Global digital signature market is expected to reach $3,410.8 million by 2023
- 12.10.2018 12:05 pm
Digital Signature Market by Solution (Software, Hardware, Services [Managed, Professional]) by Deployment Type (Cloud Based, On-Premises), by Application (Government, IT, Healthcare & Life Sciences, BFSI, Retail, Telecom), by Region (U.S., Canada, Germany, U.K., France, Italy, China, Australia, Japan, India, Brazil, U.A.E.) - Global Market Size, Share, Development, Growth, and Demand Forecast, 2013-2023.
Global digital signature market is expected to reach $3,410.8 million by 2023, according to P&S Market Research.
A significant growth in demand for these signatures is anticipated due to increasing use of them to reduce deception, growing government focus towards eliminating paperless work coupled with growing adoption of biometrics with this technology in various end use industries, across the globe.
Insights on Market Segments
Based on solution, digital signature market is categorized into hardware, software and services, of which services has been contributing the largest revenue share globally. However, software is expected to be the fastest growing category during the forecast period. This can be attributed to the increasing demand for accessibility of such signatures in connected devices such as smartphones, tablets, laptops in different applications such as government, banking, financial services and insurance.
On the basis of deployment type, digital signature market has been categorized into cloud-based and on-premises. Cloud-based has been the dominant category, as it reduces IT cost and ensures mobility.
North America has been the largest market for digital signatures
Digital signature market was led by North America, where it accounted for more than 40% of the global market size in 2017, majorly due to the technological advancement in digital technology and implementation of various legislations.
In the U.S., some of the major legislations implemented for the digital signature technologies include Uniform Electronic Transactions Act (UETA), and Electronic Signatures in Global and National Commerce Act (E-SIGN). These laws permit the use of these signatures in each state of the country. Similarly, in Canada, laws for electronic signature have been implemented through the Personal Information Protection and Electronic Documents Act (PIPEDA).
Asia-Pacific will be the fastest growing market
The digital signature market will witness rapid growth in Asia-Pacific region, where it is expected to register a CAGR of 31.0% during the forecast period. The major factors driving the growth of the digital signature market in Asia-Pacific are improving BFSI sector and initiatives taken by various government associations for the elimination of paper use and enhancing the use of digital technology in countries such as China and India.
The improving healthcare infrastructure in Asia-Pacific has increased the demand of signatures based on this technology in the region. Moreover, the increasing investment by digital signature software manufacturing companies has spurred the growth of the market. This is due to the low manufacturing cost and availability of skilled manpower in the developing countries such as China, India, Thailand.
Need to curb fraudulent activities in BFSI sector is a key growth driver of the market
The increasing acceptance of biometric component based on this technology in the BFSI sector is bolstering the growth of digital signature market. Use of this technology in biometric systems is one of the most secure methods for the identification and authentication procedures, due to its unique characteristics of the user's signature. Moreover, advancement in encryption-based security eliminates possibility of duplication. These innovative and advanced applications of the signatures based on this technology in BFSI sector are driving the growth of the digital signature market.
Also, these technologies help in reducing the enormous amount of time involved in filling forms, such as banking forms, insurance forms, and legal and advisory forms. The one-time digitized scanned signature can be used several times in banking and insurance procedures. The tradition of using online forms for filing income tax returns, opening of saving and credit account in banks and buying insurance have increased the demand of digital technologies, including digital signatures.
These signatures are helpful in eliminating frauds and thefts in many areas of security. By authentication of signatures of healthcare professionals, paper-based prescriptions can be digitally transferred from doctor to hospital's server, and then to patient's pharmacy, thus inhibiting a person's ability to manipulate or forge the doctor's prescription. Pharmacists have an online copy for the comparison of a patient's digitized prescriptions, for the better healthcare services.