What are the Historical Developments and Current Growth Metrics of the Forensic Accounting Market?
The forensic accounting market has seen considerable growth due to a variety of factors.
• In previous years, the forensic accounting market has seen impressive growth. Its size is forecasted to rise from $5.81 billion in 2024 to $6.29 billion in 2025, boasting a compound annual growth rate (CAGR) of 8.3%.
The growth experienced in the past can be credited to factors such as the rise in white-collar crimes, strict regulatory compliance, issues related to corporate governance, the globalization of businesses, litigation, and dispute resolution.
What Does Future Hold for The Forensic Accounting Market By 2029?
The forensic accounting market is expected to maintain its strong growth trajectory in upcoming years.
• The sector of forensic accounting is predicted to witness significant expansion in the coming years. It's projected to accelerate to a valuation of $8.66 billion by the year 2029, with a compound annual growth rate (CAGR) of 8.3%.
The reasons for this anticipated growth during the forecast period are numerous - escalating cybersecurity risks, a heightened awareness towards fraud deterrence, the expanding involvement in risk management, intricate financial dealings, and intensified regulatory investigation. The forecast period should also see several emerging trends, including the incorporation of machine learning for spotting discrepancies, specialization in specific fields, advanced utilisation of data analytics in probes, focus on ongoing professional advancement and the use of predictive analytics for risk appraisal.
What Are The Primary Growth Drivers In The Forensic Accounting Market?
The forensic accounting market's growth is predicted to be fueled by the growing occurrence of fraud and financial cybercrimes. Financial scams often involve deceptive activities where individuals or businesses manipulate financial data or transactions for illegal advantages, causing financial loss or misleading stakeholders. Such activities could include embezzlement or falsifying financial data. The steep rise in financial fraud cases creates a greater need for specific forensic accounting services. This need supports the expanded demand for forensic accounting as organizations seek expertise in fraudulent activity detection, investigation, and prevention. For example, UK Finance, a UK trade association for the banking industry, stated in May 2023 that authorized fraud losses amounting to around £485.2 million ($616 million) through financial scams were reported, with a total of 207,372 reported cases in 2022. This was an increase of 6% from 2021. Thus, the escalating events of fraud and financial-related cybercrimes drive the growth of the forensic accounting market. Rising demand for remote employment is anticipated to drive the forensic accounting market's growth. The work from home (or remote working) trend, where employees perform their job duties from home rather than in an office, has become more popular. This new work structure can make financial transactions especially complex for multinational corporations or businesses with varied operations. Such complexity can lead to accounting inconsistencies, necessitating forensic accounting skills to identify financial discrepancies and maintain regulatory adherence. In February 2023, the Office for National Statistics reported that around 38% of working adults in Great Britain carried out their jobs from home in 2022, increasing to roughly 40% in 2023. Therefore, the rising demand for remote employment is contributing to the growth of the forensic accounting market.
What Is The Segmentation Of The Global Forensic Accounting Market?
The forensic accounting market covered in this report is segmented –
1) By Component: Solution, Service
2) By Deployment Model: On Premise, Cloud
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises (SMEs)
4) By Industry Vertical: Banking, Financial Services And Insurance (BFSI), Law Enforcement Agencies, Government And Public Sector, Accounting Firms, Other Industry Verticals
Subsegments:
1) By Solution: Software, Tools, Platforms
2) By Service: Consulting, Investigation, Litigation Support, Expert Witness Services
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What Emerging Trends Are Influencing The Growth Of The Forensic Accounting Market?
Leading corporations in the forensic accounting market are emphasizing the incorporation of data analytics and artificial intelligence (AI) technologies, including hyper-automated analytics tools, to scrutinize financial data, spotlight anomalies, and disclose fraudulent behaviors, thus boosting their investigative capacity and yielding critical findings for legal matters. As an example, iAcuity Fintech Pvt. Ltd., a fintech enterprise based in India, debuted Fund Trail, the world's premier hyper-automated analytics platform, in March 2023. It employs AI and vast data resources to fast-track investigations and monitor the money flow for firms. Benefiting forensic auditors, law enforcement bodies, tax regulators, regulatory bodies, and financial institutions, this solution provides invaluable insights to conduct successful investigations. Further, it aids in pinpointing anomalies and questionable actions that are key to probing into frauds such as embezzlement, loan fraud, terrorism financing, money laundering, tax fraud, round-tripping, cybercrimes, bribery, corruption, and Ponzi schemes.
Who Are the Key Players In The Forensic Accounting Market?
Major companies operating in the forensic accounting market report are:
• Deloitte Touche Tohmatsu Limited
• PricewaterhouseCoopers International Limited
• Ernst & Young Global Limited
• KPMG International Limited
• BDO International Ltd.
• Grant Thornton Bharat LLP
• Baker Tilly US LLP
• FTI Consulting Inc.
• Crowe Horwath LLP (Crowe)
• Alvarez & Marsal Holdings LLC.
• Marcum Bernstein & Pinchuk LLP
• CohnReznick LLP
• Armanino LLP
• Friedman LLP
• Cellebrite DI Ltd.
• EisnerAmper LLP
• Citrin Cooperman & Company LLP
• Matson Driscoll & Damico LLP
• CaseWare International Inc.
• Galvanize Inc.
• Baltic Assist
• RGL Forensics
• Weaver & Tidwell LLP
• Farahat & Co.
• Arbutus Software Inc.
• Sama Audit Systems & Software Pvt Ltd.
• Cygna Labs Corporation
• Passware Inc.
• Fulcrum Management Consultants LLP
• Fox Forensic Accounting LLC
What Are The Regional Insights Into The Forensic Accounting Market?
North America was the largest region in the forensic accounting market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the forensic accounting market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
