Forensic Accounting Global Market Report 2024

The forensic accounting market size has grown strongly in recent years. It will grow from $5.31 billion in 2023 to $5.81 billion in 2024 at a compound annual growth rate (CAGR) of 9.5%. The growth observed in the historical period in forensic accounting can be attributed to various factors, including the rise in white-collar crimes, heightened focus on stringent regulatory compliance, concerns related to corporate governance, the globalization of businesses, and an increase in litigation and dispute resolution activities. These factors collectively contributed to the demand for forensic accounting services as organizations sought to address financial misconduct, adhere to regulations, and navigate legal complexities during the historic period.

The forensic accounting market size is expected to see strong growth in the next few years. It will grow to $7.95 billion in 2028 at a compound annual growth rate (CAGR) of 8.1%. The anticipated growth in the forecast period for forensic accounting can be attributed to several factors, including the escalation of cybersecurity threats, a heightened focus on fraud prevention, an expanding role in risk management, the involvement in complex financial transactions, and the growing regulatory scrutiny across industries. Major trends expected in the forecast period encompass the integration of machine learning for anomaly detection, a trend towards specialization in niche areas within forensic accounting, enhanced use of data analytics in investigations, an increased emphasis on continuous professional development for forensic accountants, and the integration of predictive analytics for more effective risk assessment. These trends collectively contribute to the projected growth and evolution of forensic accounting practices in the forecasted period.

The rising occurrences of fraud and cybercrimes in financial domains are anticipated to be primary drivers propelling the expansion of the forensic accounting market in the foreseeable future. Financial fraud encompasses deceptive activities manipulating financial records, transactions, or information for illicit gains, leading to monetary loss or misleading stakeholders through actions such as misrepresentation or embezzlement. This surge in fraudulent cases heightens the demand for specialized forensic accounting services, triggering growth in the forensic accounting market as organizations seek expertise in identifying, investigating, and preventing fraudulent activities. As reported in May 2023 by UK Finance, an association for the UK banking sector, authorized fraud losses due to financial fraud escalated to £485.2 million ($616 million), with a total of 207,372 cases in 2022, marking a 6% increase compared to 2021. Hence, the uptick in fraud and finance-related cybercrimes is steering the forensic accounting market.

The increasing preference for remote work setups is poised to contribute to the expansion of the forensic accounting market in the foreseeable future. Remote work, a modern employment approach where individuals execute their job roles from home instead of an office, can introduce complexities into financial transactions, particularly for multinational corporations and diverse businesses. These complexities may lead to accounting discrepancies, highlighting the necessity for forensic accounting expertise in uncovering financial irregularities and ensuring compliance with regulatory standards. According to a September 2022 report from the United States Census Bureau, the District of Columbia had the highest proportion of home-based workers (48.3%) among states and state equivalents in 2021. Alongside the District of Columbia, states such as Washington (24.2%), Maryland (24.0%), Colorado (23.7%), and Massachusetts (23.7%) also had significant proportions of individuals working from home. Hence, the rise in demand for remote work is propelling the growth of the forensic accounting market.

The evolving landscape of legal and regulatory challenges represents a significant constraint for the forensic accounting market. The intricate nature of regulations, diverse jurisdictions, industry-specific rules, and the necessity for compliance with data privacy, security, and whistleblower protection laws create a complex environment for forensic accountants. To navigate these complexities encompassing international cases, litigation risks, and rapid regulatory changes, forensic accountants must stay updated, collaborate with legal experts, uphold stringent ethical standards, and leverage technology to enhance investigative processes. For example, in June 2023, the Institute of Chartered Accountants of India (ICAI) sanctioned the Forensic Accounting and Investigation Standards (FAIS), formulated by industry experts. These standards aim to establish a framework for conducting forensic accounting and investigation services with the highest ethics, professionalism, and integrity, covering crucial aspects such as evidence collection, analysis, and reporting in forensic accounting and investigation. Therefore, the evolving legal and regulatory challenges are anticipated to impede the growth of the forensic accounting market in the coming years.

Key companies within the forensic accounting sector are prioritizing the integration of data analytics and artificial intelligence (AI) into forensic accounting practices, focusing on hyper-automated analytics platforms. These platforms aim to scrutinize financial data, detect irregularities, and unveil fraudulent activities, significantly enhancing investigative capabilities and providing pivotal insights for legal proceedings. An example is iAcuity Fintech Pvt. Ltd., an India-based fintech company that launched Fund Trail in March 2023, recognized as the world's first hyper-automated analytics platform. Fund Trail employs AI and big data to expedite investigations and monitor financial resource movements, assisting forensic auditors, law enforcement agencies, tax authorities, regulators, and financial institutions in conducting successful investigations. It provides valuable insights and aids in pinpointing anomalies and suspicious activities crucial for probing frauds, including embezzlement, loan fraud, financing of terrorism, money laundering, tax fraud, cybercrimes, bribery, corruption, and Ponzi schemes.

In July 2023, B. Riley Financial Inc., a prominent US-based provider of business and financial solutions, finalized the undisclosed acquisition of Crawford & Winiarski. This strategic move empowers B. Riley Financial Inc. with enhanced expertise garnered from Crawford & Winiarski, renowned for its proficiency in forensic accounting, consulting services, and deep insights into accounting, financial, and economic analysis. The acquisition is poised to bolster B. Riley Financial Inc.'s financial consulting division, leveraging Crawford & Winiarski's substantial knowledge in forensic accounting and consulting services within the industry. Crawford & Winiarski stands as a distinguished US-based firm specializing in forensic accounting and consulting.

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.

North America was the largest region in the forensic accounting market in 2023. 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 The countries covered in the forensic accounting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The forensic accounting market consists of revenues earned by entities by providing financial statement analysis, asset tracking, and fraud examination and investigation. The market value includes the value of related goods sold by the service provider or included within the service offering. The forensic accounting market also includes sales of forensic tools or software, auditing software, and accounting software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The main components of forensic accounting are solutions and services. Solutions refer to precise and integrated resolutions for addressing technological challenges, encompassing software, hardware, and strategic methodologies. These solutions are designed to investigate financial inconsistencies and track illegal transactions. They can be deployed in various models, such as on-premises, cloud-based, and tailored for small and medium enterprises (SMEs). Forensic accounting solutions find application across various industries, including banking, financial services, and insurance (BFSI), law enforcement agencies, government and public sector entities, accounting firms, and other verticals.

The forensic accounting market research report is one of a series of new reports that provides forensic accounting market statistics, including forensic accounting industry global market size, regional shares, competitors with a forensic accounting market share, detailed forensic accounting market segments, market trends and opportunities, and any further data you may need to thrive in the forensic accounting industry. This forensic accounting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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