According to a recent report published by Allied Market Research, titled, “Digital Signature Market by Component, Deployment Model, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global digital signature market size was valued at $3.56 billion in 2020, and is projected to reach $61.91 billion by 2030, growing at a CAGR of 33.2% from 2021 to 2030.
A digital signature is a modern alternative to signing documents with paper and pen. It uses an advanced mathematical technique to check the authenticity and integrity of digital messages and documents. It guarantees that the contents of a message are not altered in transit and helps the end user to overcome the problem of impersonation and tampering in digital communications. Digital signatures also provide additional information such as the origin of the message, status, and consent by the signer. Furthermore, the key factor that drives the digital signature market includes high acceptance of digital signatures in internal processes or communication in enterprises and enhanced operational efficiency leads to reduction in costs positively impacts the growth of the market. In addition, growing need for data security and authentication owing to increase in cyber-attacks boost the growth of the market across the globe. However, factors such as resistance to variation of existing applications or systems and high cost of investment are limiting the growth of the market. On the contrary, innovation in technology, increase in adoption of cloud-based solutions, and new legislations promoting the use of digital signature are expected to offer remunerative opportunities for the expansion of the market during the forecast period.
Based on deployment model, the on-premise segment is contributing major digital signature market share in 2020 and is expected to witness fast growth during the forecast, primarily because these solutions were preferred by end users with large amounts of confidential data, due to the high security and control they provide. However, the cloud segment is expected to witness significant growth during the forecast period, as it provides the IT team with a greater prospect to facilitate real business value to the organization through lower expected cost and an improved ability to focus on innovation and differentiation.
Region wise, the digital signature market was dominated by North America in 2020 and is expected to witness the highest growth rate during the forecast period, owing to growing popularity of digital signatures among the organization. In addition, early adoption of digital signature solutions is providing a lucrative opportunity for the market. However, Europe is expected to witness significant growth during the forecast period, owing to rising application of digital signature such as legal document used for financial transactions, email service providers, and software distribution, areas where the authenticity and integrity of digital communications are crucial are expected to boost the digital signature market.
The outbreak of COVID-19 is anticipated to have a positively impact on growth of digital signature market. This is attributed to rise in demand for digital signatures to help organizations and clients sigh digitally and approve urgent files wherever and whenever. However, key vendors of the e signature market developed strategies to expand their reach in markets that previously were dominated by wet ink signatures. For instance, U.S. based digital signature services provider, DocuSign-announced specialized digital signature tools for the real estate industry. This helped DocuSign to help the realtors and their customers to facilitate necessary transactions with more ease. The digital signature sector was also benefitted by many governmental polices that were paced to help businesses during the period of the pandemic. For instance, the Institute of Chartered Accountants of India (ICAI) allowed the chattered accountants practicing from homes to sign audit reports digitally.
Key Findings Of The Study
- By component, the software segment accounted for the largest digital signature market share in 2020.
- Region wise, North America generated highest revenue in 2020.
- Depending on deployment model, the on-premise segment generated the highest revenue in 2020.
The key players profiled in the digital signature market analysis are ADOBE, IDENTRUST INC., ASCERTIA, DOCUSIGN, INC., ENTRUST CORPORATION, Thales Group, Lexmark International, Inc., Rpost., Secured Signing Limited, and VASCO Data Security International, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital signature industry.