Four Eras of eDiscovery? One Approach to Framing Market Growth

With the understanding that there are many ways to construct a framework for considering and conversing about market growth over time, provided in a talking point format is one era-based approach that may be helpful for deconstructing time frames, market size, growth rates, and investment pulse rates for the eDiscovery market from 2002 through 2023. This era-based approach also attempts to put a memorable “face” on each defined growth period by associating each era with one prominent eDiscovery platform from that era.

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Typically used to highlight a span of time for purposes of chronology or historiography, the word era (1) is defined by the Merriam-Webster.com Dictionary as a period identified by some prominent figure or characteristic feature. (2) In researching data points on the size of the eDiscovery market from its inception through the reasonably forecastable future, it appears to be clear that, at best, the market can generally be described as one that has experienced an initial accelerated growth period followed by periods of strong, steady, and controlled growth. However, what seems less clear is how one might frame, describe, and delineate each of these growth periods, or eras, for study, comparison, and discussion.

With the understanding that there are many ways to construct a framework for considering and conversing about market growth over time, provided below in a talking point format* is one era-based approach that may be helpful for deconstructing time frames, market size, growth rates, and investment pulse rates for the eDiscovery market from 2002 through 2023. This era-based approach also attempts to put a memorable “face” on each defined growth period by associating each era with one prominent eDiscovery platform from that era.**

Talking Points: Four Eras of eDiscovery? One Approach to Framing Market Growth

Four Eras of eDiscovery: A General Chronological Overview 

  • The Concordance Era: 2002-2009
  • The Clearwell Era: 2009-2012
  • The Relativity Era: 2012-2018
  • The Next* Era: 2018-2023

The Concordance Era: Characterized by accelerated growth of a new market.

  • General Time Frame: 2002-2009
  • Estimated Market Size in 2002: $0.3B (3)
  • Estimated Market Size in 2009: $3B (4)
  • Market Compound Annual Growth Rate (CAGR): 38.95%
  • Technologies adapted for eDiscovery (1st Generation Platforms) or designed for specific tasks in eDiscovery (2nd Generation Platforms). (5)
  • Estimated Merger, Acquisition, and Investment (M&A+I) Events in eDiscovery: 69 (2002 – 2009) (6)

Figure 1: Market Size in the Concordance Era

The eDiscovery Market – The Concordance Era (2002-2009)

The Clearwell Era: Characterized by the strong growth of an expanding market.

  • General Time Frame: 2009-2012
  • Estimated Market Size in 2009: $3B (7)
  • Estimated Market Size in 2012: $4.73B (8)
  • Market CAGR: 16.39%
  • Technologies designed for specific tasks in eDiscovery (2nd Generation Platforms) or designed to integrate multiple tasks in eDiscovery (3rd Generation Platforms). (9)
  • Estimated M&A+I Events in eDiscovery: 91 (2010-2012) (10)

Figure 2: Market Size in the Clearwell Era

The eDiscovery Market – The Clearwell Era (2009-2012)

The Relativity Era: Characterized by the steady growth of an established market.

  • General Time Frame: 2012-2018
  • Estimated Market Size in 2012: $4.73B (11)
  • Estimated Market Size in 2018: $10.11B (12)
  • Market CAGR: 13.5%
  • Technologies designed to integrate multiple tasks in eDiscovery (3rd Generation Platforms) and designed for task automation (4th Generation Platforms). (13)
  • Estimated M&A+I Events in eDiscovery: 203 (2013-2018) (14)

Figure 3: Market Size in the Relativity Era

The eDiscovery Market – The Relativity Era (2012-2018)

The Next*** Era: Characterized by the controlled growth of an entrenched market.

  • General Time Frame 2018-2023
  • Estimated Market Size in 2018: $10.11B (15)
  • Estimated Market Size in 2023: $18.7B (Forecast) (16)
  • Market CAGR: 13.09% (Forecast)
  • Technologies designed for integration and automation of eDiscovery (4th Generation Platforms) and adopted to extend beyond traditional trigger-event initiated legal discovery to data-creation initiated data discovery (5th Generation Platforms). (17)(18)
  • Estimated M&A+I Events in eDiscovery: 34 (2019) (19)

Figure 4: Market Size in the Next Era

The eDiscovery Market – The Next Era (2018-2023)

Post Script: Framing the eDiscovery Market

There are many excellent resources for considering chronological and historiographical approaches to framing the eDiscovery market. This talking point approach developed around four eras of eDiscovery is only one of many ways to reflect on market growth over time. And it is highlighted only to serve as a potential starting point and a stimulus point for thoughtful research, descriptions, and discussions around this established segment of the legal technology market.


* A Talking Point Format is essentially an expanded outline that contains clear and easily remembered phrases and facts designed to help keep a presenter on topic.

**
The prominent association for each era could have just as easily been leading companies, notable developments, or pre-eminent delivery models, however, there are characteristics of the named eDiscovery platforms that transcend their specific capabilities and speak to era-wide offering characteristics.

*** The Next Era serves as the initial designation of the near term time frame from 2018-2023 where innovation and internationalization will be key drivers of sustained industry growth. The platform or engine that will define the next era is still to be determined as only time can provide the insight to name the era appropriately.


References

(1) En.wikipedia.org. (2019). Era. [online] Available at: https://en.wikipedia.org/wiki/Era [Accessed 13 Aug. 2019].

(2) Merriam-Webster.com. (2019). Definition of ERA. [online] Available at: https://www.merriam-webster.com/dictionary/era [Accessed 13 Aug. 2019].

(3) Austin, D. (2012). eDiscovery Trends: What Do Investment Bankers Think About the eDiscovery Industry? – CloudNine. [online] The eDiscovery Daily Blog. Available at: https://ediscovery.co/ediscoverydaily/electronic-discovery/ediscovery-trends-what-do-investment-bankers-think-about-the-ediscovery-industry/ [Accessed 13 Aug. 2019].

(4) Robinson, R. (2012). An eDiscovery Market Sizing Mashup?. [online] ComplexDiscovery. Available at: https://complexdiscovery.com/an-ediscovery-market-sizing-mashup/ [Accessed 13 Aug. 2019].

(5) Robinson, R. (2016). Considering Fourth Generation eDiscovery Technology Offerings: Two Approaches, Part One. [online] ComplexDiscovery. Available at: https://complexdiscovery.com/considering-fourth-generation-ediscovery-technology-offerings-two-approaches-part-one/ [Accessed 13 Aug. 2019].

(6) Robinson, R. (2019). An Abridged Look at the Business of eDiscovery: Mergers, Acquisitions, and Investments. [online] ComplexDiscovery. Available at: https://complexdiscovery.com/an-abridged-look-at-ediscovery-investing/ [Accessed 13 Aug. 2019]

(7) Robinson, An eDiscovery Market Sizing Mashup?

(8) Ibid.

(9) Robinson, Considering Fourth Generation eDiscovery.

(10) Robinson, An Abridged Look at the Business of eDiscovery.

(11) Robinson, An eDiscovery Market Sizing Mashup?

(12) Robinson, R. (2018). An eDiscovery Market Size Mashup: 2018-2023. [online] ComplexDiscovery. Available at: https://complexdiscovery.com/an-ediscovery-market-size-mashup-worldwide-software-and-services-overview-2018-2023/ [Accessed 13 Aug. 2019].

(13) Robinson, Considering Fourth Generation eDiscovery.

(14) Robinson, An Abridged Look at the Business of eDiscovery.

(15) Robinson, An eDiscovery Market Size Mashup: 2018-2023.

(16) Ibid.

(17) Robinson, Considering Fourth Generation eDiscovery.

(18) Robinson, R. (2019). Automating eDiscovery: A Strategic Framework. [online] ComplexDiscovery. Available at https://complexdiscovery.com/integrating-and-automating-ediscovery/ [Accessed 13 Aug.2019].

(19) Robinson, An Abridged Look at the Business of eDiscovery.

Additional Reading

Source: ComplexDiscovery

A Matter of Pricing? A Running Update of Semi-Annual eDiscovery Pricing Survey Responses

First administered in December of 2018 and conducted four times during the last two years with 334 individual responses, the semi-annual eDiscovery Pricing Survey highlights pricing on selected collection, processing, and review tasks. The aggregate results of all surveys as shared in the provided comparative charts may be helpful for understanding pricing and its impact on purchasing behavior on selected services over time.



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