eDiscovery Market Overview
The global eDiscovery market had a size of $8,285.0 million in 2016, and it is projected to grow in double digit during the forecast period. The government vertical has been the largest user contributing largest eDiscovery market share, and driving the global sales in recent years. The emergence of digital age and technology transformations has increased the demand for secure storage of critical data, as well as completely transparent communication of information within the ecosystem.
ASIA-PACIFIC EDISCOVERY MARKET, BY SOLUTION, $M (2013 – 2023)
Apart from this, the trend of increasing usage of social media platforms, such as LinkedIn, Facebook and Twitter, is likely to spur the eDiscovery market growth worldwide. The rise in the use of social media platforms is offering electronic evidence of legal matters, in abundance. Capturing data from these platforms necessitates advanced techniques and tools, which highlight the significant increase in demand of such solutions.
The solutions in the eDiscovery market finds applications in various industries, including government, legal sector, BFSI, healthcare, IT & telecom, energy & utilities, media & entertainment, and others. The top three industry verticals contributed more than 70% of the total global revenue in 2016. The eDiscovery market witnessed the largest demand from government, and its contribution is projected to be the largest throughout the forecast period. Legal sector contributed the second largest revenue to the market, accounting for more than 20% of the global market in 2016. Adoption is expected to witness an uptick in the legal sector, with the intent of using such solutions as evidence by government in investigations and criminal trials.
From the geographical standpoint, North America was the largest eDiscovery market, contributing nearly 70% to the global market in 2016. This region is also expected to remain the largest eDiscovery market throughout the forecast period. Government & controlling authorities in the region are increasingly choosing advanced components for investigations and litigations, over other traditional data solutions. During the forecast period, the share of the region is likely to fall with a simultaneous increase in the revenue share of other regions.
eDiscovery Market Dynamics
The rise of globalization has mobilized an increasing sector of global and multinational corporations- a trend which is unlikely to get slow in the future due to stable economic push. Companies in the eDiscovery market is now planning to cross national borders and work outside their territories, which means dealing with other government’s regulations, which in turn require more resources around translation, compliance and data security.
eDiscovery market has been by far the ultimate focused technology in the legal marketplace. While the market has witnessed a trajectory of mergers and acquisitions (M&A) for some time, compliance, globalization, digitization, and a push of client specific services is expected to take it further in near future. In the last couple of years, the industry has steadily moved towards consolidation. Major companies in the eDiscovery industry have stepped up their intent to acquire adjacent and similar businesses. Some of the major acquisitions by Consilio, DTI, and LDiscovery were already announced in 2016, where the acquisition of Epiq Systems by OMERS Private Equity and Harvest Partners was valued at nearly $1 billion, which was the largest in the industry so far. Post merger, Epiq Systems Inc. will be operating as a private entity and merged with DTI to operate under the brand name Epiq.
Growing electronic data volumes across enterprises globally, is creating huge challenges for the legal and IT departments. This factor has been creating an immediate need for eDiscovery software and services. With the rising generation of electronic data, litigation is also increasing. This has increased the integration level of new technologies within the legal world, thereby increasing its demand and adoption across the globe by various industry verticals. These actions are mostly achieved by organizations that require ESI for improved management of their capital and substructure purposes, as well as maintenance of large volume of data for civil litigation purposes.
The global eDiscovery market is also on the rise due to many organizations using this software for retrieving records from the huge data sets of an enterprise, and to erase the exact copies to reduce the cost and efforts involved in reviewing the left-out content.
Cross-border confidentiality issues and jurisdictional variances continue to complicate eDiscovery, forming a roadblock to the global market growth. Increasing number of companies are finding themselves antagonized with the challenge of collecting, processing, reviewing, and then producing data from locations that are outside the U.S. Further, receiving a data discovery request or data demand that crosses international borders, presents number of challenges, which hinder the adoption as a mainstream legal practice.
eDiscovery Market Competitive Landscape
In the last few years, the eDiscovery industry has evolved significantly through new advancements in technology and hyper-specialization of skills. In a struggle to keep up with the ever-changing ecosystem of data modification and management, companies have been shifting their focus from product based to service based offerings. For instance, in June 2017, FTI Technologies introduced Contract Intelligence Services Practice to aid legal advisors and enterprises in making key decisions, leverage negotiations and meet regulatory requirements.
Some of the major players prevailing in this industry include IBM Corporation, FTI Technology LLC, Guidance Software, Inc., Xerox Corporation, KrolLDiscovery LLC, Relativity, LexisNexis, Symantec Corporation, and Dell EMC.