With the growing incidence of data thefts and frauds, the requirement for digital signatures is surging, especially in the banking, financial services, and insurance (BFSI) sector. Many companies operating in this sector are increasingly adopting the digital signature-based biometric technology for identifying and authenticating the signature of users. Moreover, this technology ensures that the users’ signature cannot be stolen and copied for any purpose. Additionally, the use of digital signature-based smartcards is also soaring in some developed nations, such as Germany and the U.S., for security purposes.
Besides the aforementioned factor, the burgeoning requirement for eliminating paperwork is also propelling the worldwide demand for digital signatures, which is, in turn, driving the expansion of the global digital signature market. Owing to these factors, the revenue of the market is predicted to rise from $1,858.3 million in 2020 to $25,211.3 million by 2030. Furthermore, the market is expected to advance at a CAGR of 29.2% from 2021 to 2030 (forecast period).
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Digital signatures help organizations reduce the time required for filling forms, such as marketing, legal, advisory, corporate communication, banking, and insurance forms. Furthermore, a one-time digitized and scanned signature can be used multiple times for insurance and banking procedures. With the rising digitalization rate, the use of online forms for buying insurance, opening credit and savings accounts, and filling income tax returns is surging, which is consequently pushing up the requirement for digital signatures.
Additionally, the adoption of digital signatures assists companies in saving costs and improving customer services in areas, such as rendering applications and account openings, by massively reducing the response time. These signatures also aid companies in saving costs by eliminating the requirement for paper procurement and processing and help them in retaining clients by reducing the time period of the approval process. Depending on vertical, the digital signature market is divided into retail, healthcare, information technology (IT) & telecom, government, and BFSI categories.
Amongst these, the BFSI category is expected to register the fastest growth in the market during the forecast period. This is ascribed to the surging demand for eliminating paper-based processes and replacing them with auditable and accurate workflows, utilizing digital signatures in the BFSI sector. Geographically, North America dominated the digital signature market in 2020. This was because of the large-scale use of digital signatures for reducing the chances of online frauds and their mushrooming utilization in the region’s BFSI sector.
In addition, the enactment of government policies and regulations, such as the Government Paperwork Elimination Act (GPEA) in the U.S. in October 2003, is fueling the expansion of the regional market. In the coming years, the Asia-Pacific (APAC) region will be the fastest growing region in the digital signature market in the coming years, as per the estimates of the market research firm, P&S Intelligence. This is attributed to the booming e-commerce industry, rising focus of organizations on mitigating the incidence of online frauds, and increasing security concerns in the region.
Hence, it can be safely said that the demand for digital signatures will rise significantly in the forthcoming years, mainly because of the rising requirement for reducing paperwork and online frauds and rapid digitization in various industries across the world.