Digital Forensics Market Size

Digital Forensics Market Overview

The Digital Forensics Market is projected to grow from USD 12.3 billion in 2024 to USD 29.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.30% during the forecast period (2024 - 2032). Additionally, the market size for digital forensics was valued at USD 11.6 billion in 2023.

Increased usage of Internet of Things (IoT) devices coupled with factors such as stringent government regulations and increasing incidents of cyberattacks on enterprises are expected to drive the demand for digital forensics software over the forecast period. These are the key market drivers enhancing market growth.

Figure 1: Digital Forensics Market Size, 2024-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Digital Forensics Market Trends

Increasing use of cloud services to boost the market growth

The increasing use of cloud services and IoT-enabled gadgets gives cyber criminals more room to exploit technology gaps and access customer data. Increased vulnerability to malware and viruses makes it easier for hackers to access customer data. Customer emails, texts, and financial transactions are just a few examples of the data types that hackers can easily accessible due to the increasing ubiquity of electronic devices and the internet. For these reasons, the demand for digital forensics to investigate financial fraud and cyber-attacks is expected to increase. The main goals of digital forensics are to extract data from electronic evidence, turn it into usable intelligence, and present the results for prosecution. All programs use sound forensic methods to guarantee that information is admissible in court. This factor is expected to drive the growth of the digital forensics market.

Additionally, businesses around the world are focusing on the digitization of data. Businesses are now more vulnerable to cybercrime due to the large amounts of data being shared internally and externally. Cyberattacks negatively impact businesses in terms of data breaches and loss of revenue, as well as brand and reputation damage. Hence, there is an increasing demand for digital forensics products and services due to the growing vulnerability of businesses to cyber-attacks. This, in turn, will drive the digital forensics market. It helps companies obtain critical information if their computer systems or networks are compromised. Efficiently find cybercriminals wherever they are. It helps protect your organization's money and valuable time.

Due to the increase in cybercrime, governments worldwide are developing digital forensics. The sector most vulnerable to cyber-attacks is the federal sector. Cyber-attacks against government entities are often motivated by political motives, regional competition, terrorism, and other reasons. Government organizations now focus on implementing digital forensics solutions and services to handle such incidents. This will further drive the digital forensics market.

The increase in the use of cryptocurrencies is creating new opportunities in the digital forensics market. Cyber-attacks against cryptocurrencies may be for monetary gain, geographic competition, interpersonal competition, or reputational damage. Spotting the artifacts of Bitcoin fraud can be challenging. Proper digital forensics solutions are required to recover critical data that may be lost during the storage or exchange of cryptocurrencies. As such, cryptocurrencies are one of the critical areas that cybercriminals will test, which is expected to fuel the demand for digital forensics. These are essential factors driving the Digital Forensics market revenue growth.

Digital Forensics Market Segment Insights

Digital Forensics Type Insights

Based on Types, the Digital Forensics market segmentation includes Computer Forensics, Network Forensics, Cloud Forensics, Mobile Device Forensics, and Database Forensics. Network forensics held the majority share in 2022, contributing most of the Digital Forensics market revenue. Although wireless communication systems help provide users with mobile Internet access, they are still vulnerable to attack and can easily be intercepted through data transmission. Network forensics involves capturing, recording, and analyzing network packets to determine the source of network security attacks. Security mechanisms such as Wired Equivalent Privacy (WEP) and WiFi Protected Access (WAP) cannot secure wireless communications. Hence, the demand for cyber forensics is increasing in several organizations.

Digital Forensics Component Insights

The Component has bifurcated the Digital Forensics market data into hardware, software, and services. Services have a considerable market share and are expected to maintain their dominance during the forecast period. Digital forensics software enables users to quickly search, identify, and prioritize evidence from mobile devices and computers. These companies also focus on developing flexible digital forensics software to collect data from various mobile devices. For example, EnCase Forensic, a flexible digital forensics solution from OpenText Corp, can collect data from GPS, smartphones, tablets, and other mobile devices. Developing flexible software for digital surveys is expected to drive the segment's growth further.

Figure 2: Digital Forensics Market by Deployment, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Digital Forensics Application Insights

The Digital Forensics market segmentation has been segmented based on application, including Digital Investigation & Consulting, Incident Response, System Integration, and Training Maintenance & Support. Digital investigation & consulting accounts for the largest share of the Digital Forensics market. Most forensics are oriented toward desktops, laptops, and associated media, including hard drives, floppy disks, and optical discs. However, other forms of digital forensics, such as mobile phones and other handheld devices, are becoming increasingly popular for digital curation and preservation. The adoption of digital forensics is growing due to the advancements in the IoT devices, such as traditional crime lab infrastructure, increasing penetration in corporate sectors, and the rise in cyber-attacks and crimes. For instance, according to the Internet Crime Complaint Center (ICC) and Federal Bureau of Investigation (FBI), 43,300 cases of online identity theft were reported to the IC3. Phishing and similar fraud ranked first, with 2,41,342 complaints.

Digital Forensics Deployment Insights

Deployment has segmented the Digital Forensics industry into Military and Defence, Government Agencies, Healthcare, BFSI, Retail and Logistics, Telecommunication, Media and Entertainment, and Others. Government agencies are expected to contribute to a higher market share. This dominance can be attributed to the court system's increasing adoption of digital forensics solutions. Vertical government sectors are the most vulnerable to cyber-attacks. Cyber-attacks on government verticals are often for political gain, regional competition, and terrorism. For example, in August 2019, the Texas Department of Information Resources (DIR) stated that 23 government agencies in Texas witnessed a cyber-attack. In response to such incidents, government agencies are now focusing on adopting digital forensics solutions and services.

Digital Forensics Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Digital Forensics market, which accounted for USD 0.38 billion in 2022, is expected to exhibit a significant CAGR growth during the study period. This steady regional demand can be attributed to the rise in incidents of cybercrime and the need to comply with various compliances imposed by the government to protect organizational data. U.S. banks, including Citigroup, Bank of America, Wells Fargo, and JPMorgan Chase, have all suffered cyberattacks that compromised consumer data. Government authorities advised the banks to screen their network activity. Such government enforcement measures are expected to drive the regional market growth further.

Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: DIGITAL FORENSICS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Digital Forensics market accounts for the second-largest market share. Drivers, Most of the world's leading forces are increasing their investment in digital forensics. Also, they are introducing these in people's daily life, which increases the demand for such services. There are significant drivers of the market. Further, German Digital Forensics held the largest market share, and the U.K. Digital Forensics market was the fastest-growing market in the European Region.

The Asia-Pacific Digital Forensics Market is expected to grow at the fastest CAGR from 2022 to 2030. Digital advancements, coupled with increased usage of cloud-based solutions, are catering to the growth of the Chinese market. The Chinese market is expanding rapidly with the growing need to store critical data and minimize cybercrime. Moreover, China's Digital Forensics held the largest market share, and Indian Digital Forensics was the fastest-growing market in the Asia-Pacific region.

Digital Forensics Key Market Players & Competitive Insights

Major market players are spending a lot on R&D to increase their Type lines, which will help the Digital Forensics market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new Type launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Digital Forensics industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the Digital Forensics industry to benefit clients and expand the market sector. In recent years, the Digital Forensics industry has provided medicine with some of the most significant benefits. In the Digital forensics markets, major players such as AccessData Group LLC, ADF Solutions, Cellebrite Paraben, Coalfire, and others are working on expanding the market demand by investing in research and development activities.

Cellebrite provides a complete end-to-end investigative digital intelligence (DI) platform that can collect, review, analyze, and manage a range of digital evidence sources, including mobile phones, computers, cloud-based evidence, and open-source information. In January 2020, Cellebrite acquired BlackBag Technologies to develop its digital insights portfolio.

Also, Oxygen Forensic® Detective is an all-in-one forensic software platform designed to extract, decode and analyze data from multiple digital sources: mobile and IoT devices, device backups, UICC and media cards, drones, and cloud services. Oxygen Forensic® Detective can also find and extract numerous artifacts, system files, and credentials from Windows, macOS, and Linux machines.

Key Companies in the Digital Forensics market include

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  AccessData Group LLC

  
  


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  ADF Solutions

  
  


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  Cellebrite Paraben

  
  


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  Coalfire

  
  


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  Digital Detective

  
  


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  LogRhythm

  
  


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  Magnet Forensics

  
  


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  MSAB

  
  


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  OpenText Corporation

  
  


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  Oxygen Forensics, among others

  
  

Digital Forensics Industry Developments

In July 2024, LogRhythm and Exabeam announced their plan to merge in order to form a company specializing in cybersecurity solutions. This merger is intended to allow both companies to offer a cutting edge AI based security operations platform to their clients.

In April 2024: Magnet Forensics announced the introduction of its new all-in-one digital investigative platform, Magnet One. The purpose of the solution is to help deal with the increasing amounts of digital evidence and help speed up the resolution of cases. The Magnet One system incorporates the whole suite of the Company’s products, which includes Magnet Axiom, Magnet Automate, Magnet Graykey, and Magnet Review. They have also launched the Magnet One Hub to facilitate the seamless interactions of investigators, examiners, and prosecutors.

In March 2024, LogRhythm and SOC Prime announced that they had partnered up to provide enhanced detection and management of threats to security professionals. The partnership enhances LogRhythm Axon’s threat management and analytics capabilities with SOC Prime’s technologies to assist customers in threat detection and response.

In March 2023, Nuix also extended its Fujitsu partnership, thus adding to its European portfolio. More specifically, it turned its focus toward investigative analytics and intelligence software that addresses crime, data privacy and fraud. The goal of such approaches is to enable data-informed decision-making and, ultimately, data management.

In February 2023, IBM joined hands with Palo Alto Networks for better incident management response. This collaboration incorporates Palo Alto Networks’ Cortex products to support the X-Force security from IBM, where customers will have insights on a variety of threats, helping to shorten the response time as well as aid in the fortification of the cyber environment.

OpenText’s EnCase Forensic v22.3 was released in August 2022, and it came with the AFF4 functionality, which rolled out the ability to conduct a full physical and logical imaging read, thus enabling deeper analysis of digital evidence and its application outcome being able to fast track security investigations and truth-finding.

Cisco AppDynamics joined forces with AlertOps in May 2022 for a technology integration partnership that enables efficient management of critical incidents by combining powerful alert, escalation policy, workflow, and scheduling capabilities, which significantly enhances user experience.

In February 2021, two companies that share a vision, Cellebrite and Axon, linked up, wherein the Axon Evidence would integrate information from the Digital Intelligence platform offered by Onye. This partnership facilitates the management of digital evidence for law enforcement agencies, thus increasing their efficiency while serving justice.

Digital Forensics Market Segmentation

Digital Forensics Type Outlook

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  Computer Forensics

  
  


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  Network Forensics

  
  


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  Cloud Forensics

  
  


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  Mobile Device Forensics

  
  


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  Database Forensics

  
  

Digital Forensics Component Outlook

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  Hardware

  
  


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  Software

  
  


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  Services

  
  

Digital Forensics Application Outlook

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  Digital Investigation and Consulting

  
  


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  Incident Response

  
  


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  System Integration

  
  


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  Training Maintenance and Support

  
  

Digital Forensics Deployment Outlook

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  Military and Defence

  
  


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  Government Agencies

  
  


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  Healthcare

  
  


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  BFSI

  
  


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  Retail and Logistics

  
  


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  Telecommunication

  
  


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  Media and Entertainment

  
  


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  Others

  
  

Digital Forensics Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

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  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America