Major players in the B2B legal services market are Latham & Watkins LLP, Kirkland & Ellis LLP, DLA Piper, Baker & McKenzie, Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates, Sidley Austin LLP, Morgan, Lewis & Bockius LLP, Linklaters LLP, Jones Day and Allen & Overy LLP.
The global b2b legal services market will grow from $431.6 billion in 2022 to $459.59 billion in 2023 at a compound annual growth rate (CAGR) of 6.5%. 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, causing inflation across goods and services effecting many markets across the globe. The b2b legal services market is expected to grow from $563.45 billion in 2027 at a compound annual growth rate (CAGR) of 5.2%.
The B2B legal services market consists of revenue earned by entities by providing services such as advising corporate clients on the body of law that governs disputes between businesses and representing corporate clients in civil cases, business transactions and other matters in which legal advice and other assistance are sought.Civil laws deal with disputes between private parties such as defamation, professional negligence, inheritance, breach of contract, property disputes and others.
This segment excludes legal services offered during disputes between businesses and individuals.B2B legal services are usually provided by commercial law firms.
Clients of commercial law firms include listed corporations, government institutions, small and medium-sized enterprises and high net worth individuals.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.
Business-to-business legal services essentially provide services when there is a dispute between two or more businesses or corporate entities, sole proprietors or firms, and another company or individual. Legal services are required for the smooth functioning of your business.
North America was the largest region in the b2b legal services market in 2022.Western Europe was the second largest region in b2b legal services market.
The regions covered in b2b legal services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main types of B2B legal services are civil or criminal, mergers and acquisitions, business transactions, and others.Mergers and acquisitions are deals in which two companies combine in some way.
In a merger, two companies of comparable size join forces to form a new corporate entity.An acquisition, on the other hand, occurs when a larger corporation acquires a smaller company, absorbing the smaller company’s business.
The services is divided into size of the law forms such as large law firms and small law firms and the services are used by listed corporations, government institutions, small and medium-sized enterprises, high net worth individuals, and others.
An Increase in the number of mergers and acquisitions contributed to the growth of the B2B legal services market.For completing mergers and acquisitions transactions, the companies require to consult legal firms for finalizing the deal.
According to Refinitiv data, the total value of disclosed pending and completed deals in 2021 has already surpassed $3.6 trillion year to date, surpassing the full-year total of $3.59 trillion in 2020. The increase in the number of mergers and acquisitions drove the B2B legal services market.
The shortage of skilled workforce in the industry is expected to limit the B2B legal services market.The effects of skilled workforce shortage are high turnover rate, ineffective staff management, increased business expenses, and loss of customers.
According to new study into the extent of the skills shortage conducted by The Lawyer in 2021, 58% of legal organisations are currently feeling the strain of a lack of competent workers. The shortage of qualified workforce reduces the effectiveness of the firms output and negatively affects B2B legal services market.
Legal service firms are using blockchain to provide a secure way to make transactions and record that transparently.Blockchain is open, distributed ledger that record transactions between the two association or companies efficiently and permanent way.
According to a law firm research report in 2020, 41% of law firms will employ blockchain in transactional legal services, 21% for business assistance, and the remaining 31% for high-value legal services.Smart contracts are created digitally and verifiable since they are on the blockchain.
Smart contracts help lawyers spend more time on legal advising instead of drafting legal documents.For instance, Chainlink is a start-up that developed technology that relies on data from multiple sources and makes smart contracts more attractive.
Blockchain and smart contracts offer several advantages such as secure transactions, transparent records, less paperwork, and more time for advising clients.
In January 2020, UK based law firm DWF acquired Chicago-based managed services business Mindcrest for a deal amount of $18.5 million. DWF gets a readymade low-cost legal center through this acquisition that will bolt on to the existing managed legal services capabilities. Mindcrest provides litigation support, contracts, compliance, and legal analytics for corporate clients.
The countries covered in the B2B legal services market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.