Signature Verification Market

Market Overview

The global signature verification market size was estimated at USD 1,243 Million in 2021. It is predicted to reach a valuation of USD 9,395 Million by 2030 at a CAGR of 25% over the forecast period (2022–2030). 

Signatures are distinctively utilized by entities like authorities, enterprises, and financial institutions to verify and authorize transactions and papers. They offer a verification approach that relies on the dynamic aspect of a person's handwritten signature and its attributes to prove their claims.

Biometric signature verification (BSV) has recently received increased attention in response to the growing requirement for protection and individual validation and identification across banks, companies, institutions, and other commercial entities. Offline signature verification is standard in automated office systems that validate checks, card payments, agreements, and historical records. Furthermore, dynamic signature verification (DSV), which analyzes signatures depending on multiple aspects of the biometric data, like speed, acceleration, force, and morphological shape, is gaining acceptance globally and is likely to have considerable market growth in the following years.

The global signature verification market is divided based on solutions, end-users, and regions.

Market Dynamics

Global Signature Verification Market Drivers

• Stringent Regulations and Need for Compliance

The market for signature verification solutions is driven by stringent regulations and the need for compliance. Lately, there has been increasing emphasis on verifying documents by the government with the launch of new laws and regulations directed toward different end-user industries. Furthermore, government authorities across the globe are encouraging the adoption of paperless or electronic means of documentation for various end-users to preserve the environment and reduce the overall cost of paperwork.

For instance, in May 2020, Australia transmitted electronic prescriptions for primary care end-to-end from the doctor to the patient, using a digital token via an encrypted digital exchange to be dispensed by the pharmacist and then claimed through services.

In line with growing fraudulent activities, the introduction and, more importantly, compliance with regulations have become mandatory to mitigate losses. Recently, a federal appeals court upheld the Tennessee law for the signature verification of absentee ballots for presidential elections. The law prevents election fraud.

Therefore, such stringent laws and regulations for identity verification and electronic signatures mainly contribute to the market's growth. As there is a quick shift toward digitization led by government authorities for different end-user industries, the adoption of signature verification is expected to grow. 

• Technological Advancements in Identity Verification

Technological advancements in identity verification are further augmenting the market's growth as more businesses invest in verification solutions that incorporate AI and are powered with biometric technology. According to Spiceworks, 90% of companies are expected to be using biometric technology by 2020.

The adoption of deep learning, AI, and ML technologies increases signature verification solutions that enhance signature identification and verification precision. Since such solutions are crucial for end-user industries, such as financial services, government, and healthcare, accuracy and security are essential. Hence, vendors in the market also invest in research and development activities to launch new product lines.

Recently, Parascript, one of the key vendors in the market, launched a new version of SignatureXpert, an automated signature verification software that evaluates ballot signatures and compares them with records from other official documents, such as driver's licenses. It uses the machine learning image perfection technique for better verification.

Global Signature Verification Market Restraints

• Differences in Verification of Devices and Compatibility with Legacy Systems

Signature verification is one of the most significantly accepted biometric procedures. However, it is affected by considerable behavioral variability since users sign differently each time. The signatures signed by different people are naturally diverse, known as interclass variability. Due to the person's physical and emotional conditions.

The signatures captured through pen tablets or pen displays lead to lower verification rates. However, the quality of captured data is lower for touchscreen-enabled portable devices, for which metrics such as pressure and pen orientation are not recorded. In addition, sampling errors and increased variability are witnessed more on touchscreen-enabled devices. Since the signature verification solutions are used for critical applications, the errors created in signature verification due to variability in verification devices affect the market growth.

Regional Analysis

In terms of regions, the global signature verification market share 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%. The United States has extensively implemented electronic signature verification in various industries, including banking operations, healthcare, business process outsourcing, and government agencies. Due to their expanding use, the authorities have put a slew of legislation and requirements to ensure that digital signature verification is used correctly. The growth of the market studied is characterized by the improvisation of software in terms of accuracy, considering the current limitations with the help of various algorithms for signature analysis called verifiers. Colorado-based Parascript offers Signatur eXpert, which uses several different machine learning techniques for signature verification through a holistic approach.

The Asia-Pacific signature verification market was valued at USD 347 million in 2021. It is expected to reach USD 2585 million by 2030 at a CAGR of 25%. The increasing cases of fraudulent signatures in India and China led to the increased need for signage verification and authentication platforms. In developing economies like India, signature forgery and impersonations are causing major policy breakdowns. Legal compliance measures such as money and benefits are channeled to the wrong personnel, causing severe strain on economic resources.

Moreover, India-based blockchain e-signature solution developer, ZorroSign, also launched a mobile app for authentic electronic signature, document fraud, and tampering detection that leverages mobile biometrics for a secure user experience. The app can review and sign documents, create signatures, update a user profile, manage contacts, receive instant notifications, and verify document authenticity. Therefore, when aligning with the vendor, government, and customer activities, the Asia-pacific region is expected to grow in the adoption of signature verification.

Segmental Analysis

The global signature verification market share is divided based on solutions, end-users, and regions.

Based on the type of solution, the signature verification market is divided into hardware and software solutions. The signature verification software dominated the market. The software solution segment was valued at USD 1297 million in 2021. It is expected to reach USD 9663 million by 2030 with a CAGR of 25%. Software solutions for signature verification protect against fraud and reduce costs. Signature verification software verifies signatures on both print documents and online using mobile devices and terminals for various applications. 

The rise in data and identity theft instances encourages the growth of signature verification software solutions. The signature validation software checks the fraud and forgery of using a signature, ensuring the signature presents the right person. Furthermore, COVID-19 has increased identity theft, creating a need for software solutions, such as signature verification software, to mitigate identity theft. On the other hand, the signature verification hardware is widely popular in those end-user industries where customer authentication is imperative, such as financial services, healthcare, government, and other end-user industries.

Based on the end-user industry, the signature verification market is divided into financial services, government, healthcare, transport and logistics, and others. The financial service segment dominated the market. The financial service segment t was valued at USD 669 million in 2021. It is expected to reach USD 4984 million by 2030 with a CAGR of 25%. The financial services segment is one of the major end-user industries for adopting signature verification solutions. The trends driving the demand for such solutions include increasing forgeries, digital transformation, and online transactions.

The increase in bank fraud cases has created a demand for signature verification solutions that protect against identity theft and fraud. According to the statistics presented by the Reserve Bank of India, the number of bank fraud cases in India increased from 5,916 in FY 2018 to 8,700 in FY 2020. Furthermore, the forgeries related to signatures take a lot of effort and time to solve, which also fortifies the demand for signature verification solutions.

Healthcare is a highly competitive industry that necessitates detailed records. It is an industry where signature verification is required by law. The growing number of transaction thefts and privacy violations in the industry is driving up interest in signature verification methods to help prevent the loss of critical data.

The other end-user industries include the education and telecom industries as per the market scope. Transportation and logistics require a lot of paperwork, and technology evolution helps reduce the paper and workload. Some of the documents that need to be signed in the logistics industry include the bill of lading, freight bill, customer agreement, certificate of origin, and commercial billing.

Impact of covid-19

The pandemic has significantly increased fraud and identity thefts due to the transition to remote working environments. The threats have further encouraged the need for document verification in different parts of the globe. According to the Federal Trade Commission (FTC), the number of reported identity theft cases in the United States doubled in 2020 on a year-on-year basis. Furthermore, according to a report shared by FTC, it received approximately 1.4 million pieces of identity theft in 2020. The surge is mainly driven by cybercriminals targeting people who have been financially affected during the pandemic.

In response to growing identity theft and fraudulent activities, governments across the globe are also showing interest in digital platforms. For instance, in February 2021, the State Department of Labor in the United States announced that it would be using the ID.me platform to stop theft-based fraud. To enable the growing adoption of signature verification solutions during the pandemic, the latest presidential elections in the United States were also held using mail-in ballots with signature verification solutions provided by Parascript.

With document verification becoming difficult during the pandemic, signature verification software and hardware have helped improve the process through automation. From the vendors' perspective, new product launches have been launched during the pandemic to meet the needs developed by different end-users. For instance, in July 2021, Mitek and KYS-tech launched an online notary platform for identity verification in line with the emergency measures for notaries during the pandemic.

Recent Developments

• In June 2021, HeyTrade, an investing platform, is partnering with Veriff to help ensure compliance and security. Trade makes the process between sign-up and investing straightforward and straightforward, with an added security from Veriff. Trade clients can validate the authenticity of their identity by taking a photograph of their government-issued ID and a selfie.
• In October 2020, Check Intelligence, a customizable, easily connected toolbox for enhancing check handling for financial firms, merchants, non-profits, and federal agencies, was available. Check Intelligence accelerates and improves straight-through checks to handle precision and agility by automating imaging techniques, data retrieval, and spam detection for electronic use.
• In March 2021, Acuant partnered with Airside to prioritize privacy in handling biometrics and personal data for mobile identity verification processes, thereby allowing the reopening of travel and public places conveniently and cost-effectively.
• In February 2021, Jumio partnered with Veridium to provide increased protection for eKYC (Know Your Customer) use situations, allowing organizations to deploy industry-leading facial, paper, and fingerprint biometric identification features for personal identification.
• In November 2020, SAVIS Technology Group, one of Vietnam's successful IT firms, initiated using Ascertia's Trust Services Platform to safeguard the online data of its corporations and federal department clients. As a long-standing Ascertia partner, the company has streamlined its business process and experienced the efficiency benefits accompanying digital signatures.
• In July 2020, Parascript released FormXtra.AI 8.0. The solution exhibits NLP-based Full-page Handwriting Transcription and automates business document procedures with significant accuracy, decreases human data entry, and less time-consuming configuration and production management responsibilities.