The virtual forensics marketplace has witnessed sizable tendencies and developments in current years, reflecting the evolving landscape of cyber threats and the increasing reliance on digital technologies across various industries. One distinguished trend is the developing demand for digital forensics answers and offerings as businesses recognize the critical want to protect their digital belongings from cyber threats. With the escalating frequency and class of cyberattacks, businesses and authorities businesses are investing closely in virtual forensics to locate, examine, and mitigate safety incidents.
The incorporation of machine mastering (ML) and artificial intelligence (AI) into digital forensics equipment is also restructuring the marketplace. AI and ML technologies augment the rate and accuracy of virtual investigations by automating repetitive duties, identifying styles in huge datasets, and uncovering anomalies that may be indicative of cyber threats. As the quantity of digital evidence continues to develop, these technologies play a critical role in streamlining the investigative system and enabling forensic analysts to be mindful of extra complex duties that require human knowledge.
Moreover, the virtual forensics market is witnessing an improved emphasis on proactive cyber danger looking. Rather than entirely relying on reactive techniques after a protection incident occurs, companies are adopting proactive strategies to identify and mitigate ability threats before they expand. This trend reflects a shift toward a more complete and pre-emptive technique to cybersecurity, wherein digital forensics performs a crucial function in hazard intelligence, non-stop monitoring, and early detection of suspicious activities.
Collaboration and data sharing amongst businesses and inside the cybersecurity network are also rising as key developments in the digital forensics market. Given the interconnected nature of cyber threats, sharing threat intelligence, and collaborating on investigations can substantially enhance the collective capacity to come across and reply to cyber incidents. As a result, enterprise partnerships, records-sharing platforms, and collaborative projects are gaining momentum, fostering a more united front against cyber threats.
In the end, compliance and regulatory conditions continue to drive the adoption of digital forensics solutions. Organizations operating in regulated industries such as finance, healthcare, and government must adhere to stringent data protection and privacy regulations. Digital forensics tools and practices help these organizations demonstrate compliance, conduct thorough investigations, and ensure the integrity and admissibility of digital evidence in legal proceedings.
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
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.
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.
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
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.
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.
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.
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.
Apr. 2023
Downstreem, a global digital forensics company, announced that the US Patent and Trademark Office (USPTO) has accepted its patent application for its new mobile forensics product, StreemView. Downstreem specializes in mobile devices and complex forensic analysis, and its StreemView tech is the first-ever cloud-based mobile forensics platform featuring AI tools.
A cutting-edge digital forensics company initiated a patent for the most comprehensive end-to-end mobile forensics review platform that can expand capabilities, improves speed, and reduces costs. The patent-pending forensics analysis and investigation solution is designed for mobile device data and email. With completely new features and capabilities, applying for a patent for StreemView was critical.
Feb. 2023
The National Forensic Sciences University (NFSU) and the Directorate General of GST Intelligence (DGGI) announced the signing of a memorandum of understanding (MoU) to set up digital forensic laboratories. This will enable the exchange of information & knowledge, technological upgrades, and skill development in the digital forensics field.
Jan. 2023
Thoma Bravo, a private equity firm, announced the acquisition of Magnet Forensics, a Canadian digital forensic software firm, to forge ahead with its security-related company. Magnet Forensics develops solutions helpful in investigating cyberattacks and digital crimes and provides services including case management, incident response, digital forensics, and human resources investigations.
The company's Magnet Axiom Cyber software offers robust digital forensics and incident response for businesses needing remote acquisition and collecting and analyzing evidence from computers, the cloud, and mobile devices. Other software offerings from Magnet Forensics cater to law enforcement, federal agencies, the military, and intelligence.
Post-acquisition, Magnet Forensics will be combined with Grayshift LLC, digital forensic solutions provider Thoma Bravo acquired a majority stake in July. These companies are expected to create a new end-to-end digital investigations platform empowering public safety agencies across the globe, assisting in seeking justice, solving crimes, and protecting victims.
Dec. 2022
Offensive Security released Kali Linux 2022.4, the latest version of its widely used penetration testing and digital forensics platform, with updated features. The platform comes with a new version of the GNOME desktop environment with shell updates, a new text editor, new themes, and a new version of the KDE Plasma desktop environment with tweaked widgets. This platform has been added to the Microsoft Azure store.
Dec. 2022
Fintactics launched Lezaam and signed a joint venture agreement with Aion Digital. RegTech as a Service by Leza'am has all the features and functionality required for digital onboarding and eKYC, including journey orchestration, compliance, anti-money laundering screening and digital forensics.
Computer Forensics
Network Forensics
Cloud Forensics
Mobile Device Forensics
Database Forensics
Hardware
Software
Services
Digital Investigation and Consulting
Incident Response
System Integration
Training Maintenance and Support
Military and Defence
Government Agencies
Healthcare
BFSI
Retail and Logistics
Telecommunication
Media and Entertainment
Others
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