LEGAL SERVICES MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

LEGAL SERVICES MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Law is one of the most used services in the service industry. The market share of legal services in the services market is over 40% and generates the highest revenue. Legal services specialize in various fields, including taxation, finance, corporate affairs, litigation, conflicts, copyrights, patents, antitrust, property, arbitration, labor, political, and charity, all of which depend on law expertise for advisory or representation.

Key Highlights

• The legal services market has a dynamic, fast-changing environment due to a combination of technology and globalization. Cybersecurity and data privacy and media and technology are the two major practices in the legal services market.
• The overall changes in the legal services industry may introduce high price-pressure on lawyers who have enjoyed a relatively stable and protected type of business. For example, it is anticipated that changes in this industry will force lawyers to offer fixed price deals, rather than an hourly-based billing system
• Outsourcing of the legal services market is anticipated to grow more rapidly, with the introduction of more secure/confidential procedures to the process. Globalization also plays a critical role in defining the future outlook of the legal services market. Legal firms have globalized to provide legal services to multinational customers.

Key Market TrendsLeading Accounting Firms Providing Legal Services

The accounting firms are extending their services to legal services, which is a major trend in the market studied. This is because clients prefer a one-stop destination that provides all the services needed over different firms for different services. This enables firms to have a better understanding of the client's business and provide the best possible solutions, considering various aspects of the firm. The four leading firms in the market studied, namely, KPMG, Deloitte, PricewaterhouseCoopers (PwC), and EY, have been expanding their legal service offerings throughout Asia, Europe, Latin America, and the Middle East.

The majority of law firms are struggling to cope with the increased competition from these accounting firms, as the total number of legal service professionals hired by these firms grew by 50% in the last 15 years. Deloitte offers its legal services in several countries, while KPMG announced its intentions to almost double its market in the next few years.

Growing Awareness Regarding Regulated Legal Services

Legal services are extremely mature in the developed markets of Europe and North America, and quite misinformed and expensive in the non-developed regions, such as Asia and Africa. However, there are still a few misconceptions about legal services in Europe. The biggest misconception is that all law firms are regulated. In 2013, 67% of clients were of the idea that legal services are regulated. However, this number drastically reduced in 2018, reaching 50%. This only indicates that an increasing number of customers do their research before approaching a law firm or solicitors. The majority of firms choose not to be regulated to avoid being constrained by the outdated bureaucracy and provide the best customer-centric solutions.

Unregulated law firms hinder the confidence of clients, especially small businesses and general population. Only 10% of clients who are seeking legal aid prefer regulated services, while the majority of them still consider price as the number one factor, along with the quality of services over regulatory protection. However, premium clients, like large multi-national corporations may still prefer regulatory protection before any other parameter.

Competitive Landscape

The competitive landscape analysis provides detailed strategic analysis of the company’s business and performance, such as financial information, revenue breakup by segment and geography, risk analysis, key facts, company overview, business strategy, key product offerings, marketing and distribution strategies, new product development, and recent news.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Kirkland & Ellis LLP
Latham & Watkins LLP
Baker McKenzie
Skadden, Arps, Slate, Meagher & Flom
Clifford Chance
DLA Piper
Allen & Overy
White & Case
Sidley Austin
Norton Rose*

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