India’s digital forensics market is projected to reach Rs. 11,924 crore (US$ 1.39 billion) over the next five years, growing at a compounded annual growth rate (CAGR) of 40%, compared to the global market size of Rs. 1,24,395 crore (US$ 14.5 billion). As of FY25, the domestic market is valued at Rs. 2,281 crore (US$ 265.9 million), while the global market stands at Rs. 55,763 crore (US$ 6.5 billion), according to a report by Deloitte and the Data Security Council of India (DSCI). Key growth drivers include compliance mandates by regulatory bodies such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Indian Computer Emergency Response Team (CERT-In), alongside enforcement of the Digital Personal Data Protection (DPDP) Act. Increased cybercrime, adoption of artificial intelligence (AI) and machine learning (ML), and digital transformation across sectors such as banking, financial services and insurance (BFSI), healthcare, and government are also accelerating demand.
Despite the growth potential, the sector faces challenges, including high costs, a lack of skilled professionals, and low awareness among small and medium enterprises (SMEs). To address these, the Centre, in 2024, introduced a scheme with a financial outlay of Rs. 2,254 crore (US$ 262.70 million) till 2029, focused on upgrading forensic labs and training staff. The report also highlighted the need for standardised tools and protocols to ensure the admissibility of digital evidence in courts. Partner at Deloitte India, Mr. Nikhil Bedi, emphasised the importance of integrating forensic readiness into digital strategies and investing in Indigenous tools, especially those designed to handle new-age technologies like cloud and mobile forensics. Incorporating AI and ML into forensic workflows will enhance speed, accuracy, and process automation, thereby strengthening India’s digital investigative capabilities.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.