The worldwide market of electronic signature has managed to generate notable revenue in recent times. According to a report submitted by Market Watch, it is expected to grow by USD 3818.4 million by 2027 from USD 1008 million in 2020 to a CAGR of 20.8% during the years 2021-2027.
There are multiple factors that are responsible for this growth. The most common and important ones include increased security, legal compliance, efficient document signing, quick turnaround, and streamlined costs.
A high acceptance of electronic signatures in the internal processes or enterprise communications along with improved operational efficiency leads to reduced costs. This is something that positively impacts the growth of the electronic signature market.
In addition, there is a growing need for data security and authentication because of an increase in cyber attacks. This is another strong reason that can be attributed to the growth of the e-signature market. On the other hand, factors such as resistance to changes in using existing applications are still limiting some organizations to adopt the e-signature technology.
We predict that moving forward; innovations such as e-signature, increased adoption of cloud-based solutions, and new legislation will promote the use of e-signature. The individuals and companies that will be quick to implement the electronic signature technology will end up benefiting in the future.
Electronic Signature Analysis and Trends:
1. Adoption Across Various Industries
The prominent fields that have implemented the innovative technology of electronic signatures are the IT and legal industries. However, based on the analysis done on the market, it is expected that other industries such as financial services, banking sector, and insurance sector will also be adopting the electronic signature which will become a key reason for growth.
It must be acknowledged that governments all around the world are increasing initiatives to go completely digital. The governments realize that there is a need to authenticate the user’s identity in a better way so that e-signature usage will continue growing.
There is the rising popularity of the online documentation processes and so, it is expected that electronic signatures adoption will be widespread in the future.
2. Company-Wide Use and Adoption
It has been seen that an increasing number of people and organizations are becoming inclined towards digitally created, negotiated, and stored documents. As this trend increases in the near future, we expect that it will become common for all teams of an organization to adopt e-signature widely.
The human resources department of organizations has already been working on streamlining the hiring and onboarding process. Other than this, sales departments want to simplify the contract creation and approval process. The procurement teams work on improving flexibility in negotiating with new and existing vendors.
In this way, a trend is approaching where all teams of an organization are expected to be more invested in the adoption and use of e-signature. This will in turn lead to more growth of the e-signature market and this is something that we are certain about.
3. End-to-End Digital Processes
The use of electronic signatures introduces a wide scope of use and contrary to the popular belief, it is not meant to be involved at the end of the agreement process only. Until now, we have seen that electronic signatures are used at the end to complete the documentation but there are a lot of potentials that lie ahead.
Electronic signatures may be used to complete the end-to-end digital workflows. We think that the completed workflow will become digital in every sense of the word. Companies are integrating digital products which finally lead to the streamlining and robustness of workflows.
In the future, transactions will be completed using a series of digital tools in the workspaces. The documentation workflows are going to evolve as the tools get connected into a unified end-to-end process.
We might see the parties come together and review the terms of contracts in real-time. This will be a development in the sense that parties will be able to get mutually satisfied. It is expected that organizations will also be able to advance their employee toolkit which leads to a higher level of customer service and competitive differentiator.
4. Enhanced Internal Processes
Organizations in all industries have the ability to completely change the way in which business is done by eliminating any kind of inefficiency with a streamlined agreement process. Digitization can reduce all errors, bottlenecks, and delays of workflows.
The employees are expected to become efficient in customer-facing processes with simple, quick, and connected online workflows. This in turn might also help in cost savings and substantial revenue gains.
Companies and even governments around the world understand that new technologies can eliminate customer pain points. For this reason, digitized and automated processes such as electronic signatures will be implemented widely so that the internal processes can be improved.
5. E-Signatures in E-Commerce Sector
Even though we all were already used to shopping online, the pandemic has only increased the e-commerce sector considerably. The solution of e-signatures can be widely useful in the e-commerce sector because it can help in better customer partner associations, higher efficiencies, and stronger supply chain integrations.
Moving on, all nations will prefer mobile-first customer behavior and social commerce as important trends in the online shopping industry. There will be an added demand for electronic signature solutions with so many companies engaging in online sales.
This will offer legally binding documents for governing and accommodating transitions and protecting sensitive documents on the internet.
The Future of Electronic Signature
The adoption of electronic signature technology presents many important factors such as better workflow efficiency, security, sales management, etc. The future of the electronic signature market is bright because as mentioned above, organizations are getting inclined to use access management and identity solutions.
The electronic signature offers security, reduced human errors, and authentication during financial transactions. In addition to offering security, the e-signatures also automate the processes in which money is involved.
The future will be all about quick documentation, less human involvement, and fast rollout so that ultimately the operational costs can be reduced. This will improve capital management and lead to better overall operations.
Electronic Signatures During COVID-19
The widespread COVID-19 witnessed an acceleration in the demand for electronic signatures and verification. The remote working culture compelled many organizations to adopt digital technology for growing businesses. Governments all over the nations were also prompted to use e-signature for reducing paper-based transactions and maintaining social distancing norms.
In the pandemic, electronic signatures have offered much security and verified transactions for growing a digitized business. The increasing demand for e-businesses and paperless workflow processes drives the market. Even though many countries continue to focus on using digital platforms, creating online signatures was acknowledged immensely during the pandemic.
We can say easily that the pandemic forced many industries all across the world to adopt digitization in various ways. What has followed is a changed way of using digital platforms for keeping up with the changing environments. Electronic signatures enable people to track identity and sign electronically in a legally compliant way.
The use of online signatures has ensured verified communication between all parties involved and also eliminated any chances of fraudulent transactions. Hence, in the post-pandemic period, e-signature services are definitely going to grow further.
It can be said easily that we are presently in the boom of the e-signature market. So many businesses are rapidly moving to the cloud and an increasing number of employees are settling in remote offices. The e-signatures have become an important tool in the new digital working environment.
In 2022 and the near future, organizations will manage signatures and imagine new ways to grow with the use of online signatures. If you haven’t yet adopted the electronic signatures, this is a sign to do it immediately. You will be glad for taking the step.
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games