Digital Signature Software Market Analysis

Market Insights - Global Digital Signature Software Market

Market Overview

Digital signature is a technology that assures the contents of the message have not been altered in transit. In layman’s term, digital signature validates the legitimacy and integrity of a message, digital content or software. It is typically used as encryption measure or password to ensure safety and integrity of files, confidential information, data, and documents during exchange between various entities parties. Various countries such as the U.S., Brazil, Saudi Arabia, India, Indonesia, Switzerland, and other European countries consider electronic signature as legally significant. Digital signature is a part of electronic signature as it is also in electronic form. However, digital signatures offers more in terms of providing security and integrity of information etc.

The global digital signature software market was estimated to account for US$ 990.6 Mn in terms of value in 2019.

Market Dynamics- Drivers

1. Growing adoption of digital signature in legal proceedings is expected to drive growth of the global digital signature software market during the forecast period

Digital signature has found significant use in legal proceedings since they require a certain level of secrecy. For such procedures, specific software and devices are developed for digital signature, wherein it can ensure data once the document has been digital signed. In this way, it provides superior security to the party signing a document and the one receiving it as it servers to validate identity of both parties. Furthermore, the software generates a digital signature, which is distinctive to the person linked to the executive document. This means if the signature is changed, it becomes invalid thereby enabling the party to know that the integrity of the said document has been compromised.

2. Supportive regulations and standards for digital signature are expected to propel the global digital signature software market growth over the forecast period

North America accounts for the largest revenue share for digital signature and its adoption is driven by supplementary rules and regulations combined with number of financial and legal services firms in countries such as the U.S. and Canada. For instance, many legislations have been introduced in North America such as technology-neutral legislation, which is generally used to deal with electronic documents and signatures. It is designed to limit the negative factors through technical standards. Furthermore, in August 2016, California Assembly Bill 2296 (CA AB2296) was signed clarifying that digital signature can be used to satisfy the requirements of an electronic signature under the Uniform Electronic Transactions Act, which states that a signature or record may not be denied legal effect or enforceability. Hence, these factors are expected to boost the global digital signature software market growth over the forecast period.

North America region dominated the global digital signature software market in 2018, accounted for 36.2% share in terms of value, followed by Europe, Asia Pacific, Latin America, and MEA, respectively.

Source: Coherent Market Insights

Market Dynamics- Restraints

1. Challenges associated with implementation of digital signature are expected to restrain growth of the global digital signature software market over the forecast period

Implementation digital signature is complicated as it requires digital signature or physical token from the certified authority requiring Government Issue ID and biometric data. Digital signature is majorly helpful for parties exchange files that contain information or data of sensitive nature. However, for one-time transaction, digital signature is not feasible since it requires various processes and prerequisites required to be fulfilled before being granted clearance to secure a digital certificate. Furthermore, certain digital signature processes are computer-intensive thereby resulting in delays of related processes for users. Hence, these factors are expected to restrain the market growth over the forecast period.

2. Constant evolution in digital signature regulations is expected to hinder the global signature software market over the forecast period

Regulations and norms regarding digital signature vary according to different countries. Many authorities have adopted legislation associated with electronic and digital signatures. The primary objective has been to provide authenticity of an individual with help of the signature, integrity of the message, and capture of the intent on which the signature is connected to. Therefore, it becomes challenging for every enterprise to become familiar with the latest regulations that are applicable in different regions and countries.

Market Opportunity

1. Growing deployment of digital signature in healthcare sector offers lucrative business opportunity

Healthcare sector has been embraced digitalization in the recent past, which has witnessed the adoption of IoT, 3D printing, and other novel technologies. Healthcare sector is rapidly moving towards paperless work, which includes Medicare billing, patient onboarding, and others. Furthermore, various pharmaceutical companies are adopting digital signature and exchanging communications and information on paper are going paperless. Moreover, incorporation digital signature in the healthcare sector can ensure the safety and integrity of personal information of patients, which in turn, is expected to present lucrative business opportunity for market players over the forecast period. For instance, in 2016. 142 healthcare data breaches have occurred involving over 500 records were reported to the Department of Health and Human Services Office for Civil Rights, and 143 data breaches were reported in 2015.

2. Increasing acceptance of cloud-based security solutions is expected to pose significant growth opportunity

Digital signature software providers are adopting cloud-based security solutions, in order to ensure the security and integrity of the signed document. Cloud-based security solutions ensure that the customer’s information is safe at all time. Moreover, it restricts unauthorized access and filters information, thereby enhancing the safety of information. It also offers backup for the client’s information and data recovery in case any data of loss. Such benefits are expected to increase adoption of cloud-based security solutions and provide market opportunity.

Source: Coherent Market Insights

Global software based market was valued at US$ 667.1 Mn market in 2018 and is forecast to reach a value of US$ 4,125.4 Mn by 2027 at a CAGR of 22.3% between 2017 and 2027.

Market Trends

1. North America Trends

Mergers and partnerships in the region are expected to boost the regional market growth in the near future

In March 2017, VASCO Data Security International, Inc., which is a global leader in digital solutions, integrated the eSignLive platform with PointClickCare Technologies Inc. – North America’s leading cloud-based software platform. Furthermore, in February 2017, VASCO Data Security International, Inc. partnered with Behaviometrics AB to boost VASCO’s next generation and anti-fraud solutions.

2. Latin America Trends

Entrance of major industry players in the market is a major trend in the regional market

Latin America represent significant potential for growth of the global digital signature software market, owing to presence of major market players in the region. For instance, in November 2016, Esker Inc. partnered with Signature South Consulting, and the alliance is designed to benefit Latin American customers of both companies, by providing a more comprehensive set of offerings while meeting the complex and evolving electronic invoicing (e-invoicing) mandates that vary from country to country. Furthermore, regulatory policies regarding digital signature various according different countries. However, the absence of norms regulating electronic signatures in the region does not imply the invalidity of it. New players in the market are presenting novel products with cryptographic technology.

Segment information:

In digital signature software market, by industry segment, the BFSI sub-segment dominated the global market in 2018, accounting for 27.9% share in terms of value, followed by retail & consumer goods, defense, government, healthcare, IT & telecom, education, and others, respectively.

Source: Coherent Market Insights

Value Chain Analysis

Competitive Section

Key companies operating in the global digital signature software market are Cryptolog SAS, Vasco Data Security International, Inc., Integrated Media Management LLC, RightSignature LLC, Secured Signing Limited, Sertifi Inc., Comsigntrust Ltd., Identrust Inc., Ascertia Ltd., and Entrust Datacard Corporation.

Key Developments

1. Key players in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in April 2017, VASCO Data Security International Inc. partnered with Mizuho Bank in Japan, in order to integrate Digipass with its apps. Digipass is a mobile application security solution for protecting customer transactions through its online and mobile banking applications.
2. Major market players are involved in product launch, in order to expand their product portfolio. For instance, in January 2017, RightSignature launched a new feature of professional custom branding in its Right Signature platform. Through this new feature, users can customize their documents with their respective company’s logo. This is expected to expand the company’s customer base.