Legal Services Market Size, Share & Growth | Forecast [2031]

Report Description

The Global Legal Services Market size was valued at USD 860.10 Billion in 2022 and is expected to surpass USD 1229.50 Billion by 2031, expanding at a CAGR of 4.05% during the forecast period, 2023–2031. The growth of the market is attributed to increasing use of modern technology in legal services.

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Legal Services Market Trends, Drivers, Restraints, and Opportunities:

• Increasing use of artificial intelligence in legal services is estimated to transform the judicial profession.

• Artificial intelligence software controls natural language processing and helps analyze legal documents. This is driving the market.

• Use of web-based technologies allows legal professionals to work online from remote locations. This is estimated to boost the market.

• The comfort of working remotely is offering professionals an alternative method of practicing law and nurturing an optimal work-life balance.

• Legal service organizations are collaborating with virtual assistant providers to hire a virtual assistant, who can help in practicing law. This is anticipated to fuel the market.

• Virtual assistants help companies to minimize overhead costs incurred on sick leave entitlements, payroll taxes, and staff training.

Scope of Legal Services Market Report

The report on the legal services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Legal Services Market Segment Insights

The litigation segment held more than 27% share of the total revenue in 2018

Based on services, the global legal services market is segregated as real estate, taxation, litigation, labor/employment, bankruptcy, and corporate. The litigation segment is expected to expand at a rapid pace during the forecast period. Service providers involved in third-party litigation and legal financing are gradually expanding the number of their authorities and building global capacity. Demand for legal services associated with litigation is increasing, as strict regulations affecting areas such as intellectual property and labor relations protection, are imposed in developing and developed countries.

The taxation segment is expected to expand at a high CAGR during the forecast period. Changes in taxation rules are projected to have a significant effect on the economic growth of developing and developed countries. Several key players have started providing a myriad of tax advisory services to fulfill judicial and tax needs of the businesses.

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The large firm segment held a key share of around 40% of the total revenue in 2018

On the basis of firm size, the global legal services market is fragmented as small, medium, and large. The large firm segment is projected to expand at a rapid pace during the forecast period. This segment handles most of the judicial work such as criminal defense matters, large scale litigations, and major business transactions for companies. Increasing demand for corporate judicial services from large enterprises is anticipated to boost the segment during the forecast period.

Medium and small-size firms are opening offices globally and employing lawyers from all over the world. These firms mostly approach global clients to help them handle their legal obligations. They offer specialized services including complex transactions to broaden their global reach.

The legal business firm segment held a key share of more than 45% of the total revenue in 2018

In terms of providers, the global legal services market is segregated as legal business firms, private practicing attorneys, government departments, and others. Legal business firms find it difficult to maintain profitability, as the growth of the market is declining in the last few years. Therefore, legal companies are reducing their expenses or increasing their rates. They are participating in business development strategies such as pipeline management, client education, local community activities, and public relations. Legal service companies are using analytical tools to analyze huge datasheets for determining patterns, extracting information, and predicting future trends and outcomes.

The market in North America held a key share of the total revenue in 2018

On the basis of regions, the global legal services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to expand at a high CAGR during the forecast period. The US contributes majorly to the growth of the regional market. Growing work dimensions within legal departments of corporate companies in the US are demanding alternative ways to minimize workload of legal service providers.

Growing market share of Asia Pacific is attributed to firm implementation of judicial requirements, particularly in developing countries such as China and India. Legal service companies such as Allen & Overy LLP, Venable LLP, and Baker and McKenizie have started establishing their presence in India, which in turn, is expected to boost the regional market.

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