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Legal Services Market: Information by Services (Taxation, Real Estate), Firm Size (Large Firms, Medium Firms), and Region — Forecast till 2030

Published At : 01 Aug, 2022
Updated At : 02 Aug, 2022
Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
5.25 %
Fastest Growing Market:
Asia Pacific
Largest Market:
North America

The global legal services market was valued at USD 901.78 billion in 2021. It is projected to reach USD 1,429.22 billion by 2030, growing at a CAGR of 5.25% during the forecast period (2022–2030). By Section 12 of the Legal Services Authority Act of 1987, Legal Services provides free legal aid to disadvantaged population segments. It also fosters legal knowledge and awareness through legal education camps, print media, electronic media, and arranging Lok Adalats for peaceful resolution of conflicts that are either pending or have not yet been filed by illustration. NALSA additionally takes essential measures using social action litigation concerning any unique issue. Legal services include helping recipients acquire their entitlements under numerous government programs, policies, and legislation.

Increasingly, law firms are embracing chatbots to optimize their work processes and save time and money for their clients. Among other tasks, chatbots can assist legal companies with the digitization of information and the search for lawyer-specific papers. Chatbots can also follow up with unresponsive customers and obtain the necessary information. Law firms are assisting their clients with improved information management and adoption of document automation software in legal services to lessen the risks and costs associated with compliance for their clients. Law firms are assisting their clients with better information management, opening the door for the adoption of document automation software in the legal services industry.

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Market Dynamics

Global Legal Services Market Drivers

Advancement in Machine Learning (ML) and Artificial Intelligence (AI)

Professionals can automate some activities with cutting-edge technology such as machine learning (ML) and artificial intelligence (AI), which frees up their time and resources to focus on more critical legal operations. Organizations can design and assess contracts, mine documents, and perform due diligence on them using these tools. Extensive data analysis is another field that is anticipated to have promising expansion potential. As a result, new companies like FiscalNote, Ravel Law, and InvestCEE Tanacsado Kft. have thrived by providing their clients with high-quality and cutting-edge analytical insights.

Usage of Legal Library Applications

Law firms and the general public now have easy access to legal services thanks to the widespread use of legal library applications like NotaryCam, iLegal, and LawSauce Legislation. Service providers may also offer in-house digital strategies to businesses to improve and modernize their operations and procedures. Law firms can learn about previously unknown correlations between the data when machine learning and artificial intelligence are applied to large datasets. This gives them a greater capacity to reduce risk, customize solutions, maximize delivery, and anticipate the outcomes of client requests. In addition, there has been consistent development in the utilization of cloud technology by legal departments and law firms over the past few years.

Global Legal Services Market Restraints

Overall Lack of Awareness

Another critical hurdle to the global legal aid movement is the inefficiency of the legal aid delivery system. Free legal aid must be made more appealing to lawyers, and a public awareness campaign must be launched to let people know it is available. The legal aid movement cannot achieve its objective if individuals are unaware of their fundamental rights. When the impoverished are unaware of their legal rights, they are vulnerable to exploitation and eventually robbed of the legal rights and benefits to which they are entitled. Therefore, improved public awareness and more effective delivery methods are essential for a successful free legal aid system.

Global Legal Services Market Opportunities

Providing Legal Advisory Services on Cybercrime

Due to the increasing prevalence of cybercrime, law firms worldwide now offer their clients cybercrime legal consultation services. Cybercrime refers to a crime that is perpetrated utilizing a computer and an internet connection. This encompasses internet and electronic device-based cyberstalking, counterfeiting, money laundering, embezzlement, fraud, and tax evasion. Cybercrimes are projected to cost the United Kingdom over USD 35 billion annually. Lawyers, consultants, and ethical hackers with experience in crisis management, online financial theft, data loss, data privacy, and intellectual property infringement are employed by legal firms that offer cybercrime consulting services. Latham and Watkins, DLA Piper, Skadden, Arps, Slate, Meagher, and Flom are large law firms specializing in data privacy and cybersecurity. The increased concern of enterprises and individuals around cybercrimes is anticipated to raise the global market for cybercrime legal consulting services.

 

Segmental Analysis of the Global Legal Services Market

The global legal services market is categorized into services, firm size, and end-users.

Based on service, the market is divided into taxation, real estate, litigation, bankruptcy, labor/employment, and corporate.

The corporate segment dominated the market, and a large proportion is attributable to the growth of new types of corporate finance transactions. Additionally, it is anticipated that during the forecast period, the corporate segment will predominate over all other service categories as disputes involving employee harassment, organizational discrimination audits, copyright violations, and patent infringement continues to rise. The increased demand for intellectual property-related services in the corporate sector is anticipated to boost the segment's growth.

The litigation area accounted for a significant revenue share as organizations continued to incur astronomical costs for litigation management. Moreover, the service providers involved in third-party legal financing and litigation funding are gradually expanding their global capacity and jurisdictional reach. This has provided several opportunities for providers of litigation services. Implementing rigorous regulations in labor relations and Intellectual Property (IP) protection has helped enhance the need for litigation services in developed and emerging nations.

Based on firm size, the market is divided into large, medium, and small firms.

The large firm segment dominated the market, which is attributable to large companies' diverse service offerings. The expansion of the large company sector is anticipated to be driven by the rising demand for corporate and judicial services from influential organizations during the forecast period. For example, most judicial work, such as big-scale litigations, substantial corporate transactions, and criminal defense proceedings, is performed by enormous firms in various industries. Similarly, medium- and small-sized legal services firms are expanding abroad by creating offices and recruiting attorneys worldwide. These firms generally target international clients to assist them with handling their legal needs. In addition, they are extending their global customer base by offering high-end specialist services involving complex transactions.

Based on end-user, the market is segmented into private practicing attorneys, legal business firms, and government agencies.

The legal business firms sector holds a substantial market share. Strategic investments made by legal service providers are responsible for this high proportion. Legal firms invest in business development strategies such as client education, pipeline management, community involvement, and public relations. Due to the sluggish market expansion throughout the years, some businesses have reduced their expenses or increased their prices to retain profitability. Additionally, law firms are starting to use predictive analytics tools to analyze massive databases to extract information, spot patterns, and forecast trends. Business organizations can improve their decision-making capabilities by utilizing predictive analytical technology. A U.S.-based software startup called Intraspexion, Inc. uses a deep learning model to counsel companies on potential legal issues and help them lower legal costs. An increasing need for Alternative Legal Services Providers (ALSPs) is a notable industry trend that is anticipated to motivate paralegals to launch new enterprises.

 

Regional Analysis of the Global Legal Services Market

The global legal services market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

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North America is the most dominant in the global legal services market. The increasing number of projects being undertaken by legal departments working in the corporate sector in the United States. The United States of America has quickly risen to the position of the leading country in the North American market because of the abundance of legal service providers available there.

In addition, there has been an increase in regional acquisitions and mergers, which has increased the demand for legal services. The Asia Pacific region accounted for a sizeable portion of the market because of the quick implementation of regulatory and legal requirements, particularly in China and India. For example, legal service providers in India have recently started providing their business customers with sophisticated cross-border judicial services, which has opened up significant prospects for economic expansion in the country.

 

Competitive Players in the Global Legal Services Market

The global Legal Services market’s major key players are Latham & Watkins LLP, Kirkland & Ellis LLP, DLA Piper, Baker & McKenzie, Dentons, Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates, Sidley Austin LLP, Morgan, Lewis & Bockius LLP, Linklaters LLP and Jones Day.

 

Recent Developments

  • June 2022- LATHAM advises VEON on DASTGYR’S series A, Cross-border team represents global digital operator of mobile connectivity and services.
  • June 2022- Kirkland Advises Allied on Strategic Investment in Waste Eliminator.
  • June 2022- Kirkland Advises Vance Street Capital on Extension of Investment in Motion Dynamics with Closing of Second Continuation Fund.
  • March 2022- Baker McKenzie Tops Brand Index in Mainland Europe and Asia-Pacific, Sees Big Jump in the U.S.

 

Global Legal Services Market: Segmentation

By Services

  • Taxation
  • Real Estate
  • Litigation
  • Bankruptcy
  • Labor/Employment
  • Corporate

By Firm Size

  • Large Firms
  • Medium Firms
  • Small Firms

By End-User

  • Private Practicing Attorneys
  • Legal Business Firms
  • Government Departments

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • LAMEA
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