Digital Forensics Market

Market Overview

The global digital forensics market size was valued at USD 6.24 billion in 2023. It is estimated to reach USD 16.89 billion by 2032, growing at a CAGR of 11.7% during the forecast period (2024–2032). The global digital forensics market growth has been driven by the rising number of cyberattacks and data breaches happening in recent years, owing to a surge in the number of connected devices. Moreover, the primary stakeholders in this market are developing innovative and more efficient digital forensics solutions, which are estimated to create opportunities for global market growth.

Digital forensics is the research and analysis of digital devices and data to uncover evidence for legal purposes. It involves retrieving, preserving, and examining electronic information from computers, mobile devices, networks, and other digital storage media. Digital forensics experts use specialized instruments and techniques to identify, extract, and interpret relevant data such as files, emails, images, and internet activity. This process often requires expertise in computer science, data recovery, and investigative procedures.

Digital forensics is crucial in various contexts, including criminal investigations, corporate security breaches, and civil litigation. By reconstructing digital activities and uncovering digital evidence, digital forensics helps solve crimes, prosecute offenders, protect intellectual property, and secure the integrity of digital information. It plays a vital role in modern law enforcement, cybersecurity, and legal proceedings, providing insights into digital interactions and behaviors that can be pivotal in resolving legal disputes and holding wrongdoers accountable.

Highlights

• Computer forensics dominates the type segment 
• North America is the highest shareholder in the global market

Market Dynamics

Global Digital Forensics Market Drivers

Increasing Risk of Cyberattacks and Data Breaches

The exponential rise in cybercrime, encompassing threats like data breaches, ransomware attacks, and identity theft, propels the digital forensics market. The increasing number of interconnected devices, data, and apps raises the probability of cyberattacks and unauthorized access to data. Check Point Research (CPR) reported a 38% increase in worldwide cyberattacks in 2022 compared to the previous year, 2021. According to Security Magazine, a significant number of over 2,200 attacks are happening daily, which means an alarming frequency of almost one cyberattack occurring every 39 seconds.

Moreover, according to a survey issued by Cybersecurity Ventures, the estimated global cost of cybercrime is predicted to rise to USD 10.5 trillion per year by 2025, a substantial increase from USD 3 trillion in 2015. Criminals take advantage of weaknesses in digital infrastructure to achieve illegal objectives as businesses and individuals depend more and more on it. This surge necessitates robust digital investigation techniques to identify perpetrators, mitigate risks, and ensure regulatory compliance. Consequently, organizations across sectors prioritize digital forensics services to safeguard against evolving cyber threats, underpinning sustained demand and market growth.

Global Digital Forensics Market Restraint

Lack of Skilled Workforce 

The lack of a skilled workforce in the digital forensics market significantly restraints its growth and effectiveness. Digital forensics requires a unique blend of technical expertise, investigative skills, and legal knowledge. However, there is a need for more professionals with these specialized capabilities. Moreover, the complexity of digital systems and the constantly evolving nature of cyber threats increase the demand for highly skilled forensic investigators. Lack of sufficient staff could make it difficult for Withations to carry out prompt and efficient investigations, making them susceptible to cyberattacks and other online crimes. This is estimated to hinder market growth.

Global Digital Forensics Market Opportunities

Launch of Novel Digital Forensic Solutions

The key players in this industry are introducing new digital forensic technology with enhanced features. For instance, in June 2023, Oxygen Forensics, a prominent player in the digital forensics industry, introduced Oxygen Corporate Explorer. This cutting-edge application enables efficient data collecting, whether on-site or remotely. Oxygen Corporate Explorer is a specialized tool designed for corporations and private organizations. It enables users to locate important evidence and expedite the resolution of cases efficiently. This is achieved through new features such as targeted remote collection and task scheduling, as well as advanced search and analysis capabilities similar to those found in the company's main product, Oxygen Forensic® Detective.

Furthermore, in September 2023, SentinelOne, a prominent player in autonomous cybersecurity, unveiled Singularity RemoteOps Forensics. This cutting-edge digital forensics product empowers businesses of any scale to enhance their incident response preparedness. It enables them to conduct investigations and response activities with remarkable efficiency, speed, and scalability. RemoteOps Forensics is a digital forensics solution integrated with the SentinelOne Singularity™ Platform. It is offered as an add-on to Sentinel One's Endpoint and Cloud Workload Security solutions. These factors present opportunities for market expansion.

Regional Analysis

North America Dominates the Global Market

Based on region, the global digital forensics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global digital forensics market shareholder and is expected to expand substantially during the forecast period. North America is projected to account for the largest share of the digital forensics market during the forecast period, as many manufacturers offer digital forensic technology. The region also exhibits a robust and comprehensive framework of laws and regulations, which require organizations to implement data protection and incident response measures. As a result, there is now a higher demand for digital forensics. For instance, in March 2023, The White House introduced a new cybersecurity policy as a component of the US government's continuous endeavors to enhance its defenses against the increasing prevalence of hacking and digital crimes targeting the nation. The strategy proposes more stringent regulation of existing cybersecurity practices in many industries and increased collaboration between the government and private sector to inform future legislation. These government initiatives are expected to create opportunities for market growth.

Furthermore, several regional institutes are working to enhance and develop cybersecurity solutions. For instance, in August 2023, the University of Tulsa announced the establishment of the Oklahoma Cyber Innovation Institute. The purpose of this institute is to do innovative research in cybersecurity and to discover, evaluate, and implement new solutions for cyber-related issues in a commercial setting. The institute will leverage the university's existing educational framework in cybersecurity to tackle challenges related to the growth of the cyber workforce. Consequently, all these factors drive the regional market growth.

Asia-Pacific is anticipated to grow fastest during the forecast period due to the significant adoption of digital forensics across various verticals, such as government and defense, BFSI, and telecom and IT. Furthermore, the high acceptance of mobile and computer devices has intensified the threat of cybercrime and cyberattack, which in turn has been contributing to digital forensic market growth. Furthermore, the market players are involved in strategic initiatives to enhance their market share.

For instance, in February 2024, CyberPeace, a worldwide non-profit organization, formed a strategic alliance with the National Forensic and Sciences University (NFSU) in Goa. This relationship aims to strengthen their capacities in the field of cybersecurity. This collaboration highlights the dedication to enhancing the country's cybersecurity capabilities through applied research, education, and training for students. The alliance seeks to foster interest and facilitate knowledge exchange in artificial intelligence, machine learning, high-performance computing, digital forensics, blockchain, and cybersecurity. These factors are estimated to boost the regional market expansion.

Segmental Analysis

The global digital forensics market is bifurcated into components, types, deployment types, applications, and industry verticals.

Based on components, the global digital forensics market is bifurcated into hardware, software, and services.

Digital forensics software is utilized to investigate, analyze, and recover data from electronic devices and digital storage media. This software is crucial in cybercrime investigations, corporate security, and legal proceedings. It enables experts to collect evidence, examine file systems, recover deleted files, and analyze network traffic. Moreover, strategic initiatives by the key players in this segment are further driving the market growth. For instance, in August 2023, Magnet Forensics Inc., a company specializing in digital investigation solutions, acquired Griffeye, a prominent firm in digital media forensics software for child sexual abuse investigations.

Based on type, the global digital forensics market is bifurcated into computer forensics, mobile device forensics, and cloud forensics. 

The computer forensics segment contributes to the largest market share. Computer forensics is a part of digital forensic science focusing on investigating and analyzing digital devices and data to gather evidence for legal purposes. It involves identifying, preserving, extracting, and interpreting electronic information from computers, mobile devices, and other storage media. Computer forensics experts use specialized techniques and tools to recover deleted files, uncover hidden data, and trace digital footprints left by users. It is vital in uncovering evidence and resolving legal digital evidence disputes.

Based on the deployment type, the global digital forensics market is bifurcated into on-premises and cloud.

Cloud-based digital forensics involves the investigation of digital evidence stored on remote servers or cloud platforms. This method enables forensic analysts to examine data hosted on services like Amazon Web Services, Google Cloud, or Microsoft Azure. By leveraging specialized tools and techniques, investigators can collect, analyze, and interpret digital evidence to uncover relevant information for legal or investigative purposes.

Cloud-based digital forensics requires expertise in traditional forensic methodologies and cloud computing environments to navigate complexities such as data encryption, multi-tenancy, and data jurisdiction issues. It offers advantages like scalability, accessibility, and collaboration, making it increasingly essential in modern cybercrime investigations and litigation scenarios.

Based on application, the global digital forensics market is bifurcated into fraud investigations, intellectual property theft, industrial espionage, forgery-related matters, bankruptcy investigations, issues concerning regulatory compliance, employment disputes, inappropriate use of the Internet, and email in the workplace.

Digital forensics is crucial in detecting intellectual property (IP) theft by scrutinizing digital evidence to uncover unauthorized access, copying, or distribution of proprietary information. It involves analyzing data trails, network logs, and metadata to trace the origin and movement of stolen IP. Techniques like file signature analysis, keyword searches, and data carving are employed to identify incriminating evidence. Forensic tools can also reveal tampering attempts or unauthorized modifications to digital assets. By reconstructing digital activities and timelines, investigators can establish a chain of events leading to the theft, aiding in legal proceedings. Ultimately, digital forensics provides the means to protect valuable intellectual property assets and hold perpetrators accountable for their actions.

Based on industry verticals, the global digital forensics market is divided into telecommunication and IT, BFSI, retail, automotive, government, healthcare, manufacturing, and others.

Digital forensics plays a critical role in healthcare by investigating and resolving various cyber incidents and breaches. Through forensic techniques, healthcare organizations can determine the extent of the breach, identify the source of the attack, and mitigate future risks. Moreover, digital forensics ensures compliance with regulatory standards such as HIPAA by preserving the integrity and confidentiality of patient data. By employing advanced tools and methodologies, digital forensics helps healthcare providers maintain patient trust, safeguard sensitive information, and uphold the integrity of their systems and networks.

Recent Developments

• March 2024- Nottinghamshire Police achieved a significant milestone by offering the first-ever national apprenticeship in digital forensics.
• October 2023- Softcell Technologies Global Private Limited (Softcell) and Binalyze formed a strategic partnership to revolutionize the field of cybersecurity and digital forensics. Softcell is a prominent IT services provider based in Mumbai, while Binalyze is the creator of AIR, the fastest and most comprehensive Digital Forensics and Incident Response (DFIR) platform in the world.