“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%”
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.
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.
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-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.
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.
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.
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.
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.
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.
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
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.
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.
| 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 |
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| 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. |
By Deployment Model
By Component
By Application
By Organization Size
By End-use
By Geography
The Market size is projected to reach USD 17.7 billion by 2031.
Need For Real-Time Monitoring And Incident Response Capabilities are driving the Market in coming years, however, High Implementation And Operational Costs restraints the growth of the Market.
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.
The expected CAGR of this Market is 24.7% from 2024 to 2031.
The Software Segment captured the maximum revenue in the Market by Component in 2023, thereby, achieving a market value of $10.9 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $6.3 billion by 2031.
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