Digital Forensics Market 2025 is Projected to Grow at a CAGR of 12.2% During the Forecast Period | DataM Intelligence

AI-powered tools transform digital forensics in 2025 with faster recovery, smart threat detection, and automated investigations.

MARYLAND, MD, UNITED STATES, August 29, 2025 /EINPresswire.com/ -- The global digital forensics market is growing rapidly, projected to reach a CAGR of 12.2% during the forecast period from 2024 to 2031. This growth is driven by the rising need for effective cybercrime investigation, increased digital evidence in criminal proceedings, and the expanding landscape of cyber threats and online criminal activity, especially as organizations and individuals increasingly rely on digital devices and networks.

Digital forensics involves identifying, preserving, analyzing, and presenting digital evidence in a scientifically validated way for both legal and business investigations. It is crucial for law enforcement, government agencies, and enterprises to trace, investigate, and prevent cyberattacks, financial crimes, data breaches, and a broad spectrum of digitally-enabled misconduct. Digital forensics encompasses various domains: computer forensics, mobile device forensics, network forensics, database forensics, email and malware forensics, and automotive forensics, among others.

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United States: Recent Industry Developments

✅ In August 2025, the U.S. Customs and Border Protection (CBP) issued a request for information (RFI) aiming to acquire next-generation digital forensics tools capable of detecting encrypted messages, hidden language in texts, obscure objects in videos, and complex patterns across large datasets. The new contract is expected to be finalized in fiscal Q3 2026.
✅ In June 2025, Cellebrite, a global leader in digital intelligence, acquired Corellium, a Florida-based startup known for virtualized mobile device environments used in security research. The deal was valued at $200 million, comprising $150 million in cash, $20 million in restricted stock, and up to $30 million tied to performance milestones.
✅ In 2025, 1 TRACE, a U.S.-based web application platform for OSINT and digital investigation, received ISO/IEC 27001:2022 certification and was recognized among the Top 10 global OSINT platforms. The tool, launched in 2024, integrates social media, cyber threat, financial, and geospatial intelligence for law enforcement and investigative use.

India: Recent Industry Developments

✅ In August 2025, at the 10th International Police Expo in New Delhi, SysTools unveiled four 100% indigenous (Make in India) digital forensics and cybercrime tools including a secure Data Wipe Tool, a portable field lab called DIAL POD, and Case Cop workflow management to enhance operational capabilities of Indian law enforcement agencies.
✅ On August 26, 2025, professors from IIIT Pune and NIT Raipur were commissioned under a ₹4.2 crore centrally funded project (by MeitY’s cybersecurity division) to develop next-generation digital forensic tools. They’ll build an indigenous forensic image repository and leverage advanced machine learning for content- and context-aware data recovery and automatic file classification even on encrypted or damaged devices.
✅ In May 2025, the Centre for Development of Advanced Computing (CDAC) and Economic Offences Unit (EOU) Patna inaugurated a new R&D Centre for Cyber Security & Forensics on the EOU campus. The collaboration under an MoU from September 2024 aims to strengthen regional capacity through advanced research, innovation, and professional training in forensic investigations.

Latest Strategic Investments, Mergers, and Acquisitions (2024–2025)

• Technology providers are investing in AI-powered solutions for automating digital evidence processing, expediting data extraction, and increasing accuracy in forensic investigations.
• Hardware and software advancements, such as Cellebrite’s UFED Touch 2 and Magnet Forensics’ Auxtera Project, are enabling faster, more comprehensive information extraction and collaborative forensic examination.
• Firms like Paraben Corporation and Oxygen Forensics are launching new platform versions with integrated analysis tools for data from smartphones, computers, and cloud sources, improving multi-platform evidence collection and investigation efficiency.

Market Players

Key companies active in the digital forensics field include:

• Oxygen Forensics
• IBM Corporation
• KLDiscovery Inc.
• Binary Intelligence LLC
• Digital Forensics Corporation
• AccessData Group LLC
• Magnet Forensics
• Cellebrite
• LogRhythm, Inc.
• TCS Forensics

These players are recognized for delivering comprehensive forensic solutions for government, law enforcement, and enterprise clients worldwide.

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Market Dynamics

Drivers
• Escalating cyberattacks, financial fraud, and identity theft, particularly in North America and Asia-Pacific.
• Growing adoption of digital forensics in law enforcement, financial services, telecom, healthcare, and increasingly in private sector corporate investigations.
• Evolution of comprehensive digital forensics tools to handle cloud, IoT, and mobile device data efficiently.
• Stricter regulations and greater reliance on digital evidence in litigation and e-discovery.

Restraints
• High cost and complexity of digital forensics software and hardware, limiting accessibility for small organizations.
• Shortage of skilled forensic analysts and disparities in training, leading to potential misinterpretation or incomplete evidence extraction.

Opportunities
• Expanding use cases in child protection, online abuse investigation, and corporate compliance.
• Cloud-based and remote forensics solutions that support distributed workforce and remote evidence preservation.
• Integration of AI and machine learning for automated, faster, and more accurate analysis.
• Growth in managed forensic and investigation services for small- and medium-sized organizations.

Challenges
• Keeping pace with rapidly evolving technology, communication protocols, and device security updates.
• Ensuring data privacy, ethical use of digital evidence, and compliance with regulations during investigation and handling.

Market Segments: Largest and Fastest Growing

The market is segmented by type (mobile device, computer, network, malware, database, email, automotive, others), component (hardware, software, services), end user (government, law enforcement, banking, military, telecom, IT, healthcare), and distribution channel. The computer forensics and mobile device forensics segments lead, driven by the massive increase in digitally-based evidence and high-profile investigations.

Regional Analysis

North America dominates the market, owing to high rates of identity theft, cyberattacks, and the presence of sophisticated digital forensics infrastructure within government and private sectors. Stringent financial sector regulations have contributed to strong uptake.
Asia-Pacific is experiencing fast growth, supported by increasing adoption of digital evidence processing in policing and judiciary, and rising frequency of financially and technologically motivated cybercrimes.

Unmet Needs and Conclusion

Unmet needs include further democratization (cost reduction) of forensics tools, standardized and advanced training, and tools geared for emerging digital platforms as attack surfaces evolve.
In conclusion, digital forensics is a critical enabler of cybercrime investigation, compliance, and digital risk management. As reliance on connected devices and cloud infrastructure grows, and as cyberthreats intensify, demand for comprehensive, agile, and technologically advanced digital forensics solutions is set to sustain strong long-term market momentum.

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Sai Kumar
DataM Intelligence 4market Research LLP
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sai.k@datamintelligence.com
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