Researcher: Digital Signature Market to Expand More and More
A digital signature can be defined as an encrypted electronic identification mark that allows authentication on digital documents such as PDFs, legal contract documents, or word files.
Digital signature technology is growing popular in the global market as more and more companies are implementing the tech in various departments to smooth operations.
Recent advancements in digital technology have facilitated the success of cloud-based digital signature uses, with emphasis on the cloud, as it is expected to contribute a significant amount in the overall digital market.
Transparency Market Research conducted a study on the market to give insights on its performance and offer future predictions. Here are some of the findings;
Premise-based solutions have dominated compared to cloud-based platforms. However, the demand for cloud solutions is expected to grow soon due to its increased adoption worldwide. And the implementation of digitization and cloud-based services in the Asia Pacific and Europe is also fueling the demand.
Therefore, these factors may increase the demand for the cloud-based segment significantly in the near future. In the geographical context, North America recorded the highest revenue in the market.
The increased use was as a result of regulations in the healthcare sector, which led to the implementation of digital technology in the industry.
The strengths of the digital signature market are its ability to offer solutions such as improved efficiency, cost-saving, time-saving, and better customer experience.
Leading players in the digital signature market are developing innovative strategies competing to secure a larger share of the market.
Globally, the need for digitalization has grown significantly with people preferring to use digital signatures as opposed to hand-written forms.
In a study by Transparency Market Research, the digital signature sector is projected to expand at a CAGR of 26.40% between 2017 and 2025.
In 2016 the global digital signature market was worth $0.63bn, and it is expected to grow to a whopping $4.98bn by the year 2025.
Insights on Market Segments Based on Solutions and Deployment
The digital signature market can be divided into the following segments based on the solution;
Services have contributed to the largest share of revenue in the global digital signature market. However, the software market is predicted to grow fast in the forecast period attributed to the rise in demand for the accessibility of signatures in connected devices including smartphones, tablets, and laptops for a wide range of uses in banking, financial services, healthcare, and insurance.
Based on the deployment, the signature market can be categorized into :
the cloud-based segment has dominated since it is critical to reducing the cost of IT and ensures constant mobility.
Other Findings on Uses of Digital Signatures
North America as the Largest Market for Digital Signatures
North America leads in the uses of digital signatures accounting for more than 40% of the global market share in 2017 alone. This boom is due to the technological advancement in electronic signature technology and the implementation of various laws.
Some of the major laws implemented In the US for digital signatures include the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN).
All these legislations allow the usage of digital signatures in all states in the US. Canada has also implemented laws through the Personal Protection and Electronics Documents Act (PIPEDA).
Asia-Pacific as the Fastest Growing Digital Signature Market
The digital signature market in Asia-Pacific is predicted to proliferate with an estimate of 31.0% in CAGR during the forecast period.
The driving force to this growth is as a result of significant factors such as the improvement in the BFSI sector
Rules by national authorities have also led to the eradication of paper use and adoption of digital technologies
The growth of healthcare infrastructure in the Asia-Pacific has also increased the demand for digital signatures in the region. What's more, investments in companies that manufacture digital signature software has spurred market growth. This increased acceptance is as a result of low manufacturing cost and the availability of labor in developing countries like India and China.
Curbing Fraudulent Cases in The BFSI Sector is Critical in Market Growth
Acceptance of biometric technology in the BFSI sector has triggered more expansion of the digital signature market.
The integration of digital signatures in the biometric systems lays a strong foundation for the security of authentication and identification procedures due to the uniqueness of the user’s signature.
Moreover, as encryption based security systems advance, the likelihood of duplication will reduce significantly. These advanced applications of digital signatures are significant contributors to the success of the digital signature market.
Time taken to fill forms such as insurance, banking, and legal forms reduces significantly when we use these high-end technologies.
The use of online forms to file for tax returns, opening credit and saving accounts and buying insurance has increased the demand for digital technologies with the inclusion of digital signatures.
Digital signatures help in eliminating theft and fraud cases in different areas of security.
In the healthcare sector, by authenticating the signatures of healthcare professionals, prescriptions based on paper can be transferred digitally to the hospital servers where they can be accessed by the pharmacy hence ruling out the possibility of interference or tampering by the patient.
Pharmacists attain an online copy of the patient’s prescription, thus facilitating better healthcare services to the patient.
Competition in the digital signature market
The level of competition among the digital signature industry players in the global digital signature market can be said to be moderate.
Major players in the digital signature market are focusing on launching new products and partnering with other companies to enhance the security features of the product and expand their client base all over the globe.
These major players include:
Adobe systems incorporated
Secured signing limited
Entrust Datacard Corporation
We expect to see more demand for digital signatures due to the functionality they bring to the table such as preventing duplication, fraud, and theft, eliminating paper usage, efficiency in conducting transactions and the impeccable coupling of this technology with biometric systems.
It is vital for you as a business owner or company manager to embed the digital signature systems in areas of the company where they can be useful. That is the first advanced step for digitalization of the company’s processes which will take your business a notch higher.