57 Essential e-Signature Statistics: 2021 Market Share Analysis & Data

A new version of this article, featuring the latest data and statistics, is available. Check out our report on e-Signature Software Statistics for 2022.

Electronic signatures have been helping enterprises improve and speed up their operations for almost three decades now. Today, e-signature software offers a wide array of benefits, more than just the convenience of electronic signing itself. Gone are the days of completing paperwork only in hard copy, more so when the deadlines are too tight. By automating document workflows across departments such as logistics, sales, HR, etc., e-signatures can provide substantial efficiencies in helping businesses of any size eliminate paperwork bottlenecks. Along with document management software solutions, e-signature software is digitizing documents, which is far more efficient compared to the conventional pen-and-paper method.

We’ve prepared these key electronic signature statistics to present technology benefits, deployment, and other important e-signature considerations to help keep you abreast of what’s hot and what’s not in this major software niche.

Market Growth Statistics
Statistics on Cost Savings & Workflow Efficiencies
Legal & Security Statistics
Deployment Statistics
Challenges to Adoption

1. Market Growth Statistics

The electronic signature software market is one of the fastest-growing markets across the world. In recent years, the global e-signature market is driven by growth drivers like expanding online documentation processes, supportive laws for the e-signature market, workflow efficiency, supply chain improvements, and growing demand for security. Here are some key e-signature market statistics that demonstrate its phenomenal growth:

In 2020, the global digital signature market size reached $2.8 billion. It is projected to grow to $14.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 31.0%. (MarketsandMarkets, 2020)
The Asia Pacific region is the fastest-growing market of e-signature. (Prescient & Strategic Intelligence, 2020)
North America was the largest market of e-signature valued at $440 million in 2019. (Fortune Business Insights, 2020)
By country, the United States held the largest market with $6,117.3 market value in 2019, followed by Germany with $2,091.8. (Prescient & Strategic Intelligence, 2020)
e-Signature transactions have ballooned from 89 million to 754 million in just five years. (Revitas, 2015)
Industry competition is only moderate as most major vendors are more focused on R&D to improve their products’ security features and on forging strategic alliances—which can further consolidate the worldwide electronic signature market share—to boost their product functionalities and customer base expansion. (Markets Insider, 2017)

A major factor behind these impressive electronic signature statistics is the technology’s increasing adoption through SaaS, mainly for transactions that are less complicated and lower in value. Aside from being easy to implement, this SaaS-based adoption growth is driven by the booming cloud deployment of e-signature solutions. Most SaaS-deployed e-signing tools are used in HR, sales, and legal departments of businesses that frequently require signatures of third-party partners.

2. Statistics on Cost Savings & Workflow Efficiencies

An e-signature app seems trivial, but it is a major element in the overall global digital evolution. It helps millions of businesses experience huge benefits in their operations. Although large enterprises have spearheaded the technology adoption, SMBs are not far behind. They have recently joined the e-Signature revolution to streamline workflows.

55%–78.62% – total savings of businesses migrating to e-signature apps from paper, taking into account material, administration, shipping, and subscription costs. (LunarPen, 2020)
37 minutes vs. 5 days – traditional and e-signature time difference in obtaining signed documents. (LunarPen, 2020)
80% – average reductions in turnaround time using e-signature. (LunarPen, 2020)
80% – average error reduction (LunarPen, 2020)
85% – productivity improvement (LunarPen, 2020)
$20 – average savings per document (LunarPen, 2020)
500% – customer loyalty increase (DocuSign, 2021)
8 minutes – time to open bank accounts (Forrester, 2017)
22,000 hours – saved annually (Forrester, 2017)
60% – services enabled by Salesforce in 15 minutes by implementing e-signature (LunarPen, 2020)
90% – services enabled by Salesforce within a day by implementing e-signature (LunarPen, 2020)
$19.35 – Salesforce’s average saving per document after implementing e-signature (DocuSign, 2021)
According to the Electronic Signature & Records Association, businesses experience an 83% performance improvement in getting approvals, along with 86% savings in document costs. (ESRA, 2017)
Businesses that use e-signature tools are able to cut down document handling costs by as much as 85%. (MSB, 2019)
By significantly cutting how your business consumes paper, adopting e-signature ensures your business’ growth and help in saving the environment. (Customer Think, 2019)
Among financial institutions, eSignature reduces scanning errors by 92%. (OneSpan)
The implementation of e-signature in financial institutions can also prevent file loss by 66%. (LunarPen, 2020)
Businesses achieve 70% to 80% efficiency improvements after removing manual processes to adopt digital technologies like e-signature solutions. (Forbes, 2016)
Global Consulting firm jumped from -11 to +43 Net Promoter Score after implementing e-signature. (DocuSign, 2021)
Global Consulting Firm is able to save 1 hour in filling out paperwork with e-signature. (DocuSign, 2021)
American businesses spend more than $120 billion annually for paper documents, although the majority of these paper-based forms will be outdated in three months. (Upstate Medical University, 2016)
Businesses that go paperless reduce their processing errors by an average of 90%. (LunarPen, 2020)
Among electronic signature business users, 81% experience an ROI in a 12-month budget cycle; meanwhile, 25% an ROI within three months or earlier. (Cuspera, 2020)
Those who prefer electronic documentation over paper forms say they intend to cut paper clutter and help save the environment by using fewer paper documents. (Consumer Action, 2019)
US businesses waste $8 billion every year for handling paper documents. (Corp Magazine, 2015)
65% of US-based companies that use pen and paper reports collecting physical signatures add an entire day to their work process. (MSB, 2021)
An e-signature software solution can save as much as 2.5 billion trees in less than 20 years. (DocuSign, 2020)
To further enhance security, the two-factor authentication method has been implemented by 45% of organizations globally to verify e-signatures. (LunarPen, 2020)
The time spent by customers or clients in viewing and signing documents can be reduced by 40% (PandaDoc, 2020)

User Case: United Healthcare

2 days – provider contract executed instead of the typical 32.5 days (DocuSign, 2021)
3.5 million – pages saved in one year from implementing e-signature. This volume of paper would have exceeded the height of the Empire State building (DocuSign, 2021)
$1 million – admin savings in one year, equivalent to the annual salary of 31 admins (DocuSign, 2021)

e-Signature Benefits for Financial Institutions

Source: OneSpan/BMO Insights

e-Signature tools stand for a robust technological and innovative response to address the broad inefficiencies in handling physical (or “wet”) signatures. Most elaborate and resource-intensive transactions of SMBs—which typically involve a series of cumbersome administrative tasks like printing, scanning, etc.—greatly benefit from e-signature technology. Aside from reducing human errors in financial transactions, electronically-signed documents guarantee that agreed processes are followed even if ad-hoc transactions fail. By automating workflows, e-signatures also accelerate payment and common transaction procedures.

3. Legal & Security Statistics

Since 1999, e-signature has been legally recognized in the US and Canada, while the rest of the world gradually followed suit. Legality and security have always been among the primary concern on the use of e-signature in business. Here are some important industry facts that had been instrumental in making this modern signature format what it is today: the emerging preferred mode for legally-binding documents.

The 1996 United Nations Commission on International Trade Law Model Law on Electronic Commerce is considered as the landmark international law. It has been adopted by over 60 countries worldwide. (UNCITRAL, 1998)
In 2000, the US government implemented the Electronic Signatures in Global and National Commerce Act (ESIGN) Act. This made e-signatures at par legally with handwritten ones. (FDIC, 2014)
In the EU, electronic IDentification, Authentication and Trust Services (eIDAS) was established in 2014. This comprehensive law sets the standards for e-signatures, digital identification, user security, and other related electronic transactions. (European Commission, 2021)
Most countries around the world adopted the Uniform Electronic Transactions Act (UETA) to govern and secure their use of electronic signatures. (Baker McKenzie, 2020)
81% of business users consider e-signatures as the most essential in the legal and security aspects of their daily operations. These businesses and sectors include those from banking and finance, pharmaceuticals, healthcare, and government. (Cygnature, 2019)

Today’s top e-signature software solution vendors provide high-grade security measures, such as audit trail, password protected e-signing, and SOC 2 Type II certification, to ensure your documents are handled and stored securely 24/7. Aside from knowing these key security and statutory facts, it’s helpful to clarify that electronic signatures vs. digital signatures are technically and legally distinct, the latter being cryptographic means to implement e-signatures and other e-commerce uses.

4. Deployment Statistics

Since Diffie and Hellman first described the e-signature concept in 1976, e-signature tools have transformed the entire corporate world. More and more businesses are using e-signatures to achieve robust efficiencies, cost savings, security against fraud, enhanced document integrity, and increased transparency. Here are some of the key current and upcoming digital signature developments:

More than 65% of Forrester inquiries on e-signature are from enterprises that have opted for software-as-a-service (SaaS). (Forrester, 2017)
Implementations of e-signature can take an average of 9 months for large enterprises, 5.5 months for medium-sized businesses, and 2.3 months for small businesses. (Forrester, 2017)
30% of all agreements are opened from a mobile web browser. (Forrester, 2017)
e-Signature solutions are now integrating biometric authentication methods into every written signature, like handwriting pressure and rhythm. (Stanford University, 1976)
e-Signature solutions integrate with popular third-party apps like HR, ERP, accounting, and workflow management solutions.
Forms will be digitally signed within seconds through SMS text messaging. (SignNow, 2017)
Five business developments are motivating the deployment and adoption of e-signature technology. These include customer expectations for digital interactions and legal acceptance of e-signatures. There is also the desire to remain competitive, focus more on compliance and security, and adapt to the increasing use of mobile devices. (Aberdeen, 2015)

Source: Aberdeen B2B Sales Cycle Report

Most of the major vendors are actively focusing on e-signature market study and development to enhance their products. Partnerships and innovations are introduced to enhance product features and expand the global customer base.

5. Challenges to Adoption

Despite the growing popularity of e-signatures, some organizations face barriers to adoption. Understanding these challenges can help businesses make informed decisions and develop strategies to overcome potential hurdles:

Regulatory Concerns: While e-signatures are legally accepted in many regions, specific industries, like finance and healthcare, face strict regulatory requirements. Some organizations worry about meeting these standards, especially in sectors where compliance is heavily monitored.
Cost of Implementation: For smaller businesses or those with limited budgets, the upfront costs of purchasing e-signature software and training staff can be a deterrent. While e-signatures offer long-term savings, the initial investment can be a barrier for some organizations.
Resistance to Digital Transformation: Some employees and executives may resist transitioning to digital processes. This resistance is often due to a lack of familiarity with digital tools, concerns about the learning curve, or a preference for traditional methods.
Security and Privacy Concerns: Although e-signature platforms are generally secure, some organizations remain hesitant, particularly in industries dealing with sensitive information. Concerns about data breaches and cyberattacks can create reluctance, especially if they are unfamiliar with the platform’s security features.
Integration with Existing Systems: Not all e-signature solutions integrate seamlessly with legacy systems or current software stacks. Compatibility issues can complicate workflows and require additional IT support, discouraging some businesses from adopting e-signatures.

Take advantage of these statistics when buying e-Signature software

To sum up the above electronic signature market analysis, here are some key takeaways:

The electronic signature software market is one of the fastest-growing markets across the world. Its primary growth drivers are the increasing digitalization of global business and the convenience of cloud-based SaaS e-signature platforms.
Although small in size, e-signatures are effecting gigantic changes that help businesses of any size significantly improve their operations.
Most solutions are now offering compliance features for regulations like the ESIGN Act, UETA, and eIDAS. They ensure the legality of e-signatures across geographical areas, including SSL encryption and audit trails for added security.
Innovative developments in e-signature deployment include biometric authentication, two-step verification, increased integration with popular apps, and SMS-based e-signing.

This collection of e-signature statistics primarily reflects the positive developments in this software category. Indeed, electronic signature solutions, along with related technologies like business process management software, are growing. This is because of the vast benefits they provide to businesses. Compared to the traditional pen-and-paper approach, they are easier to use and offer considerable cost and resource savings. Furthermore, they are more secure than using wet signatures, allowing for remote authentication and a much faster turnaround. And in the long run, they do help a lot in saving the environment for future generations.

Key Insights

Rapid Market Growth: The e-signature market is expanding quickly, with a projected growth from $2.8 billion in 2020 to $14.1 billion by 2026, at a CAGR of 31.0%.
Global Adoption: The Asia Pacific region is the fastest-growing market for e-signatures, while North America remains the largest market.
Cost and Time Savings: E-signature solutions can save businesses between 55% and 78.62% in costs related to materials, administration, and shipping. They also significantly reduce the time needed to obtain signed documents, from days to just minutes.
Efficiency and Productivity: Businesses using e-signatures experience up to 85% productivity improvement, 80% error reduction, and 80% reduction in document turnaround time.
Environmental Impact: Adopting e-signatures contributes to environmental conservation, potentially saving 2.5 billion trees over 20 years.
Legal and Security Compliance: E-signatures are legally recognized globally, supported by laws like the ESIGN Act in the US and eIDAS in the EU. They also provide high-grade security measures, including audit trails and two-factor authentication.
Deployment Trends: More than 65% of e-signature implementations are SaaS-based, integrating seamlessly with popular third-party applications like HR and ERP systems.

FAQ

What is an e-signature?
An e-signature, or electronic signature, is a digital form of a signature that is used to sign documents electronically. It is legally binding and often used to streamline workflows and reduce the reliance on paper documents.
How secure are e-signatures?
E-signatures are highly secure. They often include security features such as audit trails, password protection, two-factor authentication, and SOC 2 Type II certification to ensure documents are handled and stored securely.
Are e-signatures legally recognized?
Yes, e-signatures are legally recognized in many countries, including the United States under the ESIGN Act, the European Union under eIDAS, and many others that have adopted the Uniform Electronic Transactions Act (UETA).
What are the cost benefits of using e-signatures?
E-signatures can save businesses between 55% and 78.62% in costs associated with materials, administration, shipping, and subscriptions. They also reduce the time needed to obtain signatures from days to minutes, which translates to significant cost savings.
How do e-signatures improve workflow efficiency?
E-signatures streamline the signing process, reducing turnaround times by up to 80%. They also reduce errors by 80% and improve productivity by 85%, making document management much more efficient.
Can e-signatures integrate with other business software?
Yes, many e-signature solutions integrate with popular third-party applications such as HR, ERP, accounting, and workflow management systems. This allows for seamless incorporation into existing business processes.
What industries benefit the most from e-signatures?
Industries that handle a high volume of documents and require frequent signatures, such as banking and finance, healthcare, legal, and government sectors, benefit significantly from e-signatures.
How do e-signatures contribute to environmental conservation?
By reducing the need for paper, e-signatures help decrease the consumption of paper products. This not only saves trees but also reduces the environmental impact associated with paper production and waste.
What are some popular e-signature software solutions?
Popular e-signature software solutions include PandaDoc, Zoho Sign, SignRequest, SignNow, and DocuSign. Each offers unique features tailored to different business needs.
How long does it take to implement an e-signature solution?
The implementation time for e-signature solutions varies by business size. It takes an average of 9 months for large enterprises, 5.5 months for medium-sized businesses, and 2.3 months for small businesses.
Can e-signatures be used on mobile devices?
Yes, many e-signature solutions are mobile-friendly, allowing users to sign documents on smartphones and tablets. About 30% of all agreements are opened from a mobile web browser.
What are the future trends in e-signature technology?
Future trends in e-signature technology include the integration of biometric authentication methods, such as handwriting pressure and rhythm, and SMS-based e-signing, enhancing security and convenience.
How do e-signatures impact customer satisfaction?
E-signatures can significantly improve customer satisfaction by reducing the time and effort required to complete transactions. For example, they can reduce the time to open a bank account from several days to just minutes.
What regulatory compliances do e-signature solutions offer?
E-signature solutions comply with various regulations such as the ESIGN Act, UETA, and eIDAS, ensuring that electronic signatures are legally binding and secure across different regions.
How can e-signatures reduce business risks?
E-signatures reduce business risks by ensuring document integrity, providing audit trails, and preventing tampering. They also help in maintaining compliance with legal standards and reducing the likelihood of fraud.

References:

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TOO MUCH PAPER! Upstate Medical University

By Allan Jay

Allan Jay is FinancesOnline’s resident B2B expert with over a decade of experience in the SaaS space. He has worked with vendors primarily as a consultant in the UX analysis and design stages, lending to his reviews a strong user-centric angle. A management professional by training, he adds the business perspective to software development. He likes validating a product against workflows and business goals, two metrics, he believes, by which software is ultimately measured.