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Digital Signature Market Overview
The global digital signature market generated revenue worth $826.7 million in 2017 and is further predicted to grow at a CAGR of 26.5% during 2018–2023. The need to detect frauds in various sectors (including public sector; banking, financial services, and insurance [BFSI]; and IT and telecom), increasing focus of enterprises and governments on eliminating paperwork, and rising adoption of digital signature-based biometrics are the key factors driving the growth of the market.
Software, hardware, and services are the categories within the component segment of the digital signature market. Of these, the services category dominated the market in 2017, with more than 44.0% revenue share. However, software is predicted to be the fastest-growing category during the forecast period, as it provides vendors the flexibility of customization for meeting specific user requirements. Such software is specifically designed to replace paper-based signature, improve safety and security, increase efficiency, and lower operational cost across organizations.
When segmented on the basis of deployment type, the digital signature market has cloud-based and on-premises solutions as its two categories. Between the two, cloud-based digital signature accounted for 70.0% revenue share in the market in 2017. The is due to the fact that cloud-based solutions authenticate documents via a cloud-hosted data center rather than a locally installed platform, which reduces the operational cost for enterprises.
On the basis of application, the digital signature market is categorized into IT, government, BFSI, healthcare and life sciences, retail, telecom, and others, where the “others” category consists of engineering, architecture, legal, and construction. Among these, the government category contributed the largest revenue to the market in 2017, owing to its increasing initiatives to support paperless work in order to reduce operational cost and save time.
Digital Signature Market Dynamics
Governments in various countries are focusing on developing digital identification solutions for citizens, in order to facilitate the smooth implementation of various public welfare schemes. For instance, the government of the U.K. launched its online portal, Gov.UK Verify, where citizens can submit digital signatures for the online verification process and get access to services, including driving license and tax filing. Similarly, more than one billion people have been registered under the Aadhaar scheme by the Government of India.
Further, companies have shifted from traditional, paper-based signatures to digital variants. There has been an increase in the usage of digital signatures for tax filing and identification and for providing certificates by the public and BFSI sectors. This not only hastens the process of customer ID verification but also lessens the paperwork involved, which, in turn, reduces the operational cost.
Factors such as the growing use of digital signatures to check fraudulent activities and the rising adoption of biometric systems in the BFSI sector are driving the global digital signature market.
Digital form of signature is helpful in checking frauds and reducing paperwork. Besides, it decreases the amount of time spent in filling forms, including insurance forms, banking forms, and advisory and legal forms. Further, a scanned digitized signature can be used repeatedly in insurance and banking procedures, which saves a significant amount of time. Similarly, the insurance sector saves time and money, as the time required for the approval process gets shortened and the costs incurred due to paper processing are minimized. Digital signatures help in maintaining the authenticity of forms, an important aspect with respect to sensitive information.
Moreover, growing acceptance of biometric solutions based on digital signatures in the BFSI domain is pushing the demand for this technology. Digital signature-based biometrics is among the most secure methods for identification and authentication. Besides, the advanced encryption-based security of digital signatures eliminates the possibility of duplication. These innovative and advanced applications of the technology in the BFSI sector are, thus, aiding the digital signature market growth.
The high cost of digital signature solutions, which is incurred during the procurement of digital certificates, impacts the digital signature market growth to some extent. The majority of these solutions are expensive due to multiple functionalities, which require an extensive integration of software and hardware. Moreover, the high price of these solutions makes their deployment slightly difficult in small- and mid-sized industries, thus leaving them with the option of conventional, paper-based signature solutions for the purpose of security and administration. This factor, thus, restricts the market growth to some extent.
The digital signature market is still an uncharted area across many parts of the globe, thus offering ample opportunities to the market players to exploit its potential. Although digital signatures are prevalent in developed economies, including the U.S. and the European Union, the market is still small in developing countries. However, significant expansion in the insurance and banking industries in developing countries is providing lucrative opportunities to the market players for growth.
Moreover, the growth of the e-business sector, of which e-commerce is a constituent, has led to the growth of several related industries. Digital signatures in the e-business industry have undoubtedly helped strengthen partner/customer relationship and facilitate supply chain integration. China and India are the two of the fastest-growing economies across the globe. The growing e-business markets in these nations are expected to offer more opportunities for the growth of the digital signature market. In addition, increasing penetration of the internet, along with the rising number of connected devices, is further taking the domain ahead. As a result of expansion in e-commerce, the demand for secure transactions has risen considerably, further resulting in increased demand for these signatures.
Digital Signature Market Competitive Landscape
Presently, competition in the digital signature market is moderately intense. Major vendors are carrying out research and development activities to enhance security features for their digital signature solutions. They are also launching new products and entering into partnerships to widen their consumer base and improve features of their products.
The digital signature market is currently dominated by Secured Signing Limited, Adobe Systems Incorporated, Entrust Datacard Corporation, SIGNiX Inc., Gemalto N.V., Ascertia, and DocuSign Inc.