Electronic discovery (eDiscovery) is the process of identifying, preserving, collecting, processing, reviewing, and producing electronically stored information (ESI) in the context of a legal or regulatory matter
As organizations increasingly rely on electronic data to conduct business, the volume of data subject to eDiscovery requests continues to grow exponentially.
In this blog post, we’ll explore key statistics related to eDiscovery, from market size and growth projections to the most common types of data involved in eDiscovery and the adoption of new technologies like technology-assisted review (TAR).
Key eDiscovery Statistics 2023 – MY Choice
- In 2020, the eDiscovery market size was estimated at $10.26 billion.
- The global eDiscovery software market is expected to grow at a CAGR of 11.4% from 2020 to 2027.
- The average cost of eDiscovery per gigabyte of data is $5,000 to $10,000.
- In 2019, the average time to close an eDiscovery matter was 14.8 months.
- The most common types of data involved in eDiscovery are emails (92%), documents (82%), and databases (62%).
- In 2020, the most common reason for eDiscovery requests was regulatory compliance (67%).
- The volume of data subject to eDiscovery requests is expected to increase by 50% annually.
- In 2020, 53% of legal professionals used technology-assisted review (TAR) to analyze data during eDiscovery.
- The adoption of cloud-based eDiscovery solutions is expected to increase by 25% annually.
eDiscovery Stats
| Statistics | Data |
| Most challenging market for the industry | North America (63%) |
| Second most challenging market | China (13%) |
| Global eDiscovery market size & share by 2026 | USD 24.12 billion |
| Combined eDiscovery software and services market spend in 2019 | $11.23B |
| Estimated Compound Annual Growth Rate from 2019 to 2024 | 12.93% |
| Estimated eDiscovery software market spend in 2019 | $3.39B (30.19% of the total market) |
| Estimated Compound Annual Growth Rate for software market from 2019 to 2024 | 13.05% |
| Estimated eDiscovery services market spend in 2019 | $7.84B (69.81% of the total market) |
| Estimated Compound Annual Growth Rate for services market from 2019 to 2024 | 12.88% |
| Market share estimation for eDiscovery software provider with $518M revenue | 15.28% of eDiscovery software market spend in 2019 |
| Market share estimation for eDiscovery software provider with $25M revenue | 0.737% of eDiscovery software market spend in 2019 |
eDiscovery Software Statistics
| Statistics | Data |
| Combined eDiscovery software and services market spend in 2019 | $11.23B |
| Estimated Compound Annual Growth Rate from 2019 to 2024 | 12.93% |
| Estimated eDiscovery software market spend in 2019 | $3.39B (30.19% of the total market) |
| Estimated Compound Annual Growth Rate for software market from 2019 to 2024 | 13.05% |
| Estimated off-premise software spending of worldwide eDiscovery software spending in 2019 | 54% |
| Estimated percentage of worldwide eDiscovery software and services spending outside the U.S. in 2019 | 37% |
| Estimated percentage of worldwide eDiscovery software and services spending by non-governmental entities in 2019 | 52% |
eDiscovery Market Size and Growth Projections
- In 2020, the eDiscovery market size was estimated at $10.26 billion.
- The global eDiscovery software market is expected to grow at a compound annual growth rate (CAGR) of 11.4% from 2020 to 2027.
- The average cost of eDiscovery per gigabyte of data is $5,000 to $10,000.
The eDiscovery market has been expanding rapidly in recent years as more organizations have been adopting digital tools and platforms to conduct their business operations.
The growth in the eDiscovery market has been driven by a number of factors, including the increasing volume of data that is being generated, the growing complexity of legal and regulatory requirements, and the adoption of new technologies like AI and machine learning.
In the coming years, the eDiscovery market is expected to continue to grow at a rapid pace, driven by the increasing adoption of digital technologies in all aspects of business.
| Statistics | Data |
| Estimated and actual eDiscovery search results | Microsoft Purview |
| Percentage of audience who worked remotely at least occasionally before the pandemic | 88% |
| Percentage of audience who used predictive coding related technologies at least on several occasions | 73% |
| Percentage of audience who used eDiscovery technology for matters not involving claims or disputes at least on several occasions | 58% |
| Estimated litigation costs in 2016 | Near $20 billion |
| Percentage of costs involved with eDiscovery industry spent on direct review of documentations | 70% |
| Expected industry revenue growth rate for the 5 year period ending in 2019 | 5.7% |
| Percentage of corporations that have not employed new eDiscovery technologies | 38% |
| Percentage of Chief Information Officers within the U.S. Government who say they are not confident in the quality of their eDiscovery programs | 75% |
| Most significant impact of the eDiscovery process | Variety, volume, and velocity of disparate data (49%) |
| Biggest challenge for eDiscovery professionals | Managing cross (51%) |
| Estimated percentage of worldwide eDiscovery centric services delivered by corporations and governments in 2019 | 73% |
| Estimated percentage of worldwide eDiscovery centric services delivered by corporations and governments by 2024 | 78% |
| Estimated percentage of worldwide eDiscovery centric services delivered by law firms in 2019 | 19% |
| Estimated percentage of worldwide eDiscovery centric services delivered by law firms by 2024 | 9% |
| Estimated percentage of eDiscovery centric services delivered by litigation support service providers in 2019 | 8% |
| Estimated percentage of eDiscovery centric services delivered by litigation support service providers by 2024 | 13% |
| Litigation cost accounts for more than 80% of total litigation spend in the U.S. | $42.1 billion a year |
| Attorneys spend up to 6 hours a day on non-billable work, including administrative tasks like document collection and configuring technology | According to Clio’s 2017 Legal Trends Report |
Time and Cost of eDiscovery
- In 2019, the average time to close an eDiscovery matter was 14.8 months.
- The average cost of eDiscovery per gigabyte of data is $5,000 to $10,000.
- In 2020, the most common reason for eDiscovery requests was regulatory compliance (67%).
The time and cost of eDiscovery are major concerns for organizations involved in legal or regulatory matters.
The time it takes to close an eDiscovery matter can be a major drain on resources, and the cost of eDiscovery can be significant, particularly when dealing with large volumes of data.
Regulatory compliance is a major driver of eDiscovery requests, as organizations are required to produce electronic data in response to legal or regulatory requests. This can be a complex and time-consuming process, requiring significant resources and expertise.
| Statistics | Data |
| Estimated annual business growth in eDiscovery consulting services in the US by 2023 | 6.1% |
| Estimated number of eDiscovery consulting services businesses in the US as of 2023 | 5,189 |
| Annualized business growth of eDiscovery consulting services in the US from 2017 to 2023 | 5.2% |
Types of Data Involved in eDiscovery
- The most common types of data involved in eDiscovery are emails (92%), documents (82%), and databases (62%).
- Social media data is becoming increasingly important in eDiscovery, with 53% of legal professionals reporting that they have had to collect social media data for litigation or investigation purposes.
- Audio and video data is also becoming more prevalent in eDiscovery, with 48% of legal professionals reporting that they have had to collect audio or video data for litigation or investigation purposes.
The types of data involved in eDiscovery are diverse and can include a wide range of electronic formats. Emails, documents, and databases are the most common types of data involved in eDiscovery.
However, social media data is becoming increasingly important, with legal professionals often needing to collect data from social media platforms like Facebook and Twitter in response to eDiscovery requests.
Audio and video data is also becoming more prevalent, particularly as more organizations rely on video conferencing and other forms of remote collaboration.
The Role of Technology in eDiscovery
- The volume of data subject to eDiscovery requests is expected to increase by 50% annually.
- In 2020, 53% of legal professionals used technology-assisted review (TAR) to analyze data during eDiscovery.
- The adoption of cloud-based eDiscovery solutions is expected to increase by 25% annually.
Technology is playing an increasingly important role in eDiscovery, with organizations turning to advanced tools and technologies to manage the growing volume of electronic data.
The volume of data subject to eDiscovery requests is expected to continue to grow at a rapid pace in the coming years, driven by the increasing adoption of digital technologies.
Technology-assisted review (TAR) is a popular tool that is used to analyze data during eDiscovery, helping organizations to identify relevant data more quickly and efficiently.
Cloud-based eDiscovery solutions are also becoming more prevalent, offering organizations a range of benefits, including greater scalability and flexibility.
eDiscovery Legal and Regulatory Compliance
- In 2020, the most common reason for eDiscovery requests was regulatory compliance (67%).
- The General Data Protection Regulation (GDPR) has had a significant impact on eDiscovery, with 69% of legal professionals reporting that they have had to manage GDPR-related data requests.
- The California Consumer Privacy Act (CCPA) has also had an impact on eDiscovery, with 53% of legal professionals reporting that they have had to manage CCPA-related data requests.
Legal and regulatory compliance is a major driver of eDiscovery requests, with organizations required to produce electronic data in response to legal or regulatory requests.
The General Data Protection Regulation (GDPR) has had a significant impact on eDiscovery, with organizations required to manage GDPR-related data requests in a compliant manner.
The California Consumer Privacy Act (CCPA) has also had an impact on eDiscovery, with organizations required to manage CCPA-related data requests.
eDiscovery Challenges and Risks
- The biggest challenge of eDiscovery is managing the volume of data, with 44% of legal professionals reporting that they struggle to find relevant data in the midst of a large volume of data.
- The risk of sanctions for non-compliance with eDiscovery requests is a major concern for organizations, with 50% of legal professionals reporting that they worry about the risk of sanctions.
The volume of data involved in eDiscovery can be a major challenge for organizations, with many struggling to manage the sheer volume of data that needs to be collected, processed, and analyzed.
This can make it difficult to find relevant data and can significantly increase the time and cost of eDiscovery.
The risk of sanctions for non-compliance with eDiscovery requests is also a major concern for organizations, with the potential for significant financial and reputational damage.
eDiscovery Cost of Litigation
- The cost of litigation is a major concern for organizations, with the average cost of litigation for a mid-sized company being $1.2 million per case.
- The cost of eDiscovery is a significant contributor to the cost of litigation, with eDiscovery costs accounting for 20-50% of the total cost of litigation.
The cost of litigation is a major concern for organizations, with many facing significant financial challenges as a result of litigation.
The cost of eDiscovery is a significant contributor to the cost of litigation, with eDiscovery costs accounting for a significant percentage of the total cost of litigation.
This can make it difficult for organizations to manage the cost of litigation and can significantly impact their bottom line.
eDiscovery Best Practices
- The use of project management tools is essential to effective eDiscovery, with 70% of legal professionals reporting that they use project management tools to manage eDiscovery projects.
- The use of a phased approach to eDiscovery, which involves breaking down the eDiscovery process into manageable phases, is an effective way to manage the volume of data and reduce costs.
Effective eDiscovery requires a range of best practices to be implemented, including the use of project management tools and a phased approach to eDiscovery.
Project management tools can help organizations to manage the complex and time-consuming eDiscovery process, while a phased approach can help to manage the volume of data and reduce costs.
By adopting best practices like these, organizations can navigate the complex world of eDiscovery with confidence and efficiency.
Conclusion
As electronic data continues to play an increasingly important role in business and personal communication, eDiscovery will continue to be a critical component of the legal landscape.
Understanding the key statistics related to eDiscovery, from market size and growth projections to the most common types of data involved in eDiscovery and the adoption of new technologies like TAR, is essential for organizations looking to effectively manage eDiscovery projects and reduce the cost and risk of litigation.
By adopting best practices like the use of project management tools and a phased approach to eDiscovery, organizations can navigate the complex world of eDiscovery with confidence and efficiency.
