Digital Signature Market Overview
The global digital signature market was valued at $826.7 million in 2017 and is forecasted to witness a CAGR of 26.5% during 2018–2023. Need to curb rising fraudulent activities in industries such as banking, financial services and insurance (BFSI), public sector organization and IT & telecom, growing focus towards eliminating paperless work by enterprises coupled with growing adoption of biometrics based on these signatures are key factors driving the market growth.
On the basis of component, the digital signature market is categorized into software, hardware and services. Services contributed the largest revenue share, of more than 44% in 2017. On the other hand, market for software is predicted to show fastest growth during the forecast period as they offer the flexibility of customization by the vendors on the basis of the requirement of the end-user. This software is meant to replace paper-based signatures, improving safety & security, increasing the efficiency and lowering the costs.
Based on deployment type, the digital signature market is categorized into cloud and on-premises. Cloud based digital signature accounted the larger revenue share, with more than 70% contribution in the digital signature market in 2017.This can be attributed to the fact that cloud-based solution authenticates documents through a cloud-hosted data center instead of having a locally installed platform which reduces operational cost for enterprises.
In terms of application, the market is categorized into government, IT, healthcare & life sciences, BFSI, telecom, retail and others where the “others” includes architecture, engineering, construction and legal. Government held the largest revenue share, which can be attributed to government initiatives for paperless work that saves time and reduces operational cost.
Digital Signature Market Dynamics
Government of various countries are focused on developing digital ID for the citizens which will ease the uniform implementation of public welfare scheme. For instance, the Indian government registered over one billion people under Aadhar scheme. Similarly, in the U.K., the government launched online portal named Gov.UK Verify, where people can submit signatures in digital form for online verification and can access to government services like tax filling and driving licenses.
Furthermore, enterprises have switched from using traditional way of paper-based signature to digital. There is a surge in usage of these signatures for identification and verification, tax filing, certificates by BFSI, public sector. This fastens the process of verifying a customer’s ID and also reduces the paperwork involved in it, which reduces operational cost and saves time.
The global digital signature market is driven by factors such as increasing use of such signatures to reduce fraudulent activities, increasing adoption of biometrics in the banking, financial services, and insurance (BFSI) sector.
The increasing acceptance of digital signature-based biometric solution in the BFSI sector is driving the demand of this technology. Biometrics based on this technology are one of the most secure methods for the identification and authentication procedures, due to its unique characteristics of the user’s signature. Moreover, advancement in encryption-based security of digitalized signature eliminates possibility of duplication. These innovative and advanced applications in BFSI sector are driving the growth of the digital signature market.
Digital form of signatures are helpful in eliminating frauds and paper work with reducing the enormous amount of time involved in filling forms, such as banking forms, insurance forms, and legal and advisory forms. Further, the one-time digitized scanned signature can be used several times in banking and insurance procedures, which is secure and helps in time saving. Similarly, the insurance industry save money by minimizing the costs linked to paper processing and increase revenue through not losing life assurance clients during an extended approval process. They are helpful in maintaining the legal security of having original signatures on forms which is essential for discussing sensitive information.
The high price associated with these solutions such as different types of digital certificates, is adversely impacting the growth of digital signature market. Most of these solutions are costly, due to multiple functionalities in them, which require extensive software and hardware integration. The high cost of digital signature solution makes it difficult for the small and mid-sized industries to implement them, and therefore resort to using traditional paper-based signature solution for the security and administration purposes. This factor restricts the growth of digital signature market.
Digital signature market is uncontested or rather unexplored market across the globe which creates ample opportunities for the major players to exploit the potential of the global market. Although, there has been significant development in developed economies of the U.S. and European Union, the market is still at its nascent form, especially in the developing countries of Asia-Pacific and Rest of the World. A high growth in the banking and insurance industries have been witnessed in the developing countries of these regions. This provides immense growth opportunities for the players in this market.
The growth of e-business market, of which e-commerce is a major category, has triggered the growth of several related industries. The application of digital signature in e-business industry provides efficiency, stronger partner/customer relationships and tighter integration of supply chains. India and China are two of the fastest growing countries in the global e-commerce market. The growing e-business market is expected to provide further growth opportunities to the digital signature market. In addition, with rising internet penetration along with growing number of connected devices is further driving the e-commerce market globally. As a result of growing e-commerce market, demand of secure transactions is also increasing, which would drive the demand of these signatures during coming years.
Digital Signature Market Competitive Landscape
The intensity of rivalry in the digital signature market is moderate. Most of the major vendors in the market are actively focusing on research & development to enhance the security features. They are also focusing on product launch and partnerships to enhance the product features and expand their consumer base across the globe.
Some of the key players operating in the global digital signature market are Adobe Systems Incorporated, Secured Signing Limited, SIGNiX Inc., Entrust Datacard Corporation, Ascertia, DocuSign Inc. and Gemalto NV.