Factors such as the surge in adoption of digital-signature based biometrics in the banking, financial services and insurance (BFSI) sector, requirement for advanced security solutions amidst pandemic lockdowns and remote working environment, government policies regarding digitization and data protection, and rise in usage of digital signature to eliminate paperwork are expected to drive the growth of the digital signature market at a CAGR of 29.2% during the foreseeable period. According to P&S Intelligence, the market size is projected to reach $25,211.3 million by 2030 from $1,858.3 million in 2020. Moreover, the market is witnessing a trend of using digital signatures in the healthcare industry for higher transparency.
The surging adoption of digital-signature-based biometrics in the BFSI sector is one of the main factors boosting the digital signature industry growth. Biometrics is one of the most secure ways of authentication and identification, as this technology offers a unique characteristic to the signature of any user. The signature pattern of a user cannot be stolen or copied for any purpose. Furthermore, people in developed countries use digital-signature-based smartcards for security purposes.
Read More: Digital Signature Market Analysis and Demand Forecast Report
Based on component, the digital signature industry is classified into software, hardware, and service. Out of these, the software category accounted for the largest market share in 2020, and it is also expected to witness the fastest growth during the forecast period. This can be ascribed to the surging digitalization and the rising awareness regarding advanced technologies across all industries across the world.
Moreover, on the basis of vertical, the digital signature market is categorized into BFSI, IT & telecom, government, retail, healthcare, and others. Among these, the BFSI category held the largest share in the market in 2020, and it is also projected to record the fastest growth during the forecast period. This is attributed to the escalating focus of governments on digitized economies, elimination of paper-based processes, and their replacement with accurate workflows using digital signatures. Moreover, improved security in financial documentation, rise in acceptance of digital signatures for electronic payments, and streamlined records are driving the market in this category.
Globally, the North American digital signature market accounted for the largest share in 2020. This is mainly due to the surging adoption of digital signatures to minimize online fraud, their rising application in the BFSI sector, and increasing number of government policies. For instance, the Government Paperwork Elimination Act (GPEA) of the U.S., employed in October 2003, acts as a key factor for the regional market growth. Whereas, the Asia-Pacific (APAC) market is projected to record the highest growth rate in the coming years. This can be ascribed to the surging e-commerce sector, increasing focus on minimizing online fraud, and rising security concerns.
Thus, the surge in adoption of digital-signature-based biometrics in the BFSI sector and the government policies regarding digitization and data protection across the world are projected to propel the market growth in the coming years.
