises are expected to show the highest CAGR during the forecast period. The growing acceptance for digitalization to improve efficiency in the business process is one of the major factors for the growth of the SME segment. Large enterprises are expected to dominate the market during the forecast period. The growing implementation of e-business and the paperless system are fueling the adoption of electronic signatures among the large enterprises. Besides, an increasing IT budget is also boosting the implementation of advanced digitalized solutions across large enterprises.
BFSI to Show Rapid Growth Owing to Increasing Demand for Better Customer Services
Based on industry, the market is segmented into BFSI, IT and telecommunications, government, healthcare & life science, education, retail, real estate, and others. The BFSI segment is expected to show exponential growth owing to the rapid shift toward the digital platform to provide streamline services to their clients. This has helped in boosting the sales of the industry.
Similarly, the adoption of electronic signatures in the retail industry is improving its customer and employee satisfaction. The growing trend of e-governance across the countries is likely to drive market growth during the forecast period. Similarly, healthcare is also steadily adopting digital systems for medical documentation and payment invoices.
North America Digital Signature Market Size, 2019 (USD Million)
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North America is expected to dominate the market share during the forecast period. The region is the early adopter of digital technologies and thus, boosting the digital signature market growth. The U.S. is expected to gain traction owing to increasing awareness of the paperless systems. In 2018, the U.S. government introduced the Integrated Digital Experience (IDEA) Act to improve digital services. Such regulations and acts are driving the demand for the implementation of these signatures across the industries in the country. Also, the significant presence of key providers in the country is likely to boost the market.
Asia Pacific is expected to grow significantly owing to the increasing government initiatives to improve digitalization across industries. The government of India is focusing on providing e-signature facility and has passed a law under IT 2000 for legalizing the e-signature. In China, the government has proposed E-Signature Law and is highly promoting digitized signature for documentation. This is likely to drive the market growth in the Asia Pacific region.
Europe is expected to gain rapid growth during the forecast period owing to increasing E-business systems across the industries. The European Parliament and the Council provided regulation on electronic identification and trust services (eIDAS) in 2016 for providing smooth electronic transactions across its countries. The new law filled the gap by allowing cross-border e-signature facilities. This has boosted the cross-country trade in the European region. The U.K. and Germany are expected to gain maximum market share in Europe. In the U.K., rapidly growing small and medium enterprises are highly adopting the electronic signature technology in order to scale the businesses.
The Middle East and Africa is steadily growing during the forecast period. GCC is expected to gain traction owing to the increasing investment in the region. For instance, Adobe, Inc. has collaborated with the federal telecommunications regulatory agency of the United Arab Emirates (UAE) and Telecommunications Regulatory Authority (TRA) to provide e-signature and digital signature technology. Similarly, Latin America is also likely to show significant growth during the forecast period.
Growing Strategic Collaborations Among Companies to Expand the Product Portfolio
The key market players such as OneSpan Inc., Thales Group, Ascertia, DocuSign Inc., Secured Signing Limited, Kofax, and more are focusing on providing efficient signing solutions. The companies are collaborating to extend their presence. They are entering into strategic partnerships to provide advanced cloud-based solutions. The companies are also investing in offering a mobile-based app for digital signing solutions.
October 2019 – Adobe, Inc. announced a partnership with Box Inc., to integrate Acrobat web experience with Box. The partnership aims to offer solutions to collaborate, modify, sign, or organize a PDF file directly through Box.
An Infographic Representation of Digital Signature Market
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The market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.
Value (USD billion)
By Enterprise Size
The global digital signature market is projected to reach USD 7.99 billion by 2027.
In 2019, the market was valued at USD 1.10 billion.
The market is projected to grow at a CAGR of 28.9%.
The software segment is hold a significant share in the global market
The increasing focus on providing enhanced customer experience is driving market growth.
Adobe, Inc., OneSpan Inc., Oracle Corporation, DocuSign, Inc., Dropbox, Inc., SIGNiX, Inc., and more are some of the major players in the market.
North America is expected to hold the highest market share.
Europe expected to grow with the highest CAGR.
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