AI-Driven Digital Forensics Market

Global AI-Driven Digital Forensics Market Size, Share & Trends Analysis Report By Deployment Model (On-premise and Cloud), By Component, By Application, By Organization Size, By End-use, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-25365 Publication Date: November-2024 Number of Pages: 379
2023
USD 3.2 Billion
2031
USD 17.7 Billion
CAGR
24.7%
Historical Data
2020 to 2022

“Global AI-Driven Digital Forensics Market to reach a market value of USD 17.7 Billion by 2031 growing at a CAGR of 24.7%”

Analysis of Market Size & Trends

The Global AI-Driven Digital Forensics Market size is expected to reach $17.7 billion by 2031, rising at a market growth of 24.7% CAGR during the forecast period.

The North America region witnessed 37% revenue share in this market in 2023. A strong presence of technology firms, financial institutions, and government agencies prioritizes digital forensics as a vital component of their cybersecurity strategies. Increased awareness of cyber threats, highlighted by significant data breaches, has led organizations to invest heavily in these digital forensics solutions.

AI-Driven Digital Forensics Market Size - Global Opportunities and Trends Analysis Report 2020-2031

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2024, Oxygen Forensic released update to its Detective v.16.3. With this update, the company introduces enhancements to analysis and analytic tools, KeyScout, Device Extractor, supported applications, expanded cloud support, and other improvements. Moreover, In April, 2024, MSAB revealed its latest release, featuring robust new features and substantial updates aimed at advancing digital investigations for law enforcement and government agencies globally. The newest versions of XRY, XAMN, and XEC from MSAB promise to elevate mobile data extraction capabilities, streamline digital evidence analysis, and improve reporting efficiency significantly.

KBV Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the KBV Cardinal matrix; IBM Corporation are the forerunners in the AI-Driven Digital Forensics Market. In April, 2023, IBM Corporation released IBM Security QRadar Suite, a cloud-native, AI-powered cybersecurity solution designed for hybrid cloud environments. It unifies threat detection, investigation, and response across a single interface, enhancing SOC efficiency. Key features include AI-driven automation, pre-built integrations, and cloud-native log management for faster, more accurate threat response. Companies such as Open Text Corporation, Oxygen Forensics, Inc. , Exterro, Inc. are some of the key innovators in AI-Driven Digital Forensics Market.

AI-Driven Digital Forensics Market - Competitive Landscape and Trends by Forecast 2031

Market Growth Factors

AI-powered forensics tools automate many aspects of the detection and response process, significantly reducing the time needed to investigate and address incidents. Real-time monitoring solutions improve the speed and accuracy of incident response by utilizing machine learning algorithms that can identify patterns that suggest malicious activity. This enables the mitigation of threats before their escalation. In conclusion, the need for real-time monitoring and incident response capabilities is propelling the market's growth.

Additionally, Cybercrime has evolved to include advanced threats, like phishing, ransomware, and nation-state-backed attacks, which are becoming increasingly complex and harder to detect. Traditional forensic tools struggle to keep up with these advanced threats, creating demand for AI-driven solutions that can quickly and accurately analyze complex attack patterns, identify vulnerabilities, and provide actionable insights. Thus, rising cybersecurity threats and cybercrime incidents drive the market's growth.

Market Restraining Factors

However, Implementing AI-driven digital forensic solutions requires a significant upfront investment, including purchasing advanced software and hardware and costs associated with customization and integration. These solutions must often be tailored to align with an organization’s specific infrastructure, data sources, and security protocols, further driving up the initial expenses. In conclusion, high implementation and operational costs hinder the market's growth.

Driving and Restraining Factors
AI-Driven Digital Forensics Market
  • Need For Real-Time Monitoring And Incident Response Capabilities
  • Rising Cybersecurity Threats And Cybercrime Incidents
  • Growing Volume Of Digital Data Worldwide
  • High Implementation And Operational Costs
  • Limited Standardization Impacting Interoperability And Compatibility
  • Emergence Of Cloud Computing And Remote Work Environments
  • Rise In Mobile And Iot Devices Creating Opportunities For Specialized Forensic Tools
  • High Dependency On Data Quality And Availability
  • Ethical Concerns Surrounding The Use Of AI

Deployment Model Outlook

Based on deployment model, this market is categorized into on-premises and cloud-based. The cloud-based segment witnessed 46% revenue share in the AI-driven digital forensics market in 2023. This growth is driven by the increasing adoption of cloud technologies across various industries, where flexibility and scalability are paramount. Cloud-based digital forensics solutions allow organizations to analyze data without extensive on-premises infrastructure, reducing costs and resource burdens.

Component Outlook

Based on component, this market is divided into software and services. In 2023, the services segment attained 36% revenue share in the AI-driven digital forensics market. Organizations increasingly rely on expert services such as forensic analysis, data recovery, and incident response to navigate complex cybersecurity challenges. These services ensure that these digital forensics tools are effectively integrated into existing workflows.

AI-Driven Digital Forensics Market Share and Industry Analysis Report 2023

Application Outlook

On the basis of application, this market is segmented into network forensics, endpoint forensics, cloud forensics, malware forensics, mobile forensics, and others. In 2023, the cloud forensics segment attained 17% revenue share in the AI-driven digital forensics market. As more businesses migrate to cloud environments, the demand for tools to effectively investigate incidents in these spaces has increased. Cloud forensics focuses on collecting and analyzing data from cloud services, which presents unique challenges due to the distributed nature of data storage and the complexities of shared responsibilities between service providers and clients.

Organization Size Outlook

By organization size, this market is bifurcated into small & medium enterprise and large enterprise. In 2023, the large enterprise segment registered 68% revenue share in the AI-driven digital forensics market. Due to their size, complexity, and extensive digital assets, large organizations often face a higher volume of cyber threats, necessitating robust forensic capabilities. These enterprises are increasingly adopting AI-driven solutions to enhance their incident response and investigative processes, allowing them to manage and mitigate risks effectively.

End-use Outlook

Based on end-use, this market is divided into BFSI, government & law enforcement, IT & telecom, healthcare, retail & e-commerce, defense, energy & utilities, and others. The government & law enforcement segment attained 19% revenue share in the AI-driven digital forensics market in 2023. Government agencies and law enforcement organizations rely heavily on digital forensics to investigate cybercrimes, gather evidence, and ensure national security. As the complexity and volume of cyber threats increase, these entities require sophisticated digital forensic tools to support their investigative efforts.

Free Valuable Insights: Global AI-Driven Digital Forensics Market size to reach USD 17.7 Billion by 2031

Market Competition and Attributes

AI-Driven Digital Forensics Market Competition and Attributes

The AI-driven digital forensics market is characterized by intense competition among numerous emerging players and startups. This fragmented landscape fosters innovation as companies leverage advanced technologies to enhance investigative capabilities. With varying specializations and solutions, competition is driven by the demand for efficient data analysis, real-time threat detection, and improved cybersecurity measures, making it a dynamic and rapidly evolving field.

By Regional Analysis

Region-wise, this market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 27% revenue share in the AI-driven digital forensics market. As more countries in this region adopt digital technologies, the demand for robust cybersecurity measures has surged. The rise in cybercrime incidents and significant investments in IT infrastructure and cloud services emphasize the need for effective digital forensics solutions. Finance, government, and healthcare organizations are increasingly leveraging these digital forensics to ensure compliance with local regulations and improve their response to sophisticated cyber threats, highlighting the region's growing importance in the global market.

AI-Driven Digital Forensics Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 3.2 Billion
Market size forecast in 2031 USD 17.7 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 24.7% from 2024 to 2031
Number of Pages 379
Number of Tables 653
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Deployment Model, Component, Application, Organization Size, End-use, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (Japan, China, India, South Korea, Australia, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included

Magnet Forensics Inc., Open Text Corporation, IBM Corporation, LogRhythm, Inc., Exterro, Inc., Cellebrite DI Ltd., Micro Systemation AB, Oxygen Forensics, Inc., Nuix Limited, and ADF Solutions, Inc.

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Recent Strategies Deployed in the Market

  • Apr-2024: LogRhythm, Inc. introduced new enhancements for its Axon platform for compliance auditing, threat detection, and case management. Key updates include dashboard sharing via GitHub, streamlined auditing for standards like PCI-DSS 4.0 and HIPAA, enhanced MITRE ATT&CK use cases, and improved data management, boosting security teams' efficiency and threat response.
  • Jan-2024: Oxygen Forensics extended its distribution agreement with mh Service, a leading provider of services and products related to IT, mobile phone, and audio-visual forensics, for the India region. This strategic partnership represents a significant milestone in the digital forensics industry and highlights Oxygen Forensics’ dedication to broadening its footprint in crucial global markets.
  • Nov-2023: Exterro completed the acquisition of Divebell, a leading SaaS solution specializing in data discovery. This strategic acquisition integrates Divebell's advanced data discovery capabilities with Exterro’s comprehensive legal GRC platform. By leveraging Divebell's sophisticated tools alongside Exterro’s robust information governance workflows, Exterro strengthens its position as the sole entity capable of addressing the complex legal, regulatory, and compliance data challenges encountered by corporations, government organizations, and global enterprises.
  • Oct-2023: Exterro Inc. came into partnership with ADF Solutions, Inc., the innovator behind rapid mobile evidence acquisition tools designed to automate targeted smartphone data collection for litigation, compliance, and investigations, have announced a strategic technology partnership. Through this partnership, Exterro customers will gain access to ADF Solutions' mobile device collection software. This software equips Exterro customers with capabilities such as previewing, screenshotting, screen recording, and efficiently collecting digital data stored on Apple iOS and Android smartphones, all within minutes. Additionally, the partnership aims to enhance the efficiency and effectiveness of digital investigations for Exterro's clientele.
  • Sep-2023: Exterro unveiled Exterro FTK 8.0, a state-of-the-art digital investigations solution recognized for its speed, stability, and user-friendly design. Featuring the fastest scalable processing engine available, FTK 8.0 introduces powerful automations aimed at enhancing efficiency in forensic workflows, enabling agencies to expedite case closures. This latest version addresses forensic investigators' challenges by incorporating artifact-based filtering for automatic artifact identification and investigation scope reduction based on examiner requirements. Additionally, it includes an interactive timeline feature that facilitates comparison of evidence sets across different devices, further aiding in comprehensive forensic analysis.

List of Key Companies Profiled

  • Magnet Forensics Inc.
  • Open Text Corporation
  • IBM Corporation
  • LogRhythm, Inc.
  • Exterro, Inc.
  • Cellebrite DI Ltd.
  • Micro Systemation AB
  • Oxygen Forensics, Inc.
  • Nuix Limited
  • ADF Solutions, Inc.

AI-Driven Digital Forensics Market Report Segmentation

By Deployment Model

  • On-premise
  • Cloud

By Component

  • Software
  • Services
    • Professional Services
    • Managed Services

By Application

  • Network Forensics
  • Endpoint Forensics
  • Cloud Forensics
  • Malware Forensics
  • Mobile Forensics & Other Application

By Organization Size

  • Large Enterprise
  • Small & Medium Enterprise

By End-use

  • BFSI
  • Government & Law Enforcement
  • IT & Telecom
  • Healthcare
  • Retail & eCommerce
  • Defense
  • Energy & Utilities
  • Other End-use

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Malaysia
    • Rest of Asia Pacific
  • LAMEA
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA
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