Digital Forensics Market Analysis & Opportunity Outlook 2023-2035

Global Digital Forensics Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global digital forensics market size is estimated to reach ~USD 86 Billion by the end of 2035 by growing at a CAGR of ~18.90% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of digital forensics was ~USD 11 Billion. The growth of the market can be attributed to the increasing number of sophisticated digital crimes, rising use of Internet of Things (IoT) and adoption of stringent government regulations. Further, the growing prevalence of cyber-attacks on enterprises across the globe are also expected to add to the market growth. For instance, according to the Federal Bureau of Investigation (FBI), over 43,300 cases of online identity theft and 2,42,342 complaints regarding internet phishing and cyber frauds were reported in the year 2021.

In addition to these, factors that are believed to fuel the market growth of digital forensics include the rise in adoption of artificial intelligence that has paved way for much more advanced digital forensics solutions. Artificial intelligence is prompt and precise in detecting data clusters in photos, videos, pattern recognition and provide forensic data security and data retrieval solutions, which is further boosting the market growth. For instance, by 2024, ML algorithms aided by Intrusion Detection Systems (IDS), can help in streamlining threat detection in real time and help in identifying behavior patterns consistent with malicious activity and prevent any cyberattacks beforehand. Additionally, the increasing R&D investments made on digital forensics by companies and corporates is predicted to present the potential for market expansion over the projected period.

Global Digital Forensics Market: Growth Drivers and Challenges

Growth Drivers

Rising Cases of Cybercrimes – On account of the increasing cases of cybercrimes, threats, usage of network-based applications and data breaches, the market is expected to expand more in the upcoming years. FBI’s Cybercrime Statistics 2023 report states that nearly 33 billion accounts will be breached this year, with annual cost of these breaches predicted at USD 8 trillion. Cost of cybercrime is projected to reach USD 10.5 trillion by the year 2025.
Rising Adoption of Data Compliance Standards – The rise in number of business and corporates adopting and deploying data compliance standards across the globe is estimated to drive market growth. Reports estimate that the percentage of risk and compliance programs in companies have grown by 29% in 2022. 86% of companies have agreed that innovative digital technologies have helped them in identifying financial crimes.
Increasing Technological Advancements in Digital Forensics Solutions – Advancements in the field of digital forensics like drone forensics, vehicle forensics, biometric, social network forensics is predicted to drive the market growth. According to the US Federal Aviation Administration (FFA), over there are over 850,000 registered drones and 40% with commercial license. This can help in collecting data in the form of evidence.
Rising Adoption of Advanced Cloud Technologies – The increasing adoption of cloud computing applications, data storage, retrieval from the cloud is estimated to drive the market growth. Reports suggest that 83% of enterprise workloads are in the cloud by 2021 and 30% of all the IT budgets are allocated to cloud computing applications.
Growing Digitalization – Development of the internet and the hyperconnectivity it provides by the proliferation of digital technologies such as smartphones and laptops are expected to drive the market growth. According to the International Monetary Fund (IMF), 65% of World’s GDP is predicted to be digitized by 2025.

Challenges

High level of encryption - The increasing level of encryption in mobile phones could hinder the collection of data and evidence and thus is one of the major factors predicted to slow down the market growth. For instance, research cites that increasing use of Full Disk Encryption (FDE), can significantly hamper digital investigations by preventing access to digital evidence.
Lack of expertise and skilled professionals
Usage of proprietary operating systems

Global Digital Forensics Market Segmentation

The global digital forensics market is segmented and analyzed for demand and supply by type into computer forensics, mobile forensics, cloud forensics and network forensics. Out of the four types of digital forensics, the computer forensics segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing use of computer forensics in investigative processes. For instance, massive shift in the law enforcement is noted regarding mobile pieces of evidences. Earlier, 90-95% of cases were traditional computer forensics cases and now 95% of cases accounts for mobile pieces of evidences and very few computers. With information, evidence, data stored in cloud devices, computer forensics sector is launching new devices that can help access and retrieve the data. The LabVantage Solutions launched LIMS Platform, 8.8 version in December 2022, which helps in data investigations and digital evidence. Digital data from various sources are studied in a unified space with the help of this platform. All these factors are predicted to boost the market growth.

The global digital forensics market is also segmented and analyzed for demand and supply by end-user into healthcare, education, BFSI, government & law enforcement agencies. Amongst these four segments, the BFSI segment is expected to garner a significant share in the year 2035. Increasing incidences of breaking bank databases, stealing customer information, money is expected to drive demand for digital forensics in the BFSI segment. On the other hand, the digitization of business functions by financial institutions is projected to witness a massive CAGR during the forecast period, owing to the rising need to opt for cybersecurity. For instance, there has been a 238% increase in cyber-attacks in the BFSI sectors post the pandemic in the World. Prioritizing and executing cybersecurity measures has become a significant concern for organizations in the BFSI segment. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global digital forensics market includes the following segments:

By Components	Hardware Software Services
By Type	Computer Forensics Mobile Forensics Cloud Forensics Network Forensics
By End-User	Healthcare Education BFSI Government & Law Enforcement Agencies

Global Digital Forensics Market Regional Synopsis

The market share of digital forensics in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the growing instances of cybercrimes in the region. For instance, 15,000 cyber-security incidents were reported by the federal agencies in the year 2020. The US government also accounted for 6% of data breaches and faced costs of over USD 15 million as a result of cyber-attacks. Further, the technological advancements in the digital forensics department are also anticipated to contribute to the market growth in the region. For instance, Xpera Risk Mitigation and Investigation, one of Canada’s largest national providers of investigations and risk solutions, announced a powerful new digital evidence tool for effective digital risk management. In addition, the region hosts significant players such as IBM, Cisco, FireEye who specialize in digital forensics solutions, and these factors are also estimated to boost the market growth during the forecast period.

The Asia Pacific Digital Forensics market is estimated to be the second largest, registering a share of about ~22% by the end of 2035. The growth of the market can be attributed majorly to the increasing instances of data breaches in multiple industries. There have been massive data leaking issues in the region that paved way to opt for advanced digital forensic solutions. frequency of fecal incontinence amongst several people, backed by sedentary lifestyle of individuals. For instance, in May 2021, Air India suffered a personal data breach with 4.5 million passengers’ personal data leak. The cyber-attack on airline service provider SITA also affected Malaysian Airlines, Lufthansa and Singapore Airlines. Further, the increased dependence on technologies and devices like smartphones are also anticipated to contribute to the market growth in the region. In addition, the region's increasing investments and initiatives to provide training for individuals on cyber security are also anticipated to boost the market growth during the forecast period.

Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing popularity of cloud and its use in the business, corporate sectors. The growing adoption of IoT in the region along with increasing frequency of cybercrimes are factors that are estimated to boost the market growth. Further, the availability of supportive policies by the regulatory bodies that promote the market players to opt for digital forensic solutions, are also anticipated to contribute to the market growth in the region.

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Top Featured Companies Dominating the Global Digital Forensics Market

OffSec Services Limited
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

FireEye Inc.
IBM Corporation
Micro Systemation AB
Cellebrite Ltd.
Ernst & Young
KPMG
Fintactics
Deloitte Touche Tohmatsu Limited
Binary Intelligence Technology Ltd.

In The News

OffSec Services launched Kali Linux 2022.4, which is the latest digital forensics platform with updated features. Widespread penetration testing is the major feature and this is added to Microsoft Azure as of now. This is available to use and figure out the security of individual networks.
Fintactics launched Lezaam and entered into a joint venture with Aion Digital. The Lezaam is inbuilt with all features and capabilities required for digital onboarding and eKYC, AML screening, compliance, and digital forensics.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the digital forensics market?

Ans: Increasing incidences of cybercrimes, technological advancements in the field, increasing digitization and the rising adoption rates of data compliance standards are the major factors driving the market growth.

2) What would be the CAGR of digital forensics market over the forecast period?

Ans: The market size of digital forensics is anticipated to attain a CAGR of ~18.90% over the forecast period, i.e., 2023 – 2035

3) What are the challenges affecting the digital forensics market growth?

Ans: High level of security in devices, lack of expertise and skilled professionals are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of digital forensics market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the digital forensics market?

Ans: The major players in the market are OffSec Services Limited, FireEye Inc., IBM Corporation, Micro Systemation AB, Cellebrite Ltd., Ernst & Young, KPMG, Fintactics, Deloitte Touche Tohmatsu Limited, Binary Intelligence Technology Ltd.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the digital forensics market?

Ans: The market is segmented by component, type, end user, and by region.

8) Which segment captures the largest market size in the type segment in the digital forensics market?

Ans: The computer forensics segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~18.90%
Base Year Market Size (2022)	~ USD 11 Billion
Forecast Year Market Size (2035)	~ USD 86 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)