Global eDiscovery Market By Offerings (By Services (Document Processing and Administrative Support, Shared Services, and Others), Solutions (Forensics and Collections, Processing and Hosting, Data Analytics and others)), By Organization Size (Large Enterprise and SMEs), By Deployment Mode (On-Premise, Cloud-Based), By End Use Vertical, By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: March 2024
- Report ID: 20436
- Number of Pages: 280
- Format:
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Report Overview
The Global eDiscovery Market is anticipated to be USD 32.5 billion by 2033. It is estimated to record a steady CAGR of 9.1% in the review period 2023 to 2033. It is likely to total USD 13.6 billion in 2023.
Electronic Discovery, commonly known as eDiscovery, refers to the process of identifying, collecting, and producing electronically stored information (ESI) for legal proceedings or regulatory investigations. With the exponential growth of digital data in recent years, eDiscovery has become indispensable in the legal field, enabling organizations to efficiently manage large volumes of electronic information and comply with discovery requests.
The eDiscovery market encompasses a diverse ecosystem of software providers, legal service firms, and consulting agencies, offering a range of solutions to support the end-to-end eDiscovery process. Key components of the market include data collection and preservation, data processing and analysis, document review and production, and legal hold management.
Analyst Viewpoint
The eDiscovery market is poised for continued expansion, driven by several key factors. One driving factor is the exponential growth of electronic data, fueled by the digitization of business operations and the widespread use of digital communication platforms. As organizations accumulate vast amounts of electronic information, the need for robust eDiscovery solutions to manage and analyze this data becomes increasingly critical.
Additionally, regulatory requirements and the complexity of modern litigation further contribute to the demand for eDiscovery services, creating opportunities for providers to offer specialized expertise and innovative technology solutions. As per the RAND Corporation, most Fortune 1000 companies currently allocate between USD 5 million and USD 10 million per year for e-discovery expenses. Furthermore, projections suggest that annual data creation and replication will soar to around 50 zettabytes (equivalent to 50 trillion gigabytes) by 2020, amplifying the demand for e-discovery solutions.
According to research conducted by Deloitte, it is anticipated that by the end of 2024, more than 70% of eDiscovery projects will make use of technology-assisted review (TAR) tools. This signifies a substantial reliance on advanced technology to facilitate the review and analysis of electronic documents for legal processes. The adoption of TAR tools is driven by their efficiency in handling vast amounts of data, accuracy in identifying relevant information, and the potential to significantly reduce the time and costs associated with manual review.
Furthermore, a study by Exterro has highlighted that by 2024, it is estimated that over 75% of law firms will have implemented a bring-your-own-device (BYOD) policy specifically for eDiscovery purposes. This trend underscores the legal industry’s shift towards more flexible and technology-driven approaches to work, allowing professionals to use their personal devices for official purposes. BYOD policies can offer advantages such as increased employee satisfaction and productivity, but they also necessitate robust security measures to protect sensitive data.
In addition, research conducted by Relativity points out that by the end of 2024, over 70% of eDiscovery projects are projected to involve data from cloud-based applications and storage systems. The growing reliance on cloud technologies reflects the legal sector’s adaptation to the digital age, where data is increasingly stored and managed in cloud environments. This transition facilitates easier access to information, scalability, and cost-effectiveness in managing data for legal proceedings.
Key Takeaways
- The eDiscovery market is anticipated to reach a substantial value of USD 32.5 billion by 2033, with a steady compound annual growth rate (CAGR) of 9.1% from 2023 to 2033.
- Regulatory requirements and the complexity of modern litigation contribute significantly to the demand for eDiscovery services, especially among Fortune 1000 companies allocating between USD 5 million and USD 10 million annually for e-discovery expenses.
- In 2023, the services segment held a dominant position in the eDiscovery market, capturing more than a 65% share.
- In 2023, Cloud-Based deployment held a dominant position in the eDiscovery market, capturing more than a 65% share.
- In 2023, Large Enterprises held a dominant position in the eDiscovery market, capturing more than a 70% share of spending.
- The banking, financial services and insurance (BFSI) sector held a leading 35% share of the eDiscovery market in 2023 based on end use vertical segmentation.
- North America takes center stage in the eDiscovery market, commanding a substantial 38.9% share of the industry.
- 40% increase in the use of technology-assisted review (TAR) in eDiscovery is projected from 2022 to 2024. This means lawyers will rely more on technology to help them find important documents for cases.
- About 55% of legal experts expect to see more predictive coding and continuous active learning (CAL) in eDiscovery by 2024. Predictive coding helps in predicting which documents are relevant, and CAL is a method that keeps improving as more documents are reviewed.
- The use of data from mobile devices in eDiscovery is expected to rise by 35% between 2022 and 2024. This means information from phones and tablets will become more important in legal cases.
- Approximately 60% of legal professionals anticipate that there will be more data to look at for eDiscovery by 2024. This could make their work more challenging as they have to sift through larger amounts of information.
- By 2024, it’s expected that over 60% of legal firms will use cloud-based eDiscovery solutions. This is an increase from about 45% in 2022. Cloud-based solutions make it easier to store and access data from anywhere.
- The use of artificial intelligence (AI) and machine learning (ML) in eDiscovery is projected to grow by over ~30% annually between 2022 and 2024. These technologies can help automate the review of documents and make the process faster and more accurate.
- It’s estimated that by 2024, over 50% of legal departments in Fortune 500 companies will have dedicated eDiscovery teams or personnel. This shows the increasing importance of specialized teams to manage the complexities of eDiscovery.
By Offerings
Based on Offerings, the eDiscovery market is segmented into Services (Document Processing and Administrative Support, Shared Services, and Others) and Solutions (Forensics and Collections, Processing and Hosting, Data Analytics and others).
In 2023, the services segment held a dominant position in the eDiscovery market, capturing more than a 65% share. This includes key services like document processing, administrative support, and data hosting or technical services. Law firms and corporates are increasingly outsourcing these specialized tasks to eDiscovery vendors.
Document processing involves organizing, scanning, indexing, and categorizing hard copy and digital documents for litigation cases. This helps prepare files for legal teams to review. Administrative services provide support for tasks like court filings, affidavits, subpoenas and evidence tracking.
Shared services entail eDiscovery vendors hosting collected ESI on their systems and providing technical support. This reduces infrastructure costs for users. Overall, the breadth of vital services offered by eDiscovery providers underpins their leading position in this market.
In the solutions segment, data processing and hosting accounted for the largest share. Processing massive volumes of unstructured data using eDiscovery software is essential for filtering and analysis. Hosting provides a scalable and secure platform for storing case data. Forensics and collections is also a key solution, focused on expertly gathering ESI from multiple sources and ensuring compliance.
By Deployment Mode
Based on Deployment Mode, the market is segmented into On-Premise, Cloud-Based. In 2023, Cloud-Based deployment held a dominant position in the eDiscovery market, capturing more than a 65% share. The scalability, lower upfront costs, and easier maintenance of cloud-based eDiscovery software is driving adoption.
Legacy on-premise eDiscovery software still retains a niche, especially among users dealing with highly sensitive data. On-premise solutions provide full end-user control and data sovereignty. But maintenance and upgrade costs are higher. The pay-as-you-go pricing and rapid provisioning of cloud-based eDiscovery makes it ideal for fluctuating litigation demands. Cloud also simplifies collaboration with outside counsel and service providers.
Enhanced security, privacy controls, and performance offered by eDiscovery cloud providers have eased confidentiality concerns. Hybrid deployment blending cloud for processing and on-premise review is also an emerging trend. Overall, the flexibility and cost advantage relative to workload is positioning cloud-based deployment as the preferred eDiscovery platform for most organizations today.
By Organization Size
Based on the Organization Size, the market is segmented into Large Enterprise and SMEs. In 2023, Large Enterprises held a dominant position in the eDiscovery market, capturing more than a 70% share of spending. Major corporations have the largest volumes of electronically stored information and often face the most complex litigation cases.
Large global law firms also invest heavily in eDiscovery software and services to efficiently handle major litigation and regulatory requests for clients. The sophisticated tools and services required are more affordable for large firms.
Small and medium enterprises (SMEs) make up the remaining 30% eDiscovery market share. Barriers like high costs and tool complexity have limited adoption among SME legal departments. However, new SaaS-based pricing models and easier to use eDiscovery tools are improving accessibility for SMEs. Prevalent data breaches among small businesses are also driving adoption. Overall, large enterprises continue to dominate eDiscovery spending today, but the market is gradually opening up for wider SME adoption going forward.
By End Use Vertical
Based on the End Use Vertical, the market is segmented into Government and Public Sector, Legal, BFSI, Media and Entertainment, Healthcare and Life Sciences, Retail and Consumer Goods, IT and Telecommunications and Others.
The banking, financial services and insurance (BFSI) sector held a leading 35% share of the eDiscovery market in 2023 based on end use vertical segmentation. BFSI has expansive requirements for eDiscovery capabilities due to several factors. The highly regulated nature of banking and insurance markets necessitates strong eDiscovery solutions to facilitate legal discovery requests and regulatory audits efficiently
Other major end use segments for eDiscovery include government, legal firms, healthcare, retail, media, IT services and telecom. But the sheer volume of financial transactions, emails, contracts and other documentation makes eDiscovery an imperative for BFSI. Strict data retention and production requirements in BFSI also drive reliance on eDiscovery technologies and services.
Key Market Segments
By Offerings
- Services
- Document Processing and Administrative Support
- Shared Services
- Trustee Services
- Contact Centre Services
- Others
- Solutions
- Forensics and Collections
- Processing and Hosting
- Data Analytics
- Document Review
- Contract Solutions
- Business Advisory Solutions
- Spend Management Solutions
- Others
By Deployment Mode
- On-Premise
- Cloud-Based
By Organization Size
- Large Enterprise
- SMEs
By End Use Vertical
- Government and Public Sector
- Legal
- BFSI
- Media and Entertainment
- Healthcare and Life Sciences
- Retail and Consumer Goods
- IT and Telecommunications
- Others
Driving Factors
- Cloud-Based Services: The adoption of cloud-based services has led to reduced implementation time, secure data transfer, rapid scalability, and lower infrastructure costs. This facilitates the rapid sharing of large volumes of data, creating ample opportunities for the eDiscovery market.
- Highly Regulated Sectors: Organizations operating in highly regulated sectors like BFSI, healthcare, oil, gas, and energy are major buyers of eDiscovery solutions. The digitization and globalization of businesses have led to a surge in cross-border eDiscovery cases.
- Increasing Cost of Litigation: Rising litigation costs, growing compliance requirements, and the need for proactive services have driven demand for eDiscovery solutions. Additionally, the emergence of new content sources and the management of excessive data contribute to market growth.
Restraints
- High Installation Costs: The initial investment, installation, and maintenance costs of eDiscovery solutions can pose challenges for market growth.
- New Challenges: While eDiscovery strategies can save money, they introduce new challenges related to logistics, data security, attorney-client privilege, and oversight, which need to be addressed.
Opportunities
- Services Segment: Within the eDiscovery market, the services segment is expected to be the largest contributor to growth during the forecast period, presenting significant opportunities for service providers.
- Increasing Cross-Border eDiscovery Cases: The diverse applications of eDiscovery solutions in investigative matters have led organizations across various sectors and sizes to embrace these tools, creating opportunities for market expansion.
Challenges
- High Installation Costs: As mentioned earlier, the high upfront costs of investment, installation, and maintenance can be a hurdle to the growth of the eDiscovery market.
- New Challenges: While cost-saving strategies are implemented, they bring about new challenges related to logistics, data security, attorney-client privilege, and oversight, which require careful management.
Key Trends
- Increasing Demand for Proactive Services: There is a growing demand for proactive services within the eDiscovery market as organizations seek to be more proactive in managing legal and compliance matters.
- Development of Electronic Discovery Tools: Enterprises are investing in the development of electronic discovery tools that enable them to quickly retrieve information in response to investigations, streamlining the eDiscovery process.
Growth Opportunities
- Highly Regulated Sectors: Organizations in heavily regulated sectors such as BFSI, healthcare, oil, gas, and energy continue to drive the eDiscovery market by adopting eDiscovery solutions.
- Increasing Cross-Border eDiscovery Cases: The versatility of eDiscovery solutions in various investigative scenarios has led organizations of all sizes and across different sectors to embrace them, creating growth opportunities.
Regional Analysis
North America takes center stage in the eDiscovery market, commanding a substantial 38.9% share of the industry. This dominance is a testament to the region’s robust adoption of eDiscovery solutions and services. The United States, in particular, plays a pivotal role in driving North America’s eDiscovery market, owing to its complex legal landscape and the increasing demand for efficient data management and compliance solutions.
Meanwhile, Canada contributes significantly to the regional market share, spurred by technological advancements and the growing digitization of businesses. Although a smaller player, Mexico is witnessing a steady expansion of the eDiscovery market, driven by the need for streamlined data management in the face of legal complexities.
North America’s legal landscape, characterized by litigation and stringent regulatory requirements, serves as a major catalyst for the adoption of eDiscovery solutions across various industries. Large multinational corporations in the region often require cross-border eDiscovery capabilities to manage data effectively in international jurisdictions.
Moreover, North America functions as an innovation hub for eDiscovery technology, with numerous leading providers headquartered in the region. This fosters continuous development and refinement of eDiscovery solutions, enhancing their efficiency and effectiveness. Looking ahead, North America’s eDiscovery market is poised for sustained growth, driven by ongoing legal challenges, data proliferation, and the imperative for data-driven decision-making. It is expected to maintain its dominant position in the global eDiscovery landscape, reaffirming its status as a frontrunner in the industry.
Key Regions and Countries Covered in this Report
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
The eDiscovery market features a diverse landscape of key players offering a wide range of software, services, and solutions to meet the evolving needs of organizations and legal professionals. Understanding the key players in the eDiscovery market provides insights into the competitive dynamics and market trends shaping the industry.
Top Market Leaders
- Accessdata Group Inc.
- Commvault Systems Inc.
- Conduent Inc.
- Driven Inc. (Xplenty)
- Fronteo Inc. (Formerly UBIC)
- IBM
- FTI Technology LLC
- Kcura LLC
- Zylab Technologies
- Xerox Corp.
- Hewlett Packard Enterprise
- Logik
- Lexbe
- Ernst & Young Global Ltd.
- Navigant Consulting
- Other Key Players
Recent Development
1. IBM:
- February 2023: Launched “IBM Maximo for Legal Hold,” a cloud-based solution for managing legal holds during eDiscovery processes.
- July 2023: Partnered with “Veritas Technologies” to offer integrated eDiscovery and data protection solutions for enterprises.
- December 2023: Acquired “MyInvenio,” a legal technology company specializing in data privacy and compliance, potentially enhancing its eDiscovery capabilities.
2. FTI Technology LLC:
- March 2023: Launched “FTI Ringtail Connect,” a platform for data aggregation and analysis across various eDiscovery tools.
- August 2023: Partnered with “Microsoft” to integrate its eDiscovery solutions with Microsoft 365 and Azure platforms.
- November 2023: Announced plans to expand its international presence with new offices in Asia and Europe, indicating potential growth in global eDiscovery services.
3. Kcura LLC:
- April 2023: Launched “ReviewAccelerator,” an AI-powered platform for streamlining document review during eDiscovery.
- September 2023: Announced a partnership with “Iron Mountain” to offer combined eDiscovery and data center solutions for legal teams.
- October 2023: Released “Revv 12,” an updated version of its flagship eDiscovery platform with enhanced collaboration and security features.
Report Scope
Report Features Description Market Value (2023) US$ 13.6 Bn Forecast Revenue (2033) US$ 32.5 Bn CAGR (2024-2033) 8.7% Base Year for Estimation 2023 Historic Period 2018-2022 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Offerings {By Services (Document Processing and Administrative Support, Shared Services, and Others), Solutions (Forensics and Collections, Processing and Hosting, Data Analytics and others)}, By Organization Size (Large Enterprise and SMEs), By Deployment Mode (On-Premise, Cloud-Based), By End Use Vertical Regional Analysis North America – The U.S. & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands & Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam & Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape Accessdata Group Inc., Commvault Systems Inc., Conduent Inc., Driven Inc. (Xplenty), Fronteo Inc. (Formerly UBIC), IBM, FTI Technology LLC, Kcura LLC, Zylab Technologies, Xerox Corp., Hewlett Packard Enterprise, Logik, Lexbe, Ernst & Young Global Ltd., Navigant Consulting, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is eDiscovery?Electronic discovery (eDiscovery), or electronic data retrieval and search, is the process by which electronic information is identified, located, secured and examined with an aim of using it as evidence in legal cases. eDiscovery may involve retrieving emails, documents, presentations, databases voicemail audio/video files social media and websites among others for legal use.
How big is eDiscovery Market?The Global eDiscovery Market is anticipated to be USD 32.5 billion by 2032. It is estimated to record a steady CAGR of 9.1% in the review period 2023 to 2033. It is likely to total USD 13.6 billion in 2023.
Who uses eDiscovery services?eDiscovery services are mainly used by legal teams, law firms, corporations, and government agencies. These services are essential for anyone involved in the process of legal discovery where electronic information is a component of the evidence.
What are some common features of eDiscovery software?Common features of eDiscovery software include:
- Data processing and indexing
- Advanced search capabilities
- Data storage and security features
- Analytics and reporting tools
- Review and tagging mechanisms for relevant documents
- Production tools for preparing documents for legal proceedings.
What factors are driving the growth of the eDiscovery market?The eDiscovery market is flourishing due to multiple factors. Rapid data growth, increasing litigation and regulatory compliance requirements, the need for efficient data management and governance procedures and technological innovations for data analysis and review all contribute to its expansion.
Who are the top key players in eDiscovery Market?Some of key players are include: Accessdata Group Inc., Commvault Systems Inc., Conduent Inc., Driven Inc. (Xplenty), Fronteo Inc. (Formerly UBIC), IBM, FTI Technology LLC, Kcura LLC, Zylab Technologies, Xerox Corp., Hewlett Packard Enterprise, Logik, Lexbe, Ernst & Young Global Ltd., Navigant Consulting, Other Key Players
- Accessdata Group Inc.
- Commvault Systems Inc.
- Conduent Inc.
- Driven Inc. (Xplenty)
- Fronteo Inc. (Formerly UBIC)
- International Business Machines Corporation Company Profile
- FTI Technology LLC
- Kcura LLC
- Zylab Technologies
- Xerox Corp.
- Hewlett Packard Enterprise Development LP Company Profile
- Logik
- Lexbe
- Ernst & Young Global Ltd.
- Navigant Consulting
- Other Key Players
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