Since the outbreak of COVID-19, a great shift has been witnessed in the global work culture. Owing to the existence of advanced technologies and high-speed internet, economies could deal with the disruption in the functioning of numerous industries, with the mass adoption of remote work policies. Due to this factor, the revenue generated by the European e-signature market was $711.8 million in 2021. It will advance at a massive CAGR of 34.9% from 2021 to 2030 and reach $10,504.7 million by the year 2030.
It is believed by European business leaders that organizations that have shifted to hybrid work models are more profitable. Indeed, remote working and hybrid work models are the major drivers of the European e-signature market. The rising in the volume of online documentation processes, cost-effectiveness of e-signatures, and favorable government laws have played a great role in the growing trend of remote working even after the lifting of COVID-19 lockdowns. The increased efficiency, cost savings, timeliness, instant support, and many other benefits have made it feasible to shift to hybrid work models for the long term.
The fact that one does not need to move from one place to other, thus saving the travel expenditure and time, is the major factor behind the mass adoption of e-signatures. Almost every sector, such as BFSI, corporate communications, legal, and marketing, is utilizing this technology to carry out business processes. A one-time digitized scanned signature can be utilized several times for multiple purposes. Digitization has led to the growing demand for e-signature solutions for various purposes, such as opening a bank account and filing income tax returns.
Considering the security concerns, electronic signatures protect individuals’ identitities and help manage regulatory compliance. They also provide assistance to BFSI personnel in simplifying the complex business processes with enhanced security and a faster onboarding of customers. Therefore, the BFSI category generated 40% of the European e-signature market revenue in 2021, under the vertical segment. Government institutions have also adopted digital transformation of the work processes by utilizing e-signature software. Human resource (HR) departments also capitalized on the opportunity, by adapting to digital onboarding processes, to keep themselves functional during COVID-19 lockdowns.
The constantly growing e-commerce sector is creating more opportunities in the European e-signature market. Businesses are shifting their processes online, and e-signatures are required to legally bind documents, to govern and facilitate the accommodation of such transition. Security, being the major concern here for sensitive documents, needs a significant solution. The rise in the internet penetration has also resulted in a significant increase in the cyber-crime prevalence, such as theft of information and money and online fraud. Since online transactions have made merchant processes easier, their volume is significantly increasing.
In the European e-signature market, the U.K. held a 20% revenue share in 2021, the largest in the continent. It is because e-signatures are widely being utilized for online identification in the country, as they are crucial for services facilitated by the World Wide Web. In order to identify the individual through his or her documents, such as passport, photo ID card, and driving license, there is a specific platform. It has made it easier for the residents of the U.K. to access government services, such as filing for tax or tracking application status.
Hence, the increased efficiency and cost-effectiveness provided e-signatures are the major driving factors behind the boom in the market.
