Los Angeles, CA (PRWEB) August 22, 2012
Despite the recessionary period, IBISWorld estimates that revenue for the e-Discovery Consulting Services industry will increase 9.4% annually to $ 1.2 billion over the five years to 2012. During that time, the industry has benefited from the rising ubiquity of digital communication, which has increased the amount of electronically stored information (ESI), says IBISWorld industry analyst Kevin Culbert. The industry has grown as more individuals and businesses use text messages, social media and e-mail as primary means of communication. Rising ESI has caused demand for e-discovery to increase as a proportion of all discovery services, which is the legal process in which each side of a lawsuit obtains evidence from the opposing party.
During the five years to 2012, the industry’s growth has largely been caused by an increase in private investment in computers and software and a rising percentage of services conducted online. During that time, Culbert says the total annual expenditure by businesses on all information processing equipment and software has increased and the percentage of services conducted online has also risen. e-Discovery Consulting Services industry growth has also been boosted by an increasing number of mobile internet connections, which have skyrocketed over the past five years. These growth factors have caused industry demand to rise as electronic communication has become increasingly integrated into today’s society. The continued proliferation of electronic communication is expected to boost industry revenue 9.3% in 2012.
As a technology-based industry, research and development activities are high for e-discovery service providers and software developers. Top-tier companies spend millions of dollars annually to write new programs and develop innovative solutions to data retrieval, processing, management and review. Because e-discovery services and software operate in conjunction with existing technologies, like web-based applications and phone systems, keeping up-to-date with these external operating environments poses a major challenge. The recent proliferation of social media and expanding popularity of mobile technology also presents challenges as well as opportunities for industry firms to exploit.
In the five years to 2017, IBISWorld estimates that industry revenue will continue to increase, albeit at a slightly slower rate than the past five years. Industry operators will continue to benefit from the increasing use of electronic communication and need for ESI. In spite of rising demand, firms that specialize in e-discovery consulting are expected to face increasing competition from companies that develop e-discovery software. More industry operators are expected to be acquired by large software companies that are attempting to create a one-stop shop for e-discovery services. Still, the number of firms operating in the industry is expected to increase annually on average. Rising competition is expected to contribute to price competition among industry participants, a factor that will hamper profit growth in spite of rising demand. For more information, visit IBISWorlds e-Discovery Consulting Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides e-discovery services, usually for software and systems integration, which search, locate and secure data to use as evidence in court. Industry firms provide e-discovery consulting services, including collecting, processing and reviewing data, to end users like law firms, corporations, hospitals and government agencies. This industry excludes e-discovery software publishing, although some consulting firms may also develop their own software.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.