Signature Verification Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Signature Verification Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Signature Verification Market size is estimated at USD 2.41 billion in 2023, and is expected to reach USD 6.59 billion by 2028, growing at a CAGR of 22.29% during the forecast period (2023-2028).

Key Highlights

• Many organizations adopted remote working models due to the COVID-19 pandemic, leading to an increased demand for electronic signature verification software. Signatures serve as a unique means of verification for entities such as governments, businesses, and financial organizations to authorize transactions and documents. Biometric signature verification (BSV) has gained renewed interest due to the increasing need for security and individual authentication across various organizations. Dynamic signature verification (DSV) is gaining traction worldwide, and most governments have enacted legislation recognizing digital signatures as equivalent to handwritten signatures.
• Market vendors in the industry are launching new products and strengthening their businesses through acquisitions. The pandemic led to a sharp increase in fraudulent behavior, further increasing the demand for document authentication. Signature verification hardware or software improved automation as document verification became more difficult during the outbreak. The verification of e-signatures can be complex, with challenges such as multiple ways of applying countersignatures, numerous signatures and document formats, and determining whether the signer was authorized to sign..

Signature Verification Market Trends

Healthcare Industry is Expected to Hold Significant Market Share

• The healthcare industry is heavily regulated and requires extensive documentation. Signature verification is a legal requirement in this sector. The rise of transaction fraud and security breaches has resulted in a growing demand for signature verification solutions to prevent the loss of critical data.
• According to the Health Insurance Portability and Accountability Act (HIPAA) Journal, there were 11 healthcare data breaches involving more than 1 million records and 14 breaches involving more than 500,000 records in 2022. Most of these breaches were caused by cyberattacks, including ransomware or extortion attempts.
• The healthcare sector can legally use e-signatures to comply with regional regulations such as HIPAA and the Uniform Electronic Transactions Act. Additionally, there is an increasing need to develop a robust healthcare infrastructure to enhance patient care, reduce costs, and prevent the loss or misplacement of equipment or records while eliminating errors. E-signature solutions are useful in various applications, including client documentation, medical process approvals, medical bill payments, signing medical records, issuing medical receipts, and enhancing patient satisfaction.
• The growing global healthcare expenditure is a major driver for the studied market in the healthcare industry. According to The Centers for Medicare & Medicaid Services (CMMS), the total health expenditure of the United States is projected to reach around USD 6.7 trillion by 2030.

North America Accounts For the Largest Market Share

• The United States has extensively implemented digital signature verification in various sectors, including banking and financial institutes, healthcare, BPO services, and government offices. To ensure proper usage, the government has established multiple rules and regulations for monitoring digital signature verification.
• During the 2020 elections, the United States saw an exceptional increase in the use of digital signature software due to the COVID-19 pandemic's restrictions on voter movement. The government encouraged the adoption of digital voting, leading to increased implementation of signature verification technology.
• The Cybersecurity and Infrastructure Security Agency (CISA) Elections Infrastructure Government Coordinating Council and Sector Coordinating Council's Joint COVID Working Group released clear guidelines to monitor and integrate automatic signature verification procedures for the 2020 elections. Companies such as Parascript provided automated signature verification software to support the U.S. elections in 2020. Digital signature verification is expected to become even more widespread in the future as accuracy improves.
• Similarly, in Canada, digital signatures are legally enforceable, which has encouraged more companies to adopt signature verification platforms. After the COVID-19 pandemic hit the country, the government established guidelines for signature verification software solutions aligned with the Personal Information Protection and Electronic Documents Act.
• The Digital Identification and Authentication Council of Canada (DIACC) facilitates digital identity and document verification for commerce, industry, governments, and citizens. Canadian financial institutions are adopting digital identity verification solutions at an increasing rate.
• The Royal Bank of Canada was the first bank to implement digital identity verification in March 2020 and had adopted signature verification technology much earlier. The Royal Bank of Canada serves 17 million customers in Canada, the United States, and 34 other countries. It rolled out digital identity verification for account opening, which is available at bank branches and remotely via mobile and its website.

Signature Verification Industry Overview

The signature verification market is highly consolidated, with top players occupying a significant share of the market. New players find it challenging to enter the market due to the dominance of existing players such as Biometric Signature ID (J C Lads Corporation), CERTIFY Global Inc., Ascertia Ltd., Kofax Inc., Entrust Datacard Corporation, Odyssey Technologies Limited, and Scriptel Corporation.

In July 2022, Parascript, a software business that has been providing high-performing automation for over 25 years, launched the latest version of its fraud protection tool, SignatureXpert.AI. SignatureXpert.AI 2.0 offers the highest level of signature verification accuracy on the market by allowing the comparison of digitally gathered signatures saved as a trajectory against photographs of signatures on whole papers or document excerpts. This new feature improves the tool's prior performance and usability, making it a valuable addition to the signature verification market.

Additional Benefits:

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