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
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.
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
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.
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.
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.
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.
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.
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.
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
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.
Digital signature is an innovative technology that is used to authenticate the legitimacy and integrate a document, software, or electronic data. Digital signatures are a standard element of most legal proceedings and cryptographic protocol suites are majorly used for software distribution, contract software management software, and financial transactions. 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.
Various companies are minimizing the security risk associated with fraud by offering data integrity, message authentication, and non-repudiation. The use of digital signature reduces the risk of documents being intercepted, deflected, or altered while in transit. Moreover, a digitally signed document can be held legal and valid in the court similar to any other signed paper document. This, in turn, has increased the adoption of digital signature software in numerous companies thereby driving growth of the global digital signature software market during the forecast period.
The adoption of digital signature software is extremely low in emerging economies, owing to lack of awareness and absence of supportive regulatory norms. Moreover, various industries are reluctant to adopt digital signature software due to lack supportive infrastructure, which in turn, is expected to restrain growth of the global digital signature software market over the forecast period.
This report segments the global digital signature software market on the basis of component, end-user, and industry. On the basis of component, the global digital signature software market is segmented into software and services. On the basis of end-user, the market is segmented into consumer and enterprises. On the basis of industry, the market is segmented into BFSI, defense, government, retail & consumer goods, healthcare, education, IT & telecom, and others.
Key features of the study:
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