Digital Signatures: Market Size, Growth Statistics

Key Statistics

• Global signature market size was estimated to be USD 3.92 billion in 2022.
• The global digital signature market is set to grow at a fast pace, with a projected Compound Annual Growth Rate (CAGR) of 35.1% between 2023 and 2030.
• Market size (2023): USD 7.78 billion.
• Expected to grow to USD 25.2 billion by 2027 at a CAGR of 35.6%.

Introduction

A digital signature is a mathematical ability used to validate the authenticity of a digital document or software. It is the programmed equivalent of a handwritten signature or stamped seal. It offers better security to the document. The signatures are based on public key cryptography, also called asymmetric cryptography. 

According to AirState, the number of businesses using e-signature can witness a growth of 28% in revenue, 26% in cost savings, and 19% in revenue gains. In this digital era, the statistics show that organizations that only use manual documentation are at a greater risk of losing their customers and almost 51% of their revenue. Digital Signatures are so important that 60% of IT professionals believe they are the ‘critical aspect of digital documents’ [1].

Digital Signatures Statistics

The global signature market size was estimated to be USD 3.92 billion in 2022. The market is projected to grow from USD 5.25 billion in 2023 to approximately USD 43.14 billion by 2027 [1]. DocuSign is reported to control 82.69% of the e-signature market, with a market share of 67.61%. E-signatures in general have a 40% revenue share in the global market. Adding to that, North America dominates 35% of the global e-signature revenue share. According to Fortune Business Insights, the global digital signature market is set to grow at a fast pace and is projected to have a 35.1% CAGR between 2023 and 2030. The report informs that the market is worth $3.92 billion as it covers not only e-signatures, but other technologies such as smart ID, biometric signatures, and smooth passes [1]. 

Report Metrics	Statistical Details
Market Size (2022)	$5.5 Billion
Estimated Revenue (2027)	$25.2 Billion
Growth Rate	35.6% CAGR

Digital Signatures Growth Statistics 

During the COVID-19 pandemic, the social distancing norms, and the rise of online work commitments, accelerated the use of electronic signatures. The surge in online work commitments has propelled industries to adopt digital technologies. Several governments have started to adopt digital signatures to restrict the use of paper-based transactions. For example, the Indian government has provided a one-time password benchmark after completing digital KYC (Know Your Customer) for the short-term electronic signature requirement. Overall, the global digital signature market is expected to grow at an annual growth rate of 37.9% from 2023 to 2030 [2].

It is no surprise that North America has dominated and accounted for the largest digital signature with a market share of 30.43% in 2022. Also in 2021, we witnessed that digital signatures increased customer loyalty by 500% on DocuSign. Ericsson reported that there was a sharp increase in smartphone subscriptions from 2021 to 2023. It was around 6.26k (in million) in 2021 and it is presently 6.84k (in million). If we talk about the fastest-growing region in the Digital Signature market, it has to be the Asia-Pacific region [2]. 

Digital Signatures: Industry Segmentation

This type of e-signature is the most secure and can be used to comply with the most demanding legal requirements. They provide the highest levels of assurance about each signer’s identity and the authenticity of the documents is hundred per cent guaranteed. The digital signature can be segmented by deployment, offering, end-user industry, and other factors. 

The table below explains industry segmentation in brief: 

Segmentation	Types
By Deployment	On-premise, Cloud
By Offering	Software, Hardware, Service
By End-user industry	BFSI, Government, Healthcare, Oil and Gas, Military and Defense, Research and Education, Logistics and Transportation, Other End-user industries like Real Estate, IT, Telecom etc
By Geography	North American- United States and Canada; Europe- UK, Germany, France, Rest of Europe; Asia-Pacific- China, Japan, South Korea, Rest of Asia-Pacific, Rest of the world- Latin America, Middle East and Africa

Digital Signatures Market Size

The digital signature market size is roughly estimated to be USD 7.78 billion in 2023 and is expected to reach USD 29.88 billion by 2028. It is expected to be growing at a Compound Annual Growth Rate (CAGR) of 30.88% during the forecast period from 2023 to 2028 [2]. Companies are shifting from traditional to digital spaces for enhanced security and to provide stronger evidence. The following points analyze the digital signature market: 

1. Constant need for data security: With the rise in E-commerce and the boom in online banking, enterprises seek to earn their customers’ confidence. This has accelerated the adoption of digital signatures, as they provide assurance of the sender’s authenticity for any electronic document.
2. User awareness among Gen Z  and millennials: The awareness surrounding the financial services industry such as opening a bank account, loan agreement, investment, mortgage agreements, etc saw a sharp rise during the COVID-19 pandemic. 
3. The government sector is expected to witness significant growth: The acceleration of fraud cases in the government sector has led to the rise of digital signatures. Forged signatures in municipalities and local governments have been increasing in recent years and it can only be controlled when the government shifts to digital facilities.

Digital Signatures Market Leaders

Sl. No	Market Segment	Value (Billion USD)
1	E-Signatures	1.53B
2	Digital Market	3.92B

The market concentration in digital signatures has two extremes: Consolidated and Fragmented. The Consolidated market is dominated by 1 to 5 major players, while the Fragmented market is highly competitive with no dominant players.

The digital signatures market is a fragmented one due to the demand from companies wanting cost-effective solutions. Region-wise, North America has dominated the digital signature market since time immemorial. More than 71% of Americans were working from home in December 2020. According to Adobe, their digital signature tools saw a growth of more than 53% in sales in the year 2019-2020 alone.

Overall, when discussing e-signatures in general, the market is valued at $1.53 billion, while the digital market is estimated to be around $3.92 billion [2]. 

Major Players in Digital Signatures Market

Digital Signatures Market Ecosystem

Sl. No	Element	Percentage (%)
1	Adopted Digital-First Strategy	53
2	Prefer Locked File Cabinet	50
3	Plan to Become Digital-First	36
4	Use Cloud Storage	15

Understanding the dynamics of the digital market is crucial, as it involves major factors operating behind the system—market drivers, opportunities, and challenges. In 2023, the Digital Signature market is so essential that statistics reveal around half of businesses still prefer keeping important documents in a locked file cabinet. Only 15% of business owners claim to use cloud storage. Approximately 53% of organizations have already adopted a digital-first strategy, and an additional 36% plan to become digital-first (Foundry) [3].  

1. Drivers: The continuous emergence of technology has always been driven by the need for authenticity. Global efforts to minimize paper usage have escalated the rate of digitization, especially in the APAC region. Increased government support has also positively contributed to this trend. Rising urbanization, industrialization, and a growing number of smartphones have further bolstered the market.
2. Opportunities: The rising number of cybersecurity issues and concerns have also led to the growth of the digital signature market. The acceleration of artificial intelligence in this field has widened the horizon of acceptance. The steady increase in cloud-based solutions, as well as high-speed internet service, has improved infrastructure in developing countries like India. 
3. Restraints: There are factors such as hesitance and fear among underdeveloped territories globally. Citizens fear that new technology will impede the growth rate. The evident lack of awareness regarding banking infrastructure will narrow down the scope of growth. The lack of awareness and technical expertise is likely to create hurdles for the market. 

Recent Developments: Digital Signatures 

The COVID-19 pandemic proved to be a boon for this industry. The era witnessed a surge in the contactless exchange of documents such as Word files, PDFs, PPTs, and others. The shutdown of offices promoted a steady transition to a work-from-home culture. The recent developments [3] are as follows: 

1. Adobe’s acquisition of Frame.io in October 2021 has transformed the creative process. The new workflow has become more efficient, productive, and conducive.
2. DocuSign and Salesforce were combined to make agreement facilitation simpler for clients.
3. Thales and QEP were brought together to develop and test Quantum technologies. 
4. OneSpan was merged with Belfius Bank to protect from cybercrime effects
5. IDEMIA joined with Microsoft to support identity solutions for Azure Active Directory. 
6. GlobalSign joined forces with DocuSign’s cloud partner ecosystem to deliver secured digital identities. 
7. Entrust acquisition of Evidos in 2022 has led to a more secure electronic signature solution. 

Conclusion 

In conclusion, we have explored the digital signatures market and recognized its significant role in ensuring the integrity of digital messages. As we move forward, it becomes imperative to raise awareness about emerging technologies in the market to facilitate the seamless functioning of our current economy.

Footnotes:

1. https://www.fortunebusinessinsights.com/industry-reports/digital-signature-market-100356
2. https://www.marketsandmarkets.com/Market-Reports/digital-signature-market-177504698.html#:~:text=The%20global%20Digital%20Signature%20Market,signatures%20in%20the%20recent%20years
3. https://www.grandviewresearch.com/industry-analysis/digital-signature-market-report