eDiscovery Market Size and Share Analysis by Organization Size (Large Enterprises, SMEs), Vertical (Government & Public Sector, Legal, BFSI, Energy & Utilities, Healthcare & Lifesciences, Retail & Consumer Goods, Manufacturing, IT & Telecommunications), Solution (Software, Service), Use Case (Investigation, Litigation & Legal Operations, Early Case Assessment) - Global Industry Trends and Growth Forecast to 2030

Market Overview

The global eDiscovery market size stood at $10,542.4 million in 2021, and it is expected to grow at a CAGR of 8.6% during 2021–2030, to reach $22,089.3 million by 2030. This is ascribed to the surging focus on the preservation of metadata from electronic documents, the increasing adoption of digital technologies, and the rising electronic data volumes across enterprises globally.

Moreover, different companies are actively investing in various departments, to be able to incorporate smaller regional companies with their roots in the international marketplace and increase their global footprints. For instance, Relativity acquired Text IQ to augment the AI platform for lawyers in May 2021. In addition, small players are collaborating to provide all services in one place, such as document review, data storage, project management, information parsing, and analytics.

With the transformation of a digital universe and the accessibility of a large number of storage devices, electronic information, and details, companies are increasingly adopting e-discovery solutions to lower the maintenance costs of documents and create information. Also, for the collection and storage of digital information, as per litigation and regulatory processes, companies offer various solutions in the market.

North America Holds Largest Share

North America has the leading position in the eDiscovery market, and it will hold the same position in the coming years as well, with a value of over $9 billion by 2030. This is ascribed to the rising adoption of digital forensics and cloud computing solutions in the region.

In North America, the U.S. market holds the leading position, and it will grow at a CAGR of around 8% during the forecast period, owing to the rising adoption of legislation rules in the country. Hence, healthcare organizations establish data and information governance processes, which include litigation and regulatory response planning and e-discovery. In the U.S., California has the most updated laws related to the market. Moreover, the rising need for the security of information and the surging lawsuits are driving the demand for cloud-based e-discovery solutions in the country.

The APAC market is expected to witness significant development in the coming years. This can be ascribed to the high usage of IT solutions, the presence of developing countries such as India and China focusing on enhancing productivity and maintaining minimal cost for the protection of private facts and figures, and the rise in legal and regulatory expenses across various companies in the region. Moreover, the surging use of the e-discovery approach for finding electronic proof during investigations and litigation production is another key driver for the growth of the regional eDiscovery market.

Large Enterprises Category To Witness Faster Growth

The large enterprises category is projected to record a higher CAGR, around 10%, during the forecast period. This growth can be ascribed to the rapid adoption of regulatory and technological changes by large companies, they have vast corporate networks and various revenue streams, and their huge investments in tools to help them secure and manage critical information.

Furthermore, the small and medium-sized enterprises (SMEs) category is also expected to register significant growth in the coming years. This can be because SMEs are increasingly adopting e-discovery solutions, so as to meet regulatory requirements and improve their risk and compliance programs.

BFSI Is Largest Revenue Generator

Banking, financial services, and insurance (BFSI) accounted for the largest revenue share, of around 45%, in 2021, as this sector is increasingly adopting newer technologies and digital channels. The vertical, being a regulated industry, involves instant access to various records, including attachments, emails, and instant communications. Based on that, government agencies of different countries are increasingly implementing regulations imposing the retention of all outbound, inbound, and internal electronic communications, including emails and instant messages. This generates high demand for various solutions across the BFSI vertical, as these solutions aid to locate and restore critical data before the deadline.

Cloud-Based eDiscovery Software Dominates the Market

Cloud-based eDiscovery software holds the larger revenue share as it helps in cost saving, offers robust security, has infinite scalability, and it eliminates physical barriers. Further, the majority of key players are adopting cloud-based software to enhance internet proficiency and upgrade communication technologies.

Early Case Assessment Offers Lucrative Growth

The early case assessment category is projected to witness significant growth in the future. This can be because this type of solution aids in digital discovery for investigative and legal matters, can be easily incorporated with the existing infrastructure and also be deployed on the cloud, and plays important role in the reduction of data volume so as to save time and money.

Rapid Rise in ESI and Social Media Penetration Increases eDiscovery Demand

With the rising generation of electronic data, the need for litigation is also increasing. This has boosted the integration level of advanced technology within the legal world, thereby driving the demand and adoption of e-discovery solutions by various industries across the globe. These actions are mostly achieved by organizations that require electronically stored information (ESI) for improved management of their capital and resources, as well as maintenance of a large volume of information for civil litigation purposes. Globally, the market is also on the rise due to many organizations using this software for retrieving records from the huge data sets that span across an enterprise, and to erase the exact copies, to reduce the cost and efforts involved in reviewing the left-out content.

The increasing acceptance of social media across enterprises is also driving the demand for eDiscovery. Social media platforms, where many businesses today engage directly with their customers, make the online available data responsive to litigation. Multiple social media platforms, such as Facebook, Twitter, LinkedIn, and Instagram, are supporting the demand for e-discovery solutions for the purpose of discovering digital data. According to recent research, the volume of ESI is expected to grow by approximately 65–70% per year in large organizations. The prime reason for this is the increasing use of social media and advanced fact repositories such as smartphones and tablets, within an organization’s ecosystem.

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Predictive Coding Boosting eDiscovery Demand

The emergence of new and innovative tools has been transforming the whole process of e-discovery review over the past few years. The tools rely on a process called predictive coding, which is a cultured statistical algorithm that classifies the attributes of irrelevant and relevant credentials, during the review of a small subset of documents.

With the help of an iterative training process, predictive coding enables a lawyer with expert knowledge of the case and reviews the small subset of documents through a series of document sets generated by the program. After each set, based on the designation of a lawyer, the predictive coding system refines the traits of relevant versus irrelevant documents until the system itself determines no more continued training.

Moreover, the smart and intelligent strategy acts as an alternative approach providing clients with the best possible value, by delivering higher review quality under a well-controlled cost framework. Further, intelligent eDiscovery through predictive coding combines different reviews of experienced trial lawyers with automated analysis, delivering reliable and cost-effective results. Thus, this factor is globally escalating the demand for eDiscovery among lawyers.

Key Players in the eDiscovery Market Are:

• Microsoft Corporation
• IBM Corporation
• DISCO Corporation
• KLDiscovery
• Nuix Ltd.
• Onna Technologies Inc.
• CloudNine

Global eDiscovery Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Organization Size

• Large Enterprises
• Small- & Medium-Sized Enterprises

Based on Vertical

• Government & Public Sector
• Legal
• Banking, Financial Services, & Insurance (BFSI)
• Energy & Utilities
• Healthcare & Lifesciences
• Retail & Consumer Goods
• Manufacturing
• IT & Telecommunications

Based on Solution

• Software
  • On-premises
  • Cloud based
• Service
  • Professional
  • Managed

Based on Use Case

• Investigation
• Litigation & Legal Operations
• Early Case Assessment

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.