eDiscovery market is anticipated to grow at a considerable CAGR of 8.9% during the forecast period (2024-2031).The growing volume of Electronically Stored Information (ESI) is driven by digitalization, regulatory compliance requirements, and increasing litigations and investigations. Technological advancements such as, machine learning and artificial intelligence have improved eDiscovery capabilities. Cloud-based solutions are increasingly adopted owing to the scalability, flexibility, and cost-effectiveness. Organizations prioritize data security and privacy, requiring robust solutions to ensure confidentiality and availability. Globalization of business operations additionally demands eDiscovery solutions that support multilingual capabilities and compliance with international regulations.

Market Dynamics

Increasing demand for integration of security AI and automation

There is a growing demand for eDiscovery solutions as a result of organizations utilizing Artificial Intelligence (AI) and automation technologies to enhance cybersecurity, lower data breaches, and increase savings. According to International Business Machines (IBM), in 2023, investing in security measures can lead to significant savings for organizations. The global average cost of a data breach was $4.45 million, which marked a 15.0% increase over the past three years. Furthermore, organizations that extensively utilize security AI and automation can save an average of $1.76 million compared to those that do not employ these technologies. 

Growing prevalence of cyberattacks

The survey reveals a high frequency of cyberattacks among local governments, with many experiencing at least one attack annually, indicating a need for improved cybersecurity risk management. According to the IBM corp., in October 2022, the survey conducted for local government administrators revealed that a significant portion of local governments across the country lack sufficient preparation to address cyber threats. The findings indicate that a majority of respondents (70.0%) have yet to establish a formal cybersecurity plan, while only 34.0% have implemented written incident response plans. Moreover, the survey highlights that 67.0% of respondents reported experiencing at least one cyberattack compromising their network security annually. However, given that a majority of respondents (54.0%) do not monitor the frequency of attacks on their systems, it is likely that these figures are significantly underestimated. Particularly concerning is the notable percentage of respondents (27.0%) who are unaware of the frequency of attacks they face, as well as those (41.0%) who have experienced breaches without realizing it. Furthermore, the survey underscores that 52.0% of respondents attribute the lack of adequate funding as a major obstacle to achieving robust cybersecurity measures.

Market Segmentation

Our in-depth analysis of the global eDiscovery market includes the following segments by component, organization size, deployment mode, and vertical:

• Based on components, the market is sub-segmented into solutions and services.

• Based on organization size, the market is bifurcated into large enterprises and SMEs.

• Based on deployment mode, the market is augmented into on-premises and cloud.

• Based on vertical, the market is sub-segmented into BFSI, retail & consumer goods, it & telecommunications, healthcare & life sciences, government & public sector, legal, and others (education, energy & utilities, and manufacturing)

Cloud Industryis Projected to Emerge as the Largest Segment

Based on the end-user, the global eDiscovery market is sub-segmented into on-premises and cloud. Among these, the cloudsub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includescloud-based eDiscovery platforms that enable seamless data access and collaboration across geographical boundaries, ensuring compliance with data protection laws and regulations in a globalized environment. For instance,in August 2023, Casepoint launched Casepoint FileStore, its cloud-based data storage and staging solution. The Casepoint Platform offers a secure, scalable, and cost-effective alternative to on-premises data storage solutions for corporations, law firms, and government agencies.

Solutions Sub-segment to Hold a Considerable Market Share

AI, machine learning, and natural language processing are revolutionizing eDiscovery Solutions, enhancing speed, accuracy, and insight in electronic evidence review across various industries and jurisdictions. For instance, in January 2024, BlueStar launched its Next-Gen Solutions, marking a significant leap in the integration of AIand Human Intelligence (HI) to revolutionize the review of electronic evidence. Its Next-Gen Solutions include document content summarization, language translation, handwritten text OCR, transcription services, object detection, and platform-agnostic integration, improving data review speed and accuracy.

Regional Outlook

The globaleDiscovery market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Increasing Volume of Electronically Stored Information (ESI)in North America

Canada's increasing ESI volume necessitates eDiscovery solutions for efficient data collection, processing, and analysis for legal and regulatory purposes. For instance, in February 2023, Casepoint expanded its North American offering of the Casepoint Platform with a dedicated data center in Canada, providing access to its Legal Hold and eDiscovery software for Canadian corporations, government agencies, and law firms.

Global EDiscovery Market Growth by Region 2024-2031

Asia-PacificHolds Major Market Share

The increasing frequency and sophistication of global cyberattacks, including,nations such as India necessitate the need for comprehensive eDiscovery solutions to detect, address, and eliminate the risks. According to the Economic Times, in May 2023, India experienced a significant rise in cyberattacks, with over 500 million attacks blocked out of a billion globally. According to the State of Application Security Report by Indusface, the banking and healthcare sectors were the most affected, while the insurance industry faced the highest number of attacks among all industries, receiving 12 times more attacks. Custom rules proved useful in blocking over 50.0% of the attacks.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global eDiscovery market includeDeloitte, Exterro, Inc., FTI Consulting, Inc., IBM Corp., and Open Text Corp., among others.,among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, inJanuary 2024, Complete Legal merged with L2 Services and Precise Legal to acquire Frontline Managed Services' e-discovery business. Frontline, an alternative legal service provider, offers IT, cybersecurity, contract management, and e-billing services.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global eDiscovery market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.