India Digital Forensics Market Outlook to 2030

India Digital Forensics Market Overview:

India Digital Forensics Market is witnessing rapid growth as the market reached USD 450 million in 2023, driven by advancements like AI, Blockchain, and IoT, supported by regulatory measures & increasing highlighting the need for increased awareness and education through initiatives like PM e-Vidya.

Prominent players in the market include KPMG, Deloitte, PwC and EY. These companies have established themselves as leaders by offering comprehensive digital forensic solutions tailored to various industries. They continue to innovate by integrating AI and machine learning into their forensic tools, enhancing their detection and analysis capabilities.

In 2021, the Indian government announced the launch of the National Cyber Forensic Lab (NCFL) under the Ministry of Home Affairs, with an initial investment of INR 35.51 crores. The NCFL aims to enhance the country's digital forensic capabilities by providing advanced tools and training to law enforcement agencies.

Major cities like Bangalore, Hyderabad, and Mumbai dominate the India Digital Forensics Market. These cities offer a conducive environment for the growth of digital forensics due to the concentration of IT infrastructure and skilled professionals.

India Digital Forensics Market Segmentation

By Type of Forensics: India Digital Forensics Market is segmented into Cloud, Network, Computer & Mobile Devices. In 2023, mobile devices emerged as the dominant force driven by the increasing prevalence of smartphones and the growing complexity of mobile-based cybercrimes. The rising adoption of mobile payment systems and apps has further accelerated the demand for advanced digital forensics solutions tailored for mobile platforms.

By End-User: India digital forensics market is segmented into Telecom & IT, defense, BFSI, government, retail & healthcare. In 2023, Telecom & IT emerged as the dominant segment fueled by the surge in data breaches and the need for robust cybersecurity measures within the sector. The increasing reliance on digital communication and cloud services in Telecom & IT has further driven the demand for advanced digital forensics solutions.

By Region: India Digital Forensics Market is segmented into North, South, East & West. In 2023, Southern region emerged as the dominant segment propelled by the region's strong IT infrastructure and the concentration of tech hubs in cities like Bengaluru, Hyderabad, and Chennai. The growing presence of cybersecurity firms and research institutions in the South has also contributed to the increased adoption of digital forensics solutions.

India Digital Forensics Industry Analysis

India Digital Forensics Market Growth Drivers

Increase in Cyber Crimes: The cybercrime rate in India surged to 129 incidents per lakh population in 2023, reflecting a significant rise in hacking, data breaches, online fraud, and cyber-attacks. As digital dependence increases, there is a growing necessity for advanced forensic solutions to combat these threats effectively and protect sensitive information from cybercriminal activities.

Increasing Number of Digital Users: In 2023, India has over 760 million smartphone users and more than 820 million active internet users. The proliferation of digital devices creates a significant demand for advanced mobile forensics solutions to manage the extensive volume of potential digital evidence.

High Awareness Quotient: Growing awareness of cybersecurity and digital forensics among organizations, government agencies, and the public is cultivating a proactive cyber defense culture. This increasing focus on security highlights the urgent demand for forensic expertise in India. Over the next nine years, the country will need 90,000 forensic scientists to meet the rising need for specialized forensic capabilities in the market.

India Digital Forensics Market Challenges

Shortage of Skilled Forensic Professionals: The demand for digital forensic experts in India exceeded the supply. This shortage has made it difficult for organizations to effectively implement and utilize digital forensic solutions, thereby hindering market growth. The lack of adequate training and education programs in digital forensics further exacerbates this challenge, limiting the market's potential.

High Cost of Forensic Tools and Solutions: The high cost of digital forensic tools and solutions poses a significant challenge to the market's growth. Advanced forensic tools, which are essential for conducting thorough investigations, often require substantial financial investment. This cost barrier is particularly challenging for small and medium enterprises (SMEs) and government agencies with limited budgets, leading to slower adoption of forensic technologies.

India Digital Forensics Market Government Initiatives

Cyber Surakshit Bharat Initiative: The Cyber Surakshit Bharat initiative, launched by MeitY in 2018 in collaboration with various industry stakeholders, focuses on strengthening cybersecurity across government and private sectors. Till December 2023, the 44th training program was conducted, with participants from various state governments. This initiative has played a crucial role in raising awareness about the importance of digital forensics, leading to increased adoption of forensic solutions in government agencies.

Digital Personal Data Protection Act (2023): The Digital Personal Data Protection Act, introduced in 2023, mandates stringent data protection measures for organizations operating in India. The Act requires companies to implement robust digital forensic mechanisms to investigate and report data breaches. This legislation has spurred demand for forensic tools and services as organizations strive to comply with the new regulations.

India Digital Forensics Market Competitive Landscape

Particulars

KPMG

Deloitte

PwC

EY

Year of Incorporation

1987

1845

1998

1989

Headquarters

New York, USA

New York, USA

London, UK

London, UK

Leadership

Mr. Jagvinder Brar, Partner, Forensic Services

Mr. Nikhil Bedi, Deloitte Forensics

Mr. Puneet Garkhel, Partner, Forensics

Mr. Arpinder Singh, EY Leader, Forensics

Quick Microsoft & OpenAI: In 2023, Microsoft invests $10 billion in OpenAI, the creator of ChatGPT, reinforcing their collaboration. The $10 billion investment is structured to provide Microsoft a substantial return on investment. Initially, Microsoft will receive 75% of OpenAI's profits until it recoups its investment, after which it will hold a 49% stake in the company.

Deloitte Touche Tohmatsu India: In 2022, The Securities and Exchange Board of India (Sebi) has empaneled eight entities, including Deloitte Touche Tohmatsu India LLP, to provide digital forensic services. This move aims to enhance the regulatory body's capabilities in conducting forensic investigations in the capital markets.

India Digital Forensics Future Market Outlook

India Digital Forensics Market is expected to reach USD 855 Mn by 2030, driven by increasing cybersecurity threats and government initiatives aimed at strengthening the countrys digital infrastructure.

Future Market Trends:

Adoption of AI and Machine Learning in Forensics: Over the next five years, the integration of AI and machine learning in digital forensics will become more prevalent. These technologies will enable faster and more accurate analysis of large datasets, helping organizations to detect and respond to cyber incidents more efficiently.

Expansion of Forensic Capabilities in SMEs: As cyber threats continue to target small and medium enterprises (SMEs), there will be a growing need for affordable and accessible forensic solutions. Over the coming years, more vendors will develop cost-effective forensic tools tailored to the needs of SMEs. This trend will be supported by government initiatives aimed at boosting cybersecurity among smaller businesses.