eDiscovery Daily Blog

eDiscovery Market Predicted to Reach $15.65 Billion by 2020 – eDiscovery Trends

Is the eDiscovery industry still growing?  According to one research firm, the answer is a resounding yes.

According to a new market report published by Transparency Market Research (eDiscovery Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020), the global eDiscovery market is forecast to reach $15.65 billion by 2020. The growth of eDiscovery market is driven by increasing volume of ESI (electronically stored information) every year in organizations and need to manage this huge data volume for civil litigation purpose. Emergence of social media such as Instagram, Linkedin and Facebook across the organizations is resulting in increasing demand for eDiscovery solutions that can be used for social media electronic discovery.

As noted in their press release, the Global eDiscovery market was valued at $5.56 billion in 2013 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.5% from 2014 to 2020. That’s a 281 percent total rise from 2013 to 2020!  The press release states that “Rising use of eDiscovery solutions in government and regulatory agencies is driving the growth of eDiscovery market. In government agencies, investigators and compliance officers use eDiscovery solutions to manage the increasing regulatory audits and investigations. Furthermore, legal and IT departments in large organizations have increased the usage of eDiscovery solutions. Organizations are deploying eDiscovery solutions for efficient information governance and internal investigations. In addition, emergence of social media in organizations is fueling the growth of eDiscovery market. However, high cost associated with services such as collection, processing and review is hindering the growth of eDiscovery market.”

Which end-use sector is the largest currently?  That would be government and regulatory agencies which accounted for 51.1% of the eDiscovery market revenue share in 2013. According to the report, this segment is “expected to dominate the eDiscovery market over the forecast period due to increasing civil litigations and regulatory audits.  In addition, governments of various countries such as Japan and South Africa are taking initiatives to implement eDiscovery process in their agencies and organizations. For example, in 2013, South African government introduced POPI (The Protection of Personal Information) legislation to promote deployment of eDiscovery solutions across all size of organizations to address issues related to investigation of electronic information and risks associated with it.”

“Geographically, North America is expected to remain the largest segment for eDiscovery market due to the growth in demand for eDiscovery software and services in offices to meet regulatory compliances. North America is anticipated to dominate this market throughout the forecast period due to the increasing use of eDiscovery solutions, especially across enterprises and law firms for early case assessment.”

Their report from two years ago (spanning 2010 to 2017) indicated that the global eDiscovery market was worth $3.6 billion in 2010 and was expected to reach $9.9 billion by 2017, growing at a CAGR of 15.4% during that time (virtually identical to the 15.5% CAGR they forecast in their latest report.

Their report also discusses topics such as pricing trends, competitor analysis, growth drivers, opportunities and inhibitors and provides company profiles of several big players in the industry.  The 86 page report is available in a single user license for $4,795 up to a corporate license for $10,795.

So, what do you think?  Do you agree with their forecast?  Please share any comments you might have or if you’d like to know more about a particular topic.

Disclaimer: The views represented herein are exclusively the views of the author, and do not necessarily represent the views held by CloudNine Discovery. eDiscoveryDaily is made available by CloudNine Discovery solely for educational purposes to provide general information about general eDiscovery principles and not to provide specific legal advice applicable to any particular circumstance. eDiscoveryDaily should not be used as a substitute for competent legal advice from a lawyer you have retained and who has agreed to represent you.