Digital Forensics Market

Global Digital Forensics Market:

The global digital forensics market size reached US$ 6.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 13.7 Billion by 2032, exhibiting a growth rate (CAGR) of 8.7% during 2024-2032. The rising cases of cybercrimes are encouraging companies and governments to invest in better tools for investigating digital threats, which is stimulating the market.

Digital Forensics Market Analysis:

• Major Market Drivers: The growing use of cloud storage is increasing the demand for tracking and analyzing online data and activity, which is propelling the market.
• Key Market Trends: The adoption of digital systems by businesses is creating a need for data recovery tools for finding lost or stolen data, which is acting as a growth-inducing factor.
• Competitive Landscape: Some of the major market companies include AccessData Group Inc. (Exterro Inc.), Binary Intelligence LLC, CCL (Solutions) Group Ltd, Digital Detective Group Limited, Global Digital Forensics, KLDiscovery, LogRhythm Inc., Magnet Forensics, MSAB, OpenText Corporation, Oxygen Forensics Inc., and Paraben Corporation, among many others.
• Geographical Trends: North America is leading the market, owing to strong government regulations, advanced technology adoption, and the increasing need for cybersecurity solutions.
• Challenges and Opportunities: The complexity of analyzing encrypted data is hindering the market. However, developing more advanced decryption tools and techniques will continue to strengthen the market over the forecasted period.
   

Digital Forensics Market Trends:

Growing Demand for Cybersecurity Expertise

The rise in cybercrimes and digital threats has significantly increased the need for skilled professionals in digital forensics. In contrast, this expertise helps organizations to investigate breaches, identify vulnerabilities, and secure their digital environments, thereby making it a critical component in the broader field of cybersecurity defense. For instance, in July 2024, NIELIT Kohima launched a digital forensics training program for Egyptian students, university professors, and government officials. This initiative enhances international collaboration, offering comprehensive online training and hands-on lab experience, thereby aiming to strengthen cyber security defenses and tackle cyber threats effectively.

Increasing Adoption of Cloud Forensic Solutions

The demand for cloud-specific forensic solutions has surged, as businesses increasingly shift to cloud environments. In addition, digital forensics in the cloud requires specialized tools and techniques to analyze data, detect incidents, and conduct investigations, thereby ensuring that cloud infrastructure remains secure, and incidents are properly addressed. For instance, in April 2024, Orca Security launched a cloud digital forensics and incident response service through a partnership with ModePUSH. This service enhances rapid investigation of cloud incidents by providing deep visibility into cloud telemetry and offering forensic snapshots for efficient analysis of cloud-native infrastructure breaches.

Advancements in AI-powered Forensic Tools

Artificial intelligence is transforming digital forensics by automating the analysis of large volumes of data and improving the speed and accuracy of investigations. Moreover, AI-driven tools can detect patterns, reconstruct events, and manage digital evidence efficiently, thereby making the forensic process more effective in tackling complex digital crimes. For instance, in July 2024, Exterro launched FTK 8.1, a unified digital forensic solution offering advanced mobile, Mac, and Windows data investigations, which features entity management for comprehensive activity views, customizable reports, and AI-powered multimedia analysis, thereby streamlining investigations and evidence management.

Global Digital Forensics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the digital forensics market forecast at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, type, tool, and end user.

Breakup by Component:

• Hardware
• Software
• Service
   

Service currently holds the largest digital forensics market demand

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware, software, and service. According to the report, service represented the largest market segmentation.

Service helps organizations investigate cyber incidents by efficiently collecting, analyzing, and reporting data from compromised networks and digital devices, thereby enhancing incident response and cybersecurity efforts. For instance, Magnet Forensics launched Magnet AXIOM Cyber, a service-oriented digital forensics platform.

Breakup by Type:

• Mobile Forensic
• Computer Forensic
• Network Forensic
• Others
   

Computer forensic currently holds the largest digital forensics market outlook

The report has provided a detailed breakup and analysis of the market based on the type. This includes mobile forensic, computer forensic, network forensic, and others. According to the report, computer forensic represented the largest market segmentation.

Computer forensics, a branch of digital forensics, focuses on identifying, preserving, and analyzing electronic data for legal investigations. For instance, Microsoft's advanced threat analytics, helps to detect and analyze cybersecurity threats. Hence, aiding forensic experts in uncovering digital evidence.

Breakup by Tool:

• Data Acquisition and Preservation
• Forensic Data Analysis
• Data Recovery
• Review and Reporting
• Forensic Decryption
• Others
   

Forensic data analysis currently holds the largest digital forensics market statistics

The report has provided a detailed breakup and analysis of the market based on the tool. This includes data acquisition and preservation, forensic data analysis, data recovery, review and reporting, forensic decryption, and others. According to the report, forensic data analysis represented the largest market segmentation.

Forensic data analysis in digital forensics involves using specialized tools to extract, analyze, and preserve electronic evidence. Tools like EnCase enable investigators to retrieve hidden data from devices, thereby aiding in criminal investigations and legal proceedings efficiently.

Breakup by End User:

• BFSI
• IT and Telecom
• Government and Law Enforcement Agencies
• Retail
• Healthcare
• Others
   

Government and law enforcement agencies currently hold the largest digital forensics market revenue

The report has provided a detailed breakup and analysis of the market based on the end user. This includes BFSI, IT and telecom, government and law enforcement agencies, retail, healthcare, and others. According to the report, government and law enforcement agencies represented the largest market segmentation.

Government and law enforcement agencies rely on digital forensics to investigate cybercrimes, fraud, and data breaches. It aids in evidence collection and analysis, thereby helping agencies solve cases involving computer systems, networks, and digital storage devices.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America currently dominates the digital forensics market value

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico and others), and the Middle East and Africa. According to the report, North America accounted for the largest market share. 

According to the digital forensics market overview, North America dominates the market, driven by the increasing frequency of cybercrimes and the strong presence of key industry players. Moreover, government regulations and the need for advanced forensic solutions across sectors, such as financial institutions and law enforcement agencies, further boost demand. For instance, the FBI's Cyber Crime Division heavily relies on digital forensics to investigate and mitigate cybersecurity threats effectively. Collectively, these factors contribute to the region's dominance in the market.

Competitive Landscape:

The digital forensics market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include:

• AccessData Group Inc. (Exterro Inc.)
• Binary Intelligence LLC
• CCL (Solutions) Group Ltd
• Digital Detective Group Limited
• Global Digital Forensics
• KLDiscovery
• LogRhythm Inc.
• Magnet Forensics
• MSAB
• OpenText Corporation
• Oxygen Forensics Inc.
• Paraben Corporation
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Digital Forensics Market Recent Developments:

• July 2024: Exterro launched FTK 8.1, a unified digital forensic solution offering advanced mobile, Mac, and Windows data investigations, which offers entity management for comprehensive activity views, customizable reports, and AI-powered multimedia analysis.
• June 2024: Kaspersky introduced the 'Windows Digital Forensics' online training course. This program equips InfoSec professionals with critical skills in digital evidence detection, incident reconstruction, and forensic analysis, addressing the cybersecurity skills shortage and enhancing incident response capabilities.
• January 2024: The Directorate General of GST Intelligence (DGGI) collaborated with the National Forensic Sciences University (NFSU) to inaugurate the first digital forensic lab in Gandhinagar. This state-of-the-art facility strengthens cyber and digital forensics capabilities, enhancing investigations into complex tax offenses.

Digital Forensics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the digital forensics market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global digital forensics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the digital forensics industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.