Digital Signatures Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Digital Signatures Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The digital signatures market registered a CAGR of 28.1% during the forecast period 2021-2026. Enterprises are shifting from traditional signatures to digital signatures because it reduces the risk of legal disputes and provides stronger evidence.

Key Highlights

• There has been a consistent need for data security during the transmission of sensitive information. Owing to the e-commerce and online banking boom, companies needed to secure their networks to gain customers' confidence. This has led to greater and faster rate of adoption rates of digital signatures, which act as the sender's personal seal of authenticity over any electronic document.
• With the evolution of technology, the way of executing documents has also evolved. With the increasing demand for modern, convenient methods for entering binding transactions, electronic agreements and digital signatures have gained a lot of momentum in recent years. Such developments have significantly changed how these transactions are entered and the execution processes.
• Younger consumers have also been a driving force behind the rise in digital signatures in the financial services industry. Various Gen Z and Millennials across the world have signed financial documents, such as opening a bank account, loan agreement, investment, wealth management, mortgage agreements during the pandemic time, which has resulted in a burgeoning of digital signature demand. Also, government agencies, like the DMV and immigration, have also provided more e-signature support for the critical documents.
• With the outbreak of COVID-19, the digital signature market is anticipated to exhibit a positive growth rate owing to the rise in remote working that has shifted the focus from relying on paper-based documentation and increasing digitalization of the transaction process. Enterprises are seeking business methods that are seamless and efficient and can be done from anywhere. Document processes have been one of the processes that enterprises are considering taking online.

Key Market TrendsGovernment Sector is expected to witness a significant growth

• Adopting digital signature solutions helps in a wide range of document processing and automation capabilities for federal, state, and local governments that improve access to critical data while simultaneously reducing costs associated with obtaining it. Some of the essential applications of government where the signature and verification solutions are helpful include petition automation, Vote-by-Mail, Forms Data Extraction, and mail processing.
• There have been increasing fraud cases by forged signatures in Municipalities, state and local governments aren’t far behind on the targets for fraudsters. State and local governments spend a significant amount of money with thousands of different entities, and keeping track of the transactions takes effort.
• Various efforts by the government have been put into developing a digital infrastructure that triggers the need for software-based solutions for the data accumulated. The United States government already has IT initiatives such as digital experience, identity, credential, access management (ICAM), and digital strategy.
• Some of the important contents of the act included standards for facilities involved with digital signature certification and data protection methods, countermeasures against counterfeiting and falsification of electronic signatures and electronic documents, and procedures for signing up for and using the digital signature authentication service, and methods of verifying subscribers.

North America to Hold the Highest Market Share

• The North American region has been one of the highest revenue-generating markets primarily owing to the increased shift of organizations towards cloud-based solution adoption, rapid mobile adoption, and the presence of prominent players occupying a significant market share.
• For instance, as per Cisco, the region was anticipated to be one of the most cloud-ready regions by the end of 2021. This was owing to the increased preference of companies towards cloud-based services, which is expected to propel the growth of digital solutions on secure cloud.
• Government initiatives related to e-signatures, such as the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN), permitted the usage of e-sign for every transaction, thereby playing a crucial role in driving the market. Trade deals, like the United States Mexico Canada Agreement (USMCA), also encourage the usage of e-signatures.
• Major vendors are rolling out innovative offerings to remain competitive in the market. Companies have been involved in technological advancements, like the launch of Check Intelligence by Mitek, a US-based signature verification platform, in June 2021. With such rapid technological advancement, alongside increased regulation by the government, such as the Improving Digital Identity Act of 2020, the country is expected to witness a more secure environment for the growth of the studied market.
• The region witnessed exceptionally higher usage of software solutions during the 2020 elections. The COVID-19 pandemic restricted the movement of millions of voters that compelled the government to encourage the voters to adopt digital voting. This directly impacted the usage of digital signature software prompting government collaboration with the signature verification developer companies.

Competitive Landscape

The market for digital signatures is highly fragmented, majorly due to the demand from companies regarding cost-effective solutions and government initiatives. However, with innovative and advanced solutions, many of the companies are increasing their market presence by securing new contracts and by tapping new markets.

• May 2021- Rashtriya Swayamsevak Sangh (RSS) affiliate Swadeshi Jagran Manch (SJM) has launched a digital signature campaign that appeals to the Indian government to use its sovereign rights to grant a compulsory license to more pharmaceutical companies for the production of COVID vaccines and medicines.
• August 2021- Senators in the United States introduced Digital Authenticity for Court Orders Act of 2021 with the aim to improve procedures for the authentication, tamper-evident, and secure delivery as well as transmission of certain court orders. The bill was introduced to solve the growing problem of using bogus court documents to authorize surveillance improperly.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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