Due to the burgeoning requirement for smooth digital transaction management and user authentication, the demand for digital signatures is rising rapidly. Moreover, the increasing acceptance of online transactions and payment procedures, and surging digitization rate are driving the demand for digital signatures.
Due to these factors, the global digital signature market size is expected to attain value of $25,211.3 million in 2030, while the market will advance at a CAGR of 29.2% during 2021–2030, according to the market research report published by P&S Intelligence.
Demand for online transactions boosting the digital signature market
The COVID-19 pandemic has helped digital signature solution and service providers expand their operations. The growth of the digital signature market increased significantly from 2019 to 2020 and this trend continued from 2020 to 2021 as well. Due to the growing requirement for online transactions and secure connectivity and rising popularity of the remote working culture, the market is exhibiting huge expansion.
Due to the pandemic, many IT and banking, financial services, and insurance (BFSI) companies have taken measures for securing remote contractual, financial, and other associated procedures. Hence, with the surge in the volume of digital transactions, the market is growing rapidly.
Depending on vertical, the market is divided into government, BFSI, healthcare, retail, IT & telecom, and others. Out of these, the BFSI category is expected to exhibit the fastest growth during the forecast period, primarily because of the growing focus of businesses on eliminating paper-based processes and their replacement with auditable and accurate workflows with the help of digital signatures.
The digital signature market is classified into service, software, and hardware, based on component. Amongst these, the software category is expected to demonstrate the highest CAGR in the market during the forecast period. This is credited to the increasing pace of digitization and the growing public awareness about various new technologies across the world.
Furthermore, the service category is divided into professional and managed categories. Between these, the managed service category dominated the market in 2020. This was because of the huge requirement for higher operational security and cost savings among companies. Besides reducing time and cost, these services also enable the implementation and monitoring of solutions.
The digital signature market is also classified into on-premises and cloud, on the basis of deployment type. Between these, the on-premises category led the market in 2020, mainly due to the fact that these solutions are preferred by end users who have large volumes of confidential data, on account of the greater security and control provided by them.
Globally, the Asia-Pacific (APAC) digital signature market is predicted to demonstrate the fastest growth throughout the forecast period, due to the flourishing e-commerce industry, increasing focus on mitigating the prevalence of online frauds, and rising security concerns. India will be the fastest growing country in the APAC market during the forecast period.