Global Legal Technology Market Size, Share & Industry Trends Analysis Report

Global Legal Technology Market Size, Share & Industry Trends Analysis Report By Solution (Software (On-premise and Cloud), and Services), By End User (Law Firms, Corporate Legal Departments, and Others), By Type, By Regional Outlook and Forecast, 2023 - 2030

The Global Legal Technology Market size is expected to reach $45.1 billion by 2030, rising at a market growth of 9.3% CAGR during the forecast period.

Asia Pacific is the fastest growing region due to the legal sector's expanding use of artificial intelligence and machine learning technology. Consequently, Asia Pacific would acquire approximately 22% share of the market by 2030. Many businesses in the Asia Pacific region are implementing the most recent technologies to handle document management, legal research, contract analysis & review, and other tasks. Additionally, the industry benefits from the expanding use of blockchain technology since it gives legal professionals the ability to handle duties like contract management and dispute resolution while also providing an immutable as well as a secure transaction record.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2023, Icertis revealed ExploreAI, its next-generation AI-powered contract intelligence partner. ExploreAI combines Icertis proprietary AI models and the power of large language AI models to derive insights from enterprise data, customer contract data, the Icertis Data Lake, and ChatGPT to provide new, powerful, material business outcomes. Additionally, In May, 2023, Everlaw, Inc. came into a strategic partnership with Sandline Global, a premier eDiscovery, iManage, and Litera service provider. The partnership enables the company to combine the strength of Sandline Global to create a unique and unparalleled offering for European clients.

Based on the Analysis presented in the KBV Cardinal matrix; RELX PLC is the forerunner in the Market. Additionally, In March, 2023, Casetext revealed CoCounsel, the first AI legal assistant. The new product leverages the most advanced large language model from OpenAI, which is customized by the company for legal practice. By delegating legal research, document review, deposition preparation, and contract analysis to an AI, CoCounsel allows attorneys to focus on the more impactful aspects of their practice. Companies such as Icertis, Inc., Filevine, Inc. and Casetext, Inc. are some of the key innovators in the Market.

Market Growth Factors

Rising need for data-driven decision making

Expert witnesses are crucial components of a case, and their skill, trustworthiness, or past experiences may impact how the case turns out. Researching and running an investigation on an expert witness is frequently difficult, laborious, and time-consuming, and getting even one element wrong can seriously hurt the case. When conducting witness research, AI-powered technologies can be useful since they give attorneys access to information such as the expert's qualifications, involvement in cases, media appearances, and real-time updates for the most recent data. Business excellence will depend on enabling organizations to detect, respond, learn, and evolve like living organisms. This is accomplished by a broad yet flexible portfolio of services.

Increasing awareness of the benefits of technology in the legal sector

Businesses are recognizing that with the aid of legal technology, the quality of legal services is increased, and routine administrative activities are avoided when information is processed quickly. They can monitor all the important data—including intakes, clients, billings, cases, and more—using artificial tracking systems and may analyze it in many ways. Having all the necessary information in one location helps the business foresee changes in the legal workflow and develop successful solutions. Thus, the growing inclination of businesses toward the product is accelerating market expansion rapidly, and this trend will continue in the coming years.

Market Restraining Factors

Lack of cooperation and innovation in the legal sector

A significant hindrance to advancement is the market leaders' lack of genuine innovation, especially regarding case management software. Case management software is essential for efficient and successful legal case administration. Even today, most cloud-based case management systems are still simple customer contact management systems (CRMs), according to industry experts. This dearth of innovation seems to be especially detrimental to case management. As a result, most practices haven't been able to advance and adapt to the shifting demands of the legal sector. Hence, the aforementioned factors may become a hindrance to market expansion in the coming years.

Solution Outlook

Based on solution, the market is characterized into software and services. The software segment garnered the highest revenue share in the market in 2022. The expansion is linked to the growing use of legal software by legal departments as well as law firms to cut costs, improve efficiency, and streamline operations. The industry is expected to see profitable growth prospects by incorporating cutting-edge technologies like artificial intelligence, machine learning, and blockchain technology.

Software Outlook

The software segment is further bifurcated into cloud and on-premise. The on-premise segment acquired the largest revenue share in the market in 2022. With an on-premise solution, organizations have direct control over their data and can implement security measures. This is particularly important for industries and organizations with strict data privacy and security requirements, such as law firms handling sensitive client information or government agencies dealing with classified data. On-premise solutions allow organizations to ensure compliance with specific regulatory requirements or industry standards.

Type Outlook

On the basis of type, the market is classified into e-discovery, legal research, practice management, analytics, compliance, document management, contract lifecycle management, time-tracking & billing, and others. The contract lifecycle management segment procured the highest revenue share in the market in 2022. Software for contract lifecycle management handles all aspects of managing contracts, from initial contract drafting to execution, continuous management, and ultimate expiration or renewal. Businesses increasingly need to handle contracts more effectively and efficiently, which has led to a rise in the segment in the market.

End-User Outlook

By end-user, the market is divided into law firms, corporate legal departments, and others. The corporate legal departments segment procured a significant revenue share in the market in 2022. Corporate legal departments are placing a high priority on reducing the amount they spend on outside counsel and introducing timesaving technologies to streamline manual processes and workflow. This is because, in the past, many attorneys stated that their department's pace of technological and procedural advancement was either slow, having few changes implemented each year, or nonexistent, despite the continuous prioritizing of technology investment.

Regional Outlook

Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment acquired the maximum revenue share in the market in 2022. The region is expected to experience significant growth due to rising automation through the use of machine learning and artificial intelligence, along with rising acceptance of cloud-based applications as they offer cost-effectiveness, scalability, as well as flexibility, providing various growth opportunities for the market. The development of legal technology in North America is also anticipated to be fueled by the incorporation of blockchain technology, which will provide transparency as well as secure legal transactions.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Icertis, Inc., DocuSign, Inc., Knovos, LLC, RELX PLC (LexisNexis Risk Solutions, Inc.), Filevine, Inc., Casetext, Inc., ProfitSolv Corporation, Anaqua, Inc. (WiseTime), Paradigm and Everlaw, Inc.

Recent Strategies Deployed in Legal Technology Market

Partnerships, Collaboration and Agreements:

May-2023: Icertis, Inc. joined hands with PwC and Microsoft, a leading developer of personal-computer software systems and applications. The collaboration would enable the company to boost value for enterprise organizations around the world by combining the expertise of Microsoft, PwC, and Icertis in contract management, artificial intelligence, and business transformation.

May-2023: Everlaw, Inc. came into a strategic partnership with Sandline Global, a premier eDiscovery, iManage, and Litera service provider. The partnership enables the company to combine the strength of Sandline Global to create a unique and unparalleled offering for European clients.

Jun-2022: DocuSign announced the expansion of the partnership with Microsoft, a leading developer of personal-computer software systems and applications. With this partnership, both companies aimed to provide new integrations and capabilities which would enhance their customer experience by providing them the ability to prepare, sign and manage agreements in the cloud, from practically anywhere.

Jan-2022: Icertis, Inc. expanded its partnership with SAP SE, a provider of enterprise application software and software-related services. Through this partnership, the company would be able to bring its AI-powered, best-of-breed contract intelligence to the market and help the organizations to increase efficiency and minimize risk by offering enhanced contract management.

Nov-2021: Icertis, Inc. formed a partnership with Accenture, an Irish American company, specializing in information technology services and consulting. The partnership would bring the contract intelligence technology of the company with Accenture's digital transformation capabilities which would enable the company to help organizations turn contract management into a strategic business function.

Product Launch and Product Expansions:

May-2023: Icertis revealed ExploreAI, its next-generation AI-powered contract intelligence partner. ExploreAI combines Icertis proprietary AI models and the power of large language AI models to derive insights from enterprise data, customer contract data, the Icertis Data Lake, and ChatGPT to provide new, powerful, material business outcomes.

May-2023: LexisNexis Legal and Professional, part of RELX Group, unveiled Nexis Hub. The new solution was launched to meet the demand of busy professionals to help them streamline the complicated and time-consuming process of collecting research and creating reports. Nexis Hub simplifies the research workflow, allowing users to collect and organize information into accessible, editable reports.

Apr-2023: Filevine announced the launch of Demands.ai, a new embedded service. Demands.ai manages secure data, all within Filevine, while minimizing the risk of human error and associated fees. The launch of the new service is aimed to leverage technology on behalf of Filevine-certified demand-drafting partners, securely engaged and AI-augmented, to assemble and deliver demands in record time. Once complete, the demand will go back to the requesting lawyer for final review.

Mar-2023: Casetext revealed CoCounsel, the first AI legal assistant. The new product leverages the most advanced large language model from OpenAI, which is customized by the company for legal practice. By delegating legal research, document review, deposition preparation, and contract analysis to an AI, CoCounsel allows attorneys to focus on the more impactful aspects of their practice.

Oct-2022: Icertis launched the Icertis Contract Intelligence solution for banking and financial service. In addition to contract types and rules to identify obligations, the solution also includes workflow and reporting capabilities to support business processes across front, middle, and corporate offices within the Banking and Financial Services industry. The solution would help teams increase business velocity while managing risk and improving regulatory compliance to obligation areas like AML, ISDA credit support, and credit risk reviews.

Oct-2022: LexisNexis Risk Solutions, part of RELX Group, launched LexisNexis Gravitas Network, a fully interoperable real-world data hub. The new product offers access to de-identified, clinically curated data that can be linked with unparalleled precision using patent-pending technology which would enable researchers to find the insights they need to efficiently develop effective and safe treatments for the people who need them most.

Jun-2022: Casetext unveiled AllSearch, a concept-based document search tool. The AllSearch tool is built on neural nets, an emerging form of AI. The new tool enables a new level of search for litigators to enable them to find what they need faster and more reliably.

Mar-2022: Knovos released a new update to its Knovos Discovery. The new chat or Instant Messaging (IM) data discovery is added to its flagship eDiscovery technology. With this enhancement, the company aimed to support customers' litigation, internal investigation, and compliance efforts.

Acquisitions and Merger:

Nov-2022: LexisNexis Legal & Professional, part of RELX, took over IPlytics, a leading IP intelligence company. Through this acquisition, Plytics platform will become part of the LexisNexis Intellectual Property workflow and analytics solutions portfolio. Moreover, the company would be able to deliver high-quality, business-critical standards-related insights to its customers worldwide.

May-2022: LexisNexis Legal & Professional acquired Parley Pro, a top Contract Lifecycle Management (CLM) solution. The acquisition of Parley complements the company's Enterprise Legal Management (ELM) platform, CounselLink by enabling more effective negotiation workflows and delivering the right contextual insights to inform better decisions and create value for the businesses.

Dec-2021: LexisNexis Legal & Professional completed the acquisition of Closd, a top-tier provider of legal transaction management in Europe. The acquisition of closd complements the organic growth-driven strategy of the company. Moreover, the analytics and workflow automation solutions of closd would be added to the existing business of the company.

May-2021: Filevine completed the acquisition of Outlaw, a contract management solution that streamlines the contract lifecycle for organizations. The acquisition enables the company to offer connected and seamless experience for legal teams and their clients and helps all legal practitioners focus on results rather than dealing with busywork.

Geographical Expansions:

Jun-2022: DocuSign expanded its footprint in EMEA by launching dedicated operations in these markets. With dedicated sales, marketing & customer success teams in both Italy and Spain, the company looks forward to helping organizations provide a safer, more reliable, and more efficient way of creating, signing, and managing their digital agreements.

Scope of the Study

Market Segments covered in the Report:

By Solution

• Software
• On-premise
• Cloud
• Services

By End User

• Law Firms
• Corporate Legal Departments
• Others

By Type

• Contract Lifecycle Management
• E-discovery
• Compliance
• Practice Management
• Document Management
• Legal Research
• Analytics
• Time-Tracking & Billing
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Icertis, Inc.
• DocuSign, Inc.
• Knovos, LLC
• RELX PLC (LexisNexis Risk Solutions, Inc.)
• Filevine, Inc.
• Casetext, Inc.
• ProfitSolv Corporation
• Anaqua, Inc. (WiseTime)
• Paradigm
• Everlaw, Inc.

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