“Global Digital Forensics Market to reach a market value of USD 26.3 Billion by 2031 growing at a CAGR of 14.8%”
The Global Digital Forensics Market size is expected to reach $26.3 billion by 2031, rising at a market growth of 14.8% CAGR during the forecast period.
Retailers are prime targets for cyberattacks due to the vast amounts of sensitive customer data they handle, including payment information. The rise in data breaches, ransomware attacks, and other cyber threats has driven the need for robust digital forensics capabilities to investigate incidents and mitigate damage. Thus, the retail segment captured $1,221.5 million revenue in the market in 2023. The rapid expansion of e-commerce has increased the digital footprint of retailers. As businesses migrate their operations online, the complexity and volume of digital data have grown, necessitating advanced digital forensics solutions to manage and analyze this data effectively.
The rise in cybercrime activities, including data breaches, hacking, and identity theft, has significantly heightened the need for digital forensics to investigate and mitigate these incidents. According to the FBI’s Internet Crime Complaint Center (IC3), cybercrime complaints increased, with reported losses exceeding $10.2 billion in 2022. Victims often face severe financial and reputational damage. Digital forensics helps trace the origins of identity theft, recover stolen data, and provide vital information for legal actions against perpetrators. Hence, the exponential increase in cybercrime incidents underscores the critical importance of digital forensics.
Furthermore, Continuous technological advancements have revolutionized the digital landscape, significantly increasing the complexity and volume of digital evidence. One key factor contributing to this growing complexity is the proliferation of Internet of Things (IoT) devices. In addition to IoT devices, the expansion of cloud computing has also significantly impacted the field of digital forensics. Thus, continuous technological advancements have significantly increased the complexity of digital evidence, driving the need for sophisticated digital forensics tools and solutions.
However, the sheer magnitude of data that forensic investigators must contend with can overwhelm traditional investigative approaches, underscoring the urgent need for efficient tools and methodologies to streamline the process of data analysis and extraction. Managing the exponential growth of data requires substantial human and technological resources, which can strain the capacity of forensic teams and infrastructure. Ensuring that the forensic infrastructure can scale to accommodate growing data volumes is crucial but challenging and resource-intensive to implement effectively. Thus, the rising volume of data may hinder the market's growth.
On the basis of type, the market is classified into computer forensics, network forensics, mobile device forensics, and cloud forensics. The mobile device forensics segment acquired 21% revenue share in the market in 2023. There has been an increase in the quantity of digital evidence that is accessible on various platforms as a consequence of the proliferation of mobile devices, which include smartphones, tablets, and wearables. Mobile device forensics addresses the unique challenges associated with extracting, analyzing, and interpreting data from mobile devices, including deleted data, encrypted data, and app-specific artifacts.
By industry, the market is divided into government, telecom & IT, BFSI, retail, healthcare, and others. The government segment recorded 28% revenue share in the market in 2023. Government agencies and defense organizations face heightened cybersecurity threats, including espionage, cyber warfare, terrorism, and state-sponsored attacks. Digital forensics is crucial in investigating and mitigating these threats, preserving national security interests.
Based on deployment mode, the market is bifurcated into cloud and on-premise. The cloud segment procured 66% revenue share in the market in 2023. Cloud-based digital forensics solutions offer unparalleled scalability, allowing organizations to easily expand their storage and processing capabilities as needed without the need for significant upfront investments in infrastructure. By utilizing cloud services, organizations can reduce costs related to hardware, maintenance, and energy consumption.
Based on component, the market is characterized into hardware, software, and services. The services segment procured 15% revenue share in the market in 2023. Digital forensics investigations often require specialized knowledge and skills to analyze complex digital evidence. Therefore, there's a growing demand for expert services offered by forensic consultants and professionals.
The hardware segment is further segmented into forensic systems, forensic devices, and others. The forensic systems segment acquired 48% revenue share in the digital forensics market in 2023. Forensic systems typically offer comprehensive solutions, including hardware, software, and specialized digital evidence collection, preservation, analysis, and reporting tools. This integrated approach makes them highly desirable for organizations conducting digital investigations, contributing to their larger revenue share.
The services segment is further bifurcated into professional services and managed services. The professional services segment witnessed 57% revenue share in the market in 2023. Professional services encompass various offerings, including forensic analysis, data recovery, incident response planning, expert testimony, and training. Organizations seek the expertise of forensic professionals to navigate complex digital investigations and ensure the admissibility of evidence in legal proceedings.
Free Valuable Insights: Global Digital Forensics Market size to reach USD 26.3 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 41% revenue share in the market in 2023. North America is a technological innovation and development hub, particularly the United States. The region boasts a robust ecosystem of digital forensics companies, research institutions, and government agencies, driving the adoption of advanced forensic technologies and methodologies.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 8.8 Billion |
| Market size forecast in 2031 | USD 26.3 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 14.8% from 2024 to 2031 |
| Number of Pages | 344 |
| Number of Tables | 640 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Deployment Mode, Type, Industry, Region |
| Country scope |
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| Companies Included | Coalfire Systems, Inc. (Apax Partners LLP), Open Text Corporation, LogRhythm, Inc., Exterro, Inc. (Leeds Equity Partners, LLC), Cellebrite DI Ltd., Micro Systemation AB (MSAB), Oxygen Forensics, Inc., Nuix Limited, ADF Solutions, Inc., Magnet Forensics Inc. |
By Component
By Deployment Mode
By Type
By Industry
By Geography
This Market size is expected to reach $26.3 billion by 2031.
Increasing Cybercrime Incidents Across The World are driving the Market in coming years, however, Rising Complexity Of Cyber Threats restraints the growth of the Market.
Coalfire Systems, Inc. (Apax Partners LLP), Open Text Corporation, LogRhythm, Inc., Exterro, Inc. (Leeds Equity Partners, LLC), Cellebrite DI Ltd., Micro Systemation AB (MSAB), Oxygen Forensics, Inc., Nuix Limited, ADF Solutions, Inc., Magnet Forensics Inc.
The expected CAGR of this Market is 14.8% from 2024 to 2031.
The Computer Forensics segment is leading the Market by Type in 2023; thereby, achieving a market value of $9.6 billion by 2031.
The North America region dominated the Market by Region in 2023; thereby, achieving a market value of $10.3 billion by 2031.
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