Summary
Major companies in the legal services market include 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.
The global legal services market grew from $787.28 billion in 2022 to $838.92 billion in 2023 at a compound annual growth rate (CAGR) of 6.6%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, and affecting many markets across the globe. The legal services market is expected to grow from $1,034.52 billion in 2027 at a CAGR of 5.4%.
The legal services market consists of revenue earned by entities by providing services such as advising clients (individuals, businesses or other entities) about their legal rights and responsibilities, and representing clients in civil or criminal cases, business transactions and other matters, in which legal advice and other assistance are sought.Legal services undertake processes where human capital is the major input.
They make available the knowledge and skills of their employees, often on an assignment basis, where an individual or a team is responsible for the delivery of services to the client.The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
Legal services refers to any service related to the conduct of any case or other legal proceeding before any court, different authority, or tribunal, as well as the provision of legal advice. Legal service is regarded as central in providing access to justice by ensuring equality before the law, the right to counsel and the right to a fair trial.
North America was the largest region in the legal services market in 2022.Western Europe was the second largest region in the legal services market.
The regions covered in the legal services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main types of legal services are B2B legal services, B2C legal services, hybrid legal services, and criminal law practices.Commercial law firms typically provide B2B legal services.
Listed corporations, government agencies, small and medium-sized businesses, and high-net-worth individuals are among the clients of commercial law firms.The different types of practises include litigation, corporate, labor/employment, real estate, patent litigation, tax, bankruptcy, others (regulatory, M&A, antitrust, environmental) and involve various company sizes, such as large law firms, SME law firms.
The several sectors include individuals, financial services, mining and oil & gas, manufacturing, construction, IT services and others.
Globally, changes in political structures, legal reforms, and trade agreements are creating opportunities for law firms.International companies and organizations are bound to comply with various laws and regulations of different countries and specific trade agreements.
Changes in the legal structure of intrastate agreements increase the demand for legal services.For instance, the UK’s exit from the European Union is expected to increase the demand for legal services due to the complexity of the regulatory and legislative changes pertaining to jurisdiction, judicial structure, and trade.
Law firms such as Dechert, Simmons & Simmons, Clifford Chance, and DLA Piper have set up specialized BREXIT teams and hotlines staffed with lawyers to help clients with a smooth transition. Going forward, the USA’s withdrawal from the Trans-Pacific Partnership, the Paris Agreement, and the Korea trade deal is expected to further drive the demand for legal services in the future.
The outbreak of COVID-19 Pandemic (COVID-19) has acted as a restraint on the legal services market in 2020 as governments globally imposed lockdowns and restricted trade, thereby limiting the need for professional services.COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty breathing.
The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and has spread globally, including Western Europe, North America, and Asia.Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of "lock down" and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021.
However, it is expected that the legal services market will recover from the shock over the forecast period as it is a "black swan" event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Due to the increasing incidence of cybercrime, law firms around the world are offering cybercrime legal consulting services to their clients.Cybercrime refers to a crime that is committed using an internet connection and a computer.
This includes cyber-stalking, counterfeiting, money laundering, embezzlement, fraud, and tax evasion using the internet and electronic devices.In the UK alone, around $35 billion is the estimated annual cost of cybercrime.
Law firms offering cybercrime consulting services employ lawyers, consultants, and ethical hackers who are experienced in handling crisis management, online financial theft, loss of data, data privacy, and intellectual property infringement.Large law firms practicing in the field of data privacy and cybersecurity include Latham & Watkins, DLA Piper, and Skadden, Arps, Slate, Meagher & Flom.
Global demand for cybercrime legal consulting services is expected to rise as organizations and individuals become more concerned about cybercrime.
The countries covered in the legal services market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The legal services market research report is one of a series of new reports that provides legal services market statistics, including legal services industry global market size, regional shares, competitors with a legal services market share, detailed legal services market segments, market trends and opportunities, and any further data you may need to thrive in the legal services industry. This legal services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
