Digital Forensics Market Size - By Tools (Data Acquisition & Preservation, Forensic Data Analysis, Forensic Data Analysis, Review & Reporting, Forensic Decryption), Component (Hardware, Software, Services), Type, Industry Vertical & Forecast, 2023 - 2032

Digital Forensics Market Size

Digital Forensics Market size was valued at USD 8.1 billion in 2022 and is estimated to register a CAGR of over 11% between 2023 and 2032. The escalating number of cybercrime complaints has significantly increased the demand for digital forensic services. As cybercriminals become more sophisticated, organizations and law enforcement agencies require expertise in investigating & mitigating cyber threats.
 

According to the FBI's Internet Crime Report 2022, the FBI received 800,944 cyber-crime complaints from the public in 2022, marking a 5% drop from the previous year. Despite this decline, the total loss surged to USD 10.2 billion, a significant increase from USD 6.9 billion in 2021. The U.S. states with the most cybercrime victims included California, Florida, and Texas. The growing reliance on digital forensics tools and expertise is a direct response to the rising frequency & complexity of cybercrimes, driving the expansion of the digital forensics market.
 

Identifying the causes and implications of cyberattacks is crucial in combating cybercrimes. Digital forensics plays a pivotal role by meticulously analyzing cyber incidents, determining their origins, and understanding the potential repercussions. Additionally, safeguarding digital evidence is essential for legal proceedings and strengthening cybersecurity measures. The need for expert investigators adept at preserving, analyzing, and presenting digital evidence has led to a significant demand for digital forensic services, propelling market growth.
 

The shortage of skilled digital forensic professionals poses a significant hindrance to market size. As cybercrimes increase in complexity, the demand for forensic analysis experts escalates. The lack of qualified professionals leads to delays in investigations and inefficiencies in handling diverse cases, compromising the quality of forensic analysis. Addressing this skill gap through education, training programs, and industry incentives is crucial to ensure that the market can effectively respond to the evolving cyber threats.
 

COVID-19 Impact

The COVID-19 pandemic positively impacted the digital forensics market. With remote work becoming prevalent, cybercrimes surged, driving the need for digital forensic services to investigate incidents such as phishing attacks and data breaches. Organizations, recognizing the heightened cybersecurity risks, increased investments in digital forensics tools and expertise. This demand for forensic solutions and services experienced a boost, creating opportunities for market expansion and the development of innovative solutions to combat evolving cyber threats.
 

Digital Forensics Market Trends

Mobile device analysis platforms are fueling lucrative growth in the digital forensics industry by addressing the increasing complexity of mobile-related cybercrimes. These platforms offer comprehensive solutions, enabling forensic experts to extract, analyze & interpret data from diverse mobile devices.
 

For instance, in March 2023, Downstreem introduced StreemView, a cutting-edge mobile device analysis, investigation & culling platform. This innovative tool supports all data types and operating systems across various mobile devices. StreemView offers digital forensic experts a transparent, efficient, intelligent & cost-effective solution for handling mobile data, enhancing their investigative capabilities significantly. These solutions can also handle intricate data types and operating systems efficiently, positioning them as essential assets and boosting the digital forensics industry growth.
 

AI-powered digital forensics is driving lucrative growth in the market by revolutionizing investigative processes. Machine learning algorithms analyze vast datasets swiftly, aiding experts in identifying patterns, anomalies & potential threats more accurately. This efficiency enhances investigation speed, enabling quicker responses to cybercrimes. AI also automates repetitive tasks, reducing human effort and errors. The integration of AI technology improves forensic capabilities and significantly contributes to market expansion through enhanced effectiveness & resource optimization.
 

Digital Forensics Market Analysis

Based on component, the software segment held over 35% of the market share in 2022. Digital forensic services are propelling the service segment by offering specialized expertise in investigating cybercrimes. Businesses and organizations are increasingly relying on these services to uncover digital evidence, respond to security incidents, and prevent future threats.
 

For instance, in February 2023, Cadien Cyber Response, a firm specializing in incident response & intricate digital forensics, commenced its operations. The company introduced a team comprising top experts from the industry and government sectors, emphasizing its focus on reactive services. The company’s initial service offerings encompass incident response, digital forensics, expert witness testimony, insider threat investigations, and personalized individual cyber services.
 

Based on industry vertical, the government segment accounted for 25% of the digital forensics market share in 2022. In the government sector, digital forensics plays a crucial role in ensuring national security by addressing cyber threats posed by state actors, terrorists, and organized crime groups. Government law enforcement agencies heavily rely on digital forensic expertise to solve criminal cases involving digital evidence such as cyberbullying, fraud, and other forms of organized crime. By leveraging advanced forensic techniques, these agencies can effectively investigate cybercrimes, track online communication, and analyze digital footprints, enhancing their ability to prevent & combat various forms of cyber threats and criminal activities.
 

North America digital forensics market recorded more than 36% of revenue share in 2022, due to its technological advancements & growing corporate landscape. In North America, the market benefits significantly from the region's continuous technological advancements. The presence of cutting-edge R&D facilities fosters innovation in digital forensics tools and techniques. Ongoing technological progress leads to the creation of more sophisticated & efficient forensic solutions, enhancing investigators' capabilities to handle diverse and complex cybercrimes. These advancements improve the accuracy and speed of investigations and contribute to market growth by providing businesses & government agencies with state-of-the-art digital forensic resources.
 

Digital Forensics Market Share

Major companies operating in the digital forensics industry are:

• Cellebrite
• Exterro
• IBM Corporation
• Magnet Forensics
• Microsoft Corporation
• MSAB
• OpenText
• Oxygen Forensics
• Paraben

Dominating players, such as Cellebrite, Magnet Forensics, and MSAB, vie for market share through continuous innovation, offering advanced forensic solutions. Players invest in research, strategic partnerships & global expansion to ensure that their products remain cutting-edge and widely adopted, solidifying their positions in the competitive digital forensics market.
 

Digital Forensics Industry News

• In March 2023, Ambient.ai, a pioneer in reshaping physical security through computer vision intelligence, introduced its forensics solution with AI capabilities for near real-time incident investigations. The new search features enable teams to explore objects, intricate behavior patterns & non-biometric identifiers, such as dress color, reducing investigation time by over 90%, thereby enhancing the efficiency of incident analysis.
   

The digital forensics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments:

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Market, By Type

• Computer Forensics
• Network Forensics
• Mobile Device Forensics
• Cloud Forensics
• Others

Market, By Tools

• Data Acquisition & Preservation
• Forensic Data Analysis
• Forensic Data Analysis
• Review & Reporting
• Forensic Decryption
• Others

Market, By Component

• Hardware
• Software
• Service

Market, By Industry Vertical

• BFSI
• Healthcare
• Government
• IT & Telecom
• Retail
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia