Spending across the eDiscovery software and services market is estimated to total $14.05B in 2022, and continue increasing at a CAGR of approximately 9.69% towards $22.31B in 2027. This projected growth was taken from various leading eDiscovery publications, posts, data points, and discussions.
eDiscovery, or electronic discovery, is the process of identifying, collecting and analyzing electronically stored information (ESI) in response to a legal request. It can be time-consuming and costly, but is often necessary to comply with discovery requests in litigation. Leading eDiscovery solutions help automate and enhance the electronic discovery process that includes services such as forensics & collections, processing & hosting, data analytics, document review, contract solutions, business advisory services and spend management.
Growing demand to securely store critical data generated and managed within an ecosystem strengthened by the technology evolution is one of various contributing factors driving growth of the overall eDiscovery market. Below we will touch upon other aspects supporting this expected growth.
Confluence of Factors Driving Growth
Data grows more quickly than ever before. It is estimated that almost 85% of the existing global data was generated in recent years, and by the end of 2030 it is expected the total sum will increase to approximately 44 zettabytes. Of note, smartphones account for almost two-fifths of global eCommerce transactions and therefore generate large-scale content.
Global Pandemic and rising acceptance of hybrid working models. The outbreak of COVID-19 provided a boost to the market’s overall growth trajectory as global lockdowns led to sporadic project delays or cancelations that required corresponding support. What followed was a spike in demand for online network connectivity, which created an opportunity for new digital platforms to deliver corresponding solutions and identify opportunities for automation. Other factors resulting from this new work dynamic include the development of forensic solutions to preserve metadata across new data sources, a rise in the adoption of digitization, and increased use of AI-based solutions.
Machine Learning Technologies & AI-based Analytics. Artificial Intelligence & machine learning solutions have become increasingly important in the legal field. One research firm predicts that by 2030, AI and machine learning will be used in 90% of all eDiscovery processes. This expected growth can be directly attributed to the growing volume of data that needs to be processed and analyzed. With the amount of data expected to double every two years, traditional methods of eDiscovery simply cannot keep up. AI and Machine Learning will help lawyers sift through large volumes of data more quickly and efficiently, identify relevant documents, and predict outcomes. AI and ML can also help reduce the cost of eDiscovery through automation of repetitive tasks and identification of new processes and efficiencies with completing standard work.
Detailed Insights On Expected GrowthOff-Premise software spending in 2022 is estimated at approximately 55% ($2.63B) of worldwide eDiscovery software spending;
This percentage is expected to increase to approximately 73% by 2027, which would result in an estimated total spending of $6.35B in 2027.
The U.S. is estimated to account for approximately 62% of worldwide eDiscovery software and services spending in 2022;
This percentage is expected to decrease to 57% by 2027; however, the actual dollar spend is estimated to increase due to overall worldwide software and services market growth from $8.71B in 2022 to $12.72B in 2027.
Spending on review-related software and services is estimated to constitute 66% of worldwide eDiscovery software and services spending in 2022;
This percentage is expected to decrease to 61% by 2027; however, the actual dollar spend is estimated to increase due to overall software and services market growth from $9.27B in 2022 to $13.61B by 2027.
The eDiscovery services and software market is expected to grow to approximately $22.31B in 2027, a growth of $17.58B from the annual total in 2012.
If estimates are correct, a total of $192B will have been spent on eDiscovery software and services worldwide from 2012 to 2027.
Non-Governmental spending on eDiscovery is estimated to constitute 55% ($7.73B) of worldwide eDiscovery software and services spending in 2022;
This percentage is expected to increase to approximately 59% ($13.16B) by 2027.
North America is currently the largest regional eDiscovery market, followed by Europe and Asia-Pacific.
Asia-Pacific is expected to grow at the fastest CAGR of 10.7% from 2022 to 2028 due to increasing use of digital data and rising economic activity in the region.
Continued focus across companies in the Asia-Pacific region with enhancing productivity and optimizing legal, regulatory and eDiscovery costs will help achieve this expected growth in comparison to other global regions.
Early Case Assessment, which enables legal teams to decide whether to pursue an early settlement, go to trial, or try to reduce the scope of discovery to minimize cost and burden to clients, is an important service offering and projected to be a lucrative future growth segment.The global eDiscovery market when segmented by industry type primarily includes Banking, Financial Services, Insurance, Healthcare, Manufacturing, IT And Telecommunication, Government, Energy and Utility, and the Retail sector.
Across all industries, IT and Telecommunication is expected to have the highest growth market share due to advances in technologies that have expanded data generation, as well as its ongoing unique challenges that relate to monitoring and protecting IP copyrights.
The IT and Telecommunication industry also regularly encounters cross-border privacy and security concerns, and is subjected to constant inspection as regulatory and consumer requirements change.
Although estimates differ among various research groups and analysts, there is a clear consensus that the eDiscovery market will continue to grow at a healthy pace, and that this growth will be fueled by an increasing number of data breaches and overall litigation cases worldwide, as well as stricter data protection laws and regulations.