eDiscovery Market

eDiscovery Market Size:

The global eDiscovery market size reached US$ 13.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 25.8 Billion by 2032, exhibiting a growth rate (CAGR) of 7.3% during 2024-2032. The market is experiencing steady growth driven by the escalating volumes of electronically stored information (ESI) and the stringent legal and regulatory frameworks, the increasing incidence of litigation and compliance requirements across industries, and continuous technological advancements in artificial intelligence (AI) and cloud computing.

eDiscovery Market Analysis:

• Major Market Drivers: According to the eDiscovery market report, the main drivers of the eDiscovery market include the growing volume of electronically stored information and a high demand for data governance in the context of virtually all industries. Furthermore, the regulatory and compliance requirements continue to escalate, demanding heavy-duty tools to process data at scale reliably and afford extensive reviews and audits.
• Key Market Trends: AI and machine learning components are increasingly integrated into eDiscovery offerings to optimize data processing and analytics. Cloud solutions are gaining traction due to their cost-effectiveness and scalability, and their capacity to support substantial data sets and shared workflows.
• Geographical Trends: According to the eDiscovery market overview, North America accounts for a significant share of the current eDiscovery market, reflecting tough legislation and regulation across the continent. Simultaneously, the APAC market is developing actively due to more digitization, the growing volume of generated data, and changes in legislation affecting eDiscovery in states such as China and India.
• Competitive Landscape: Industry leaders are marked by the presence of both long-standing industry players and newly formed businesses aggressively engaged in the M&A process to enhance their services and expand their global activities. Industry leaders include companies such as IBM, Relativity, or Logikcull, whereas their competition relies on solution novelty, buyer-centric approach, and offering size.
• Challenges and Opportunities: The challenge lies in the abundance of the format of data to collect and process. On the contrary, the eDiscovery market recent opportunities include developing and selling more complex tools, which are better suited to store and communicate with more diverse data and compliant with international regulations.
   

eDiscovery Market Trends:

Rising volume of electronically stored information (ESI) and regulatory compliance requirements

The escalating need to garner and produce electronic data is significantly supporting the eDiscovery market growth. In total, over 97% of all business records are estimated to be created and maintained in electronic format and the number of e-mail messages transmitted and received daily worldwide has become almost 250 billion per day, nearly two-and-a-half e-mail messages per second, without counting text and social media messaging. Thus, this is positively influencing the eDiscovery market revenue. Additionally, most governments are enhancing their data governance and privacy requirements. GDPR in Europe and HIPAA in the U.S., as well as multiple other data protection initiatives across the globe, are prompting businesses from throughout to adopt eDiscovery solutions to maintain compliance. As the search, retrieval, and protection of vast datasets become more vital due to the scope and duration of eDiscovery under these legal and data governance guidelines, it is becoming clear that advanced technological solutions are essential. These technologies help businesses cut risks and legal liabilities. Further, they help ensure that any mechanical search can be produced for the regulatory deadlines.

Technological advancements and integration with cloud computing

The eDiscovery landscape has been significantly changed by technological advancements, particularly artificial intelligence (AI) and machine learning. One of the eDiscovery market recent developments includes the incorporation of these technologies into eDiscovery tools which is increasing their efficiency in handling large datasets. Moreover, it is leading to improved data processing accuracy and speed, and reductions in operational errors and costs. The importance of technology in facilitating eDiscovery processes is immeasurable. This is due to artificial intelligence technology having facilitated the automation of sophisticated eDiscovery processes such as predictive coding, tagging, and documentation categorization. Therefore, this is increasing eDiscovery demand among most law firms and in-house corporate counsel. In addition, the eDiscovery industry has also gained support from the eDiscovery platforms and the cloud system. For example, cloud-enabled eDiscovery tools allow flexible and more storage of eDiscovery data processes through scalable storage firms, which is timely, assimilative, and less costly mostly to small and medium companies. Apart from this, the shift is from the linear process to the inclusive and accommodative eDiscovery environment. As a result, individuals can participate remotely and access the required information in real-time, which improves the productivity of a legal process.

Global digitalization and legal system modernization

Digitalization, as a dominant global tendency prevalent in both developing and developed regions, significantly contributes to eDiscovery growth. With businesses and government agencies aiming to digitize their processes and records, the importance of managing digital data under respective legal requirements increases. Due to the extensive digital transformation in regions including Asia-Pacific, there's a growing need to modernize legal bodies and systems to accommodate new kinds of electronically stored information (ESI). This modernization enhances the expansion of the eDiscovery market and provides opportunities for providers willing to adapt to market needs and secure a position in less-competitive markets. The eDiscovery market analysis suggests that specific factors such as versatility in handling different data types and formats, the ability to meet local legal requirements, and the provision of multilingual support significantly influence adoption rates in developing markets, which, in turn, drives the industry’s overall growth.

eDiscovery Market Segmentation:

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

Breakup by Component:

• Services
• Software
   

Services account for the majority of the market share

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

The largest component segment of the eDiscovery market is services, which are fueled by the increasing complexity of processing and analyzing large amounts of electronically stored information (ESI). This segment includes various types of services, such as consulting, implementation, training, and support, which are vital for the proper implementation of eDiscovery solutions. Due to the continued pressure on law firms and corporate legal departments to speed up reviews and reduce costs, these services are in high demand among clients who seek to simplify the eDiscovery process. Along with this, the importance of eDiscovery service providers is also underlined by the fact that these experts help companies remain compliant with current laws and the most up-to-date regulations, thus decreasing the risks of managing data. Moreover, the high and growing volume of data and its diversity leads to the development of highly specialized services that focus on specific industries, which strengthens the position of service companies in the market.

Breakup by Deployment Type:

• On-premises
• Cloud-based
• Hybrid
   

On-premises accounts for the majority of the market share

A detailed breakup and analysis of the eDiscovery market based on the deployment type has also been provided in the report. This includes on-premises, cloud-based, and hybrid. According to the report, on-premises accounted for the largest market share.

On-premises solutions dominate the eDiscovery deployment type segment. This is primarily due to the high level of control, the security of data, and data governance. These include businesses working within the finance, healthcare, and government industries, among others, which prioritize data sensitivity and adhere to various industry regulatory requirements. A survey, conducted by Spiceworks based on interviews with more than 500 IT leaders, established that 98% of businesses continue to use on-premises IT infrastructure. In addition, on-premises eDiscovery solutions permit organizations to use their IT infrastructure with complete control, enforcing data handling procedures aligned with demanding data security standards and regulatory constraints. This deployment method makes it possible to incorporate existing security policies and procedures, reducing the chance of data breaches and unauthorized access. Furthermore, corresponding eDiscovery solutions are critical to large companies that have large amounts of data to audit. Large-scale legal evaluations or audits need high levels of scalability and performance on the part of corresponding eDiscovery options. Thus, this segment is creating a positive eDiscovery market outlook, notwithstanding the growth of cloud offerings.

Breakup by End-User:

• Government/Federal Agencies, Legal and Regulatory Firms
• Enterprises
   

Government/federal agencies, legal and regulatory firms represent the leading market segment

The report has provided a detailed breakup and analysis of the eDiscovery market based on the end-user. This includes government/federal agencies, legal and regulatory firms, and enterprises. According to the report, government/federal agencies, legal and regulatory firms represented the largest segment.

Government and federal agencies, along with legal and regulatory firms, form the largest end-user segment in the eDiscovery market. These sectors are the primary consumers of eDiscovery tools due to their immense legal responsibilities. All of these organizations perform systematic review, collection, and assessment of considerable amounts of electronically stored information as a means of sustaining actions under the law and compliance. eDiscovery tools are essential in these sectors and the environment given they assist in maintaining the legal requirements, enforcing compliance, managing securely sensitive information, and performing efficiently. Additionally, the tools help to ease the process of identifying, collecting, and producing documents regarding litigation, audits, and investigations. Moreover, when it comes to whether or not the government promotes enhanced transparency and accountability, it stands out that such government entails a balance concerning the essential use of eDiscovery tools that their sector and environment demand as much as these organizations also require them for managing their workflow and mitigating risks to ensure the legal process integrity.

Breakup by Vertical:

• BFSI
• Retail and Consumer Goods
• Manufacturing
• Legal
• IT and Telecommunication
• Government
• Energy and Utilities
• Healthcare and Life Science
• Others
   

Government exhibits a clear dominance in the market 

A detailed breakup and analysis of the eDiscovery market based on the vertical has also been provided in the report. This includes BFSI, retail and consumer goods, manufacturing, legal, IT and telecommunication, government, energy and utilities, healthcare and life science, and others. According to the report, the government sector accounted for the largest market share.

The government sector is the largest vertical in the eDiscovery market, driven by the sector’s critical need for robust data management and compliance measures. Numerous government processes and working methods entail extensive handling of sensitive and, in some cases, classified information. Therefore, the legal framework prescribes the means of data retrieval, preservation, and analysis, necessitating eDiscovery solutions that ensure these needs are comprehensively fulfilled. Additionally, the variety of communications and decision-making procedures in government requires eDiscovery systems that can support a wide array of document types, which help conduct accurate and secure legal investigations and audits. Moreover, as public-sector actors, government bodies need eDiscovery tools for managing freedom of information requests and other public disclosures. According to the eDiscovery market forecast, the union of the vast and specific needs of government-facing organizations is making this sector a critical and massive market for eDiscovery, where leading vendors continuously innovate their services and technologies.

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 leads the market, accounting for the largest eDiscovery market share

The 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 represents the largest regional market for eDiscovery.

North America is the largest regional segment of the eDiscovery market. The advanced legal infrastructure and active use of digital solutions in various legal practices have contributed to the leadership of North America, where the United States sets the prominent eDiscovery market trends. In addition, the development and growth of eDiscovery tools have been largely facilitated by the complex litigation in the United States and the increased regulatory pressure. The Federal Rules of Civil Procedure require eDiscovery tools to effectively manage and produce electronic evidence during legal procedures in North America. Apart from this, the extensive network of multinational corporations and a high level of digitalization in the public sector contribute to large volumes of data and challenging new circumstances, thus stimulating further demand for eDiscovery solutions. Leading eDiscovery providers are also located in North America, which drives the region’s market leadership further, enabling continuous technological advancements and further development of services tailored to specific legal and regulatory requirements in the United States and Canada.

Competitive Landscape:

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

• Accessdata Group Inc.
• Commvault Systems Inc.
• Conduent Incorporated
• Driven Inc. (Xplenty)
• Fronteo Inc. (Formerly UBIC)
• FTI Consulting
• International Business Machines Corporation
• Logikcull
• Micro Focus International Plc
• Nuix Pty Ltd. (Macquarie Group)
• Open Text Corporation
• Veritas Technologies LLC (The Carlyle Group)
• ZyLAB Technologies
   

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

eDiscovery companies are increasingly adopting sophisticated technologies, including artificial intelligence and machine learning. Along with this, the incorporation of eDiscovery products with workflow automation, real-time analytics, and predictive coding increases the capacity to review variable data and assess it more quickly and cost-effectively than before. Acquisitions or collaboration with local firms are also allowing these market leaders to rapidly expand their global reach. This strategic approach helps them access broader markets, expand their service portfolios, and rapidly grow their customer base. These activities are critical for ensuring a competitive advantage and retaining a high eDiscovery market share.

eDiscovery Market News:

• April 29, 2024: Commvault Systems Inc. launched a new type of “cleanroom” for data recovery services that allows businesses to restore disaster recovery and ransomware-affected work and data from any location to a secure, quarantined environment in the cloud.
• April 29, 2024: Conduent Incorporated launched an initiative with Microsoft to embed generative AI into its global client services. Via the Microsoft Azure OpenAI Service, this cooperation will drive quality, productivity, and velocity in healthcare claims management, customer service, fraud detection, and other critical client solutions.

eDiscovery 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 eDiscovery market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global eDiscovery 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 eDiscovery 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.