The global legal services industry is predicted to increase at a 4.6% CAGR during the forecast period from 2022 to 2032. The legal services market is estimated to garner a valuation of US$ 400 Billion by the end of 2022.
Development in the historical period was driven by significant economic growth in emerging nations, increasing mergers and acquisitions (M&A), higher consumer spending/more disposable income, and legal sector deregulation. Regulatory hurdles, skills shortages, and in-house legal teams raised pressure on traditional law firms, all of which hampered expansion over the historical period.
Rising demand for transactional practice areas, a developing legal IT industry, and globalization will fuel development in the future. Owing to this factor, the worldwide legal services market is anticipated to attain a value pool of US$ 627.12 Billion by the end of 2032. Rising prices and declining margins, a lack of transparency and consistent service quality, data security challenges and a reduction in free trade are all factors that might stymie future growth in the legal services business.
The rise of Artificial Intelligence has transformed the legal sector (AI). Artificial intelligence (AI)-enabled software has been critical in helping law firms and attorneys to save time. Document generation and review are more efficient when using automation technologies. Team collaboration tools may aid in further simplifying documentation methods. These technology innovations and discoveries benefit attorneys by cutting costs and increasing comfort.
| Attributes | Details |
|---|---|
| Legal Services Market CAGR (2022 to 2032) | 4.6% |
| Legal Services Market (2032) | US$ 627.12 Billion |
| Legal Services Market Attraction | The trend toward digitalization and increased usage of cutting-edge technology are expected to boost the growth of the legal services industry during the forecast period. |
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Digitization and Widespread use of Cutting-Edge Technology to Boost the Market
Legal firms are exploring digitization in order to expedite their procedures. Adoption of technology like artificial intelligence, cloud computing, machine learning, and big data analytics aids in quicker documentation, proofreading, and resource management. This results in cost savings and improved operational efficiency. These technologies can also match the rising demands of investors and clients by providing greater service delivery. Furthermore, growing legal regulations as well as heightened rivalry force businesses to invest in modern technology. Thus, increased digitalization and a trend toward automation are anticipated to drive the market of the legal services market throughout the forecast period.
Machine learning (ML) and artificial intelligence (AI) are advanced technologies that assist professionals in automating some activities and focusing their resources and time on critical legal tasks. These technologies enable organizations to design and assess contracts, as well as do document mining and due diligence. Big data analytics is also expected to increase at a rapid pace. This has fueled the emergence of businesses like FiscalNote, Ravel Law, and InvestCEE Tanacsado Kft., which supply their clients with high-quality, technologically enhanced analytical insights.
The legal services industry is likely to be driven by an increase in transactional practices during the forecast period. Transactional practice involves corporate, tax, and real estate work, as well as mergers and acquisitions investigation, preparation, and evaluation of papers for people and businesses. The multitude of mergers and acquisitions in several industries, including pharmaceutical, accounting, and technology, is expected to increase during the forecast period, owing to pharmaceutical companies seeking new possibilities to improve their product portfolios due to the patent expiration of popular drugs in 2023 to 2026.
One of the anticipated acquisitions is the purchase of Celgene, an American biotechnology company, by Bristol-Myers Squibb, a global biopharmaceutical company based in the United States, in order to create a leading biopharma company to address patients suffering from oncology, immunology, inflammation, and cardiovascular disease. Another significant transaction was Vista Equity Partners' $3.5 billion purchase of Pluralsight, an online training course provider. In Saudi Arabia, the predicted increase in M&A activity may be linked to government measures to diversify the Kingdom's economy and loosen laws governing foreign direct investment, which are backed by Vision 2030 economic reform. The legal services industry is likely to be driven by an increase in M&A activity across sectors and nations.
Rising Prices as well as Shrinking Margins Impede the Global Legal Services Market Growth
Economic development will result in salary rises as well as a shortage of trained employees in a skilled labor-intensive industry such as legal services. These rising input prices will put pressure on legal services businesses aiming to safeguard profits while maintaining service quality.
According to an Altmanweil poll conducted in 2017, about 95.4% of law firms said that price competitiveness was a significant trend influencing the legal services market and harming their profit margins. Rising legal service expenses are projected to limit the legal services market's expansion.
Principal Consultant
ALSPs are rapidly appearing in the legal business. They are essentially in the law industry and offer a variety of everyday legal services to businesses and law firms. ALSPs handle a wide range of responsibilities for businesses, including document review, litigation, contract life cycle management, compliance, and legal entity management.
This improves the efficiency of law firms by allocating resources more wisely, resulting in cost savings. ALSPs also employ technology to accelerate the value chain in legal services. Thus, over the projection period, ALSPs will generate profitable chances for the expansion of legal services.
Based on services, the global legal services market can be segmented into taxation, real estate, litigation, bankruptcy, labor/employment, and corporate. Based on firm size, the worldwide legal services market can be segmented into large firms, medium firms, and small firms. Based on the provider, the international legal services market can be segmented into private practicing attorneys, legal business firms, government departments, and others.
As per the analysis, on the basis of service type, the corporate segment led the market in 2021, accounting for more than 25% of worldwide sales. This large percentage is due to the advent of new sorts of financial transactions on business fronts. Furthermore, the corporate category is forecasted to be the dominant service segment during the projection period from 2022 to 2032, as disputes over employee harassment, organizational discrimination audits, and copyright and patent infringement continue to soar. The amplifying demand for intellectual property-related services in the business sector is anticipated to drive the segment's expansion.
In 2021, the litigation segment had a significant revenue share as establishments continued to incur significant expenditures in their lawsuit management. Moreover, third-party legal finance and lawsuit funding service providers are gradually increasing their global capability and widening their jurisdiction range. This has opened up a plethora of prospects for litigation service providers. The implementation of severe labor relations and intellectual property (IP) protection legislation in both developed as well as in emerging nations has contributed to an increase in demand for litigation services.
On the other hand, by firm size, the big firm division led the market in 2021, accounting for more than 36% of worldwide sales. This substantial percentage can be due to large enterprises' diverse variety of services. For example, big firms handle the majority of judicial work, such as large-scale litigations, substantial corporate transactions, and criminal defense proceedings for companies in a variety of sectors. The amplifying demand for corporate and judicial services from big organizations is likely to boost the expansion of the large company category throughout the predicted period.
Similarly, medium- and small-sized legal services firms are expanding globally by recruiting attorneys and building offices overseas. These businesses generally target international clients to aid them in handling their legal needs. They are also broadening their worldwide consumer base by offering high-end specialist services involving complicated transactions. As a result, the medium-firm and small-firm categories are expected to maintain a significant revenue share during the forecast period.
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Geographically, North America led the market, accounting for more than 40% of worldwide legal service deployment. The United States has emerged as the market leader in North America. In 2020, increased assignment volumes among corporate legal departments in the United States can be linked to a high share of the North America area. Because of the enormous presence of legal service providers, the United States has emerged as one of the major countries in the North American area. Furthermore, increased acquisitions and mergers in the North American region are projected to increase demand for legal services.
Additionally, the rise of the European legal services market during the forecast period between 2022 and 2032 can be attributed to a significant number of law professionals providing legal services to customers in countries such as Spain. Aside from that, a large number of law firms in countries such as the United Kingdom and Germany are outsourcing their legal services to countries such as India and the Philippines in order to avoid incurring huge costs on legal services, which will propel market growth in the continent over the next decade.
On the other hand, due to the rapid adoption of regulatory and legal requirements, notably in China as well as India, Asia Pacific accounted for a substantial market share in 2020. For example, legal service providers in India have begun to offer sophisticated cross-border court services to their corporate clients, creating significant development potential for the nation. Service providers like Venable LLP, Baker & McKenzie, and Allen & Overy LLP have also joined the Indian market, which is projected to enhance the market growth in the area in the future years.
| Countries | CAGR (2022 to 2032) |
|---|---|
| United States of America | 4.5% |
| United Kingdom | 4.4% |
| China | 4.3% |
| Japan | 4.2% |
| India | 4.3% |
Market participants are focused on increasing their consumer base and gaining a competitive advantage over their competitors. They are carrying out a number of strategic activities, including collaborations, mergers and acquisitions, partnerships, and the creation of new products and technologies. Among the main participants in the global legal services industry are:
Recent key developments among players are:
In November 2021, Clifford Chance LLP joined Green Map System, Inc., an independent non-profit organization to provide support and advice on the design and execution of the International Guarantee Trust Fund initiative to promote large-scale renewable energy installations.
| Report Attributes | Details |
|---|---|
| Growth Rate | 4.6% CAGR from 2022 to 2032 |
| Market Value in 2022 | US$ 400 Billion |
| Market Value in 2032 | US$ 627.12 Billion |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in US$ Million and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
|
| Regions Covered |
|
| Key Countries Profiled |
|
The global Legal Services market is estimated at US$ 400 Billion in 2022
The global legal services market is estimated at US$ 627.12 Billion by 2032
The global legal services market is forecasted to expand at a 4.6% growth rate till 2032
The USA market is anticipated to exhibit a 4.5% CAGR from 2022 to 2032
India is projected to garner a 4.3% CAGR during the forecast period
The corporate segment is likely to expand at 4.5% CAGR in the forecast period.
1. Executive Summary | Legal Services Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032
4.1. Historical Market Size Value (US$ Million) Analysis, 2017 to 2021
4.2. Current and Future Market Size Value (US$ Million) Projections, 2022 to 2032
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute Opportunity Analysis
5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Services
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Services, 2017 to 2021
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Services, 2022 to 2032
5.3.1. Taxation
5.3.2. Real Estate
5.3.3. Litigation
5.3.4. Bankruptcy
5.3.5. Labor/Employment
5.3.6. Corporate
5.4. Y-o-Y Growth Trend Analysis By Services, 2017 to 2021
5.5. Absolute Opportunity Analysis By Services, 2022 to 2032
6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Firm Size
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Firm Size, 2017 to 2021
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Firm Size, 2022 to 2032
6.3.1. Large Firms
6.3.2. Medium Firms
6.3.3. Small Firms
6.4. Y-o-Y Growth Trend Analysis By Firm Size, 2017 to 2021
6.5. Absolute Opportunity Analysis By Firm Size, 2022 to 2032
7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Provider
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By Provider, 2017 to 2021
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Provider, 2022 to 2032
7.3.1. Private Practicing Attorneys
7.3.2. Legal Business Firms
7.3.3. Government Departments
7.4. Y-o-Y Growth Trend Analysis By Provider, 2017 to 2021
7.5. Absolute Opportunity Analysis By Provider, 2022 to 2032
8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2017 to 2021
8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2022 to 2032
8.3.1. North America
8.3.2. Latin America
8.3.3. Europe
8.3.4. Asia Pacific
8.3.5. Middle East and Africa
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2021
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2022 to 2032
9.2.1. By Country
9.2.1.1. United States of America
9.2.1.2. Canada
9.2.2. By Services
9.2.3. By Firm Size
9.2.4. By Provider
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Services
9.3.3. By Firm Size
9.3.4. By Provider
9.4. Key Takeaways
10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2021
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2022 to 2032
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Services
10.2.3. By Firm Size
10.2.4. By Provider
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Services
10.3.3. By Firm Size
10.3.4. By Provider
10.4. Key Takeaways
11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2021
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2022 to 2032
11.2.1. By Country
11.2.1.1. Germany
11.2.1.2. United Kingdom
11.2.1.3. France
11.2.1.4. Spain
11.2.1.5. Italy
11.2.1.6. Rest of Europe
11.2.2. By Services
11.2.3. By Firm Size
11.2.4. By Provider
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Services
11.3.3. By Firm Size
11.3.4. By Provider
11.4. Key Takeaways
12. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2021
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2022 to 2032
12.2.1. By Country
12.2.1.1. China
12.2.1.2. Japan
12.2.1.3. South Korea
12.2.1.4. India
12.2.1.5. Malaysia
12.2.1.6. Singapore
12.2.1.7. Australia
12.2.1.8. New Zealand
12.2.1.9. Rest of Asia-Pacific (APAC)
12.2.2. By Services
12.2.3. By Firm Size
12.2.4. By Provider
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Services
12.3.3. By Firm Size
12.3.4. By Provider
12.4. Key Takeaways
13. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2021
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2022 to 2032
13.2.1. By Country
13.2.1.1. GCC Countries
13.2.1.2. South Africa
13.2.1.3. Israel
13.2.1.4. Rest of Middle East and Africa
13.2.2. By Services
13.2.3. By Firm Size
13.2.4. By Provider
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Services
13.3.3. By Firm Size
13.3.4. By Provider
13.4. Key Takeaways
14. Key Countries Market Analysis
14.1. United States of America
14.1.1. Pricing Analysis
14.1.2. Market Share Analysis, 2021
14.1.2.1. By Services
14.1.2.2. By Firm Size
14.1.2.3. By Provider
14.2. Canada
14.2.1. Pricing Analysis
14.2.2. Market Share Analysis, 2021
14.2.2.1. By Services
14.2.2.2. By Firm Size
14.2.2.3. By Provider
14.3. Brazil
14.3.1. Pricing Analysis
14.3.2. Market Share Analysis, 2021
14.3.2.1. By Services
14.3.2.2. By Firm Size
14.3.2.3. By Provider
14.4. Mexico
14.4.1. Pricing Analysis
14.4.2. Market Share Analysis, 2021
14.4.2.1. By Services
14.4.2.2. By Firm Size
14.4.2.3. By Provider
14.5. Germany
14.5.1. Pricing Analysis
14.5.2. Market Share Analysis, 2021
14.5.2.1. By Services
14.5.2.2. By Firm Size
14.5.2.3. By Provider
14.6. United Kingdom
14.6.1. Pricing Analysis
14.6.2. Market Share Analysis, 2021
14.6.2.1. By Services
14.6.2.2. By Firm Size
14.6.2.3. By Provider
14.7. France
14.7.1. Pricing Analysis
14.7.2. Market Share Analysis, 2021
14.7.2.1. By Services
14.7.2.2. By Firm Size
14.7.2.3. By Provider
14.8. Spain
14.8.1. Pricing Analysis
14.8.2. Market Share Analysis, 2021
14.8.2.1. By Services
14.8.2.2. By Firm Size
14.8.2.3. By Provider
14.9. Italy
14.9.1. Pricing Analysis
14.9.2. Market Share Analysis, 2021
14.9.2.1. By Services
14.9.2.2. By Firm Size
14.9.2.3. By Provider
14.10. China
14.10.1. Pricing Analysis
14.10.2. Market Share Analysis, 2021
14.10.2.1. By Services
14.10.2.2. By Firm Size
14.10.2.3. By Provider
14.11. Japan
14.11.1. Pricing Analysis
14.11.2. Market Share Analysis, 2021
14.11.2.1. By Services
14.11.2.2. By Firm Size
14.11.2.3. By Provider
14.12. South Korea
14.12.1. Pricing Analysis
14.12.2. Market Share Analysis, 2021
14.12.2.1. By Services
14.12.2.2. By Firm Size
14.12.2.3. By Provider
14.13. Malaysia
14.13.1. Pricing Analysis
14.13.2. Market Share Analysis, 2021
14.13.2.1. By Services
14.13.2.2. By Firm Size
14.13.2.3. By Provider
14.14. Singapore
14.14.1. Pricing Analysis
14.14.2. Market Share Analysis, 2021
14.14.2.1. By Services
14.14.2.2. By Firm Size
14.14.2.3. By Provider
14.15. Australia
14.15.1. Pricing Analysis
14.15.2. Market Share Analysis, 2021
14.15.2.1. By Services
14.15.2.2. By Firm Size
14.15.2.3. By Provider
14.16. New Zealand
14.16.1. Pricing Analysis
14.16.2. Market Share Analysis, 2021
14.16.2.1. By Services
14.16.2.2. By Firm Size
14.16.2.3. By Provider
14.17. GCC Countries
14.17.1. Pricing Analysis
14.17.2. Market Share Analysis, 2021
14.17.2.1. By Services
14.17.2.2. By Firm Size
14.17.2.3. By Provider
14.18. South Africa
14.18.1. Pricing Analysis
14.18.2. Market Share Analysis, 2021
14.18.2.1. By Services
14.18.2.2. By Firm Size
14.18.2.3. By Provider
14.19. Israel
14.19.1. Pricing Analysis
14.19.2. Market Share Analysis, 2021
14.19.2.1. By Services
14.19.2.2. By Firm Size
14.19.2.3. By Provider
15. Market Structure Analysis
15.1. Competition Dashboard
15.2. Competition Benchmarking
15.3. Market Share Analysis of Top Players
15.3.1. By Regional
15.3.2. By Services
15.3.3. By Firm Size
15.3.4. By Provider
16. Competition Analysis
16.1. Competition Deep Dive
16.1.1. Baker & McKenzie
16.1.1.1. Overview
16.1.1.2. Product Portfolio
16.1.1.3. Profitability by Market Segments
16.1.1.4. Sales Footprint
16.1.1.5. Strategy Overview
16.1.1.5.1. Marketing Strategy
16.1.2. Clifford Chance LLP
16.1.2.1. Overview
16.1.2.2. Product Portfolio
16.1.2.3. Profitability by Market Segments
16.1.2.4. Sales Footprint
16.1.2.5. Strategy Overview
16.1.2.5.1. Marketing Strategy
16.1.3. Deloitte
16.1.3.1. Overview
16.1.3.2. Product Portfolio
16.1.3.3. Profitability by Market Segments
16.1.3.4. Sales Footprint
16.1.3.5. Strategy Overview
16.1.3.5.1. Marketing Strategy
16.1.4. DLA Piper
16.1.4.1. Overview
16.1.4.2. Product Portfolio
16.1.4.3. Profitability by Market Segments
16.1.4.4. Sales Footprint
16.1.4.5. Strategy Overview
16.1.4.5.1. Marketing Strategy
16.1.5. Ernst & Young (E&Y)
16.1.5.1. Overview
16.1.5.2. Product Portfolio
16.1.5.3. Profitability by Market Segments
16.1.5.4. Sales Footprint
16.1.5.5. Strategy Overview
16.1.5.5.1. Marketing Strategy
16.1.6. Kirkland & Ellis LLP
16.1.6.1. Overview
16.1.6.2. Product Portfolio
16.1.6.3. Profitability by Market Segments
16.1.6.4. Sales Footprint
16.1.6.5. Strategy Overview
16.1.6.5.1. Marketing Strategy
16.1.7. KPMG
16.1.7.1. Overview
16.1.7.2. Product Portfolio
16.1.7.3. Profitability by Market Segments
16.1.7.4. Sales Footprint
16.1.7.5. Strategy Overview
16.1.7.5.1. Marketing Strategy
16.1.8. LATHAM & WATKINS LLP
16.1.8.1. Overview
16.1.8.2. Product Portfolio
16.1.8.3. Profitability by Market Segments
16.1.8.4. Sales Footprint
16.1.8.5. Strategy Overview
16.1.8.5.1. Marketing Strategy
16.1.9. PwC
16.1.9.1. Overview
16.1.9.2. Product Portfolio
16.1.9.3. Profitability by Market Segments
16.1.9.4. Sales Footprint
16.1.9.5. Strategy Overview
16.1.9.5.1. Marketing Strategy
16.1.10. Skadden
16.1.10.1. Overview
16.1.10.2. Product Portfolio
16.1.10.3. Profitability by Market Segments
16.1.10.4. Sales Footprint
16.1.10.5. Strategy Overview
16.1.10.5.1. Marketing Strategy
17. Assumptions & Acronyms Used
18. Research Methodology
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Legal Services Market
