Signatures are peculiarly used by authorities such as administrations, corporations, and lending companies to authenticate and authorize payments and documentation. They provide a method of validation that depends on the interactive component of a person's handwritten sign and its properties to back up their assertions.
Biometric signature-based detection has lately gained prominence concerning the increasing need for confidentiality, personal validation, and recognition across institutions, enterprises, agencies, and other business establishments. Offline signature verification is ubiquitous in computerized office platforms that confirm cheques, card transactions, partnerships, and historical documents. Additionally, dynamic signature verification, which analyses signatures based on numerous biometric data features such as pace, acceleration, intensity, and physical shape, is gaining traction globally and is expected to have significant market growth in the following years.
Stringent laws and adherence requirements drive the demand for signature verification systems. The administration has recently placed a more extraordinary accentuation on document verification, introducing new rules and regulations aimed at various end-user businesses. Furthermore, governments worldwide are supporting the use of paperless or digital ways of paperwork for multiple end-users to conserve the atmosphere and cut overall material costs.
For example, in May 2020, Australia transferred digital prescriptions for patient healthcare from the doctor to the patient via an encrypted digital exchange, administered by the pharmacy and subsequently claimed through companies.
As a result, stricter legislation and rules governing the authentication process and electronic signatures primarily correspond to market growth. The usage of signature verification is likely to expand as there is a rapid transition toward digitalization led by governmental agencies for various end-user enterprises.
The pandemic has dramatically boosted fraudulent activity because of the transformation to remote work situations. The risks have increased the demand for document authentication in various parts of the world. According to the Federal Trade Commission (FTC), the number of confirmed identity fraud cases in the United States was more than double in 2020. Furthermore, the FTC reported receiving around 1.4 million pieces of data theft in 2020. The increase is being driven primarily by cybercriminals aimed at people the pandemic has financially impacted.
With document verification growing increasingly challenging during the outbreak, signature verification hardware or software has aided in the system's automation. Vendors have introduced new product releases throughout the pandemic to fulfill the needs generated by various end-users. For example, in July 2021, Mitek and KYS-tech established an online certificate platform for identification verification in accordance with the pandemic's emergency legislation for officials.
In terms of regions, the Global signature verification market is divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America and Asia-Pacific are the two dominant markets. The North American signature verification market will be valued at USD 519 million in 2021. It is expected to reach USD 3597 million by 2030 with a CAGR of 24%. Electronic signature verification has been widely used in the United States in various businesses, including finance, medical, business process outsourcing, and law enforcement agencies. Due to their growing popularity, the government has enacted many rules and procedures to guarantee that digital signature verification is utilized appropriately.
The Asia-Pacific signature verification market was valued at USD 347 million in 2021. It is expected to reach USD 2585 million by 2030 with a CAGR of 25%. The growing number of occurrences of falsified signatures in India and China has boosted the demand for signature authentication and verification solutions. Signature fabrication and duplication generate severe policy malfunctions in developing countries such as India. Legal compliance methods such as benefits and pay are diverted to the incorrect people, putting a significant drain on available capital.
Furthermore, ZorroSign, an India-based blockchain e-signature solution provider, has released a mobile app for legitimate electronic signature, document fraud, and tampering detection that uses smartphone biometrics to provide a safe user experience. The app may examine and sign documents, make signatures, update a user account, handle contacts, receive quick notifications, and check the integrity of documents. As a result of harmonizing with the vendor, government, and customer operations, the Asia-Pacific area is likely to increase its signature verification use.