USD 6.08 billion
Forensic Accounting Market Size, Share, Growth Analysis, By Component(Solution/Platform [Forensic Tools/ Software, Audit/Accounting Software, And Others] And Services), By End-User(Banking And Insurance, Law Enforcement Agencies, Government, Accounting Firm), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25S2048 |
Region:
Global |
Published Date: April, 2024
Pages:
223
|Tables:
65
|Figures:
72
Forensic Accounting Market Insights
Global Forensic Accounting Market size was valued at USD 6.08 billion in 2022 and is poised to grow from USD 6.64 billion in 2023 to USD 13.35 billion by 2031, growing at a CAGR of 9.13% during the forecast period (2024-2031).
The global forensic accounting market is poised for substantial growth in recent years. In the global Forensic Accounting market, there are several key factors that are shaping the dynamics of this industry and reflecting extensive trends in the increase in the buying of insurance covers, high incidence of fraudulence activities and increased partnership and share disputes in business organizations.
Based on SkyQuest in-depth study, we found that the advanced technologies that are being used to discover evidence concealed by fraudsters in various formats such as spreadsheets and files are transforming forensic accounting dealing with detection and prevention of crimes.
They do this by developing sophisticated means such as link analysis software which tracks money laundering through illegal transactions. Therefore, modern technology is facilitating forensic accountants in solving cases of financial crimes by collecting evidence that would have been impossible before using standard techniques.
Forensic accounting is benefitting the market mainly because it facilitates the oversight by professionals, elimination of cases involving fraud, and management of enterprises as far as the finances are concerned.
With the latest development in artificial intelligence, many people are recognizing the benefits that involve real-time monitoring and analysis of financial information, thus, driving the revenue growth of the market.
It also helps to avoid mishandling of data and development of alerts before any economic losses. This is why large corporations are forging partnerships to implement this technology on a global basis to thwart fraud occurrences.
For instance, Resistant AI, an AI, and Machine Learning (ML) Financial Crime Prevention Specialist, and ComplyAdvantage, financial industry’s leading source of AI-driven financial crime risk data and detection technology launched a financial crime solution across the U.S. and Europe.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Law Enforcement Agencies
Fastest Growth
Law Enforcement Agencies
Growth Rate
9.13% CAGR
Global Forensic Accounting Market ($ Bn)
Country Share for North America Region (%)
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Forensic Accounting Market Segmental Analysis
Global forensic accounting market is segmented based on component, end-user, and region. By component the market is segmented into solution/platform [forensic tools/ software, audit/accounting software, and others] and services. By end-user the market is segmented into banking and insurance, law enforcement agencies, government, accounting firms, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By End-User
The forensic accounting market is expected to be dominated by the law enforcement agencies category throughout the forecast period. Forensic accounting plays a vital role in helping law enforcement agencies deal with different aspects of financial investigations and financial crimes. The main objective of forensic accountants is to solve financial crimes like fraud, embezzlement, money laundering, corruption, and asset misappropriation. They analyze financial data, deals and documents in order to identify abnormalities, trace funds and put together evidence for criminal charges.
On the other hand, the Banking and insurance segment of forensic accounting will grow the fastest during the forecast period. There are many problems which forensic accounting can help deal with among them are fraud, risk management, compliance and financial investigations in the banking and insurance industry. Banks and insurance companies are helped by forensic accountants to adhere to the anti-money laundering regulations. They examine potential money laundering operations through due diligence investigations, evaluate profile customers and analyze financial transactions. They help in forming and executing proper AML policies and procedures, carry out AML audits, and assist with regulatory compliance on client identification, transaction monitoring, and reporting.
Global Forensic Accounting Market By End use
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Forensic Accounting Market Regional Insights
The global market for forensic accounting services is anticipated to be led by North America over the forecast period. The development of the market is fueled by the robust financial sector, varied economy and solid legal system of the region. Additionally, the North American region had one of the highest rates of financial fraud including corporate fraud, securities fraud, Ponzi schemes, and insider trading.
Based on our study, we found that, in 2022, consumers reported a fraud loss of about USD 8.8 billion, which is a more than 30% increase from the previous year. In 2022, more than 3.8 billion dollars were lost by consumers on fraudulent investment schemes, making it the top category. That is a sum that the reported loss for 2021 is more than doubled. There were approximately 6,500 reported cases involving imposter frauds leading to a loss amount of $2.6 billion compared to $2.4 billion from 2021. Hence, the preceding facts are anticipated to fuel market expansion in the region throughout the forecast period.
Additionally, The Asia Pacific is expected to grow at the highest compound annual growth rate at 10.2%. The economic growth and investments in the region have contributed to the development of the regional forensic accounting services market. There was a fast growth of various economies of Asia Pacific countries, which were attracting foreign capital, and forming sophisticated corporate relations. This rise led to the demand for forensic accountants to navigate complex financial environments and possible hazards. Governments in the Asia-Pacific region are also establishing anti-corruption measures and strengthening legal frameworks. The forensic accountants supported these initiatives through investigations and compliance procedures.
Global Forensic Accounting Market By Region
- Largest
- Fastest
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Forensic Accounting Market Dynamics
Drivers
Increasing demand for cloud-based forensic accounting solutions drives the market growth
- Forensic accounting practitioners have been implementing “cloud” based forensic accounting systems that enable them to expand or shrink computing abilities whenever necessary without complications. Therefore, this flexibility allows them to handle more data for investigation purposes and also perform complex analysis with minimal infra-structure expenses. Businesses no longer have to spend on costly equipment, software purchase and maintenance costs through cloud solutions. Instead of paying big sums for the initial capital costs, it is possible for them to subscribe and pay for the services that they need as they need them thus reducing their budget. This affordable price tag has made these Forensic accounting solutions more accessible to many organizations including SMEs.
- Such cloud-based solutions may seamlessly incorporate different accounting or finance systems like ERP, financial management software, and data analytics platforms. Data transfer is also automated and it minimizes errors because people do not have to manually enter data every time, leading to increased productivity.
- Forensic accounting should be integrated in strong conjunction with new technological developments like artificial intelligence and machine learning. In light of the rapidly transforming business environment, it is important to have forensic accounting solutions that can readily communicate with other software or equipment. Additionally, advancements in computer-aided accounting have been adopted for greater transparency. Secondly, enterprises can reduce the processing time by embracing optical character recognition (OCR), which industry has adapted for the same purpose of efficiency. For instance, a number of 600 plus corporate applications like Google Calendar and PayPal, are already interfacing with QuickBooks.
Restraints
High costs and lack of awareness hamper the market growth
- According to SkyQuest in-depth research, we found that there are cost implications in forensic accounting services, especially for the SMEs. Some potential clients may be deterred by the cost of employing experts for investigations, analyses and expert testimonials, which they consider costly. For example, as indicated in the 2020 ACFE compensation guide for anti-fraud professionals, the median CFE compensation is approximately USD 95,937. The fact that many business people and organizations were unaware of the potential and benefits of forensic accounting services, was also a factor. This lack of knowledge may slow down the market expansion as customers may not realize that they need these services until they are financially down. Hence, this will hinder the expansion of the forensic accounting services industry during the forecast period.
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Forensic Accounting Market Competitive Landscape
The Forensic Accounting market is growing due to significant R&D efforts by key industry players to diversify their product lines. Contracts, mergers and acquisitions, increased investments, and collaboration with other organizations are all examples of significant market changes. Furthermore, important industry players carefully plan several activities to expand their international footprint. The Forensic Accounting sector must deliver services at reasonable prices to grow and thrive in a tougher and more competitive market environment.
Top Player’s Company Profiles
- Deloitte
- PwC
- Ernst & Young
- Grant Thornton
- BDO International
- KPMG International
- FTI Consulting
- Baker Tilly
- Crowe Global
- RSM International
- Kroll
- AlixPartners
- Control Risks
- Alvarez & Marsal
- Forensic Risk Alliance (FRA)
- Charles River Associates
- Berkeley Research Group and More
Recent Developments
- In March 2023, Davies, which is a professional services and technology firm serving the insurance and heavily regulated markets, introduced a new forensic accounting service that is designed to optimize claims workflow. Davies has proposed an idea to boost its insurance clients’ value by providing their policyholders with a more streamlined claim system.
- In November 2022, Reveal-Brainspace revealed that Grant Thornton Australia, a leading independent assurance, tax and advice firm, had chosen Reveal’s market leading AI powered eDiscovery solution – Reveal 11 –to help optimize Reveal 11 technology will be used in all areas including forensic accounting and financial advising, investigations, digital forensics, employee fraud, and eDiscovery.
Forensic Accounting Key Market Trends
Use of advanced technologies such AI, ML, and data analytics is becoming more prevalent in the forensic accounting market
- A key trend in the global Forensic Accounting market is the uses of Artificial intelligence (AI), machine learning (ML), and data analytics which has revolutionized how financial fraud is detected and analyzed, boosting efficiency, accuracy, and effectiveness. Forensic accountants have gained advanced technologies that make their job easier and more reliable in tracing the complicated money trails of fraudulent activity. Artificial intelligence is able to recognize patterns in vast data and learn on their own which helps in spotting abnormalities that might be missed by manual means. By exposing machine learning algorithms to varied data sets, they get better and better. This in turn increases the chances of recognizing subtle nuances that might reveal a fraud ring. Given that financial crimes are dynamic, forensic accountants need to be proactive and have machine learning as a powerful tool to stay ahead of developing fraud tactics.
- Moreover, incorporation of data analytics enhances the forensic accountant’s ability to draw useful information out from huge financial records. Data analytics employs statistical models and algorithms in an attempt to expedite the detection of potential fraud as well as provide an insight into the existing trends and patterns. As a result, it gives a holistic perspective which helps a forensic accountant to develop a comprehensive case supported by necessary facts and insights for prosecution purposes or regulatory actions.
Forensic Accounting Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types of teams that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global forensic accounting market analyses, the market is undergoing a revolutionary phase that is triggered by a number of reasons to validate companies’ financial due process and mitigate financial risks in the business world. With this in mind, forensic accounting acts as a crucial precaution for businesses operating in a convoluted environment replete with fraud risks and regulatory hazards. The incorporation of complex tools such as AI, ML and data mining is re-envisioning the sphere of FDAA. The new technologies are catalyzing a paradigm shift by improving the efficiency with which fraud can be detected.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 6.08 billion |
| Market size value in 2031 | USD 13.35 billion |
| Growth Rate | 9.13% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Forensic Accounting Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Forensic Accounting Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Forensic Accounting Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Forensic Accounting Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Forensic Accounting Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Forensic Accounting Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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