E-Discovery Market: Overview
The size of the global E-Discovery market was estimated at USD 41.8 billion in 2021, and it is anticipated to increase at a CAGR of 5.5%. The e-discovery market is primarily driven by enterprises that purchase e-discovery solutions in highly regulated industries such as BFSI, healthcare, oil, gas, and energy. Cross-border e-discovery cases have increased rapidly due to business digitization and globalization. 91% of organizations are involved in digital initiatives of some kind, 87% of senior company leaders rank digitalization as a top priority, and by 2022, 65% of global GDP is expected to be digital. Thus with the growing digitization process, the e-discovery market will flourish in the coming time. With the diverse utilization cases of investigative concerns, e-discovery solutions are widely adopted by enterprises of all sizes and industries. The rising cost of litigation among businesses increased compliance obligations, unavoidable desire for more proactive services, the rise of content sources, and the reduction of stored information overload are just a few of the various drivers of the e-discovery market. The e-discovery business is expanding due to an increasing emphasis on proactive governance using data analytics and the advent of new content sources.
Social media usage and ESI's rapid rise benefit the market's expansion. In July 2022, there will be 4.70 billion social media users worldwide or 59.0 percent of the entire world's population. The e-discovery market is driven by the various regulatory frameworks' structural variations. The growing requirement for compliance and the cost of litigation among businesses are driving up demand for e-discovery services and boosting the market's expansion. Using e-discovery tools to find patterns across time will hasten comprehension in cases involving end users. Maintaining tamper-proof papers has also been recognized as a key business growth prospect. 90% of enterprises globally choosing cloud storage will cause the amount of electronically stored information (ESI) by 50% annually, increasing the demand for e-discovery solutions. The usage of e-discovery solutions is anticipated to grow significantly over the forecast period due to rising organizational interest in digital forensics.
E-Discovery Market: COVID-19 Impact
The number of users of e-discovery solutions' free plans has increased during the COVID-19 outbreak. Users are anticipated to switch to paid plans after the free plan expires, increasing the usage of e-discovery solutions. According to industry analysts, e-discovery solutions and services are anticipated to pick up during the COVID-19 outbreak and progressively increase in the post-COVID-19 world. The adoption of the WFH/Remote Work model is anticipated to be fueled by a rise in demand for cloud-based business continuity tools and services. This would increase demand for various business continuity tools and services, including productivity suites, collaboration tools, MDM, cloud-based contact centers, and BI and analytics. By instituting social segregation standards and enforced lockdowns, digitization has stepped in to close the gaps. In 59% of firms, the COVID-19 epidemic has accelerated digital transformation, and in 66% of organizations, digital transformation has successfully overcome prior hurdles. Pandemic technologies like artificial intelligence (AI) and machine learning (ML) are starting to influence commercial innovation initiatives.
E-Discovery Market: Drivers
Increase Usage of Smartphones to Propel Growth of Market
Smartphones and mobile devices control everyone's lives. More than 5 billion people own mobile devices, with kids starting getting mobile devices at 12, 194 billion people download mobile apps, and two-thirds of the world is now connected through smartphones, per statistics on smartphone usage. As a result, there are now more people using the internet. It increases the demand for cloud-based services and smart device users. The use of cloud-based services results in shorter implementation times, secure data transfers that are simple to complete, rapid scaling demand increases, lower infrastructure, energy, and facility expenses, and more opportunities for the e-discovery industry.
Global Market is Driven by Digitalization and Growing Adoption of Advanced Technology
Additionally, governments in numerous nations are gradually digitizing their processes to cut costs and pushing residents to follow suit. In turn, this lowers operational overhead costs. As a result of illegal immigration in emerging nations like the U.S. and the U.K., litigation has increased globally. In November 2021, a Chinese State Council executive meeting examined and adopted a proposal to digitalize government services across the country during the 14th Five-Year Plan term (2021-2025). China will speed up the development of a digital government to improve administrative services. These changes will increase demand for the E-discovery industry during the anticipated term. Data processing, early case evaluation, legal hold and technology-supported services, managed services, consulting and training, and support services are all available in the E-discovery industry. The growing popularity of AI and machine learning (ML) across various end-use sectors are expected to drive the market in the future.
E-Discovery Market: Restraints
Increased Cases of Hacks and Data Theft Restricts Growth of E-Discovery Business.
One of the most crucial elements for efficient corporate operations is cybersecurity. According to reports, there were 12,13,784 cyber security attacks in October 2021. About 87,050 cyber security incidents have been targeted at governmental institutions in the past two years. 11,58,208 cyber security incidents occurred in India overall year 2020–21. Data security is becoming increasingly important, especially for governments susceptible to cyberattacks. Security experts have also cautioned that cyberattacks will only increase in frequency because of the increased digitalization following the COVID-19 outbreak. 15 and 17 training programs with 708 and 4,801 participants each were run between 2020 and 2021 (up until October 2021). Under Satya Nadella, Microsoft released a statement claiming that 92% of the servers had the attack patched and mitigated.
E-Discovery Market: Segment Overview
With Increased Usage of E-Discovery Software, Service Category to Dominate Market
By using consulting services offered by various vendors, firms can evaluate their present GRC program and create a plan for implementing a successful GRC software solution. While considering the technological and Human Resource (HR) bandwidths, training and consulting services concentrate on user pain points, goals, and schedules. Service providers give consulting services to aid their clients in putting new methods for identifying new revenue sources into practice. Deployable use cases are defined with consulting services to improve business performance. As a result, it is anticipated that the consulting services section will significantly increase the services segment's overall revenue. With the difficulties businesses encounter while deploying or using e-discovery systems, integration services are rapidly expanding across the globe.
Government Sector to Dominate E-Discovery Market due to Increased Amount of Data Generated
The importance of electronic records for various investigations has been acknowledged by governments worldwide. Numerous organizations have argued that such electronic records are useless, including The Civil Division of the United States Department of Justice. When it comes to creating new companies, etc., governments have a variety of restrictions that must be examined. The current "Paradise papers" case highlights the importance of e-discovery in governmental organizations for identifying numerous offenses committed, such as money laundering, tax fraud, etc. Cases the US government had previously faced, such as allegations that 19 defendants had participated in a criminal conspiracy, were sidestepped. This was accomplished by supplying over 200 TB of data, of which just 8 TB were pertinent to the case. Even the 8 TB of material wasn't in a searchable manner. These instances highlight how crucial e-discovery is to governments. Federal legal experts have not yet made considerable use of e-discovery. Only 38% of them can demonstrate reliable, correct information. Professionals in the government are less confident in e-discovery tools. But this will change as the amount of electronically stored information (ESI) increases.
E-Discovery Market: Regional Landscape
North America to Acquire Major Market Share due to Rapid Digitization in Various Sectors
The biggest market for electronic finding tools is in North America. 49 of the 50 states in the union have already passed e-discovery regulations. Hawaii, the newest state on the list, is attempting to adopt e-discovery standards but has not yet been included. The nation's e-discovery regulations were most recently regulated in California. After the Electronic Discovery Act changed the California Code of Civil Procedure in 2009 to accommodate the discovery of electronically stored material, more revisions were made in 2012 and took effect in 2013. Due to the reason above, California has the most recent e-discovery laws. When things like lawsuits, internal investigations, mergers and acquisitions, and data breach events take place, e-discovery technologies are put to use. In most cases, lawsuits and data breach occurrences in the US are the starting point. Additionally, businesses in this region have deployed e-discovery solutions to manage investigation matters and litigation, deal with cross-border jurisdictional differences and privacy concerns, oversee cybersecurity and data breaches, and uphold standards to satisfy all discovery obligations.
China is the biggest developing country in the Asia-Pacific region. In China, there is a tremendous demand for e-discovery due to the country's extensive IT use. Government policy support and technology integration are expected to aid in Japan's e-discovery industry growth. Additionally, investigations have distinct qualities that prompt quick advances in methodology and technology, such as a much stronger emphasis on speed, an emphasis on outcomes and finding key evidence over meeting procedural requirements, and a deep need for creative ideas to solve increasingly complex and ever-changing problems. As a result, investigations create significant growth opportunities for e-discovery solutions in the nation. The use of automation, connection intelligence, robotic process automation (RPA), and the Internet of Things (IoT) would be driven in India by the rise in demand for online network connectivity and online purchases of necessities brought on by COVID-19.
Global E-Discovery Market: Competitive Landscape
In May 2021, CloudNine, a leader in e-discovery technology, announced launching the Discovery Portal. This powerful new integration platform enables the interoperability of e-discovery solutions throughout the EDRM spectrum. The CloudNine Discovery Portal connects cloud and on-premise solutions, including CloudNine's existing e-discovery software and third-party review products. In September 2020, ZyLAB announced the release of ZyLAB Insight in its e-discovery platform. ZyLAB Insights is an AI-powered feature that automatically extracts entity information from unstructured sources. All ZyLAB ONE SaaS clients in North America and Europe will access ZyLAB Insights.
Few of the players in the E-Discovery Market include IBM (US), Microsoft (US), KLDiscovery (US), DISCO (US), Relativity (US), Nuix (Australia), ZyLAB (Netherlands), Logikcull (US), Casepoint (US), Deloitte (US), Knovos (US), Exterro (US), OpenText (Canada), Nextpoint (US), Epiq (US), Everlaw (US), IPRO (US), Consilio (US), Zapproved (US), Servient (US), CloudNine (US), Reveal (US), Lighthouse (US), Onna (US), ONE Discovery (US), Evichat (Canada), and Texifter (US).
Regional Classification of the Global E-Discovery Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global E-Discovery Market
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