U.S. Digital Signature Market Outlook by Deployment Type (On-Premise, Cloud Based), Component (Solution, Service), Organization Size (Large Enterprises, SMEs), Application (BFSI, Government and Defense, Healthcare and Life Sciences, Legal, Real Estate, Education, IT and ITeS) - Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The U.S. digital signature market size stood at $921.3 million in 2021, and it is expected to advance at a compound annual growth rate of 31.2% during 2021–2030, to reach $10,612 million by 2030. The growing usage of digital-signature solutions in the upcoming years is the main driving factor. In turn, the U.S. Government Paperwork Elimination Act (GPEA) is a key factor driving the adoption of this technology. The act encourages central agencies to use electronic filing, signatures, and forms for conducting business with the public.

In addition, the Securities and Exchange Commission (SEC), Internal Revenue Service (IRS), and Federal Reserve Bank have all issued guidelines that enable the usage of electronic signatures on more forms, documents, and transactions than ever before.

Growing Usage of E-Signatures to Prevent Signature Forgery

The U.S. digital signature market is driven by the increasing number of signature forgeries in the country. Digital signatures are useful in removing theft and fraud risks in many sectors. Now, governments, corporate offices, and enterprises are taking initiatives to adopt paperless workflows and embracing the Green Movement. Many offices have started the usage of electronic documentation, which saves a huge amount of paper and, in turn, helps reduce deforestation.

Further, during the COVID-19 period, a large number of people and organizations adopted paperless documentation to prevent the spread of the virus, by being able to conduct contactless transactions. Thus, COVID-19 has had a positive impact on the digital-signature market.

In the healthcare industry, doctors, lab investigators, and researchers are transferring digitally signed prescriptions and related data from the hospital’s server to the pharmacy. This way, druggists get a copy of patients’ prescriptions and bills online, due to which any fraud or manipulation in the prescription can be checked and prevented. This ultimately helps in the provision of better healthcare and appropriate medicine.

Moreover, according to a report by the Federal Reserve System of the U.S., due to the lack of the extensive adoption of a more-secure method of performing credit and debit card transactions and the continuous use of traditional card technologies, including magnetic strips, the country has become more vulnerable to card counterfeiters and fraudsters. Signature verification plays a vital role in maintaining the security of credit cards and authenticating payments. Thus, the U.S. government is realizing the importance of digital certificates provided through digital signing methods.

U.S. Government Paperwork Elimination Act

The implementation of the GPEA is a key factor driving the adoption of these solutions in the country. This law states that when feasible, individuals and entities should deal with federal agencies with an option to transact with them and maintain their records electronically or digitally. Also as per the act, records and signatures that are electronically recorded should not be denied validity, enforceability, or legal effect on account of their electronic form. With the increasing public awareness of electronic communication and the surging internet usage among U.S. citizens, the demand for net-based interactions with national agencies has increased.

Further, the government has started realizing that with internet-based interactions, the national agency and its partner will spend less time completing transactions. The enhanced data analysis opportunities, higher record-keeping efficiency, augmented quality of the final product, increased employee productivity, information benefits to citizens, and extensive security for sensitive information are a few added benefits of e-signatures and digital signatures.

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Solution Category To Hold Largest Share

The solution category is expected to capture the largest revenue share and grow at a CAGR of 33.3% during the forecast period. Solutions enable the authentication of digital records and the identity of the signer. Many industries, such as healthcare & life sciences, BFSI, government & defense, legal, real estate, and education, are quickly adopting these solutions. Along with this, businesses across the U.S. are doing away with paperwork and signing important documents online. This trend is growing with globalization, the rapid digitization, rising incidence of fraud, and the penetration of smartphones across various industries. This is propelling the demand for associated software from companies of all sizes, as is the rising number of data breaches.

Solutions are categorized into software and hardware. Software in this market refers to the computer programs that enable the transformation of document-based signature systems into digitized forms.

In addition, the upgradation of document security, transparency, and tracking mechanisms contributes to the growth in the software demand in the U.S. For instance, OneSpan offers OneSpan Sign, which enables users to manage all aspects of the signing procedure.

Hardware in this market refers to the physical components that act as the interface between a signee and the software. The market for hardware includes digital signature pads, security modules, and security tokens/smartcards.

Professional Service Category Expected to Grow

The market also includes the revenue generated from managed and professional services. The professional services market is expected to grow faster over the next few years. Digital signature consulting, advisory, and knowledge service demand is escalating among businesses looking to get better assistance with this new signing technology in a short time.

Government Sector Is Expected To Hold Largest Share

The largest application area for these solutions in the U.S. is expected to be the government sector. Since the implementation of various related laws by the U.S. government, including the UETA and GPEA, the authentication process has gradually seen the transition from manual to digital methods. In addition, government bodies prefer digital signatures as a means to reduce forgery and gain public confidence in private documentation. This is why this technology is used in public offices to maintain the integrity, authenticity, and non-refutability of documents. It also ensures that the right person has signed the document.

BFSI Sector Is Expected To Witness Fastest Growth

The BFSI sector is growing the most rapidly due to the increasing acceptance of digital signature hardware and associated software tools, such as biometric systems and smart cards, in this sector. Moreover, customers and enterprises are performing online transactions faster with the help of digital signatures.

Cloud-Based Category Will Grow at Higher CAGR

The cloud-based category is expected to grow at a CAGR, of 32%, in the next few years. The fast growth is led by the rollout of subscription-based and easy-to-manage software offerings by the IT vendors operating in this industry.

In addition, the emergence of pay-as-you-go models has escalated the demand for cloud-based solutions among the enterprises in the country. For instance, Adobe recently unveiled its cloud-based digital signature service, Adobe Sign, which is built on the open standard technology. Adobe Document Cloud and Adobe Sign will now enable digital signatures to be used from any browser and any mobile device.

Key Players in U.S. Digital Signature Market Are

• Adobe Systems Inc.
• Secured Signing Limited
• Gemalto N.V.
• SIGNiX Inc.
• Entrust Datacard Corporation
• Ascertia
• DocuSign Inc.
• eSignLive
• OneSpan
• GlobalSign

Market Size Breakdown by Segment

The study uncovers the biggest trends and opportunities in the market, along with offering segmentation analysis at the granular level for the period 2022 to 2030.

Based on Deployment Type

• On-premise
• Cloud Based

Based on Component

• Solution
  • Software
  • Hardware
• Service
  • Managed
  • Professional

Based on Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Based on Application

• BFSI
• Government and defense
• Healthcare and life sciences
• Legal
• Real estate
• Education
• It and ITeS