Digital Forensics Market is Estimated to Witness High Growth Owing to Increased Cybercrime Activities

Digital forensics refers to the application of scientifically proven methods aimed at the preservation, collection, validation, identification, analysis, interpretation, documentation and presentation of digital evidence. The field is used primarily in information security, criminal investigations, and litigation or civil proceedings. Digital forensics professionals are involved in investigating financial crimes, insider breaches, cyberbullying, and child abuse imagery.

The global digital forensics market is estimated to be valued at US$ 4,501.0 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.

Market Dynamics:
Increased cybercrime activities has been identified as the key driver augmenting growth of digital forensics market over the forecast period. Rapid digitalization and rising adoption of digital technologies such as IoT, AI, and cloud has expanded the attack surface for cybercriminals. According to Cybersecurity Ventures, worldwide cybercrime costs are predicted to hit $10.5 trillion annually by 2025, up from $3 trillion in 2015. Digital forensics plays a crucial role in investigating such cybercrimes and prosecuting offenders. However, lack of skilled cybersecurity professionals is expected to hamper market growth during the forecast period. Cyberspace continuously evolves posing new challenges for digital forensicians in acquiring and interpreting digital evidence. Hence, continuous training and certifications are required to keep pace with the ever changing digital environment.

SWOT Analysis
Strength: Digital forensics market has diverse applications across various end-use segments like government, healthcare, and BFSI. This wide applicability allows it to gain strong demand from multiple domains. The market also benefits from ongoing digital transformation and growing number of cybercrimes. This helps in promoting the adoption of digital forensics solutions for effective investigation process.
Weakness: Lack of skilled professionals poses a big challenge for the growth of digital forensics market. Conducting complete digital investigation requires experts who are well-versed with evolving technologies. Shortage of trained manpower makes it difficult to exploit full benefits. High cost of tools and solutions also limits their applications, especially in developing regions.
Opportunity: Increasing shift towards digital operations across industries presents new opportunities for digital forensics vendors. Rapid adoption of digital devices and online activities expands scope of cybercrimes as well as investigations. Growing need to derive intelligence from massive volumes of digital data offers lucrative prospects. Rising instances of financial crimes through digital platforms will further drive the demand.
Threats: Vulnerabilities in digital forensics tools can threaten the investigations and undermine security. Lack of global standards also challenges the digital evidence collection process. Rapid pace of technology enhancements poses risks of evidence tampering or losing relevance. Stringent privacy regulations in some regions also restrict the scope.

Key Takeaways
The global digital forensics market is expected to witness high growth over the forecast period. Supported by increasing instances of cybercrimes and digital investigations, the market is projected to exhibit an impressive double digit CAGR of 10% during 2023-2030. By 2024, the market size is estimated to surpass US$ 4,501.0 Mn.

Regional analysis: North America currently dominates the digital forensics market with over 35% share. Rapid digitization of work processes along with stringent data privacy regulations drive significant demand from US and Canada. Asia Pacific is identified as the fastest growing region on back of growing initiatives against cybercrimes in major countries like India, China and Japan. Digital forensics solutions find rising adoption across BFSI, healthcare and government sectors in the region.

Key players: 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. The market is moderately concentrated with top players focusing on product innovations and partnerships to strengthen market hold.