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Legal Services Market Size & Growth, 2025 | Industry Trends Report

Legal Services Market Analysis Report By Services, By Firm Size, By Provider, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17620053  |  Published: August 2020  |  No of Pages: 100
Format: Electronic (PDF)  |  Industry: Technology  |  Publisher: Grand View Research

Industry Insights

The global legal services market size was accounted for USD 794.50 billion in 2018. It is projected to grow at a CAGR of 4.1% over the forecast period, 2019 to 2025. Growing trend of legal process outsourcing (LPO) is projected to create huge opportunities for market growth. The LPO service provides legal support offered by attorneys and legal professionals from third party providers. Increasing use of artificial intelligence applications in legal services is boosting the market growth. AI-enabled tools help in the analysis of documents required in law firms.

In Asia Pacific, AI-enabled services are gaining in popularity. For example, Wusong Technology, a Chinese company focuses on digitizing various functions using AI-enabled chatbots. These bots help in analytics and retrieving essential data of lawyers. This process reduces the workload and enhances efficiency of services. For instance, Cyril Amarchand Mangaldas has partnered with Kira systems for adopting AI-based services.

U.S. legal services market

Web-based solutions allows legal professionals to work from virtual locations. Some of the firms in legal services are collaborating with virtual assistant provider to support law practice. Virtual assistance help companies to reduce overhead costs, sick leave entitlement, and staff training management.

The adoption of lawyer chatbots for ease of access is also growing from past few years. Amendments of Federal rules of Civil Procedures help in obtaining electronic stored information such as e-calendars, voicemails, e-mails, and proportional litigation related to certain factors. These factors may increase the cost of electronic discovery process but help in litigation processes.

Services Insights

Based on services, the market is fragmented into real estate, taxation, corporate, litigation, bankruptcy, and labor/employment. In 2018, the litigation service segment held a market share of more than 27.0% in the overall market. The jurisdiction process is diversifying owing to litigation funding by different service providers. Moreover, litigation services are rising due to stringent rules regarding intellectual property (IP) rights, labor relations.

In addition, advancement in financial transactions in the corporate sector is increasing the focus on financial litigations. Furthermore, variation in the taxation regime is projected to significantly contribute to the economic growth of developing and developed countries. Several players offer tax advisory services to deal with judicial needs. Taxation service segment is expected to grow at the significant CAGR during the forecasted period.

Firm Size Insights

Depending on the firm size, the legal services market is segmented into small firms, medium firms, and large firms. In 2018, large firms held the largest market share of around 40.0% in the overall market. These firms handle large scale litigations, judicial work, criminal defense, and other business transactions. Additionally, increasing need for judicial in corporate services is anticipated to surge the market growth.

Small & medium sized firms are focusing on expanding their reach across the globe, thus, they are recruiting attorneys. For managing legal obligations these firms are looking after potential global clients. Medium sized firms also provide specialized services to increase their business across the global market.

Provider Insights

In 2018, legal business provider firms have led the market with highest share of over 45.0% in the overall market. Legal service provider companies are now focusing on reducing expenses and uplifting their rates as it increases the profitability of the service providers. The service providers are also spending on strategies such as pipeline management, client education, and public relations.

Global legal services market

Legal service firms utilize predictive analytics solutions for data extractions, determining patterns, and future trends. Predictive analysis tools help in decision-making procedures. For example, Intraspexion, Inc. use deep learning model for alerting companies regarding litigation risks, which also help in saving expenditure.

Regional Insights

North America is anticipated to lead the market with highest share by 2025. In the U.S., growing work pressure on legal department in corporate sector is mainly contributing to market growth. The companies are looking for service providers to offload their workloads. Additionally, strategic activities like mergers & acquisitions are also expected to complement market growth.

Asia Pacific is projected to grow at the significant CAGR during the forecasted period. Increasing regulatory, and judicial requirements across the countries such as China, and India is boosting the regional growth. For example, lawyers in India have started providing sophisticated judicial services for corporate clients. Major companies like Venable LLP, and Baker & McKenzie have introduced their facilities in Indian market.

Impact of COVID-19

COVID-19 outbreak has caused slowdown in the global economy. This is expected to represent stiff challenge to legal services sector. However, this impact is very less in legal services market than other sectors like airlines, travel & hospitality. Several companies such as KPMG, and Deloitte are adapting to flexible working/operating model with focus on remote client engagements.  

Companies are adopting digital solutions thus, technological advancement and rapid finance operations which uses predictive analytics is expected to boost the market growth. COVID-19 has caused slowdown in economy which in turn is projected to disrupt transactional practices. Litigation practices segment is anticipated to grow moderately over forecasted years.

Legal Services Market Share Insights

Leading players in the market include E&Y, Baker & McKenzie, KPMG, and Clifford Chance LLP. The key players in the market engage in developing new products using technological developments to remain competent in the market. For example, in 2018, Baker McKenzie has introduced AI-based platform called Lancelaw. Personal assistance offers personalized new pieces and information relevant to law profession.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America & Middle East & Africa

Country scope

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

Report coverage             

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

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global legal services market report on the basis of services, firm size, provider, and region:

• Services Outlook (Revenue, USD Billion, 2014 - 2025)
    • Taxation
    • Real Estate
    • Litigation
    • Bankruptcy
    • Labor/Employment
    • Corporate

• Firm Size Outlook (Revenue, USD Billion, 2014 - 2025)
    • Large Firms
    • Medium Firms
    • Small Firms

• Provider Outlook (Revenue, USD Billion, 2014 - 2025)
    • Private Practicing Attorneys
    • Legal Business Firms
    • Government Departments
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Argentina
        • Chile
    • Middle East & Africa (MEA)

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