As more information is stored digitally, industry demand will soar
Los Angeles, CA (PRWEB) March 07, 2012
In the five years to 2012, IBISWorld estimates that revenue for the Digital Forensic Services industry will grow at an annualized rate of 13.7% to $878.0 million. The industry has benefited from growth in the number of mobile internet connections and a rise in the percentage of households with at least one computer. According to IBISWorld industry analyst Kevin Culbert, “consumers are living more of their lives online, causing the amount of electronically stored information (ESI) to rise exponentially.” An increasing amount of ESI is expected to contribute to revenue growth of 9.2% in 2012. Furthermore, IBISWorld estimates that the number of mobile internet connections in the United States will increase 28.8% to 155.6 million in 2012. This factor is also expected to boost industry demand during the year.
As total ESI has risen, an increasing number of digital forensic service providers have entered the industry. IBISWorld estimates that the number of firms operating in the industry has increased at an average of 14.8% annually to 1,405 in the five years to 2012. Industry operators provide data recovery services and investigative support of phishing schemes (attempted acquisition of personal information by falsely acting as an established, trustworthy entity), bank fraud and child exploitation cases. The industry also provides data recovery from encrypted and erased files, including emails and passwords.
IBISWorld projects that revenue for the Digital Forensic Services industry will increase during the five years to 2017. According to Culbert, “the industry will continue to benefit from the rising amount of ESI, which will boost potential demand for services.” Industry firms will benefit as tools become more standardized and automation reduces the amount of manual labor required for digital forensic services. Nevertheless, the industry will continue to be challenged by the expansion of cloud computing, which allows information to be manipulated, stored and processed from multiple computers. This trend and the recent fragmentation of computer operating systems have threatened industry margins. Over the next five years, market share concentration is anticipated to increase (at the top of the market) as digital forensic services firms grow to become more attractive acquisition targets for larger consulting and software companies in related supply chains. AccessData and Global Digital Forensics are two significant players within the industry.
For more information visit IBISWorld’s Digital Forensic Services in the US industry page
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Digital forensic service firms recover and investigate material found in digital devices. Its services are often in relation to computer crime, but they increasingly involve mobile devices.
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