Digital Signature Market Overview:
Digital Signature Market was valued at $517 million, and is expected to reach $3,440 million by 2022. The global digital signature market is analyzed based on the type of component such as hardware, software, and services. Digital signature is a part of electronic signatures, which is used to secure data through asymmetric cryptography. Electronic documents are secured using the process of encryption at the sender’s end. To access the data, the receiver must be authorized to decrypt the data sent by the creator. The following illustration depicts the functioning of the digital signature process:
Digital Signature Process
Digital signature solution offers various advantages such as increased efficiency, reduced turnover time, lower costs, and enhanced security. Also, it ensures enhanced data integrity, scalability, and transparency, and customer satisfaction, propelling the digital signature market growth. Rise in online banking as well as e-commerce activities and increase in internet penetration fuel the adoption of digital signature across various industries.
Based on deployment type, the market is divided into on-premises and cloud-based. Further, the report analyzes the digital signature market based on industry verticals, which include Banking, Financial Services, and Insurance (BFSI), education, human resource, IT & telecommunication, government, real estate, healthcare & life science, and others. The digital signature market is analyzed based on four regions, which include North America, Europe, Asia-Pacific, and LAMEA.
Innovation in Technology
Technological innovations stimulate the adoption of digital signature technology among users. The digital signature technology can improve security mechanism for transmitting e-documents, owing to more secured encryption, and use of advanced public key infrastructures (PKIs) and other efficient locking mechanism.
Increase in Adoption of Cloud-based Solutions
Cloud-based deployment of digital signature solutions has gained widespread acceptance across the globe on account of lower implementation costs and easy of availability of cloud storage. As per our analysis, cloud-based deployment segment dominated the global market in terms of revenue, and is expected to maintain this trend throughout the forecast period.
By component segment, services segment is expected to grow at a considerable growth rate during the forecast period. Digital signature services allow easy, efficient, and secure way to handle the queries related to document signing activities. For instance, eSign is an innovative initiative that authenticates the signer using Adhar Card eKYC services through Application Service Providers (ASPs).
North America and Europe together accounted for about 80.3% of the global digital signature services market in 2015, with the former constituting around 50%. From a growth perspective, Europe and Asia-Pacific are the two potential markets, which are expected to witness significant growth rates during the forecast period.
Among deployment type segments, cloud-based deployment segment dominated the global digital signature market and is anticipated to continue its dominance throughout the forecast period owing to lower costs and easy availability of the cloud storage services and solutions. Cloud computing uses resource sharing methods instead of managing the applications by individual devices or local servers. The cloud allows the function of application software through internet-enabled devices. There are four types of deployment models available in cloud-public, private (internal), hybrid, and community.
Cloud-based deployment type has been gaining momentum in the digital signature industry, and is expected to witness significant increase in its adoption in the near future. The major factors driving the market growth include widespread availability of cloud services (especially SaaS model), low cost of installation, other cost benefits (such as renting cyber space for definite period leading to reduction in the cost of ownership), and availability of various types of models.
In industry verticals segment, BFSI segment is forecasted to grow at the highest growth rate during the forecast period. North America and Europe jointly accounted for about 70% of the digital signature market in the BFSI industry in 2015, with the former constituting around 37.5%.
Banking transaction have witnessed a paradigm shift from face-to-face to digital platforms such as ATMs, kiosks, tablets, smartphones, and online. This trend has significantly allowed customers to opt for convenient and quick banking channels. However, the associated risks involved due to use of this technology such as identity theft, account hacking, unauthorized money transfer, fraud, fishing, and other cyber-threats have limited the use of this technology. The introduction of digital signature in such transactions significantly minimizes these risks and delivers improved results in terms of speed of transaction, cost reduction, and enhanced customer services.
Among industry verticals, government sector is expected to grow at the second highest CAGR during the forecast period. Local and central governments of countries were earlier inclined towards paper-intensive mode of operation due to specific requirements such as decision traceability, strong audit trails, and control. However, government of various countries are increasingly deploying the digital signature technology to adapt to the reforming digital era and reduce operational expenses.
North America and Europe jointly accounted for about 70.2% of the global digital signature market in the government sector in 2015, with the former constituting around 42.8%.
In geography segment, North America digital signature market was the highest contributor in overall revenue and is expected to continue its dominance throughout the analysis period. This growth is majorly driven by high adoption of digital signature technology and presence of already established infrastructure. BFSI and government jointly accounted for about 41.1% of the North America digital signature market in 2015, with the former constituting around 22.8%. From a growth perspective, BFSI and government are the two potential markets, which are expected to witness significant growth rates during the forecast period.
Further, Asia-Pacific digital signature market is forecasted to grow at the second highest CAGR during the forecast period. The region is expected to exhibit rapid adoption of digital signature technology in the coming years. The Indian Government has taken proactive initiatives for the adoption of digital signatures. For instance, in July, 2006, the Indian Government launched the E-governance program MCA21 to promote the use of digital signature certificate for e-forms with equivalent recognition and validity as that of handwritten signature.
China and rest of Asia-Pacific jointly accounted for about 52.8% share of the Asia-Pacific digital signature market in 2015, with the former constituting around 35.5%. From a growth perspective, Australia and India are the two potential markets, which are expected to witness significant growth rates during the forecast period.
Digital Signature Market Key Segments
By Deployment Type
By Industry Vertical
- Human Resource
- IT & Telecommunication
- Healthcare & Life Science
- Real Estate
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players Profiled in the Report
- Adobe Systems, Inc.
- Entrust Datacard Group
- Esignlive By Vasco
- Gemalto N.V.
- Identrust Inc.
- Kofax Limited (a Lexmark Company)
- Rpost Technologies
- Secured Signing Limited
Other Market Players Mentioned in the Report
- Arthur D. Little
- Shachihata Inc.