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, 2022 - 2030

Report Overview

The global legal services market size was valued at USD 901.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.3% during the forecast period. The legal sector has been revolutionized by the emergence of Artificial Intelligence (AI). Artificial intelligence (AI)-enabled software has played an essential role in allowing law firms and lawyers to save time. Automation software improves the efficiency of document creation and review. Team collaboration tools might help to simplify documentation procedures even more. These technological breakthroughs and advancements assist attorneys by lowering expenses and boosting comfort.

Advanced technologies such as Machine Learning (ML) and artificial intelligence (AI) help professionals automate some processes and utilize their resources and time on vital legal operations. These technologies enable businesses to draft and evaluate contracts and mining and due diligence of documents. Big data analytics is also projected to offer favorable growth prospects. This has driven the growth of startups such as FiscalNote, Ravel Law, and InvestCEE Tanacsado Kft., which provide quality and technologically advanced analytical insights to their clients.

Moreover, the usage of legal library applications such as NotaryCam, iLegal, and LawSauce Legislation has become familiar, assisting lawyers and people gain access to legal services conveniently. In-house digital strategies are also available from service providers to enhance and transform a company's activities and processes. Law firms can identify new unexplored correlations among data by using ML and AI to large datasets, enabling their increased capacity to mitigate risk, tailor solutions, optimize delivery, and forecast outcomes to consumer demands. Moreover, there has been a stable growth in the implementation of cloud technology by legal departments and law firms.

Services Insights

The corporate segment led the market in 2021, accounting for more than 25% share of the global revenue. The emergence of new types of financial transactions on corporate fronts is attributed to this high share. Additionally, the corporate segment is projected to be the leading service segment during the forecast period, as arguments over harassment of employees, and organizational discrimination audits, and copyright violation & patent infringement continue to rise. The rising demand for services associated with intellectual property in the corporate sector is projected to increase the growth of the segment.

The litigation segment held a considerable revenue share in 2021 as establishments continue to experience remarkable expenses in their litigation management. In addition, the service providers involved in third-party legal financing and litigation funding are gradually expanding their global capacity and diversifying their jurisdiction range. This has created numerous opportunities for litigation service providers. This has created multiple opportunities for litigation service providers. In both developed and developing countries, the enforcement of stringent regulations in labor relations and Intellectual Property (IP) protection has helped increase the demand for litigation services.

Firm Size Insights

The large firm division led the market in 2021, accounting for more than 36% share of the global revenue. Large firms' diversified range of services is attributed to this high share. For instance, large firms deliver most judicial work, such as large-scale litigations, significant business transactions, and criminal defense matters for businesses across various industries. The increased demand from large organizations for corporate, and judicial services is expected to drive the growth of the large firm segment during the estimated period.

Correspondingly, medium-sized, and small-sized legal services organizations are growing internationally by recruiting attorneys worldwide and opening offices worldwide. These firms are primarily targeting overseas clientele to assist them in managing their legal requirements. They're also expanding their global consumer base by providing high-end specialized services that involve complex transactions. Therefore, the medium-firm and small firm segments are anticipated to obtain remarkable revenue share during the estimated period steadily.

End-use Insights

In terms of end-use, the legal business firms sector accounted for a significant market share in 2021. The strategic investments done by legal service firms are attributed to this high share. The legal business firms invest in business development tactics, such as client education, pipeline management, local community activities, and public relations. This segment is also projected to show significant growth during the estimated period. Due to the stagnant growth of the market over the years, some firms have started to either lower their expenses or raise their rates since they find it challenging to maintain profitability.

Furthermore, law firms have begun to employ predictive analytics technologies to study massive datasets to extract information, recognize patterns, and forecast trends. Firms can improve their decision-making capabilities by using predictive analytical technologies. For instance, Intraspexion, Inc., a software startup based in the U. S., uses a deep learning model to advise businesses about potential legal issues and help them minimize legal outlays. Another noticeable development in the industry is a growing demand for Alternative Legal Services Providers (ALSPs), which is projected to encourage paralegals to establish new businesses.

Regional Insights

In terms of geography, North America accounted for more than 40% of the global market share. The growing assignment volumes within the legal divisions of the corporate industry in the U.S.Due to the wide availability of legal service providers, the U.S. has emerged as the top country in the North America market.

Furthermore, the growing number of acquisitions and mergers in the region amplifies the demand for legal services. The Asia Pacific accounted for a significant market share in 2020, due to the expeditious implementation of regulatory and legal requirements, particularly in China and India. For Instance, Legal service providers have begun to offer sophisticated cross-border judiciary services to their corporate clients in India, providing the country with enormous growth opportunities. Service providers such as Venable LLP, Baker & McKenzie, and Allen & Overy LLP have also entered the market in India, which is expected to boost the market growth in the coming years in the region.

Key Companies & Market Share Insights

Market players concentrate on growing their consumer base and acquiring a competitive advantage over their competitors. They are implementing various strategic initiatives, including collaborations, mergers and acquisitions, partnerships, and new product/technology development. In November 2021, Clifford Chance LLP partnered with Green Map System, Inc., an independent non-profit organization, to offer assistance and advice on the design and implementation of the International Guarantee Trust Fund program to facilitate the deployment of renewables on a large scale.

Similarly, In November 2021, EY announced its acquisition of TAO Leadership Development, Inc., a consultancy that focuses on enabling a fast-paced culture change and organizational transformation in enterprises. The acquisition aimed at accelerating the development of EY People Advisory Services by enhancing the firm’s highly respected technology-enabled transformational leadership and culture change skills. Some of the prominent players operating in the global legal services market include:

• 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

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 2030. 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 - 2030)

  • Taxation

  • Real Estate

  • Litigation

  • Bankruptcy

  • Labor/Employment

  • Corporate

• Firm Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Firms

  • Medium Firms

  • Small Firms

• Provider Outlook (Revenue, USD Billion, 2018 - 2030)

  • Private Practicing Attorneys

  • Legal Business Firms

  • Government Departments

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Argentina

    • Chile

  • Middle East and Africa