Lawful interception (LI) Market by End-user, Component and Geography- Forecast and Analysis 2023-2027

Lawful Interception (LI) Market Forecast 2023-2027

The Lawful Interception (LI) Market size is estimated to grow at a CAGR of 24.62% between 2022 and 2027. The market size is forecast to increase by USD 7.51 billion. The growth of the market depends on several factors, including increasing vulnerability to crime and terrorism, company compliance with standards and regulations governing lawful interception, and a rise in the volume of data traffic and security threats. Lawful interception is the process by which a service provider or a network operator collects and provides intercepted communications of any organization or individuals to law enforcement organizations to prevent fraud, crimes, and terrorism.

What will be the Size of the Lawful Interception Market During the Forecast Period?

To learn more about this report, View Report Sample

Segmentation

This market report extensively covers market segmentation by end-user (law enforcement agencies and enterprises), component (solutions and services), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-user

The law enforcement agencies segment is estimated to witness significant growth during the forecast period. One of the main factors that is significantly fuelling the growth of this segment is the growing need for investigating and prosecuting criminal activities. A government agency that is responsible for the enforcement of the laws is known as a law enforcement agency. Several countries across the world are enforcing various laws that require telecommunication providers to adhere to these laws as well as help law enforcement agencies with legally authorized requests to monitor, identify, and deliver electronic communication of people.

Get a glance at the market contribution of various segments View Free  PDF Sample

The law enforcement agencies segment was the largest segment and was valued at USD 838.71 million in 2017. The technical framework for legal interception. is mainly designed by international standardization bodies and national regulatory authorities. The main application of these law interception solutions is in criminal and safety investigations. There has been an increase in the use of these solutions to acquire evidence for court cases and recognize networks of relationships among suspected criminals. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

The increasing adoption of the solutions across enterprise segments is expected to increase market growth. Many companies are implementing personalized cloud servers for processing, analyzing, storing, and retrieving information. The main use of personalized cloud servers is that it is used to protect sensitive company data by leveraging firewalls. As critical data of the enterprise are sent to undesired destinations, these transmissions are intercepted with the help of the solutions. These solutions play a vital role in preventing potential risks such as fraud and malpractice. Hence, such factors are expected to drive market growth during the forecast period.

By Component

The increasing use of the solution segment in telecommunications is expected to increase market growth. The main components of solutions include devices, communication content, and network technology. There is a significant demand for solutions due to the emergence of several new communication protocols and channels, such as voice over Internet Protocol (VoIP), social media newsgroups, chat rooms, video conferencing, and IMS. Additionally, there is a growing adoption of this segment in VoIP communications, where it is used to capture information such as video, voice, and data network traffic and is distributed to law enforcement agencies in order to be decoded and interpreted. Hence, such factors are expected to drive market growth during the forecast period.

Low cost and high adoption of the services segment are expected to increase the market growth. It can either be installed on an operating system of the user, or users can opt to use the service of an independent service provider.   There is significant adoption of services across regions such as North America and Europe. Due to the availability of a huge volume of data, interception has become a significant challenge. As a result, several enterprises are adopting virtualized. These services are cheaper than their solution counterpart. Hence, such factors are expected to drive market growth during the forecast period.

Regional Overview

For more insights on the market share of various regions Download PDF Sample now!

North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main revenue-generating countries in the market in North America include the US and Canada. There is a significant presence of large telecommunication companies in North America. Some of the prominent telecommunication companies in North America include AT and T, Verizon, COMCAST, Charter Communications, and T-Mobile USA, INC. As a result, huge volumes of data are being transmitted through communication channels.

Moreover, it has fuelled the demand for these solutions in several law enforcement agencies, such as INTERPOL and the Federal Bureau of Investigation. Additionally, there is a rise in the number of criminal activities in the US which has fuelled the demand for these solutions in law enforcement agencies. Some of the major companies in North America that offer the solutions include AQSACOM, Inc; Cisco; NETSCOUT; SS8 Networks Inc.; and Verint. Such factors will increase the market growth in this region during the forecast period.

Market Dynamics and Customer Landscape

The market is experiencing significant growth due to the escalating demand for intelligence and surveillance solutions to combat cybercrimes and ensure public safety. Companies like AQSACOM Innovating Intelligence and BAE Systems are at the forefront, providing cutting-edge technologies for intercepting various communication modalities, including audio-video calls, digital images, and fax transmissions. Furthermore, stringent regulations such as California’s Online Protection Privacy Act and the Communications Assistance for Law Enforcement Act (CALEA) are driving the adoption of cloud-based interception solutions and prompting enterprises to invest in robust communication technologies.

With the increasing prevalence of cybercrimes and data breaches, there is a growing need for efficient interception capabilities to monitor cybernetic traffic and detect criminal activities in real-time. The proliferation of digitalization and cloud computing has further fueled the demand for lawful interception solutions as data traffic continues to surge across various communication devices and data centers. Additionally, the establishment of standards by organizations like the European Telecommunication Standards Institute (ETSI) is facilitating interoperability among interception systems, contributing to market growth. As enterprises prioritize compliance with cloud security regulations and enhance their capabilities to combat crimes, the lawful interception market is expected to witness continued expansion in the coming years.

Key Market Driver

The rise in data traffic and security threats serves as a primary driver for the market. With the proliferation of communication channels and the increasing use of smartphones, there has been a significant surge in communication traffic globally. This trend is particularly pronounced in countries like India and China, where VoIP penetration is high, facilitating voice calls from various locations. Consequently, the escalating volume of packet data presents new challenges in terms of cybersecurity, leading to a surge in cybercrimes and data breaches.

Moreover, the growing preference for data-based services over traditional voice calls among consumers further drives the need for lawful interception solutions. As enterprises and individuals increasingly rely on digital communication channels such as audio-video calls and data downloads, the demand for effective interception mechanisms rises to mitigate security risks. Governments and legal institutions recognize the criticality of intercepting cybernetic traffic to safeguard national security, thereby fueling the adoption of lawful interception solutions. In essence, the escalating data traffic and associated security concerns propel the growth of the lawful interception market by necessitating robust interception capabilities to combat cyber threats effectively.

Significant Market Trends

A key factor shaping the market growth is the growing popularity of virtualized lawful interception. There is an increasing adoption of virtualization and cloud computing services across the world. Some of the key benefits of the cloud computing paradigm include elasticity, scalability, and easy deployment of new applications and services. The rising use of cloud computing has fuelled the requirement for highly flexible and dynamic infrastructures that can handle different kinds of applications.

Moreover, the main benefit of the virtualization of modern data centers is that it offers an environment for cloud computing infrastructures as well as handles security, monitoring, and compliance risks. There is an increase in the adoption of virtualized solutions in order to enhance the security of these virtual networks. The main benefit of these solutions is that they enable bridging virtual traffic to physical monitoring tools. Thus it is expected to increase the demand for these solutions and positively impact market growth. Hence, such factors are expected to drive market growth during the forecast period.

Major Market Restrain

Security and privacy concerns are one of the key challenges hindering the market growth. The process of allowing law enforcement agencies with court orders or other legal authorization to selectively access individual subscribers and other private communications data over different communication channels is known as law interception. But, law interception can result in a wide range of inherent vulnerabilities and security issues.

Even though the interception of information regarding an individual or a group of persons is legally approved, there are several concerns related to these solutions in terms of accuracy, privacy, and security of data. One of the main concerns regarding this solution is that data breaches such that it can lead to illegal access to the information by any employee of the service providers. Thus, such concerns can negatively impact the market growth. Hence, such factors are expected to hinder the market growth during the forecast period.

Market Customer Landscape

The Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Lawful Interception Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AQSACOM Inc: The company offers lawful interception services for voice and data networks, covering PSTN, VoIP, CDMA, WCDMA, GSM, GPRS, LTE, Volte, IMS, ip, xDSL, satellite, e-mail, and other new communication technologies.

BAE Systems Plc: The company offers lawful interception systems such as bae systems data bridge.

Cisco Systems Inc: The company offers Cisco tap2 mib, which contains SNMP objects that control lawful intercepts on the router

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Dreamlab Technologies AG
• Incognito Software Systems Inc.
• IPS Intelligence and Public Security Spa
• Keysight Technologies Inc.
• Musarubra US LLC
• Pert Telecom Solutions Pvt. Ltd.
• Progress Software Corp.
• RCS ETM SICUREZZA Spa
• Signalogic Inc.
• SIO Spa
• SS8 Networks Inc.
• SSI PACIFIC PTY LTD.
• TelcoBridges Inc.
• Telefonaktiebolaget LM Ericsson
• Utimaco GmbH
• Verint Systems Inc.
• ZTE Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook
  • Law enforcement agencies
  • Enterprises
• Component Outlook 
  • Solutions
  • Services
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by the increasing demand for intelligence and surveillance solutions to combat cybercrimes and criminal operations. Government agencies and intelligence organizations are leveraging innovative technologies such as AQSACOM Innovating Intelligence to monitor communication modalities like voice communication, text messages, and audio-video calls. Compliance with lawful interception legislation, including regulations like California’s Online Protection Privacy Act and the Communications Assistance for Law Enforcement Act (CALEA), is driving the adoption of cloud-based interception solutions and real-time data analytics tools.

The market is further propelled by the rise in cybercrimes and terrorist networks, necessitating the monitoring of mobile data, mobile phone tracking systems, and digital images. Network operators and ISPs are implementing lawful interception procedures to track illegal online activities and ensure regulatory compliance. With the surge in demand for AI-powered monitoring and chatbots, the market is witnessing the selling of hardware, software, and lawful interception services. However, challenges such as high implementation costs and the lack of trained professionals hinder market growth despite the increase in data traffic volume and the adoption of technologically sophisticated crime detection technologies.

Lawful Interception Market Scope
Report Coverage	Details
Page number	160
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 24.62%
Market growth 2023-2027	USD 7.51 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	23.67
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 32%
Key countries	US, Canada, China, Japan, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AQSACOM Inc., BAE Systems Plc, Cisco Systems Inc., Dreamlab Technologies AG, Incognito Software Systems Inc., IPS Intelligence and Public Security Spa, Keysight Technologies Inc., Musarubra US LLC, Pert Telecom Solutions Pvt. Ltd., Progress Software Corp., RCS ETM SICUREZZA Spa, Signalogic Inc., SIO Spa, SS8 Networks Inc., SSI PACIFIC PTY LTD., TelcoBridges Inc., Telefonaktiebolaget LM Ericsson, Utimaco GmbH, Verint Systems Inc., and ZTE Corp.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

View PDF Sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. 

Get in touch