Market Size & Growth:

The legal industry is a mature and highly competitive market in developed economies such as Europe and North America. The global legal services market size was valued at $901.8 billion in 2020 and is expected to grow at a CAGR of 4.8% from 2021 to 2028. The US legal services industry includes about 180,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $300 billion. The 2023 Report on the State of the Legal Market shows that the legal demand faltered and other key metrics remain mixed, uncertainty in 2023 may cloud law firms leaders’ thinking.

Market Drivers & Challenges:

The legal industry is highly competitive, and law firms must compete in several ways to gain a share of the market size.Law firms are also facing challenges related to the rise of alternative legal service providers (ALSPs) and disruptive technologies such as legal technology and artificial intelligence.

Key Players:

The legal industry involves many parties working together, including law firms,legal staffing and administration, and legal technology providers. Some of the key players in the industry include:

Law firms: Baker McKenzie, Kirkland & Ellis, Latham & Watkins, Skadden Arps, Allen & Overy, Clifford Chance, Dentons, DLA Piper, Freshfields Bruckhaus Deringer

Legal Technology Providers: MyCase, LawPay

Outlook:

The legal industry is expected to continue growing, with the global legal services market size expected to grow at a CAGR of 4.8% from 2021 to 2028. The industry is constantly being reshaped by disruptive technologies such as legal technology and artificial intelligence. The legal industry is also expected to face challenges related to depressed market conditions driven by inflation, market volatility, and labor pressures Law firms must compete in several ways to gain a share of the market size, including providing first-rate customer service and an integrated legal experience. The legal industry is also expected to experience a paradigm shift, which will be sudden and will challenge the economic model of law firms.