The digital forensics market is estimated to be valued at US$ 6783.72 Mn in 2023 and is expected to exhibit a CAGR of 10. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Digital forensics is the application of investigation and analysis techniques to identify, preserve, recover, analyze and present digital information found in digital devices such as desktops, laptops, smartphones, etc. Digital forensics helps in investigation of cybercrimes, IP theft, recovery of deleted files among others. With the rise in cybercrimes and data privacy regulations, digital forensics has become crucial for law enforcement agencies and enterprises.
Market key trends:
Continued adoption of cloud computing and IoT gives access to a large amount of digital data making it vulnerable to cybercrimes and data breaches. Cybercriminals are finding new ways to steal data from cloud and IoT devices. As a result, enterprises and law enforcement agencies are increasingly investing in digital forensics solutions to securely retrieve, analyze and present digital evidence from cloud and IoT networks. Regulatory compliances around data protection such as GDPR and CCPA also created demand for digital forensic solutions to comply with data regulations. Increased deployment of advanced technologies such as AI and analytics is further helping digital forensic solutions to efficiently investigate large volumes of digital evidence. This is expected to drive the growth of the digital forensics market over the forecast period.
Threat of new entrants: Low capital requirement and low switching costs allow new players to easily enter the market. However, established players have strong economies of scale and experience higher barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and price sensitivity. However, switching costs tend to be low.
Bargaining power of suppliers: Suppliers face low threat as key raw materials and components are widely available. Suppliers have little influence on prices due to presence of multiple alternatives.
Threat of new substitutes: Threat of substitutes is moderate as alternative investigation techniques can be used. However, digital forensics offers advantages over traditional methods.
Competitive rivalry: Intense competition due to large number of global and regional players. Players compete based on technology, skills, experience and service portfolio.
Strengths: Rapidly growing market. Ability to analyze complex digital evidence. Strong technical capabilities and expertise.
Weaknesses: High infrastructure and maintenance costs. Require well trained professionals. Privacy and security concerns.
Opportunities: Increasing cybercrimes and litigation activities. Emerging technologies like IoT and cloud forensics. Growth in government funding and initiatives.
Threats: Compliance with changing regulations. Difficulty in obtaining and preserving digital evidence. Threat of cyberattacks and data breaches. Intense competition.
The Global Digital Forensics Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing cybercrimes, data breaches and litigation activities. North America dominates the market currently due to high awareness and stringent regulations. Asia Pacific is expected to grow at the fastest rate due to growing investments by governments and private sector.
Key regional markets include North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. North America holds the major share of over 35% owing to stringent regulations such as CFAA and presence of key players. Asia Pacific is anticipated to exhibit the highest CAGR during the forecast period due to initiatives by governments for data privacy and cybersecurity.
Key players operating in the digital forensics market are AccessData Group, Inc., Guidance Software, Inc./OpenText Corp., Oxygen Forensics, Paraben Corporation, Cellmark Forensic Services, Binary Intelligence, LLC, FireEye, Nuix Pty Ltd., IBM Corporation, LogRhythm, Inc., Magnet Forensics Inc., and Cisco Systems, Inc. Major players are focusing on product development, partnerships and mergers & acquisitions to gain competitive edge.