Forensic Accounting Market Expected to Reach $11.68 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Forensic Accounting Market," The forensic accounting market size was valued at $5.13 billion in 2021, and is estimated to reach $11.68 billion by 2031, growing at a CAGR of 8.8% from 2022 to 2031.

Forensic accounting is the examination of fraud and false representation of financial data. Forensic accounting solutions can help businesses to analyze financial data comprehensively. Moreover, forensic accounting solutions can automatically document their whole inquiry and store in a format that can be presented in court. Furthermore, key factors that drive rise in demand for work from home and remote working policies during the period of the COVID-19 pandemic led to growth of global remote and automated accounting solutions during the period, hence empowering the demand for forensic accounting solutions. Moreover, with sudden economic imbalance and large corporations increasing their market share during the period positively impacted the need for forensic accounting solutions. However, data privacy and sharing risks associated with forensic accounting solutions and services can hamper the forensic accounting market forecast. On the contrary, the integration of advanced tools such as machine learning and data analytics with forensic accounting solutions suites are expected to offer remunerative opportunities for expansion of the forensic accounting market during the forecast period.

On the basis of deployment model, the on-premise segment dominated the overall forensic accounting market in 2021, and is expected to continue this trend during the forecast period. This is attributed to custom offerings and higher privacy of on-premise forensic accounting solutions. However, the cloud segment is expected to witness highest growth, owing to their easier deployment capability that is anticipated to grow in the coming years, which would fuel growth of the global forensic accounting industry.

Region wise, the forensic accounting market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to its higher expenditure on technological solutions. This is expected to drive the market for forensic accounting solutions within the region during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growth in number of startups and the expanding business sector of the region, which is expected to fuel growth of forensic accounting solutions in the region in the coming years.

The economic impact and supply chain disruptions of COVID-19 pandemic caused severe financial strains on small-business owners and neighborhood retail stores. Furthermore, the social distancing and self-isolation further made it harder for small businesses enterprises to sustain during the period. According to a study conducted by Department of Economics, University of California, in March 2020, the U.S. witnessed a more than 22% drop in the number of active business owners during February 2020 to April 2020. Such significant reductions in the number of businesses in span of 2 months highlights the impact of COIVID-19 on global businesses. However, with businesses that did survive the initial waves of the pandemic, many of them started reporting unnatural sales numbers and fraudulent books to save on taxes and wages, this however fueled the need for effective forensic accounting solutions.

KEY FINDINGS OF THE STUDY

• By deployment model, the on premise segment accounted for the largest forensic accounting market share in 2021.
• By region, North America generated the highest revenue in 2021.
• By enterprise size, the large enterprise segment generated the highest revenue in 2021.

The key players profiled in the forensic accounting market analysis are Arbutus Software Inc., AccessData, BDO Global, CaseWare IDEA, Cellebrite, Cygna Labs Corp, Deloitte Touche Tohmatsu Limited, e-fense, Ernst & Young Global Limited, Fulcrum Management., Galvanize, KPMG International, Nuix, OpenText, Passware, PwC, and Sama Audit Systems & Software Pvt Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the forensic accounting industry.