Digital Forensics Market Size (2023 – 2030)

The Global Digital Forensics Market was estimated to be worth USD 9.68 Billion in 2022 and is projected to reach a value of USD 23.63 Billion by the end of 2030, growing at a fast CAGR of 11.80% during the forecast period 2023-2030.

Digital forensics is the study of, recovery from, interpretation of, and discovery of electronic data. It is frequently used to gather information, prosecute all types of crimes, such as financial fraud, theft, and murder, obtain more evidence, and stop and suspect future crimes. Investigating, recovering, analyzing, and extracting evidence from digital sources, such as laptops, desktops, and mobile devices, is the focus of digital forensics. It helps in lowering the risk associated with sampling, effectively locating cybercriminals, preserving integrity, producing evidence in court, and extracting, processing, and interpreting factual evidence. As a result, digital forensics is widely employed in the banking, financial services, and insurance (BFSI) industry, government, and enforcement organizations, and the telecommunications and information technology (IT) sector.

Global Digital Forensics Market Drivers: 

Everyday rising cases of Cybercrimes are propelling the Global Digital Forensics Market Expansion.

As more people use the internet and different network-based applications like email programs, file transfer protocols, cloud-based technologies, and others, cyber dangers, and attacks are growing quickly. To reduce the danger of growing cyber threats, important end-use industries like government & law enforcement, BFSI, IT & communications, and others are increasingly favoring digital forensics due to their great capacity for speedy and precise examination.

Additionally, more and more people are gravitating towards using various digital applications, ranging from Internet banking to email services. As a result, a mind-boggling amount of forensic data is produced every day and stored on a cloud. It can be quite difficult to keep youngsters safe from online threats and scams. Digital forensics has made it easier to gather, process, preserve, and analyze computer evidence—especially that which will be used in court. One of the main factors anticipated to support the rise of the worldwide digital forensics market, in addition to increased cybercrimes, is the decline in the prices of forensic equipment.

The expansion in IoT is driving growth in the Global Digital Forensics Market.

IoT has increased demand for wireless data transfer, cloud computing, and remote device monitoring. Data theft and data protection during wireless transmission are problems that are unique to cloud computing and remote equipment. Sensitive and confidential data are being stored on more remote-connected devices as a result of remote working, the growth of the BYOD culture, and the digitalization of business operations.

To prevent data misuse and loss to the organization, these devices must be watched over and access should only be given to designated individuals. These elements have increased the demand for organizations without the resources to deploy these devices to spend money on digital forensics gear and software as well as consultancy and other services. Although the emergence of proprietary systems and devices that offer a high level of security, in addition to a lack of technical know-how to apply the solutions and greater capital expenditures, restrain market expansion.

The rising trend of Cryptocurrencies is bolstering growth in the Digital Forensics Market.

Cryptographic algorithms are used for safe data transfer in the decentralized, digital asset known as cryptocurrency. The central government does not regulate or issue cryptocurrencies. The exchange of cryptocurrencies between two parties is a simple operation. Two parties exchange public and private keys as part of cryptocurrency transactions. There is also a little transaction cost. Bitcoin, Ethereum, Ripple, and Litecoin are a few well-known bitcoins that are used all over the world.

Data communicated between two parties are guaranteed to be confidential, authentic, and non-repudiable thanks to cryptography. However, the popularity of cryptocurrencies has also led to an increase in fraud incidents. Cyberattacks against cryptocurrency are possible for monetary gain, geographical competition, interpersonal rivalry, and reputational damage. It could be challenging to find the artifacts after a cryptocurrency fraud has taken place. The crucial data that might have been lost during the cryptocurrency storage or exchange would need to be recovered using an appropriate digital forensic method. In light of this, cybercriminals would test cryptocurrencies as one of their top targets, which is why it is anticipated that the need for digital forensics will grow.

COVID-19 Impact on Global Digital Forensics Market:

Globally, the majority of nations are impacted by COVID-19, and most nations have declared lockdown. Due to the COVID-19 epidemic, organizations have quickly turned towards digital infrastructure with remote solutions, which has raised the requirement for digital forensics. Numerous industries, including those in healthcare, manufacturing, finance, logistics, administration, and government, have seen an increase in cyberattacks aimed at sensitive corporate data.

Additionally, as a result of the lockdown measures, there has been a significant surge in digital transactions, with governments pushing people to use contactless payment options to limit the spread of COVID-19. However, this pattern has given rise to unethical hacking and other online crimes. As a result, the COVID-19 epidemic has boosted the need for digital forensics, which will present growth prospects for market players in the years to come.

Recent Developments: 

• In January 2021, to improve SIEM (security information and event management) with cloud-based analytics, threat detection, and network visibility, LogRhythm bought MistNet. Users may now deploy machine-learning-based detection and response capabilities thanks to the acquisition.

• In October 2020, Paraben released the 2.7 edition of the E3 Forensic Platform. The 2.7 update adds support for Slack with cloud acquisitions, iOS 14 acquisition and analysis support, ExFAT file system analysis support, and Android 11 acquisition and analysis support.

Global Digital Forensics Market Challenges:

The process of transforming plain text into cipher text is known as encryption. Symmetric and asymmetric encryption methods are the two main categories of encryption algorithms. While asymmetric algorithms employ two keys (public and private keys), symmetric algorithms only need one key to convert data. Asymmetric algorithms use the public key to encrypt plain text. The data can only be decoded by those who have the right private key. Rivest-Shamir-Adleman (RSA), the advanced encryption standard, and the data encryption standard are some notable examples of asymmetric algorithms.

Customers are being encouraged to use data security techniques including encryption, tokenization, anonymization, and pseudonymization by data security legislation and compliances. The right to privacy for each person also makes it challenging for law enforcement agencies to control encryption practices among users. Therefore, it is anticipated that encryption will present a significant barrier that could reduce the efficiency of digital forensic tools, thereby limiting the expansion of the market for digital forensics.

Global Digital Forensics Market Opportunities:  

Corruption, commodities diversion, and bribery have all had an impact on the consumer products industry during the past few years. To allay these security worries, companies in the consumer products industry are utilizing digital forensic technology to enhance their business processes. E-commerce is also expanding as a new method of distribution for the consumer goods industry. Nowadays, supply chains are utilized for fraud, including counterfeiting. For instance, illicit and unregulated third-party internet sales channels may offer significant savings on branded goods. Usually, these branded products are acquired through supply-chain leaks. So this increasing focus on digitization, IoT, and advanced technologies is creating various opportunities every day for Global Digital Forensics Market.
DIGITAL FORENSICS MARKET REPORT COVERAGE:

Global Digital Forensics Market Segmentation: By Component

• Hardware

• Software

• Services

Based on Segmentation by Component, since digital forensic services complement the usage of digital forensic hardware and software by speeding the identification and analysis of crucial data, the services segment is anticipated to have a significant proportion of the market in the years to come. Additionally, digital forensics services are expensive and typically offered by big companies like KPMG, PwC, and others. As a result, the majority of the expenses are related to skilled labor, licenses, and training. System integration, training, support, consultancy, and other aspects of digital forensics are skills that have been developed over time. Organizations are frequently required to build their skills and abilities and contract them out to service providers with the necessary knowledge to assist the business in implementing them.

Global Digital Forensics Market Segmentation: By Type

• Cloud Forensics

• Computer Forensics

• Mobile Device Forensics

• Network Forensics

Based on Segmentation by type, during the projection period, the computer forensics market share is expected to be the highest. The large market share of the cloud forensics segment can be attributed to the growing digitalization of business activities, which generates a lot of confidential business and transactional data that needs enough data protection measures to ensure its integrity and that it is accessed by the right people with the necessary permissions. Due to the crucial function that computer forensics plays in ensuring that data integrity is upheld, the category commands the biggest market share.

Global Digital Forensics Market Segmentation: By Tools

• Data Acquisition and Preservation

• Data Recovery

• Forensic Data Analysis

• Forensic Decryption

• Review and Reporting

• Others

Based on Segmentation by tools, the market share that forensic data analysis held was the largest in 2022. The insights and analytical skills that forensic data analysis can offer, which support better business decisions and propel organizational transformation, are among the elements that contribute to its substantial market share.

Additionally, there is a greater requirement to look into and monitor firm data due to the surge in financial crime. In addition, forensic data analysis assists in tracking any misconduct or malpractice that is occurring and putting a stop to it before it spreads and poses harm to the organization.

Global Digital Forensics Market Segmentation: By End User

• Banking, Financial Services, and Insurance

• Government and Defence

• Healthcare

• Retail

• Telecom and IT

• Others

Based on Segmentation by the End-user, due to the extremely secret data that is stored, transferred, and used in this industry, the Government and Defence sector had the biggest market share in 2022 and is therefore particularly vulnerable to cyberattacks and other employee misdeeds.

The sector must therefore make sure that data is accurate and that the proper individuals have access to it as a key priority. Since data loss and theft are tied to national security, significant investments are made in various hardware, software, and services, which have helped it to have the greatest proportion of all industries.

Global Digital Forensics Market Segmentation: By Region  

• North America  

• Europe  

• Asia Pacific  

• Middle East and Africa

• Latin America 

North America will control the largest portion of the market. Numerous companies in the digital forensics sector are based in the North American region. Additionally, due to the region's higher rates of technological adoption, businesses there have not yet adopted remote working, cloud computing, BYOD, and other practices that have raised concerns about maintaining data privacy and integrity and drawn investment in hardware, software, and digital forensics services. Additionally, due to the prominence of the region's corporate headquarters, the region faces greater risks of cyberattacks, phishing, social engineering, etc., making it crucial for businesses to invest in digital forensics solutions.

Due to the growing use of cloud environments for data storage, Asia Pacific is anticipated to experience considerable growth during the projected period. Businesses in industries including banking, financial services and insurance (BFSI), retail, and government are moving more of their workload to the cloud for cost savings, agility, and flexibility, which has made those businesses more vulnerable to cyberattacks. As a result, forensics specialists in the Asia Pacific have greatly benefited from cloud forensics.

Global Digital Forensics Market Key Players:

1. AccessData Group LLC

2. ADF Solutions

3. Cellebrite Paraben

4. Coalfire

5. Digital Detective

6. LogRhythm

7. Magnet Forensics

8. MSAB

9. OpenText Corporation

10. Oxygen Forensics.