GVR Report cover Legal Services Market Size, Share & Trends Report

Legal Services Market Size, Share & Trends Analysis Report By Services (Taxation, Real Estate, Litigation, Bankruptcy, Labor/Employment, Corporate), By Firm Size, By Provider, And Segment Forecasts, 2021 - 2028

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-3-68038-818-3
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 115

Report Overview

The global legal services market size was valued at USD 849.28 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. The introduction of Artificial Intelligence (AI) has transformed the legal industry. Software with AI capabilities plays a vital role in enabling lawyers and law firms to save time. Automation software enables more efficient document production and proofreading. Team collaboration software helps to further streamline the execution of documentation processes. These developments and technologies offer greater value to lawyers by helping them decrease their expenses and increase convenience.

U.S. legal services market size, by services, 2018 - 2028 (USD Billion)

Advanced technologies such as AI and Machine Learning (ML) aid professionals to automate several processes and utilize their time and resources on more critical legal operations. These technologies help organizations in drafting and reviewing contracts and mining documents in discovery and due diligence. Big data analytics is also expected to offer promising growth prospects. This has led to the growth of several startups such as InvestCEE Tanacsado Kft., FiscalNote, and Ravel law, which offer advanced analytical insights to their clients.

The use of legal library applications such as LawSauce, NotaryCam, and iLegal Legislation has become common, enabling people and lawyers to access legal services in a hassle-free manner. Service providers are also providing in-house digital strategies to transform and enhance a company’s processes and activities. By applying AI and ML to large datasets, law firms can identify former unknown correlations among data, thereby providing them with enhanced capacity to mitigate risk, optimize delivery, predict outcomes, and tailor solutions to consumer demands.

Furthermore, there has been a steady rise in the adoption of cloud technology by law firms and legal departments. The implementation of stricter rules and regulations is making cloud computing a safer space for managing critical files and client information. Cloud computing also facilitates the implementation of practice management software, which provides clients with access to documents via a client portal. Clio, MyCase, and NetDocuments are the most popular legal-specific cloud service providers.

Services Insights

The corporate segment led the legal services market in 2020, accounting for a 29.2% share of the global revenue. This high share can be attributed to the advent of new modes of financial transactions on corporate fronts. In addition, the corporate segment is expected to be the dominant service segment over the forecast period, as disputes over organizational discrimination and harassment of employees, audits, and patent infringement & copyright violation continue to rise. The increasing demand for services related to intellectual property within the corporate sector is anticipated to boost the growth of the segment.

The litigation segment held a significant revenue share in 2020 as business organizations continue to incur notable expenses on their litigation management. Besides, the service providers involved in third-party litigation funding and legal financing are progressively diversifying their jurisdiction range and expanding their global capacity. This has particularly brought growth opportunities for litigation service providers. The imposition of stringent regulations pertaining to areas such as Intellectual Property (IP) protection and labor relations, in both developing and developed countries, has contributed to the demand for litigation services.

Firm Size Insights

The large firms segment led the market in 2020, accounting for a 38.9% share of the global revenue. This high share can be attributed to the diverse range of services provided by large firms. For instance, large firms account for most of the judicial work, such as criminal defense matters, large-scale litigations, and major business transactions for enterprises across a variety of industries. The increasing stipulation for corporate judicial services from large organizations is anticipated to fuel the growth of the large firms segment over the forecast period.

Furthermore, small-sized and medium-sized legal services firms are expanding globally by opening offices worldwide and recruiting attorneys from around the world. These firms are particularly approaching international clients to help them in their legal obligations management. They are also offering high-end specialized services that involve complex transactions to expand their customer reach at the global level. Hence, the small firms and medium firms segments are expected to gradually obtain notable revenue share over the forecast period.

Provider Insights

The legal business firms segment led the market in 2020, accounting for a 46.2% share of the global revenue. This high share can be attributed to the strategic investments made by legal service firms. They are investing in business development strategies, such as pipeline management, client education, public relations, and local community activities. This segment is also expected to demonstrate notable growth over the forecast period. These business firms have started to either reduce their expenses or increase their rates, as they find it challenging to sustain profitability due to the stagnated growth of the market over the years.

Global legal services market share, by provider, 2020 (%)

Furthermore, legal business firms have started using predictive analytics tools for the analysis of massive datasheets for information extraction, pattern recognition, and trends prediction. Predictive analytical tools help firms in enhancing their decision-making capabilities. For instance, Intraspexion, Inc., a U.S.-based software company, deploys a deep learning model to notify organizations about potential litigation risks and to aid them in reducing legal outlays. Another trend perceptible in the market is the surge in preference for Alternative Legal Services Providers (ALSPs), which is anticipated to encourage paralegals to establish their independent business firms.  

Regional Insights

North America led the market in 2020, accounting for a 42.5% share of the global revenue. This high share can be attributed to the increasing assignment volumes within the legal departments of the corporate industry in the U.S. The U.S. has particularly emerged as the leading country in the North American market due to the wide presence of legal service providers. Moreover, the increasing mergers and acquisitions in the region are also contributing to the demand for these services.

Asia Pacific accounted for a considerable market share in 2020, which can be attributed to the rapid implementation of regulatory and judicial requirements, particularly in countries such as China and India. For instance, in India, legal service providers have begun offering sophisticated cross-border judicial services to their corporate clients, thereby bringing immense opportunities for growth in the country. Service providers such as Allen & Overy LLP, Venable LLP, and Baker & McKenzie have also established their footprint in India, which is anticipated to further fuel the regional market’s growth.           

Key Companies & Market Share Insights

Vendors active in the market are focusing on expanding their customer base and gaining a competitive edge over their rivals. They are adopting various strategic initiatives, including partnerships, mergers and acquisitions, collaborations, and new product/technology development. For instance, in November 2020, Clifford Chance, a U.K.-based multinational law firm, renewed its global partnership with the WEFCOS (Women's Forum for the Economy & Society). The partnership, first signed in November 2019, underscores the company’s commitment to showcasing the creativity and talent of women while fostering international cooperation. Similarly, in January 2020, Baker McKenzie, a U.S.-based multinational law firm, collaborated with SparkBeyond, an AI-based problem-solving platform provider, to implement SparkBeyond's technology to disrupt the industry. This technology is expected to help law firms predict what kind of services clients will demand. Some of the prominent players operating in the global legal services market are:

  • Baker & McKenzie

  • Clifford Chance LLP

  • Deloitte

  • DLA Piper

  • Ernst & Young (E&Y)

  • Kirkland & Ellis LLP

  • KPMG

  • LATHAM & WATKINS LLP

  • PwC

  • Skadden, Arps, Slate, Meagher & Flom LLP

Legal Services Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 882.06 billion

Revenue forecast in 2028

USD 1,196.01 billion

Growth rate

CAGR of 4.4% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Services, firm size, provider, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; Japan; India; Brazil; Argentina; Chile

Key companies profiled

Baker & McKenzie; Clifford Chance LLP; Deloitte; DLA Piper; Ernst & Young (E&Y); Kirkland & Ellis LLP; KPMG; LATHAM & WATKINS LLP; PwC; and Skadden, Arps, Slate, Meagher & Flom LLP

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global legal services market report based on services, firm size, provider, and region:

  • Services Outlook (Revenue, USD Billion, 2018 - 2028)

    • Taxation

    • Real Estate

    • Litigation

    • Bankruptcy

    • Labor/Employment

    • Corporate

  • Firm Size Outlook (Revenue, USD Billion, 2018 - 2028)

    • Large Firms

    • Medium Firms

    • Small Firms

  • Provider Outlook (Revenue, USD Billion, 2018 - 2028)

    • Private Practicing Attorneys

    • Legal Business Firms

    • Government Departments

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Brazil

      • Argentina

      • Chile

    • Middle East and Africa

Frequently Asked Questions About This Report

gvr icn

GET A FREE SAMPLE

gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...

gvr icn

NEED A CUSTOM REPORT?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

BBB icon D&B icon

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.