The global market for digital forensics is expected to grow at a CAGR of 14.5% during the forecast period of 2023 to 2030. It is anticipated that tougher government rules and the rising frequency of cyberattacks on businesses would fuel demand for digital forensics services. During the time covered by this prediction, there is also likely to be a surge in demand for digital forensics software as a result of the widespread adoption of Internet of Things (IoT) devices. Increased instances of complex digital crime, together with rising security concerns across a variety of industries, such as financial institutions, information technology and telecommunications, and retail, among others, will fuel the expansion of the market. In addition, the development of the Internet of Things (IoT) and an increase in the use of electronic devices such as smartphones, computers, and tablets are expected to further contribute to the expansion.
Although traditional forms of digital forensics have focused mostly on desktop computers, laptops, and associated media such as optical discs, hard drives, and floppy discs, newer forms of digital forensics that include mobile devices and smartphones are quickly becoming extremely popular.The need for digital forensics is growing as a result of the increased adoption of cloud security solutions, particularly cloud forensics, by government sectors, business financial services industries, information technology and telecommunications sectors, and other businesses.The implementation of artificial intelligence has led to the development of digital forensics tools that are more advanced than ever before. In order to provide forensic data security and data recovery solutions, artificial intelligence is highly capable of precisely detecting the elements in movies and photographs, as well as pattern identification of certain data clusters. This is further fueling the market growth.The proliferation of artificial intelligence, made possible by recent developments in technology, has led to an increase in the demand for digital forensics in every region of the world.
The Widespread Adoption of Internet of Things Devices Will Drive the Demand for Digital Forensics Products and Services.
The term "Internet of Things" (IoT) refers to a network of networked devices that are constantly in contact with one another. Ericsson predicts that there will be 18 billion Internet of Things devices in use by the year 2023 in their Mobility Report and Internet of Things Forecast. It has been observed that IoT devices are being utilised extensively in a variety of application domains, including smart city initiatives, smart transportation, vehicular connectivity and autonomous vehicles, smart grids, and smart home environments. Moore's law states that the amount of computing power available from a computer's processor will rise in proportion to the number of transistors that are installed on the computer's chip. The increased computing capacity of the processors found in IoT devices has resulted in the creation of a linked world and the simplification of tasks that were previously difficult to complete using more conventional methods. Cybercriminals are increasingly focusing their attention on Internet of Things devices. The attack in 2016 that was carried out using the Mirai Botnet was a big one that resulted in a large-scale layer 3 and layer 7 DDoS attack.
In the event of a cyberattack, the internal security team will need to investigate each data storage place in order to locate any remnants of the information that was deleted. It is the responsibility of the security team to ensure that the data traces can contribute to the reconstruction of the complete data on IoT devices. However, it's possible that the internal security team isn't always capable of identifying, analysing, preserving and storing, analysing, and presenting data. As a result, it is vital for businesses and organisations to embrace the best-in-class digital forensic solutions and services, which will assist in the process of retrieving data that was lost as a result of an unexpected event.
It Is Expected That Encryption Will Be a Significant Obstacle in Digital Forensics.
The process of changing plain text into cypher text is what we mean when we talk about encryption. Both symmetric and asymmetric algorithms are subcategories that fall within the category of encryption algorithms. When it comes to converting data, symmetric algorithms only make use of a single key, whereas asymmetric algorithms make use of two keys—public and private keys—to accomplish this task. Cryptography using asymmetric algorithms involves using the public key to encipher the plaintext. The data can only be deciphered by those individuals who also have possession of the proper secret key. The Rivest-Shamir-Adleman (RSA) algorithm, the Advanced Encryption Standard (AES), and the Data Encryption Standard are examples of major asymmetric algorithms.
Customers are being encouraged to rely on data security techniques such as encryption, tokenization, anonymization, and pseudonymization as a result of data security legislation and compliances that are now in place. In addition, individuals have a constitutionally protected right to privacy, which makes it more difficult for government agencies to oversee the encryption methods used by users. As a result, encryption is anticipated to provide a significant barrier that may reduce the efficiency of digital forensic tools, which will function as a barrier to the expansion of the digital forensics industry
The Growing Popularity of Cryptocurrencies Is Expected to Open Up New Doors in The Digital Forensics Business
The term "cryptocurrency" refers to a form of digital asset that functions in a decentralised fashion and relies on cryptographic methods to ensure that the transfer of data is kept private. The central government does not regularise or issue cryptocurrencies like bitcoin or ethereum. The trading of cryptocurrencies is a straightforward operation that takes place between two parties. Transactions involving cryptocurrencies require both parties involved to trade their public and private keys with one another. The charge for the transaction is likewise quite low. Bitcoin, Ethereum, Ripple, and Litecoin are just few of the well-known cryptocurrencies that are widely accepted in countries all over the world. In 2017, the price of a single bitcoin reached an all-time high of 20,000 USD.
The data that is passed back and forth between two parties can be guaranteed to maintain its secrecy, integrity, non-repudiation, and authenticity thanks to cryptography. However, with the growth of cryptocurrencies has come an increase in the number of instances of fraud. Cyberattacks can be launched against cryptocurrencies for a variety of reasons, including financial gain, intrapersonal competition, geographical rivalry, and reputation defacement. It may be difficult to identify the artefacts of a fraudulent transaction involving cryptocurrency when it takes place. For the purpose of regenerating the vital data that may have been lost during the storage or exchange of cryptocurrencies, a digital forensics solution that is appropriate and enough would be necessary. Because of this, cryptocurrency is likely to be one of the primary areas that will be investigated by cybercriminals, which, in turn, is anticipated to spark an increase in the demand for digital forensics.
Enterprises' Failure to Properly Plan for Digital Forensics Investigations
The vast majority of businesses are of the notion that they will only require digital forensic solutions and services after their networks have been compromised. The digital forensics solution that an organisation chooses must be tailored to meet the specific needs of that organisation. Businesses have this responsibility. Enterprises should avoid taking a reactive stance and instead take a proactive one by preplanning for threat protection and digital forensics rather than following a reactive model instead. Activities related to preplanning should include the production of a record book and response measures, strong collaboration between the enterprise's legal department and the digital forensic provider, and the development of a roadmap and documentation for the roadmap.
When it comes to digital forensics, a lack of forward preparation and investments can lead to significant and costly losses for businesses. As a result, businesses ought to put money into contracts with the most reputable digital forensic suppliers, as this will help with locating, storing, and analysing data, as well as recreating it. The provision of threat hunting that is supplied by digital forensic vendors is also a godsend for organisations. This is because the provision would assist enterprises in preparing security programmes that are able to detect advanced threats.
The Increasing Cybercrime Cases, Driving the Expansion of The Market.
Cybercriminals now have more opportunities to take advantage of technological restrictions by taking advantage of the growing popularity of cloud services and gadgets with built-in internet of things (IoT). This allows them to acquire access to client information. Hackers are able to acquire access to client information when there is an increased chance of viruses and malware. Hackers have easier access to client data as a result of the growing usage of electronic devices and the increased penetration of the internet. This data includes things like emails, messages, and financial transactions, amongst other things. As a result of these circumstances, there is anticipated to be an increase in demand for digital forensics to investigate instances of financial fraud and cyberattacks.With more people using the internet and a wider variety of network-based applications, such as email programmes, file transfer protocols, cloud-based technologies, and others, the number of cyber threats and attacks is rapidly growing.Because it is extremely capable of conducting investigations that are both swift and exact, digital forensics is becoming increasingly popular among important end-use industries such as the legal and governmental sectors.
In recent years, concerns over privacy and security have been growing at an alarming rate. As a result, new applications and innovations for security, privacy, and digital forensics in developing technologies have been made possible as a direct result of this.In tandem with these opportunities, the widespread implementation of artificial intelligence has led to the development of extremely cutting-edge solutions for digital forensics. Artificial intelligence is capable of accurately identifying elements in photos and videos, as well as the pattern recognition of particular data clusters, in order to provide data retrieval solutions and forensic data security, which is further driving market growth. This is one of the many ways that artificial intelligence is helping to drive market growth.
Lack of Expertise as Well as Pre-Planning in Deployment Challenging the Market Growth
The implementation of solutions relating to digital forensics requires the assistance of professionals. It is still working as a constraint to make it more adaptable, as a lack of adequate expertise may result in mistreatment of the technology.In addition to this, the costs associated with conducting digital forensics, which require the use of advanced technologies, are not yet at a level that is easily attainable by people or small businesses. It is anticipated that the costs of installation and licencing for digital forensics products and services would constitute a significant barrier to the expansion of the market.
High Implementation Costs to Limit the Application of Digital Forensics
On the other hand, the high costs of implementing and licencing digital forensics products and services are anticipated to be a barrier to the market's expansion. There is also a rise in the use of proprietary operating systems, which along with the high level of encryption implemented in new smartphone applications, is another reason that may impede the expansion of the industry. It is projected that a lack of technical expertise among digital investigators as well as a lack of preplanning to adopt digital forensics products and services among companies will further impede the growth of the market. In addition, the limited availability of cloud forensic tools may be a factor that slows the expansion of the market for the investigation of cloud-based fraud.
Market by Component: Software Segment Dominated the Market in 2021, Services to be the Fastest Growing Segment
The software segment among other components such as hardware and services topped the market in 2021 due to its role in reducing the amount of time needed for processing and also identifying instances of theft and fraud based on evidence. An individual using digital forensic software is able to comprehend the tendencies that are associated with the pertinent data, assess fluctuations in the data, and evaluate potential danger factors.Users are able to explore, identify, and prioritise the evidence rapidly through the use of mobile devices and PCs thanks to the capabilities provided by digital forensic software. In addition, the companies are focusing on the development of adaptable software for digital forensics that is able to collect data from a variety of mobile devices. For example, OpenText Corp's EnCase Forensic, which is a flexible digital forensic solution, has the ability to collect data from a variety of mobile devices like GPS systems, cellphones, and tablets. The creation of such adaptable software and digital investigations is another factor that is anticipated to contribute to the expansion of the market sector.
The service segment is expected to register the highest CAGR during the forecast period of 2023 to 2030. The use of digital forensic services complements the installation of digital forensic hardware and software and simplifies the process of locating and examining crucial data. In addition, services related to digital forensics are quite pricey, and the majority of companies that provide them are large corporations like PwC, KPMG, and E&Y. As a result, the majority of the expenses incurred are attributable to skilled labour, in addition to certifications and training.
Market by Type: Computer Forensics Led the Market Revenues in 2021
The expansion of the use of computer forensics in legal investigations, both public and private, to examine and retrieve data related to computer crimes is anticipated to be the primary factor driving the growth of this market segment. Additionally, increased organisational spending on improving information technology for computer and network security is anticipated to drive the segment's growth over the forecast period. This is expected to propel the segment growth.Attacks on digital devices, such as laptops and computers, have become more sophisticated as a result of technological advancements. The answer offered by computer forensics deals with the process of collecting evidence from such devices, identifying that evidence, conducting analysis on that evidence, and reporting its findings. Within the legal systems of both the United States and Europe, computer forensics is widely acknowledged as a trustworthy investigation technique that may be used to recover deleted items from a computer, conduct live analysis, and cross-drive analysis. These solutions include the ability to extract metadata, as well as information on devices, calendar events, contacts, and messages, all of which are essential for digital investigations.
Market by Tools: Forensic Data Analysis to Dominate the Market Revenues
In 2021, the forensics data analysis segment held the dominant position in the market, and this position is anticipated to be maintained during the projected period. This tool provides retrieval and recording capabilities in addition to deep analysis capabilities through metadata, which enables it to deliver improved visibility into data hazards. The expansion of the segment is also being driven by an increase in the number of instances of financial crimes as well as an increase in the desire to investigate structured data for financial crimes.
During the forecast period of 2023 to 2030, it is anticipated that the data gathering and preservation segment would experience extraordinary growth. The basic objective of a forensic investigation is to retrieve the evidence in a secure manner and store it in such a way that it does not compromise the data's authenticity in any way. The functionality necessary to maintain the evidence that was acquired is provided by the data gathering and preservation tool. Additionally, the application offers capabilities to store digital evidence in a safe location, so that the original material cannot be altered in any way after it has been saved.
Market by End User: Government Segment Leads in terms of Revenues Share Among End Users
In 2021, the government segment dominated the end-user market, accounting for a significant revenue share. This supremacy can be ascribed to the growing usage of digital forensics solutions in judicial systems, which is why they are so successful. The government industry is the sector that is most susceptible to being targeted by cybercriminals. Cyberattacks against government verticals are typically carried out for political benefit, for the sake of regional competition, or for terrorist purposes, among other motivations. For example, the Texas Department of Information Resources (DIR) said in August 2019 that 23 government institutions in Texas were victims of a cyberattack. The government agencies are currently focusing their attention on adopting solutions and services related to digital forensics in order to cope with incidents of this nature.For the military and defence industry, ensuring the integrity of data and providing access to the appropriate individuals becomes an increasingly important and significant responsibility. Theft of data is linked to threats to national security, which is one reason why significant investments are made in a variety of hardware, software, and services. These investments contribute to its leading position. In the event that these security measures are breached, sensitive information may be exposed. The protection of sensitive information is a top priority for the armed forces and the defence industry as a whole.
Attacks on financial institutions and thefts of funds are carried out with the assistance of sophisticated technologies. For example, in 2018, 54% of all fraud instances that were filed in the United Kingdom were identity theft. were connected to the internet. There has been a rise in the number of instances in which criminals breach into bank databases and steal consumer information. This is one of the primary causes that is predicted to boost demand for digital forensics solutions in the BFSI sector. Additionally, because financial institutions have increasingly digitalized their business processes, there is a greater need to prioritise cybersecurity. One of these tools that the BFSI prefers to use to prevent financial crimes and conduct investigations into fraud is digital forensic.
North America Remains as the Global Leader
In 2021, North America held over 40% of the revenue share and thereby remained as the most dominant geographic segment. This consistent demand in the regional market can be attributed to the rising number of instances of cybercrime as well as the requirement to adhere to a variety of compliances proposed by the government for the purpose of protecting organisational data. A number of financial institutions in the United States, including Citigroup, Bank of America, Wells Fargo, and JPMorgan Chase, have fallen victim to cyberattacks, which have resulted in the data of their customers being made public. The authorities in charge of government matters advised these financial institutions to monitor the actions on their networks. It is anticipated that such government mandates will further propel the expansion of regional markets.Over the next few years, the market for digital forensics in the United States is anticipated to experience significant expansion. The increased use of mobile devices for business continuity in the United States, such as cellphones, laptops, and USBs, has led to an increase in the number of cyberattacks that have occurred there.There is a strong possibility that rapid implementation of data compliance rules by all firms will force the digital forensics industry forward. The United States is home to a number of different law enforcement agencies, all of which are now attempting to improve the digital forensics business.
It is anticipated that the presence of major market players in North America, such as FireEye Inc., Access data, OpenText Corp., and LogRhythm Inc., amongst others, will propel the demand for digital forensics in that region. In addition to this, it is anticipated that an increasing number of people in the region will be using the internet and electronic devices, which will drive the growth. Increasing technological advancements in the forensics department and the development of advanced theft mechanisms are encouraging public as well as private sectors to invest in the market. This is providing lucrative revenue generation opportunities for established players as well as new entrants who are looking to gain a greater market share.In 2021, Europe and Asia Pacific came in second and third position, respectively, behind North America. The expansion of the market in China is being supported by developments in digital technology as well as by an increased adoption of cloud-based solutions. The market in China is expanding at a rapid rate as a direct result of the increasing pressure to protect sensitive information and cut down on cybercrime.
Innovation Remains as the Key to Sustain Competition and Secure Market Position
In order to maintain their competitive edge in the market, the various market players concentrate their efforts on various initiatives, such as the introduction of new products and updates to existing ones.The market for digital forensics is competitive, but not overly so, and it is comprised of a significant number of major players. Due to the fact that the market is technology-driven, the vendors frequently involve themselves in the process of releasing new features on their products. Among the most important competitors are companies such as IBM Corporation, Binary Intelligence LLC, and Guidance Software Inc.Some of the most important companies operating in this industry include Guidance Software Inc., LogRhythm Inc., Access data, Paraben Corporation, FireEye Inc., Digital Detective Group Limited, MSAB, and Oxygen Forensics Inc. The majority of players make substantial investments in research and development (R&D) efforts to fuel product innovation and increase the value of their services. To ensure continued expansion and revenue, businesses in the digital forensics industry are concentrating their efforts on developing increasingly sophisticated digital forensics products.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Digital Forensics market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
