Global Digital Transaction Management (DTM) Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

Global Digital Transaction Management (DTM) Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

The Global Digital Transaction Management (DTM) Market was valued at USD 6.14 billion in 2020, and it is expected to reach USD 23.53 billion by 2026, registering a CAGR of 24.54% over the forecast period (2021-2026). The spread of COVID-19 has positively impacted the market initially due to the rise in remote working, as well as growing digital transformation, across the businesses. Enterprises are seeking business methods that are seamless and efficient which can be done from anywhere.

Key Highlights

• The adoption of DTM is growing rapidly, and it is expected to absorb several parts of paper documents in the future. Most companies are embracing digital platforms to increase revenue and profitability. For instance, Salesforce adopted digital transaction management, and the company’s sales organization experienced a USD 20 savings per document and a 60% reduction in turnaround times. The company also adopted electronic signature within their sales process and the deal close time from an average of around two days down to around 90% of deals closing in one day and 71% of deals closing in one hour.
• Advancement in technology is paving the way for more secure data transaction management solutions. For instance, Blockchain Technology provides a series of timestamped data records in the form of a chain linking together all the records. Every transaction can be considered as a proof of consent given by the user who initiated the transaction using digital signatures. The digital transaction management solutions that are built on the blockchain technology uses a decentralized network for transaction management to prevent malicious attacks.
• There is also an increase in the adoption of cloud-based solutions, which will further positively impact the digital transaction management market potential. Small and large businesses must manage workflows on some level. Interdepartmental and cross-agency workflows are challenging as employees and managers may be on different systems that might perform substantial transfers. A cloud-based solution that allows every member of a team to interact with documents will make the digital transaction management process seamless and less costly.
• Moreover, the companies are looking forward to offering higher value to gain a competitive edge in a highly competitive market landscape. For instance, in Jun 2021, Dropbox announced that HelloSign may now be offering qualified electronic signature (QES) to further support the customers that are doing business in the United Kingdom and the European Union. The company also stated that the QES meets the highest standard of security and authentication available in the European region, as the only type of electronic signature with the same legal value as a handwritten signature under the electronic IDentification, Authentication and Trust Services (eIDAS).

Key Market TrendsBFSI Industry is Expected to Hold a Significant Market Share

• Traditional banks have been turning to new and strategically focused agile institutions. The diverse challenges related to the ever-changing complex regulations, intense competition, and demanding customers have resulted in an alignment towards digital transformation. Also, along with the rise in cloud-based solution adoption, the BFSI industry is set to witness a significant transformation over the forecast period.
• The banking sector moving towards digital transformation initiatives. For instance, in Jun 2021, Wipro announced a partnership with Finastra in order to help the corporate banks across the Asia-pacific region to accelerate their digital transformation. The companies will be creating a unique offering that will combine Wipro's comprehensive digital services catalogue with Finastra's front-to-back trade finance and cash-management solutions.
• Moreover, a recent Finastra study showcased that corporate banking clients have been shifting their focus towards real-time execution capabilities, better access to online platforms, and value-added services. In response, the banks are moving away from the traditional relationship management model toward a digital platform that can meet the client’s needs in a faster, flexible, and more agile way.
• With the growing consumer propensity towards digital banking solutions, enterprises operating in the space are increasingly adopting digital solutions. For instance, in Sept 2020, in order to provide a digital experience for customers, Raiffeisen Bank International (RBI) announced the launch of RaiConnect, a virtual branch service featuring a full suite of collaborative modules and ePaper workflows in partnership with Moxtra.

North America is Expected to Hold a Significant Market Share

• North America holds significant share in the market, primarily owing to the increasing shift of enterprises toward cloud adoption, exponential mobile adoption, and the presence of major players occupying a significant market share. According to Cisco, North America is anticipated to be the most cloud-ready region by 2021.
• Government initiatives related to e-signatures, such as the Uniform Electronic Transactions Act (UETA) and Electronic Signatures in Global and National Commerce Act (E-SIGN), permitting the usage of e-sign for every transaction, thereby, playing a major role in driving the market. Trade deals, such as the United States Mexico Canada Agreement (USMCA) also encourages the usage of e-signatures.
• Multiple key vendors are rolling out innovative offerings to remain competitive in the market. The companies have been involved in technological advancements such as 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 Improving Digital Identity Act of 2020.
• Partnerships are shaping the market landscape in the region. In July 2021, Lone Wolf Technologies made a new agreement with Minnesota Realtors to provide transaction management solutions for real estate, which includes Lone Wolf Transactions (zipForm Edition) and Lone Wolf Transactions (TransactionDesk Edition). The new agreement will come into effect from September 2021, which will benefit Minnesota Realtors’ 22,000 members in 2022.

Competitive Landscape

The Global Digital Transaction Market is significantly competitive with a considerable number of regional and global players. The presence of well-diversified players characterizes the market. The vendors are consistently providing innovative solutions in line with the advancement in technologies which eventually cater to the increasing needs of customers across various end-user industry verticals. Many Startups such as ZorroSign, ThinkSmart LLC have also entered the market.

• June 2021 - Nintex acquired AssureSign, an electronic signature pioneer and digital transaction management (DTM) software provider, to meet customer demand for a native eSignature capability within the Nintex Process Platform.
• April 2021 - Adobe launched Adobe Experience Manager Assets Essentials to facilitate cross-team collaboration. Assets Essentials is a lightweight version of Adobe Experience Manager Assets that simplifies digital asset storage, discovery, and distribution across marketing and creative professional's teams. Assets Essentials will be the default asset management experience across all Experience Cloud apps.

Additional Benefits:

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

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