|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 16.5 Billion||USD 27.3 Billion||14.5%||2018|
Forensic Accounting Services Market
The global forensic accounting services market size was worth around USD 16.5 billion in 2022 and is predicted to grow to around USD 27.3 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.5% between 2023 and 2030.
Accounting services used to investigate and evaluate financial crimes are known as forensic accounting services. To find white-collar crime, forensic accountants employ their expertise in accounting, auditing, and finance. To carry out investigations into financial improper conduct including fraud, embezzlement, and other types of financial misconduct, companies, people, or governmental bodies may hire them. The forensic accounting services market growth is driven by various factors including increasing financial crimes & frauds, globalization & complex transactions, high-profile corporate scandals, technological advancements, and increasing government initiatives.
Increasing demand for cloud-based forensic accounting solutions drives the market growth
The requirement for enhanced security and timely updates is driving growing demand for cloud-based forensic accounting solutions. Businesses may keep an eye on their finances at any time, from any location, using cloud-based forensic accounting tools. Additionally, collaboration and access to all financial data are made simpler by cloud-based forensic accounting systems. Furthermore, with cloud computing, it is now much simpler to ensure transparency and accountability in accounting services. Additionally, forensic accounting solutions in the cloud offer scalability and flexibility to improve corporate operations. Thus, the increased demand for cloud-based forensic accounting solutions significantly supports the global forensic accounting services market expansion.
High costs and lack of awareness hamper the market growth
Engaging in forensic accounting services can be costly, particularly for individuals and smaller organizations. Some potential clients can be discouraged from pursuing these services if they feel the expense of employing experts for investigations, analyses, and expert testimony is exorbitant. For instance, according to the 2020 ACFE compensation guide for anti-fraud professionals, the median compensation for a certified fraud examiner (CFE) is around USD 95,937.
In addition, the possibilities and advantages of forensic accounting services were unknown to many businesses and people. The market's expansion might be hampered by this lack of knowledge since prospective customers might not realize they need these services until they are in a financial emergency. Thus, this is expected to limit the forensic accounting services industry's growth during the forecast period.
Advancement in technology is expected to offer a lucrative opportunity for the market growth
The ability of forensic accounting solutions to integrate effectively with contemporary accounting tools and cutting-edge technology like artificial intelligence and machine learning will determine how successful they are in the future. In today's dynamic corporate climate, forensic accounting solutions that can seamlessly interact with other software or tools are crucial.
Additionally, the accounting sector is concentrating on cutting-edge technology like blockchain and artificial intelligence (AI) to expedite company processes. Optical character recognition (OCR) technology is also being adopted by industries to aid enterprises by reducing processing times and increasing corporate efficiency. For instance, the industry is growing since QuickBooks software has already started to interface with 600+ business apps, like PayPal and Google Calendar. Therefore, technological advancements are expected to offer a lucrative opportunity for forensic accounting services market growth over the forecast period.
The lack of skilled professionals acts as a major challenge to the market growth
A specialized mix of accounting experience, investigative abilities, and legal understanding are needed in the subject of forensic accounting. Finding specialists with these abilities might be difficult, which could result in a potential scarcity of skilled individuals in the industry. Therefore, the lack of skilled professionals is expected to act as a major challenge to market growth during the forecast period.
The global Forensic Accounting Services industry is segmented based on type, application, and region.
Based on the type, the global market is bifurcated into criminal & fraud investigation, bankruptcy proceedings, and risk management. The criminal and fraud investigation segment is expected to capture the largest market share over the forecast period. When a company or person is accused of committing a crime, criminal and fraud investigation services are offered.
To determine whether any illicit acts have occurred or not, forensic accountants utilize their expertise to examine financial records and other relevant documents. Forensic accountants specializing in AML investigations help financial institutions detect and prevent money laundering activities. They analyze financial transactions and patterns to identify suspicious activities and ensure compliance with AML regulations. Thereby, driving the segment growth.
Based on the application, the global forensic accounting services industry is bifurcated into banking & financial services, healthcare, retail, manufacturing, government & public sector, IT & telecom, and others. The banking & financial services segment is expected to hold the largest market share over the forecast period. Banking and financial institutions are particularly vulnerable to fraud due to the high volume of financial transactions.
Forensic accountants help detect and prevent various types of fraud, including internal and external fraud, credit card fraud, and electronic funds transfer fraud. They analyze transactions, identify irregularities, and develop strategies to strengthen internal controls and prevent future fraud. For instance, according to the Reserve Bank of India report, there were 13,530 fraud cases overall in the banking industry in FY2023. A bit under 49% of them, or 6,659 cases, involved online or digital payments. Thus, this is expected to drive market expansion over the forecast period.
|Report Attributes||Report Details|
|Report Name||Forensic Accounting Services Market Report|
|Market Size in 2022||USD 16.5 Billion|
|Market Forecast in 2030||USD 27.3 Billion|
|Growth Rate||CAGR of 6.5%|
|Number of Pages||222|
|Key Companies Covered||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 and Berkeley Research Group, among others.|
|Segments Covered||By Type, By Application, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America is expected to dominate the market during the forecast period
North America is expected to dominate the global forensic accounting services market over the forecast period. The market growth is driven by the region's strong financial industry, diverse economy, and established legal framework. Moreover, the North American region experienced a relatively high incidence of financial fraud, including cases of corporate fraud, securities fraud, Ponzi schemes, and insider trading.
For instance, consumers reported losing about $8.8 billion to fraud in 2022, up more than 30% from the year before, according to recently released Federal Trade Commission data. More consumers reported losing money to investment scams than any other category in 2022, totaling more than $3.8 billion.
The reported loss for 2021 is more than doubled by that sum. Imposter frauds accounted for the second-highest recorded loss amount, with losses of $2.6 billion, up from $2.4 billion in 2021. Therefore, the aforementioned facts are expected to drive market growth in the region during the projected period.
The Asia Pacific is expected to grow at the highest CAGR over the forecast period. The regional forensic accounting services market growth is attributed to economic growth and investments. The economies of several nations in the Asia Pacific area were expanding quickly, attracting international capital, and developing intricate corporate dealings.
To navigate complex financial environments and manage possible hazards, this rise produced a demand for forensic accountants. Additionally, to increase accountability and transparency, governments in the Asia-Pacific region were putting anti-corruption measures into place and improving regulatory frameworks. Through investigations and compliance procedures, forensic accountants supported these initiatives. Thereby, driving the market growth in the region.
The global Forensic Accounting Services market is dominated by players like:
Accounting services used to investigate and evaluate financial crimes are known as forensic accounting services. To find white-collar crime, forensic accountants employ their expertise in accounting, auditing, and finance. To carry out investigations into financial improper conduct including fraud, embezzlement, and other types of financial misconduct, companies, people, or governmental bodies may hire them.
The forensic accounting services market growth is driven by various factors including increasing financial crimes & frauds, globalization & complex transactions, high-profile corporate scandals, technological advancements, and increasing government initiatives.
According to the report, the global forensic accounting services market size was worth around USD 16.5 billion in 2022 and is predicted to grow to around USD 27.3 billion by 2030.
The global Forensic Accounting Services market is expected to grow at a CAGR of 6.5% during the forecast period.
The global Forensic Accounting Services market growth is expected to be driven by North America. It is currently the world’s highest revenue-generating market due to the increasing financial fraud.
The global Forensic Accounting Services market is dominated by players like 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 and Berkeley Research Group among others.
The Forensic Accounting Services market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.