Digital Transaction Management Market Size, Share, & Trends Analysis Report By End User (Large Enterprises, SMEs), By Component (Hardware, Software), By Vertical (BFSI, Govt.), By Solution, And Segment Forecasts, 2023 - 2030

Report Overview

The global digital transaction management market size was valued at USD 9.92 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 25.8% from 2023 to 2030. The growth of the market can be attributed to the paradigm shift toward workflow and process automation across numerous industries and industry verticals. Enterprises across the globe are looking forward to adopting efficient and seamless business methods, which can be implemented irrespective of the location. As such, Digital Transaction Management (DTM) solutions can help organizations in improving customer experiences while reducing transaction times, thereby creating opportunities for the growth of the market over the forecast period.

The strong emphasis businesses across the globe are putting on eliminating the conventional approaches and paperwork associated with the management of various business activities is expected to accentuate the growth of the market. At the same time, advances in technology are paving the way for more secure and reliable digital transaction management solutions. For instance, blockchain technology offers a series of timestamped data archives in the form of a chain linking together all the archives. In other words, digital transaction management solutions based on blockchain technology using a decentralized network can potentially prevent malicious attacks.

The continued adoption of various practices and electronic tools by businesses across the globe to optimize routine document-based tasks is expected to propel the growth of the market over the forecast period. The increasing need for secure record filing is also expected to contribute to the growth of the market. Businesses are focusing on adopting digital transaction management solutions as these solutions cover all the aspects of document lifecycle from creation to storage. Digital transaction management solutions also help in ensuring easier, faster, and safer business processes.

The increasing adoption of cloud-based services across the globe is expected to create growth opportunities for the market over the forecast period. A consistent approach toward cloud-based filing management and storage can potentially lay the foundations for paperless documentation. Furthermore, indexing, document capture, safe sharing and access control, searching and retrieval, encryption, integration, and backup capabilities are considered the main components of document management systems and the essentials for digital transaction management. Apart from these, content analytics capabilities in digital transaction management solutions can also help businesses in eliminating redundant data entries.

However, online services and solutions based on digital technologies are often vulnerable to cyberattacks and fraud. Online transactions are typically subjected to fraudulent activities, such as merchant and triangulation frauds, identity thefts, phishing, affiliate and clean frauds, counterattacks, and pagejacking. As such, the growing concerns over fraudulent transactions and cyberattacks are expected to hinder the growth of the market over the forecast period. The growing instances of security breaches and cyberattacks to default digital transactions are particularly anticipated to take a toll on the demand for digital transaction management solutions.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic is expected to drive the adoption of digital transaction management solutions over the forecast period. Businesses across the globe are focusing aggressively on paperless approvals for processing both funded transactions and guarantee issuances. The adoption of DTM solutions is expected to gain traction across various industries and industry verticals as a result. The growing acceptance of electronic signatures as part of business transactions also bodes well for the growth of the market.

Component Insights

The hardware segment dominated the market in 2022 and accounted for a revenue share of more than 40.0%. The growing demand for Point of Sale (POS) machines from vendors across various industries, including retail, hospitality, and healthcare, is primarily driving the growth of the hardware segment. POS machines are being designed specially to track inventory records, sales orders, customer profiles, POS transactions, and all other activities carried out in a retail store. The emergence of electronic signature pads and contactless technologies, such as Near Field Communication (NFC), has also been driving the demand for DTM hardware.

The software segment is anticipated to register the fastest CAGR over the forecast period. The growth of the segment can be attributed to the growing demand for various software, such as Contract Lifecycle Management (CLM) software, among others, which can help in managing digital transactions. Digital transaction management software can help businesses in capturing legally compliant electronic signatures, and tracking and managing the flow of documents between contractual parties while securing document-based transactions and storage of information. Cloud-based capabilities of digital transaction management solutions can particularly allow users to manage their business processes effectively.

Solution Insights

The electronic signatures segment dominated the market in 2022 and accounted for a revenue share of more than 38.0%. The segment is expected to continue dominating the market over the forecast period owing to the extensive portfolios of electronic signature software and services being rolled out aggressively by several vendors. Electronic signatures technology helps in improving efficiency, increasing the speed of transactions, and reducing the overall cost of business operations. Reductions are particularly evident across processing costs, recording costs, archiving costs, printing & mailing costs, and resource expenses, among other fronts.

The workflow automation segment is anticipated to register the fastest CAGR over the forecast period. Workflow automation helps businesses in saving time and money while avoiding errors in the processes. Errors in documents and transactions can potentially lead to severe monetary losses. However, specifying conditions and rules available as part of workflow automation solutions can help businesses in preventing such errors. Hence, organizations are increasingly opting for the automation of their workflows, which is expected to drive segment growth over the forecast period.

End-user Insights

The large enterprises segment dominated the market in 2022 and accounted for a revenue share of more than 55.0%. Organizing transaction workflows and ensuring efficient and cost-effective business processes remains critical for large enterprises. Hence, large organizations are more likely to opt for digital transaction management solutions for efficient management of their transactions and transaction documents. Large enterprises are typically adopting digital transaction management solutions to accommodate timestamped changes, ensure adequate authentication, and collaborate with reviewers, thereby speeding up the entire business lifecycle.

The SMEs segment is anticipated to register the fastest CAGR over the forecast period. SMEs are gradually adopting digital transaction management solutions for effective transaction management and automation. As such, the growth of the segment can be attributed to the technological shift SMEs have been pursuing from conventional transaction management to digital transaction management. Moreover, SMEs are particularly preferring state-of-the-art, next-generation solutions based on the latest technologies, such as Artificial Intelligence (AI), to reduce risks and control administration costs.

Vertical Insights

The BFSI segment dominated the market in 2022 and accounted for a revenue share of more than 29.0%. The transaction workflow of banks and financial institutions often tends to be agile. Hence, incumbents of the BFSI industry are aggressively adopting cloud-based digital transaction management solutions to improve their transaction management processes and make them more flexible. The diverse challenges stemming from the intensifying competition, demanding customers, and an evolving regulatory environment are particularly prompting banks and financial institutions to opt for digital transformation, thereby driving the growth of the BFSI segment over the forecast period.

The government segment is anticipated to register the fastest CAGR over the forecast period. Government agencies are expected to readily adopt digital transaction management solutions as part of the digital governance initiatives being pursued by various governments around the world. Governments have realized that incorporating these solutions in their operations can potentially provide advanced algorithms and a high level of security to safely store the records of transactions and ensure effective and efficient governance. Hence, several governments across the world are aggressively approaching vendors to develop digital transaction management solutions for them.

Regional Insights

North America dominated the global market in 2022 and accounted for a revenue share of more than 34.0%. North America is home to several key market players as well as emerging companies providing digital transaction management solutions. Moreover, the region is also known for the early adoption of the latest digital solutions for transaction management. Such factors are allowing the North America regional market to account for a substantial share of the global market.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growing adoption of digital solutions for transaction management in developing countries, such as India and China, is expected to drive the growth of the regional market. In India, continued digitization and initiatives, such as Digital India, being pursued by the government are expected to propel market growth. The increasing number of SMEs in Asia Pacific is also expected to create growth opportunities for the regional market growth over the forecast period.

Key Companies & Market Share Insights

Market players are expanding the capabilities of their respective digital transaction management solutions by providing various innovative features. These features include seamless document generation, automatic reminders, configurable workflows, and automated tracking, among others. Vendors are also developing solutions that comply with various regulations pertaining to global security standards and auditing of agreements. Market players are particularly focusing on new product developments, mergers & acquisitions, strategic partnerships, and business expansions as part of the efforts to cement their position in the market.

For instance, in September 2021, OneSpan announced that BankID, a personal electronic ID for signing online and securing identification used by all the banks in Norway, has implemented anti-fraud and cloud authentication solutions from OneSpan in its operations. These solutions are used to effectively improve the customer experience and aid in securing banking applications across Norway. While BankID helps in completing online transactions and securing citizen identities in Norway, the anti-fraud and cloud authentication solutions are expected to protect BankID from increasing fraudulent activity and mobile threats. Some of the prominent players in the global digital transaction management market include:

• Adobe

• Ascertia

• DocuFirst

• DocuSign Inc.

• eDOC Innovations

• Entrust Corp.

• Wolters Kluwer N.V. 

• Kofax Inc.

• Nintex UK Ltd.

• OneSpan

Digital Transaction Management Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global digital transaction management market report based on component, solution, end user, vertical, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Electronic Signatures

  • Workflow Automation

  • Authentication

  • Document Archival

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Large enterprises

  • SMEs

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • Retail

  • BFSI

  • Healthcare

  • IT & Telecom

  • Government

  • Real Estate

  • Utilities

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Spain

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

    • Colombia

    • Chile

  • Middle East & Africa