Digital Signature Market Share Report, Growth Analysis & Forecast 2030

[Resesarch Report] The digital signature market size is expected to grow from US$ 5.25 billion in 2022 to US$ 40.23 billion by 2031. The digital signature market is estimated to grow at a CAGR of 29.0% from 2022 to 2031.

Analyst Perspective:

The digital signature market has witnessed significant growth in recent years, driven by technological advancements and the huge adoption of e-signatures among various end users such as BFSI, E/M-Commerce, Healthcare, Defense, Information Technology (IT) and others, driving the digital signature market growth. Rising Digitization and an increasing need for paperless processes using e-signatures are anticipated to drive the digital signature market growth over the forecast period. Moreover, the rapid adoption of digital signatures by regulatory bodies and governments globally is influencing various businesses to adopt e-signatures in a big way. Furthermore, the integration of digital signatures into cloud-based solutions such as document management systems, electronic signature platforms, contract management software, and workflow automation tools is rapidly gaining popularity to eliminate the need for physical paperwork, which can be time-consuming and error-prone, is providing lucrative growth opportunities for the digital signature market growth.

Digital signatures have gained widespread acceptance in recent years as the world becomes increasingly mobile-centric. With the surge in the adoption of smartphone devices, more and more business professionals are using smartphones to conduct their daily tasks. This has increased demand for electronic signature solutions that can be easily accessed and used on mobile devices, regardless of the operating system.

Digital Signature Market Overview:

As the digital world advances at an unprecedented rate, traditional practices are being continuously replaced by digital solutions. Digital signatures are a type of electronic signature used to verify the authenticity and integrity of digital documents or messages. A digital signature is developed using a mathematical algorithm that generates a unique code named a digital signature attached to the document or message. This unique code can only be generated by the owner of the signature and cannot be forged or tampered with by anyone else. Digital signatures are commonly used in electronic transactions, such as e-commerce, online banking, and electronic contracts. Digital signatures provide a secure and efficient way to authenticate the identity of users involved in the transaction and ensure the integrity of the documents or messages.

Digital signatures offer a range of benefits for users. Digital signatures authenticate the user's identity in the transaction, ensuring that the transaction is legitimate. Digital signatures ensure the transaction's security, making it difficult for hackers or other parties to intercept or tamper with the transaction. In addition, digital signatures offer a secure, efficient, and cost-effective way of conducting various transactions while ensuring that the transaction is authentic and secure.

Digital signatures are increasingly used in e-commerce transactions, where speed and security are crucial, and are recognized as a legally binding method of signing documents in many countries. Digital signatures are also widely used to provide proof of authenticity, data integrity and nonrepudiation of communications and transactions conducted over the Internet. There are three different classes of digital signature certificates (DSCs) as follows: Class 1, Class 2, and Class 3. Class 1 signatures provide a basic level of security and are used in environments with a low risk of data compromise. Class 2 digital signatures are used in environments with moderate data compromise risks and consequences. Class 3 digital signatures are used for e-auctions, e-tendering, e-ticketing and court filings, and in other environments where threats to data or the consequences of a security failure are high.

Strategic Insights

Digital Signature Market Driver:

Growing Adoption of e-signatures in the E-Commerce Industry to Drive Growth of the Digital Signature Market

The E-commerce industry has revolutionized how people buy and sell goods and services. Online transactions have become more common worldwide, with billions of people using e-commerce platforms to purchase goods and services. However, this increasing use of online transactions raises concerns about security and authenticity. In such a scenario, digital signatures play a crucial role. Digital signatures ensure the authenticity and integrity of electronic documents and transactions. They are essentially electronic versions of a handwritten signature used to verify the signer's identity and ensure that the document has not been tampered with.

Furthermore, e-commerce has evolved substantially in recent years as it plays a prominent role in how consumers and businesses shop. For instance, according to Adobe, there are more than 26 million e-commerce websites globally. Approximately 2.64 billion consumers have completed at least one purchase online in 2023. Similarly, more than 2.6 billion consumers currently engage in e-commerce transactions. Such huge growth in the e-commerce industry increases the demand for digital signatures to protect online transactions' privacy, integrity, and authenticity and drives the digital signature market growth.

In addition to technological advancements, the future of digital signatures is also likely to be shaped by regulatory changes. Governments are increasingly recognizing the legal validity of digital signatures, and regulations are evolving to support their adoption in various situations, providing greater legal certainty and ensuring that digital signatures are recognized and enforceable in a wider range of contexts. For instance, more than 35 states of the US authorized remote online notarial services. Several Australian states have authorized broader applications of remote electronic witnessing.  Due to such instances, digital signatures are gaining legal validation in financial institutes’ workflow execution. Furthermore, the growing trend of remote work and the need for businesses to continue operations during the COVID-19 pandemic provided greater convenience for individuals and businesses while ensuring that the integrity of the signing process is maintained through trusted identities. All such factors contributed to the digital signatures market growth.

Digital Signature Market Segmental Analysis:

The digital signature market is segmented into hardware, software, and services based on the solution. A digital signature hardware is a hardware security module (HSM) that includes a piece of physical computing device developed specifically for carrying out cryptographic operations (such as generating keys, encrypting and decrypting data, creating and verifying digital signatures and managing the encryption keys related to those operations. In addition, they can be utilized to enforce access controls and security regulations strongly. HSMs are frequently referred to as roots of trust to safeguard extremely important and sensitive keys and assets. This indicates that the infrastructure of applications, users, and systems with access to the HSM may rely on the high integrity of the keys and other cryptographic information it receives from the HSM. HSMs offer a secure environment crucial for creating and safeguarding the cryptographic keys used to secure and validate sensitive data, which is used in digital signing and electronic signature authentication. As a result, various organizations employ hardware security modules (HSMs) to safeguard the private keys used in secure Digital signatures.

Digital Signature Market Regional Analysis:

The North American digital signature Market was valued at US$ XX billion in 2022 and is projected to reach US$ XX billion by 2031; it is expected to grow at a CAGR of XX% during the forecast period. North America holds one of the largest global digital signature Market shares. High technology adoption trends in various industries in the North American region have fueled North America's digital signature market growth. Furthermore, the rise of e-commerce and increased government backing are some of the factors driving the digital signature market in North America. The digital signature is legal in every US state and territory and is being increasingly used. In addition, the US has the presence of a large number of digital signature market players who have been increasingly focusing on the development of innovative solutions. Some of the key players in the digital signature market are. These digital signature market players have been witnessing constant demand from consumers. All these factors contribute to the growth of the digital signature Market in the US.

Digital Signature Market Key Player Analysis:

The digital signature Market analysis consists of players such as Adobe Systems Inc.; Ascertia Limited; Citrix Systems. Inc; Entrust Datacard Corporation; Gemalto, Inc (Thales Group); Identrust, Inc; Kofax Inc; Microsoft Corporation; Oracle Corporation.; Topaz Systems, Inc., among others, are the key digital signature Market players profiled in the report.

Digital Signature Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the digital signature Market. A few recent key digital signature market developments are listed below: 

• In July 2023, DocuSign announced the launch of its enhanced identity verification offering, Liveness Detection for ID Verification. Part of DocuSign's Identify portfolio, this new feature uses artificial intelligence (AI)-enabled biometric checks to confirm signers are who they say they are. Developed in partnership with Onfido, the new feature is tightly integrated with DocuSign's popular eSignature workflow, eliminating the need for users to use multiple platforms to complete secure agreements.
• In January 2023, TechnoBind and DocuSign announced a partnership to offer the best e-signature technology in India. This partnership helped TechnoBind’s partners to leverage the market opportunity in India’s journey of Digitization.
• In July 2023, The U.S. National Institute of Standards and Technology selected an algorithm co-developed by Thales as a post-quantum cryptography standard for digital signatures, specifically for its ability to withstand future attacks from quantum computers. The algorithm will be included in the post-quantum cryptography standards NIST will define in the next two years. This will further help to flourish digital signature market growth.
• In September 2022, Adobe announced the launch of an important new feature called the Digital Identity Gateway (DIG). The DIG allows organizations to deploy a wide variety of pre-configured third-party digital identity providers (IDP) in their signing workflows to get agreements signed as quickly and safely as possible while managing risk and protecting their organization.

REGIONAL FRAMEWORK

Digital Signature Market Report Analysis

MARKET PLAYERS

Digital Signature Market Report Scope